Major Equipment and Surplus Supplies Review

Learn about the major equipment and surplus supplies review on sponsored projects at Columbia University.

Details

Major equipment and supplies are types of costs often incurred to meet the objectives of a sponsored project. Federal projects require additional review of these cost categories during closeout, specifically for materials that may have a fair market value of $5,000 or more.

The review may also necessitate outreach from The Controller’s Office / Sponsored Projects Finance (SPF) to obtain information about the future utilization or disposition of such materials. Principal investigators (PIs) and departmental administrators (DAs) are required to furnish relevant information upon request.

Major Equipment Review

For federal sponsored projects, major equipment disposition activity will occur during project closeout in accordance with the terms and conditions of the agreement. The Controller’s Office may contact the PI and DA when a piece of equipment purchased on a grant has a Fair Market Value (FMV) over $5,000 at award termination. When this is the case, the piece of equipment must have one of the following dispositions:

  • Continue to be used by the PI on the original project or program, whether or not the project or program continues to be supported by the Federal award
  • Be used by the PI on another federal award
  • Be used by another CU PI on another federal award
  • Be used by the PI on another non-federal award
  • Be used by another CU PI on another non-federal award
  • Be retained with FMV credited back to sponsoring agency
  • Be resold, and proceeds returned to sponsoring agency

Excess Supply Disposition

For federal sponsored projects, excess supply disposition review will occur during project closeout when

  1. the estimated FMV of total reusable supplies purchased on an award exceeds $5,000, and
  2. the PI does not have another active federal or non-federal award for which the supplies may be used.

SPF will estimate the value of residual supplies at project closeout with the use of an algorithm that considers date of purchase, amount, depreciation of equipment, and supply type. The SPF Finance and Compliance Manager will reach out to the PI/DA for information related to the actual state and FMV of the apparent reusable supply inventory, and plans for future disposition. Response is required by the date indicated in the information request.

Guidance

Reports

Principal investigators (PIs) and departmental administrators (DAs) may run the Sponsored Project Supplies Expense Report in FDS, located under the Project Lifecycle Reports folder, in order to review the potential reusable supply inventory for a sponsored project.


Contact

Contact your Sponsored Projects Finance (SPF) Finance and Compliance Manager for information about major equipment and surplus supplies reviews.

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