When you switch values for defining equipment, apply the change across the
board on the effective date.  All proposals thereafter (and any that are
earlier once you know the date of the new value), and all acquisitions (no
matter how defined in the proposal) use the new value for separating
equipment from supplies.  That means that after the change date the amount
of data flowing into your Equipment Records drops, reducing your tracking
efforts.

It can be seen as very unfair to PI's to start charging F&A that was not
budgeted for!   So you may want to consider an internal policy about how
you will handle rebudgeting, because the original budget showed no F&A
expense for an equipment item costing less than $5000, but acquiring it as
a supply will now allow F&A to be charged.  Consider creating a "no F&A on
what was awarded as equipment but now falls into supplies" holiday until
the next budget period that shows equipment at the new value.   The "no
F&A" holiday could be applied to all awards originally budgeted at the
lower equipment value, or you could require an internal justification on a
case-by-case basis.

Chuck

At 11:03 AM 7/6/2004, you wrote:
>Materials and supplies is where small equipment items ususally will
>go.  Other is usually for services rather than tangible items.
>
>Jennifer Morgan, MHA
>
>Vice Chair for Research Administration
>Department of Psychiatry and Behavioral Science
>
>Southern Section President
>Society of Research Administrators International
>
>Medical University of South Carolina
>67 President Street, Suite 504
>Charleston, South Carolina  29425
>
>voice:  843-792-0191
>fax:  843-792-0048
>email:  xxxxxx@musc.edu
>
>
> >>> xxxxxx@OLEMISS.EDU 07/06/04 10:47AM >>>
>Our institutional policy previously described permanent equipment as any
>items we kept on equipment inventory, so many items with a purchase
>price of less than $5000 were listed as equipment in our proposals.
>
>We are now changing that policy to be in line with OMB A-21 definitions;
>that is, we will be defining permanent equipment at the greater than
>$5000 level.
>
>Our question is:  In budgeting for NSF proposals, how do we deal with
>non-expendable items of equipment valued at less than $5000?  Materials
>and supplies does not seem appropriate.  Should such items appear under
>item G.6 Other Direct Costs?
>
>Thanks in advance.
>
>________________________________________
>Mickey McLaurin
>Program Development Specialist
>Office of Research and Sponsored Programs
>The University of Mississippi
>125 Old Chemistry
>University, MS 38677
>(662) 915-7482
>(662) 915-7577 Fax
>xxxxxx@olemiss.edu
>
>
>
>
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Herbert B. Chermside, CRA
Special Asst. to VP-Research
Virginia Commonwealth University
PO BOX 980568
Richmond, VA  23298-0568
Voice:  804-827-6036
Fax     804-828-2051
e-mail xxxxxx@vcu.edu

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