Equipment Maintenance and Repair Costs Charged to Sponsored Projects
General purpose equipment maintenance/repair costs are not allowable costs on sponsored agreements.
Maintenance/repair costs for specialty equipment purchased on the project or used
primarily for the research and benefit of the project, can be a direct cost to a grant.
Maintenance/repair costs are typically allowable on sponsored agreements when:
- it is listed in the *approved budget.
- it is for specialty equipment purchased on the project.
- it is for specialty equipment used to support or advance the work of the project.
- it is not prohibited per the sponsor’s terms and conditions.
- it is reasonable and allocable. Maintenance and repair costs must be proportionately allocated to each project or activity for equipment used on multiple projects (externally or institutionally funded projects including departmental research, instructional activities, or other institutional activities.
- maintenance agreement dates fall within the award period.
*It is recommended that anticipated maintenance expenses be included in the proposed budget and budget justification.
**If the maintenance/repair costs are not listed in the approved budget or the maintenance/repair costs are not for specialty equipment purchased on the project, an AS550 must be completed.
Maintenance/repair costs are typically not allowable on sponsored agreements when:
- It is for general purpose equipment (laptops, desktops, printers, etc.)
- There is no reasonable method to proportionately allocate the costs to the specific project.
- It is specifically disallowed by the sponsor.
- It does not support or advance the work of the specific project.
- The scientific/specialty equipment is in an approved service/recharge center.
Note: Costs incurred for improvement which add to the permanent value of equipment or appreciably prolong its intended life are treated as capital expenditures and must have prior written approval of the awarding agency.