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Budgeting for Equipment

On July 1, 1996, RF increased the equipment threshold to $5,000 to comply with new Federal guidelines (Circulars A-110 and A-21). When budgeting for awards Project Directors should use the following equipment definitions:

  • Items Under $1,500: These items will not be inventoried and will not be defined as equipment. They should be included in the supply category, and indirect costs will be applied.
  • Items costing between $1,500 and $4,999: These items will be considered "expendable equipment" and will be inventoried. They should be included in the supply category, and indirect cost will be applied.
  • Items costing $5,000 and over: These items will be considered equipment. They should be included in equipment category and will not be included in the indirect cost base.