What types of equipment should be expensed on CFR-1, line 28 and CFR-3, line 13?
The equipment expensed on this line should include only those items with a cost of less than $1000 or a useful life of less than two years. Items with a cost of $1000 or more and a useful life of two years or more must be capitalized and depreciated; and the annual depreciation expense should be recognized each year on the CFR core schedules (CFR-1 through CFR-6). This may be different than how you account for these items for reimbursement/claiming purposes (DMH-2 and DMH-3). Purchases funded via rates, fees or net deficit funding must still be capitalized and depreciated on the CFR core schedules.
