No. Due to compliance issues, M&E purchases cannot be purchased using the ProCard. 

Yes, but the department will need to cancel the current purchase requisition and re-enter a new purchase requisition using the correct object code(s).

No. The exemption as stated in the law is for 'new purchases' only. M&E Exemption must be requested and approved prior to purchase. The University does not retroactively allow purchases to qualify.

The threshold for the M&E Tax Exemption is $200. We are not required under the RCW to use the UW's capitalization threshold of $5,000. The equipment:

• Must have a useful life of more than one year
• Must be directly used more than 50% of its useful life on qualifying research; and
• Must have an acquisition cost of more than $200

Note:  Add costs to existing pieces of M&E qualifying equipment can also qualify for the exemption, even if they are under $200.

University Depreciation - The University has a $5,000 capitalization threshold and therefore depreciates all equipment over $5,000.  The University’s fixed asset system, OASIS, calculates these “official” depreciation amounts which are used in the University’s financial statements, State reporting, and the F&A process.  These depreciation figures are recorded at a high level on an annual basis and are not posted to the individual departmental budgets.

For questions related to the recharge rate, please contact MAA  - Recharge and Cost Center Accounting  recharge@uw.edu.

In discussions with the State Office of Financial Management and auditors it was determined that $1 million was the appropriate capitalization threshold for these assets. This balances the benefit of tracking the assets with the cost of tracking the assets. For example, to arrive at the cost of software generated by University personnel it would be necessary for employees to track the time spent in development of an approved project. Costs incurred prior to project approval and for program implementation would have to be expensed.

Intangible assets are capital assets that have the following characteristics:
Lack physical substance
They are not financial instruments such as: cash, investments and receivables
Initial useful life greater than 1 year
Examples: easements, water rights, patents, trademarks, computer software (not the transmission media, just the programming)

The University is subject to accounting standards developed by the Governmental Accounting Standards Board. In June 2007 the board issued standard number 51, Accounting and Financial Reporting for Intangible Assets that is effective as of July 1, 2009. Failure to comply with the accounting standard could result in a unfavorable audit opinion by auditors. This would adversely impact the University's reputation with legislators, grantors, donors and creditors.

The revenue source code tells the funding source of an expenditure. If it is 01 through 60, then the expenditure was federally funded. If it's 00 or 61 through 99, then the expenditure was state funded (this includes start up funds and anything not federal/agency).