Cost Re-Allocation for Federal Award Equipment

The cost of equipment should be allocated to each funding source that will use the equipment at the time of purchase. The costs do not need to be re-allocated throughout the Award period or life of the equipment, if actual usage changes.

Federal regulations allow for other use of the equipment in the following order of preference:  

  • Award under which the equipment was purchased
  • Awards funded by the same Awarding agency (e.g., if the original Award is NIH, then the equipment could be used on other NIH awards)
  • Other projects/programs supported by the Federal Government
  • Other non-federal projects/programs

2 CFR 200.313 Equipment has more information.

Re-allocation of the cost of the equipment to other Awards is not necessary for these reasons:

  • Increases administrative burden
  • Creates an audit risk
  • May result in over-allocation


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