FAQs

I need to purchase a warranty for a piece of equipment. Is a warranty an allowable expenditure?

Question:

I need to purchase a warranty for a piece of equipment. Is a warranty an allowable expenditure?


Answer

Allowability of a warranty will be determined on a case-by-case basis. Equipment warranties on a sponsored project may be allowable if the pieces of equipment were purchased on the same project, the equipment is specifically mentioned in the scope of work and budget/budget justification, and/or other documentation can support the essential nature of the equipment for the project. Allocability should be determined in a manner appropriate for the relative benefit to the project (i.e., usage) and prorated to coincide with the award period. This charge may not be allowed by some sponsors per the terms and conditions of specific awards.


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