UCD Directives

UC DAVIS:  MATERIAL MANAGEMENT-EQUIPMENT MANAGEMENT

May 8, 1998

DEANS, DIRECTORS, DEPARTMENT CHAIRPERSONS, AND
CAMPUS / UCDMC ADMINISTRATIVE OFFICERS

RE:  New Equipment Threshold

Office of the President has announced a new equipment threshold of $1,500 per
equipment item effective July 1, 1998.  Following are the key points of the
implementation plan:

During Fiscal Year 98-99:

     All purchases and acquisitions of equipment $500 or more will continue to
be processed with the same equipment definitions and coding as in FY 97-98.  

     Effective July 1, 1998, it will not be necessary to physically inventory
equipment costing less than $1,500.  However, equipment items costing $500 or
more and meeting the old equipment definition must be reported to UCOP at the
end of FY 1998-99.

     Items of furniture $1,500 or more received on or after July 1, 1998, must
also be coded as equipment when appropriate. Furniture defined as “systems
furniture”, such as panel supported systems, modular systems, and panel/screen
- non-load bearing furniture, will not be capitalized.    

     All equipment purchased under contracts and grants will continue to be
defined and coded at the $500 threshold.  All awards will be required to apply
the higher threshold beginning July 1, 1999.  This delay should allow a
reasonable amount of time for budgeting at the proper levels.  Effective
immediately, all project proposals with performance periods beyond July 1,
1999, should budget for indirect costs using the $1,500 definition of
equipment.

On or after July 1, 1999:

     The higher threshold will be applied to all equipment received on or
after
July 1, 1999.  Equipment purchased under contracts and grants that does not
meet the new threshold definition (under $1,500) will be subject to indirect
cost charges and treated as supplies. 

     If items costing less than $1,500 purchased as part of a sponsored
project
are defined as inventorial equipment under the terms of the agreement, the
items will be treated as equipment as specified under the exceptions given in
BUS-29, Section A, Paragraph VII.A.2.

     All University owned equipment valued under the $1,500 threshold will be
fully purged from local campus systems after UCOP approval.  

The UC Davis Policy and Procedure Manual, Section 350-50, is being revised to
incorporate this new policy. If you have any questions regarding this plan,
please contact one of the following Accounting and Financial Offices listed
below:

Steve Frost, Director, Materiel Management  
George Max, Manager, Extramural Accounting
Alicia Gersalia, Manager, Equipment Management
Mary Kroeger, Manager, Plant Accounting
John Powers, Manager, General Accounting
Revised P&P 350-50

Anthony B. Flores
Associate Vice Chancellor-Finance

98-050

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