[Federal Register Volume 60, Number 135 (Friday, July 14, 1995)]
[Notices]
[Page 36316]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-17274]



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OFFICE OF MANAGEMENT AND BUDGET


Office of Federal Financial Management; Equipment Capitalization 
Threshold Waivers for Universities and Non-Profit Organizations (OMB 
Circulars A-21 and A-122)

AGENCY: Office of Federal Financial Management, OMB.

ACTION: Notice.

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SUMMARY: This Notice provides a copy of an Office of Management and 
Budget (OMB) memorandum to the agencies regarding equipment 
capitalization threshold waivers under OMB cost principles circulars 
for universities (OMB Circular A-21, ``Cost Principles for Educational 
Institutions'') and non-profit organizations (OMB Circular A-122, 
``Cost Principles for Non-Profit Organizations'').

DATES: The effective date is June 29, 1995.

FOR FURTHER INFORMATION CONTACT: Non-Federal organizations should 
contact their cognizant Federal agency. Federal agencies should contact 
the Financial Standards and Reporting Branch, Office of Federal 
Financial Management, Office of Management and Budget, Room 6025 New 
Executive Office Building, Washington, DC 20503. Telephone (202) 395-
3993.

SUPPLEMENTARY INFORMATION: This Notice provides a copy of a July 29, 
1995 Office of Management and Budget (OMB) memorandum to the agencies 
entitled ``Equipment Capitalization Threshold Waivers Under OMB Cost 
Principles Circulars for Universities and Non-Profit Organizations.''
Norwood J. Jackson, Jr.,
Acting Controller.

    Herein follows the text of the Office of Management and Budget's 
memorandum to the agencies:
June 29, 1995.
Memorandum for the Heads of Executive Departments and Establishments
From: Alice M. Rivlin, Director
Subject: Equipment Capitalization Threshold Waivers under OMB Cost 
Principles Circulars for Universities and Non-Profit Organizations

    This memorandum authorizes Federal agencies with cost 
negotiation cognizance to increase the equipment cost threshold for 
capitalization from $500 to $5000 under Office of Management and 
Budget (OMB) Circulars A-21, ``Cost Principles for Educational 
Institutions,'' and A-122, ``Cost Principles for Non-Profit 
Organizations.'' However, this waiver authority does not extend to 
nonprofit organizations subject to Circular A-122 that are also 
subject to Cost Accounting Standards 9904.404 and 9904.409.
    This waiver authority is provided at the request of the 
Department of Health and Human Services and the Department of 
Defense, Office of Naval Research, the major Federal cost cognizant 
agencies. The increased capitalization thresholds under Circulars A-
21 and A-122 provide conformity with Circular A-87, ``Cost 
Principles for State, Local, and Indian Tribal Governments,'' 
Circular A-110, ``Uniform Administrative Requirements for Grants and 
Agreements with Institutions of Higher Education, Hospitals, and 
Non-Profit Organizations,'' and the agencies' Grants Management 
Common Rule, all of which have a $5000 capitalization threshold.
    OMB has proposed revising the equipment capitalization threshold 
under Circular A-21, and is preparing a similar proposal for 
Circular A-122. However, we do not expect to publish final notices 
of revised threshold amounts until other issues to be included in 
the same notices have been resolved. We expect this waiver to reduce 
the accounting and recordkeeping requirements for many recipients of 
sponsored agreements and to eliminate any confusion that may result 
from different capitalization thresholds.
    If you have any questions concerning this waiver, please call 
OMB Deputy Controller, Norwood J. Jackson, Jr., at (202) 395-3993.

[FR Doc. 95-17274 Filed 7-13-95; 8:45 am]
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