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The University of California currently uses a minimum dollar threshold of $1,500 in its definition of equipment for purposes of capitalization, inventory, and indirect cost application and calculation. Effective July 1, 2004, the university is raising the equipment capitalization level to $5,000. Equipment will be defined as articles of nonexpendable tangible personal property having a useful life of more than one year, and an acquisition cost of $5,000 or more per unit. To moderate the effect of this change on contracts and grants, there will be a two-year phase-in period. Equipment costing $1,500 or more projected to be received before July 1, 2006 should be included as equipment in proposal budgets. Items fitting the equipment definition costing $5,000 or more projected to be received on or after July 1, 2006 should be included as equipment; items costing less than $5,000 projected to be received on or after July 1, 2006 should be included as supplies. |
| UC Berkeley Equipment Management UC Office
of the President Policy and Guidance |