Fabricated equipment is defined as tangible property that is built or assembled from individual parts that cumulatively have an aggregate cost of $5,000 or more.
Any component or item (regardless of the amount) purchased during the building or assembling of fabricated equipment must be recorded in the capital equipment account #794500. This will ensure that, if the source of funding for the fabricated equipment is an external grant or contract, the individual charges will not be assessed the Facilities & Administrative (F&A) rate.
Purchase of fabricated equipment on restricted ("grant") funds may be contemplated when the original budget is prepared or may result from unanticipated needs during the life of the grant. If the former, then the RSP pre-award contact will note this in the "Remarks" section of the proposal routing form. At the time of award processing, RSP will send the Principal Investigator (PI) an award packet that includes a reference to the fabricated equipment procedure contained herein.
If purchase of fabricated equipment is not in the proposal budget, the PI needs to contact RSP to get advance approval for what is in some sense a budget revision (even though it may not require a budget transfer). The approval will take the form of an e-mail sent to the PI with a copy to the business officer.
It is very important for all those who initiate transactions involving fabricated equipment to note on any relevant documents (DPO's, requisitions, transfer of Procard expenses, etc.) that "this transaction is in connection with the purchase of fabricated equipment." In accordance with the above instructions for accounting for fabricated equipment, the account to be used is #794500.
If you have followed these procedures but the transaction is still rejected as an equipment purchase, please contact John Mbagwu in the Controller's Office at 775-2543.
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