Why Use Proper Subcodes

1
Why Use Proper Subcodes?

• Rochelle Williams, Accounting Specialist
• Email rochelle_at_andromeda.rutgers.edu
• Phone [phone]

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.
• 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.
• 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.
• 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.
• 2240 Permanent Equipment 5,000 or less.
• 7050 Additions Improvement of Building and
  Grounds
• 7260 Permanent Equipment more than 5,000.

6

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

7

• Questions?