Issued July, 2005

Fabricated Equipment:

Request a separate fund, with your grant setup, to account for all costs

associated with fabrication of equipment. Depending on which of the two

criteria, below, that it meets, the discrete fund may or may not have an

F&A rate. Of course, you need to determine which one it is at the proposal

stage so that the budget can be properly prepared and approved by OSP. Once

all charges have accrued, the total expenditures in that fund will be the

value of the equipment and should be reported to UAF Property Office (in

the case of the first criterion). The equipment will get only one tag number.

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"If you are building the equipment on a grant/contract, and you have an MTDC

F&A rate, you treat all costs including personnel costs (with fringe) as

part of the cost of the equipment -- but NOT include F&A, because you can't

take F&A for equipment. For this purpose it is a PIECE OF EQUIPMENT with

all those parts and hours involved.

If you are building it for an entity that is PROCURING it from you, then

you are DOING A CONSTRUCTION JOB, and you include F&A in the cost."

Courtesy of Herbert B. Chermside, CRA, Director Emeritus, Sponsored

Programs Administration, Virginia Commonwealth University

Maggie Griscavage, CRA

Director, GCS