Hazardous Materials and Disposal Memorandum

Over the past nine months the University has undergone a complete study of its cost accounting practices. This was necessary to ensure we are in compliance with the cost accounting standards used by the Federal Government for government contractors.

Many changes have been implemented, or will be implemented, by the University for the upcoming fiscal year, 1997-98. One of these changes affects how the University funds its hazardous materials program and disposal costs.

For the hazardous materials and disposals program the following expenditure items and object codes will be assessed a "hazardous materials" charge of .043 or 4.3% on each expenditure made. The object codes are:

All other expenditure object codes currently assessed the "surcharge" will continue to be assessed a "recycling charge." The recycling program will be operated by the Lexington Campus PPD beginning on July 1, 1997. Information on the recycling assessment will be forthcoming. No object code will be assessed both charges.

Sector, college and departmental staff will be required to monitor purchases and assure that the proper object codes are being used. In addition, it is the responsibility of the Purchasing Department and Office of Controller and Treasurer to insure that all units are complying with cost accounting standards.