Tangible property other than land, buildings, improvements other than buildings, or infrastructure with a unit cost (including ancillary costs) of $5,000 or more which is used in operations and with a useful life of more than one year. Equipment may be attached to a structure for purposes of securing the item, but unless it is permanently attached to, or an integral part of, the building or structure, it is to be classified as equipment and not buildings.
Assets acquired by gift, donation, or payment of a nominal sum, which is not reflective of the assets' true market value.
The custodian/user is the name of the person currently using the asset. The custodian is not the person that has the ultimate responsibility for all department assets (chair or administrator) or the person responsible for inventorying the assets. One exception is computer labs, where the custodian may be the name of the lab manager. The custodian must be a person not a job title or location.
Assets that meet the state's capitalization policy such as land, improvement to land, easements, buildings, leasehold improvements, vehicles, machinery, equipment, works of art and historical treasures, infrastructure, and all other tangible or intangible assets that are used in state operations and that have initial useful lives extending beyond one year. Capital assets do not include depletable resources such as minerals or timber.
Costs that are directly attributable to asset acquisition, such as freight and transportation costs, site preparation costs, installation costs and professional fees, that are necessary to place a capital asset into its intended state of operation. Ancillary costs are capitalized as part of the cost of a capital asset.
Please visit the Post Award Fiscal Compliance page for information on disposing of these assets.
Check award documentation to see if VAT is or is not allowable:
For any awards from NIH or other DHHS agencies (CDC, HRSA, etc.), the VAT would not be allowed because the foreign component of those awards is significant. VAT would need to be paid from non-sponsored funds. See sample NIH language below:
No. If the welder is not going to be part of the final fabricated piece, it does not qualify. All M&E Exempt equipment must be used directly on research at least 50% of the time.
No, you are not required to reallocate the cost of the equipment. Most sponsors allow for equipment to be used by other Awards. Federal regulations, in particular, allow for equipment to be used by other Awards without having to reallocate the cost or obtain sponsor approval (click here for more information). For non-Federal Awards, review the Award requirements to determine if cost allocation is required. Keep in mind that such cost allocations present both a high risk transact
Yes. The exemption applies to both "sales to" and "use by" a public research institution of machinery and equipment used primarily in a research and development operation."