USC defines equipment as any item costing $5,000 or more with a useful life
of more than one year. Certain purchases considered as components costing
less than the $5,000 threshold but that are combined or attached to other
pieces that will ultimately have a cumulative value of $5,000 or more can be
classified as equipment for inventory and reporting purposes. Project funds
are normally used to pay only for authorized equipment acquired sufficiently
in advance of the ending date of the project period to be effectively used on
that project. Purchases of equipment not meeting the effective utilization
test, particularly if there is not a follow-on or continuation award, are
usually questioned by auditors and generally result in a cost disallowance
or exception. Subsequently, equipment purchases made during the last 60
days of the project period will not be allowed without justification from the 
Principal Investigator or Departmental Administrator as to the benefits to the
project at this time.