To: IN21437 --POST

 *** Reply to note of 12/06/95 19:02
 From: Norm Meeks (xxxxxx@mayo.edu)
 Subject: Re: Equipment Use Charges on Grants/Contracts
 There is really a two part answer to the question being discussed.  Typically,
 any equipment cost is recovered via the indirect cost rate via the use/deprecia
 tion method under the equipment component.  However, if the equipment facility
 or item is particularly unique or expensive, the institution can take the initi
 ative and characterize the item as a specialized service facility under A-21
 and calculate a use charge for ALL USERS.  The intent of a specialized service
 facility is that over a period of time, the charges will balance off the expens
 e of maintaining the specialized service facility; a breakeven if you will.

 Newness of an equipment item would not be a determining factor.  If an item of
 equipment is purchased, it would go into the equipment pool and the cost recove
 red in that manner or into a specialized service facility and the cost recovere
 d in that manner.

 Norm Meeks
 Mayo Foundation
 507-266-4884
 xxxxxx@mayo.edu