New Indirect Cost Rates and Related Object Codes CONTROLLER’S MEMORANDUM NUMBER 2001-10

John P. Kruczek, University Controller
Dr. Tom Walsh, Director

We are pleased to advise you that effective December 29, 2000 the Indirect Cost Rate, now known as the Facilities and Administrative Rate, was negotiated with Department of Health and Human Services. The rates have been negotiated through the five year period ending June 30, 2005. For the first year, July 1, 2000 through June 30, 2001, all rates will remain the same as for the previous year. All projects with beginning dates on or after July 1, 2001 will be subject to the new rates. Please visit http://rgp.ufl.edu/research/facts.html or http://fa.ufl.edu/cg/ and select Facilities and Administrative Indirect Cost Rates for detailed information on the various rate changes. Continuing projects will be subject to the rates in effect when the project was awarded.

As a result of the rate negotiation, the federal government now recognizes the $1,000 capitalization level we use according to Florida Statute. We have therefore been able to simplify our object code structure for furniture, equipment and software purchases by eliminating the object codes for purchases between $500 and $1,000 and having object codes that include per unit costs either under or over $1,000. Please refer to http://fa.ufl.edu/uas/object_codes.asp to see the new object code definitions which are effective immediately. The object codes and changed definitions are listed below.

Please note that in addition to simplifying the existing object code structure, two new object codes have been added. 391004 C&G TECHNICAL SOFTWARE UNIT COST <$1,000 and 393003 C&G TECHNICAL SOFTWARE LICENSES UNIT COST <$1,000 are to be used for technical software used exclusively in the performance of research on a specific sponsored research grant.

OBJECT CODE	DEFINITION
341003	EDUC/RSRCH SUP(ALL) OR HB CIR BK<25 OR HB BK<250
342003	MED/HOSPTL SUP(ALL) OR HB CIR BK<25 OR HB BK<250
343001	AGRICULTRL SUP (ALL) OR HB CIR BK<25 OR HB BK<250
380004	OFFICE SUPPLIES (ALL)
391002	COMPUTER SOFTWARE – UNIT COST<$1000
393001	C&G SOFTWARE LICENSES UNIT COST< $1000
393002	C&G SOFTWARE LICENSES UNIT COST $1000 AND OVER
512048	FURN & EQUIP – UNIT COST<$1,000 (EXPENSE)
512099	OTHER FURN & EQUIP-UNIT COST $1,000 OR MORE
512101	CELLULAR TELEPHONE-UNIT COST $1,000 OR MORE
512102	CELLULAR TELEPHONE-UNIT COST<$1,000 (EXPENSE)
513003	OTHER EDUCATIONAL EQUIP-UNIT COST $1,000 OR MORE
513032	OTHER EDUCATNL EQUIP-UNIT COST<$1,000 (EXPENSE)
514006	MEDICAL EQUIPMENT-UNIT COST<$1,000 (EXPENSE)
515004	AGRICULTURAL EQUIP-UNIT COST<$1,000 (EXPENSE)
516033	COMPUTER SOFTWARE-UNIT COST $1,000 OR MORE (EXPENSE)
516060	DATA PROCESSING EQUIPMENT-UNIT COST<$1,000 (EXPENSE)
519081	INFO RESOURCES EQUIP-UNIT COST<$1,000 (EXPENSE)
519082	COMM RESOURCES EQUIP-UNIT COST<$1,000 (EXPENSE)