June 24, 2004

 

Dear UCRFS Users,

Effective July 1, 2004, the University of California’s capitalization threshold for equipment is increasing from $1,500 to $5,000.   The new threshold will be applied to equipment items received on or after July 1, 2004.  The definitions of accounts under BC60 (Budget Category, Equip/Other Inventorial) will be updated to reflect the new threshold.

 

In addition to this change, UC is requiring the tracking of non-inventorial equipment costing between $200-$1,499.99 and $1,500.00-$4,999.99 for reporting purposes. The account numbers listed below have been modified or established for this purpose.  Please begin using the new/modified account numbers immediately for items anticipated for delivery after June 30, 2004.

 

Account 770170: Computer Supplies*

Account 720200:  Equipment Non-Inv, Non-Computer $200-$1499*

Account 720205:  Equipment Non-Inv, Non-Computer $1500-$4999*

Account 770200:  Computer Equipment Non-Inv $200-$1499*

Account 770205: Computer Equipment Non-Inv $1500-$4999*

*See complete account descriptions below.

 

Please note:  During FY 2004-05 and FY 2005-06, indirect cost charges on contract and grant funds projects will be applied using the same equipment threshold ($1,500) as in FY 2003-04.  However, it is important that the new account numbers are utilized for equipment inventory purposes.

 

Please ensure that equipment type items received after July 1st are recorded in the correct expense accounts.  Requests for corrections should be submitted to Accounting (Attention:  Emma Odegard).  Accounting will coordinate with Equipment Management to ensure the equipment inventory is appropriately updated.  See the Accounting Office website for instructions on processing corrections (http://accounting.ucr.edu/).

 

Additional information regarding this change can be found in the UC provided question and answer document at the following website:
http://www.ucop.edu/irc/campus_specs/efa/final_qa_june2004.doc

Thank you for your cooperation in making sure correct account numbers are used on your equipment type transactions.   If you have any questions or need assistance, please contact Steve Escoto (X8-3301 or steve.escoto@ucr.edu) or Emma Odegard (X8-3312 or emma.odegard@ucr.edu).

 

ACCOUNT DESCRIPTIONS:
MODIFIED Account 770170-Computer Supplies: Costs incurred for computer supplies such as data disks, keyboards, mouse devices, and reference manuals. 

 

Excludes paper (see account # 720350) & printer cartridges (see account # 770190).  See Repairs, Alterations and Maintenance - Computer (account #820130) for computer maintenance and repair costs.  See accounts listed under BC60 for inventorial equipment purchases of $5,000 or more.  Please see UCRPP 750-12 and UCAM C-556-12. 

 

MODIFIED Account 720200 Equipment Non-Inv, Non-Comp $200-$1499: 

Purchases related to non-inventorial, equipment items costing between $200- $1,499.99 with a useful life of more than one year.  This account does not include computer type items.

 

Use account #770200 for non-inventorial computer equipment costing between $200-$1499.99.  Use account #720205 for non-inventorial, non-computer equipment costing between $1,500-$4,999.99.  See accounts listed under BC60 for inventorial equipment purchases of $5,000 or more.  Please see UCRPP 750-12.

 

NEW Account 770200-Computer Equipment Non-Inv $200-$1499: Purchases related to non-inventorial, computer equipment items costing between $200- $1,499.99 with a useful life of more than one year, such as printers and disk drives. 

 

Use account #720200 for non-inventorial, non-computer equipment costing between $200-$1499.99; use account #770205 for non-inventorial computer equipment costing between $1,500-$4,999.99. See accounts listed under BC60 for inventorial equipment purchases of $5,000 or more.   Please see UCRPP 750-12.

NEW Account 720205 Equipment Non-Inv, Non-Comp $1500-$4999: Purchases related to non-inventorial, equipment items costing between $1,500- $4,999.99 with a useful life of more than one year.  This account does not include computer type items. This account will be used to exclude these expenditures from the assessment of indirect costs during FY2004-05 and FY2005-06.

 

Use account #770205 for non-inventorial computer equipment costing between $1,500-$4,999.99.  Use account 720200 for non-inventorial, non-computer equipment costing between $200-$1,499.99.  See accounts listed under BC60 for inventorial equipment purchases of $5,000 or more.  Please see UCRPP 750-12.


NEW Account 770205-Computer Equipment Non-Inv $1500-$4999: Purchases related to non-inventorial, computer equipment items costing between $1,500- $4,999.99 with a useful life of more than one year, such as PCs and laptops.  This account will be used to exclude these expenditures from the assessment of indirect costs during FY2004-05 and FY2005-06.

 

Use account #720205 for non-inventorial, non-computer equipment costing between $1,500-$4,999.99.  Use account #770200 for non-inventorial computer equipment costing between $200-$1499.99.  See accounts listed under BC60 for inventorial equipment purchases of $5,000 or more.  Please see UCRPP 750-12.

 

Accounts 803000-803999 (under Budget Category BC60), effective July 1, 2004 all minimum thresholds will be raised from $1,500 to $5,000. Items recorded under these accounts (and received on or after July 1, 2004), must cost at least $5,000 and appear on the equipment inventory.