Please be advised of the following important changes to cost definitions and indirect cost applications, effective July 1, 2025:<\/p>\n
Equipment is defined as tangible personal property (including information technology systems) with: Previous Threshold: $5,000 per unit<\/p>\n Capitalized repairs\/upgrades\/improvements<\/p>\n If the expense is $10,000 or over ($5,000 for federal or federal flow-through contracts) and extends the useful life more than a year, improves the asset, or adapts the asset to a new use then it will be capitalized. Because the capitalization threshold for software is $4M, software upgrades are expense.<\/p>\n The base for calculating indirect costs on subawards has been updated: These changes should be reflected in all proposals and budgets prepared for submissions on or after July 1, 2025. Please contact the College of Sciences Pre-Award team with any questions.<\/p>\n","protected":false},"excerpt":{"rendered":"Please be advised of the following important changes to cost definitions and indirect cost applications, effective July 1, 2025: 1. Equipment Definition Threshold Equipment is defined as tangible personal property (including information technology systems) with: \u2022 A useful life of more than one year, and \u2022 A per-unit acquisition cost of $10,000 or more. This […]","protected":false},"author":245,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":"","_links_to":"","_links_to_target":""},"categories":[8],"tags":[],"class_list":["post-6109","post","type-post","status-publish","format-standard","hentry","category-announcements"],"acf":[],"_links":{"self":[{"href":"https:\/\/sciences.ucf.edu\/research\/wp-json\/wp\/v2\/posts\/6109","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sciences.ucf.edu\/research\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sciences.ucf.edu\/research\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sciences.ucf.edu\/research\/wp-json\/wp\/v2\/users\/245"}],"replies":[{"embeddable":true,"href":"https:\/\/sciences.ucf.edu\/research\/wp-json\/wp\/v2\/comments?post=6109"}],"version-history":[{"count":1,"href":"https:\/\/sciences.ucf.edu\/research\/wp-json\/wp\/v2\/posts\/6109\/revisions"}],"predecessor-version":[{"id":6110,"href":"https:\/\/sciences.ucf.edu\/research\/wp-json\/wp\/v2\/posts\/6109\/revisions\/6110"}],"wp:attachment":[{"href":"https:\/\/sciences.ucf.edu\/research\/wp-json\/wp\/v2\/media?parent=6109"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sciences.ucf.edu\/research\/wp-json\/wp\/v2\/categories?post=6109"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sciences.ucf.edu\/research\/wp-json\/wp\/v2\/tags?post=6109"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\n\u2022 A useful life of more than one year, and
\n\u2022 A per-unit acquisition cost of $10,000<\/strong> or more. This includes separate components totaling $10,000 if they are assembled to make one piece of equipment. (will require an asset build grant number)
\n– Applicability: This new threshold applies to all non-federal contracts (not governed by a FAR clause), grants and cooperative agreements. Federal and federal flow through contracts will continue (containing FAR clauses) to apply a lower threshold because the FAR clause property limit has not changed.<\/p>\n2. Indirect Costs on Subawards<\/h2>\n
\n– New Threshold: Indirect costs will now be assessed on the first $50,000 of each subaward<\/strong>, regardless of the period of performance.
\n– Previous Threshold: Indirect costs were applied only to the first $25,000 of each subaward.<\/p>\n