Detailed Discussion
Category E Projects: Equipment
Certain items can be confused as to whether they are considered equipment or supplies. 2 Code of Federal Regulations describes both in detail, while 2 Code of Federal Regulations Part 200.94 defines supplies, "Supplies means all tangible personal property other than those described in 200.33 Equipment. A computing device is a supply if the acquisition cost is less than the lesser of the capitalization level established by the non-Federal entity for financial statement purposes or $5,000, regardless of the length of its useful life."
Select the following link to access 2 Code of Federal Regulations.
Category E Projects: Equipment
Equipment is best defined in 2 Code of Federal Regulations Part 200.33 which states, "Equipment means tangible personal property (including information technology systems) having a useful life of more than one year and a per-unit acquisition cost which equals or exceeds the lesser of the capitalization level established by the non-Federal entity for financial statement purposes, or $5,000. See also 200.12 Capital assets, 200.20 Computing devices, 200.48 General purpose equipment, 200.58 Information technology systems, 200.89 Special purpose equipment, and 200.94 Supplies."
Equipment includes, but is not limited to:
- Vehicles
- Construction Equipment
Select the following link to access 2 Code of Federal Regulations.
Category E Projects: Equipment
The following is an example of how an item is deemed an equipment item:
A disaster occurs, and the State has a capitalization level of $4,250.00. The Applicant has a capitalization level of $3,000.00. The damaged item has a cost of $3,250.00. The damage item is deemed an equipment item instead of a supply item, despite the value of the item being less than the $5,000.00 Federal definition.