Why do the guidelines state that for departmental purposes the new threshold will not take effect until July 1, 1999?
During FY 1998-99, departments will continue to purchase equipment items based on the same $500 threshold used in prior years, whether the funding source is extramural or not. The changes that will occur during fiscal year 1998-99 will be in the manner Equipment Management maintains and reports the data, and how plant assets will be reported in the financial statements for FY 1998-99. Effective July 1, 1999, all departments and transactions will use the $1,500 threshold. Question 18. During FY 1998-99, items meeting the old equipment threshold of $500 but costing less than $1,500 will be treated as equipment for overhead purposes. Must these items also be individually added to the inventory or other data file? Yes. For inventory database options, see questions 20 & 21 below. For questions about this section, please contact Bob Forsythe, x46286.
