Memorandum

On July 1, 1997, the University put in place a new system of charging for disposal of hazardous waste. This charge resulted from changes necessary under the Cost Accounting Standards (CAS). This system involves a "hazardous materials" charge on the three expenditure sub-codes that contribute most significantly to the generation of hazardous waste, namely,

This charge was set at 4.3% of each expenditure. This rate was established based on historical expenditures for the above object codes. The amounts spent for the first three months of FY 1997-98, however, are significantly below anticipated levels. In order to pay for the hazardous waste program, it is necessary to increase the charge from 4.3% to 8%. This rate will be assessed on purchases beginning October 1, 1997.