Capital Equipment Threshold Change Memo

To: Stanford Research Community

From: Sara Bible and Thomas Wong
Co-Directors, Cost and Management Analysis

Date: April 1, 2002

Subject: Approval of $5,000 Equipment Capitalization Threshold in FY04 (Beginning September 1, 2003)


Stanford has received approval from the Office of Naval Research (ONR) to increase its equipment capitalization threshold from $1,500 to $5,000 effective for the University's fiscal year 2004 (beginning September 1, 2003).

Effective immediately, all proposals currently being prepared for FY04 and beyond should use the new $5,000 threshold. Previously submitted proposal budgets that include equipment purchases for FY04 will also be subject to the new equipment capitalization threshold. If necessary, Principal Investigators should submit revised budgets to sponsors.

Proposals should include an application of indirect costs for items below the $5,000 threshold (up to $4,999). Continue to use the indirect cost rates currently in effect for FY02. You will be notified when new rates for FY03 and FY04 are negotiated.

Indirect costs will be applied to costs below the $5,000 threshold beginning September 1, 2003. At that time, there will be no waiver of indirect costs on equipment that costs less than $5,000.

Until this change takes effect equipment costing $1,500 or more must continue to be recorded in CAMS and tracked as capital equipment.

If you have any questions, please contact your Office of Sponsored Research or Property Management Office representative or Cost and Management Analysis.