Budget - Equipment and Other Capital Expenditures - B05.03
Purpose
The purpose of this procedure is to outline the proper handling of Equipment costs on sponsored projects. For Federal grants OHIO will ensure compliance with OMB Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, 2 CFR §200.439 Equipment and Other Capital Expenditures.
Scope
This procedure applies to all sponsored projects subject to OU Policy 19.045 Administering External Grants and Contracts set up as separate accounts in the OHIO Financial Management System (FMS). All individuals with the administration and conduct of sponsored award activities, including central and departmental sponsored project administrators, principal investigators, and other research personnel are responsible for adhering to this procedure.
Procedure
Equipment must meet the threshold of $5,000 or greater and having a useful life of one year or more to be categorized equipment for the purposes of calculating the indirect cost. Equipment that meets the threshold is exempt from indirect cost under the Modified Total Direct Cost (MTDC) method.
Purchases that do not meet the threshold to be categorized as equipment in the budget will be included in the supplies or other operating costs categories. These items are not exempt and are therefore subject to indirect costs.
Equipment Transfer to OHIO
When transferring equipment to Ohio University with the transfer of a grant, the equipment must be tagged upon receipt. The transferring PI/PD will notify their Business Unit Manager of all equipment being transferred to Ohio University from another institution.
Equipment Transfer from OHIO to Another Institution
Generally, the only time equipment is transferred from OHIO to another institution is when the PI/PD separates from the Institution. Refer to the PI separation procedure for more information on how to transfer equipment.
Fabricated Equipment
Individual components that when put together create a single unit that meets the threshold of $5,000 or greater and having a useful life of one year or more must be included in the equipment budget category. It is the responsibility of the PI/PD to notify Grants Accounting when the fabrication is complete (Refer to policy 19.054 Equipment Inventory Control).
General Purpose Equipment
Equipment which is not limited to research, medical, scientific or other technical activity (i.e., office equipment and furnishings, modular offices, telephone networks, information technology equipment and systems, air conditioning equipment, reproduction and printing equipment, and motor vehicles (2 CFR §200.48)) are generally not allowed. Always refer to the sponsor guidelines for allowability before including general purpose equipment on a grant.
Special Purpose Equipment
Equipment which is used only for research, medical, scientific, or other technical activities (i.e., microscopes, x-ray machines, surgical instruments, and spectrometers (2 CFR §200.89)).
Questions
Training is available through ORSP upon request. Submit request for training to ORSP@ohio.edu.
Forms/Templates
Contact your Sponsored Programs Manager for the appropriate budget template
Roles and Responsibilities
OWNER: PI/PD
CONTRIBUTOR: ORSP, CFAO/BUM
APPROVER: Department Chair, Dean
References
OMB Uniform Guide 2 CFR §200.439 Equipment and Other Capital Expenditures
OU Policy 19.054 Equipment Inventory Control