Equipment fabrication costs on sponsored projects are accumulated to a Work-in-Progress (8-8) account. To establish a WIP account, a completed Work-in-Progress (WIP) Account Request form should be submitted to the Office of Sponsored Programs (OSP). When a WIP Account Request is received, OSP adds budget to the account and ensures that costs accumulated in the 8-8 post monthly to the 5-3 account.

WIP accounts are project-to-date, meaning revenues and expenses can be tracked across multiple years. If the prime award is extended via an NCE, the WIP account should be extended accordingly. Any extensions or budget increases that impact the fabrication need to be communicated to the appropriate OSP S/RA so that adjustments to the 8-8 budget can be made accordingly.

Fabrication should be for the award period or less, with the fabrication getting converted to equipment during the award period. If additional work is done on a subsequent award, it should be an add-on to the equipment.

Once equipment fabrication is complete, OSP post-award will provide the accumulated amount to the department or unit so that a Kuali Distribution of Income and Expenses document can be created. This document allows the final cost to be moved from 53xxxxx-6xxx to 53xxxxx8xxx and a capital asset is created.

Check to ensure all 8-8 accounts have been closed prior to project closeout.

Blog post by Ben Egolf, Financial Research Accounting Manager, Office of Sponsored Programs

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