Can general office equipment now be purchased with federal funds, assuming that the item costs less than $5,000.00?
No, OMB Circular A-21 places restrictions of both general office and general office supplies as direct charges. Whether or not an item is classified as equipment, it can be direct charged to a sponsored project only if it is necessary and will be used specifically for that project. Only under unusual circumstances, would general office or general office supplies be considered necessary for the operation of a sponsored project. In such circumstances it is recommended that these items be specifically identified in the proposal budget. Regardless of whether or not an item is in a proposal, all items under the $5,000.00 threshold will be burdened with the F&A rate.
