The University must exercise proper control over its assets.  Items on the equipment inventory must be physically verified at least once every two years, according to University policy.  Federal regulations require that items that are federally titled must be physically verified at least once a year.

Effective 7/1/2016 the UW will no longer be required to inventory items with a previously acquired value under $5,000 that are still depreciating.

The UW’s cognizant federal agency (DHHS) is currently reviewing our disclosure statement and will be providing guidance with the upcoming rate agreement.  We have requested that the new equipment threshold and effective date be added to the equipment section of our F&A rate agreement.

No.  Unless an industry sponsor specifically publishes which direct costs must be excluded from F&A, you should use Total Direct Costs (TDC) as the base.  For more information, please see GIM 13.

https://www.washington.edu/research/osp/gim/gim13.html

No, an F&A waiver is not the appropriate method to meet the total cost dollar cap amount.  If your sponsor imposes a total cost dollar cap, you must budget within that cap consistent with University policy.  You may want to consider seeking additional funding to meet your budget needs or reduce the scope of work.

Yes, when equipment fabrication costs total $5000 or more, those costs are excluded from F&A.  Please see the Equipment Inventory Office instructions on equipment fabrication for more details.

The financial system is set up with indirect cost base codes to inform the correct application of F&A.  When F&A is calculated, it is applied to those direct cost object codes that are subject to the F&A base.  The base code for Modified Total Direct Costs (MTDC) will be changed to reflect that equipment costs under $5,000 for grandfathered budgets are not charged F&A.  Only tangible items of personal property (greater or equal to $5,000) that meet the UW definition of equipment should be classified with an object code within the “06” range.  

Please check the applied Base Type selected for the budget in question.  The base type determines whether the new “05” codes are excluded from the base and therefore not charged F&A or whether the “05” object code is included in the base and therefore charged F&A.  Possible Base Types include:

Beginning 7/1/2016, two new object codes will be available for equipment purchases of $2,000 - $4,999 for grandfathered award budgets.  These new object codes will replace the existing “06” object codes for specific equipment purchases with a cost of $2,000 - $4,999. (See the grandfathered award object code chart below)

• 05-47 non-capitalized equipment ($2,000 - $4,999) – grandfathered awards
• 05-48 non-capitalized equipment M&E tax exempt ($2,000 - $4,999) – grandfathered awards

If the budget is prepared and submitted to the sponsor on or after May 1, 2016, the cost of the microscope must be reflected in supplies (object code 05-40 or 05-41) and included as a direct cost to which F&A will be charged.  For more information on F&A base exclusions, please see GIM 13.

If the request will be submitted to the sponsor before May 1st, use the $2000 threshold.  If the request will be submitted on or after May 1st, use the new $5000 threshold.  When the funding arrives in response to this request, it will be “separated” from the existing award through use of a sub-budget.