June 15, 1998

CAMPUS ADMINISTRATORS

RE:       Implementing the Change to the University's Definition of Equipment

On January 27, 1998, UC Senior Vice President V. Wayne Kennedy issued a letter to the Chancellors announcing a change to the University's definition of equipment. Subsequently, UC Vice President Anne Broome issued further guidance and an implementation plan to campuses to facilitate this change. UCSF will implement the new equipment definition as spelled out in the UCOP guidance and implementation plan. The key changes are:

• The equipment minimum threshold will be raised from $500 to $1,500 per unit.

• The useful life criteria will be changed from "more than two years" to "more than one year."

• Furniture meeting the $1,500 threshold, except for "system furniture," will now be considered equipment instead of supplies.

• For most purposes, the new threshold and definitions will apply to equipment received on or after July 1, 1999.   For furniture, the new threshold and definition will apply to furniture received on or after July 1, 1998.

• Per UCOP implementation plan, overhead recovery will be computed in accordance with the above thresholds and implementation dates, regardless of when an award was made.

Detailed instructions, and a summary sheet, for implementing this change at UCSF are posted on the UCSF Campus Accounting Office website, http://www.acctg.ucsf.edu. For those without web access, contact Judy Fuller in the Accounting Office at 502-7128 to obtain a paper copy.

For Accounting related questions, please call Yi-Ann Chou at 476 9641. For Equipment Inventory related questions, please call Ron Outlaw at 476 2959. For Budget related questions, please call Matt Suelzle at 476 5534. For Purchasing related questions, please call Liz Bogard at 502 3025. For Contracts & Grants related questions, please call Joan Kaiser at 476 8156.

Robert E. Obana
Assistant Vice Chancellor-Finance

cc:	Vice Chancellor Barclay Vice Chancellor Hall Accounting Officer Powers Director Vermillion Manager Gonzalez Manager Klimek

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