Must depreciation charges be applied to the cost of instruments and equipment purchased with non-Federal funds?
No. For instruments and equipment purchased with non-Federal funds, institutions can allocate or not allocate depreciation charges in its usage fees or a discretionary basis, based on sources of funding and institutional policy. However, if the equipment qualified for capitalization and so depreciation, it would not be appropriate for the institution to expense as a ‘current expense’ of the core facility when determining charges. In this situation, when the institution decides to forgo application of depreciation charges, the institution would be waiving any reimbursement for the equipment. How to Submit a Response Responses will be accepted through December 10, 2010. Responses by e-mail are strongly preferred. Please use the address farberg@mail.nih.gov to submit a response. The submitted information will be reviewed by NIH staff that have an interest in this matter and may be shared with staff members from other Federal agencies.
