1. Why Use Proper Subcodes? Rochelle Williams, Accounting Specialist Email: rochelle@andromeda.rutgers.edu rochelle@andromeda.rutgers.edu Phone: 973-353-1540

2. The Use of Proper Subcodes Federal Cost Accounting Standards require uniformity and consistency in budgeting, accumulating and reporting financial information on Federal Grants and Contracts. Federal Cost Accounting Standards require uniformity and consistency in budgeting, accumulating and reporting financial information on Federal Grants and Contracts. Many of the grants and contracts administered by the Newark Grants Office are directly or indirectly paid for with Federal funds. Many of the grants and contracts administered by the Newark Grants Office are directly or indirectly paid for with Federal funds.

3. The Use of Proper Subcodes In response to Federal Cost Accounting Standards the 4-2 Subsidiary Ledger Subcode Listing was developed. The listing shows the OFFICIAL subcodes and their definitions for use with 4- 2XXXX accounts. In response to Federal Cost Accounting Standards the 4-2 Subsidiary Ledger Subcode Listing was developed. The listing shows the OFFICIAL subcodes and their definitions for use with 4- 2XXXX accounts. No other subcodes should be used on 4-2XXXX accounts without prior approval from the Newark Grants Office. No other subcodes should be used on 4-2XXXX accounts without prior approval from the Newark Grants Office.

4. New Capitalization Limit On July 1, 2003, the University raised the limit for the Quick Order from $1,000 to $5,000. On July 1, 2003, the University raised the limit for the Quick Order from $1,000 to $5,000. The University also raised the capitalization limit of equipment from $1,000 to $5,000. The University also raised the capitalization limit of equipment from $1,000 to $5,000.

5. New Capitalization Limit There are only three official subcodes for charging items of capital equipment to 4-2XXXX accounts. There are only three official subcodes for charging items of capital equipment to 4-2XXXX accounts. 2240 – Permanent Equipment $5,000 or less. 2240 – Permanent Equipment $5,000 or less. 7050 – Additions & Improvement of Building and Grounds 7050 – Additions & Improvement of Building and Grounds 7260 – Permanent Equipment more than $5,000. 7260 – Permanent Equipment more than $5,000.

6. For more information and the Official Listing of Subcodes and their definitions, go to: For more information and the Official Listing of Subcodes and their definitions, go to: http://postaward.rutgers.edu/42sub.html http://postaward.rutgers.edu/42sub.html

7. Questions?