Equipment Definitions

General Purpose Equipment
Non-Computer Equipment
Computer Equipment
Capital Equipment
Fabricated Equipment

General-Purpose Equipment:

Equipment that can be used for other than scientific purposes, such as microwave or a refrigerator, are not allowed on federal funds, unless the equipment is solely used for the actual conduct of the research. Detailed explanation of item must be included on the order request. General office appliances (refrigerator, microwave, etc.) for non- research use are not allowed to be purchased on any University funds for use in private offices.

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Non-Computer Equipment:

The definition varies from agency to agency, but in general, non-computer capital equipment is defined as an item that costs more than $5,000.00, is complete in itself and has a useful life of two years or more. Generally, items that are consumable or less than $50 are considered supplies.

• $1 to $999 is object code 455
• $1,000 to$4,999 is object code 459
• $5,000 or greater is object code 710
• $50,000 or greater requires Pre-acquisition Screening: Federal regulations require that acquisition of equipment costing $50,000 or more must be screened to assure that similar equipment is not available for use. The rationale for these regulations is that shared use of existing equipment promotes availability of equipment on campuses, reduces unnecessary duplication of equipment, and consequently, frees funds to be used in other categories of expenditure or for other projects. Equipment $50,000 but less than $100,000 is screened by the College/Administrative Unit (ECOS). Equipment $100,000 and over is screened university-wide. Form for screening certification.
• Quote and Sole Source submitted to purchasing for $5,000 or greater
• Purchase of equipment items in the last six months of a federal project requires special justification.
• Capital Equipment shared-used agreement
• Use of equipment purchased on federally sponsored projects

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Computer Equipment: Includes electronic peripherals. A peripheral is an auxiliary device, such as a printer, that works as a stand alone unit in conjunction with a computer.

• $4,999 and less is object code 480.
• $5,000 and over is object code 751.
• Software up to $100,000 including software licensing/maintenance fees object code 452.
• Software $100,000 or more object code 716.

General Rule:

• Computer equipment should be considered as "supplies" for purposes of proposals, unless it can be clearly shown that the cost for the actual computer itself (CPU, monitor, mouse, keyboard, operating system software (e.g., DOS) , and memory) or individual peripheral items will exceed the capitalization limit.
• Research Administrators and Financial Officers should review proposals and subsequent grant/contract-related purchase orders carefully and question any computer equipment listed as equipment in the proposal/purchase order to ensure that the researcher is not combining peripheral items that will not meet the test for capitalization.

Peripherals:

• The following items are ALWAYS considered peripherals and should not be included in a "system" price for determining capitalization:
• Printers
• Scanners
• Zip Drives (or other external memory storage units)

Software:

• Software which is not required for basic computer operation (such as MS Word, Excel, Lotus, etc.) should normally not be included in the price of the "computer system" for purposes of budgeting, but should be treated the same as peripheral items. Software, which is supportive of the research purpose for which the computer is being purchased (e.g., specialized Computer Assisted Design/CAD software), is normally included in the capitalized cost of the equipment, as long as it is purchased on the same purchase order.

Memory:

• Memory Upgrades included at the time of purchase are considered part of the system cost. Memory upgrades AFTER the time of purchase are not. Use object code 480.

**Please Note: If a proposal is submitted with a computer system, peripherals, and
software priced separately and listed as supply items (with the applicable F&A costs included), but subsequently the equipment is purchased and invoiced as a single system (such as a work station), F&A costs are not charged, and the system is capitalized.

Equipment should not be purchased in the final 6 months of the project unless evidence of funding for a continuation or renewal and/or may require special justification.

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Capital Equipment:

Tangible nonexpendable personal property having a useful life of more than two years and an acquisition cost of $5,000 or more per unit. The cost of accessory equipment purchased at the same time, or later, as an item of machinery or equipment should be capitalized as a cost of the item if it is to be used and become an integral part of an item of machinery or equipment. However, if an item of accessory equipment is purchased to be used with two or more items of capitalized equipment, it should be treated as a separate item of equipment.

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Fabricated Equipment: ( See Appendix C )

Equipment fabricated by a department is considered an acquisition. The amount capitalized includes the actual cost of materials and direct labor. Property Inventory must approve all fabrication requests to use object code (705), refer to guidelines. The finished item must have a total value of $5,000 or more and have a useful life of two years or more. Include the fabrication reference number assigned by Property Inventory on all orders - include with the last item or in the vendor notes. Do not put the number in the notepad because Property Inventory does not see the notepad information. Additionally, the use of the purchasing card in obtaining materials or paying for direct labor is prohibited.

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