Capital Assets

Op8.03-1 Capital Assets

During its June 17, 2005 meeting the Board of Governors adopted a resolution to increase the capitalization threshold for equipment from $1,000 to $5,000 effective July 1, 2005. 

After the adoption of this resolution the definition of Capital Assets is:

All equipment whether obtained by purchase, donation, or other means, with a cost (or estimated fair value if actual cost is not available) of $5,000 or more and an estimated useful life of more than one year is required to be tagged by Property Control and recorded in the fixed asset system. 

The Property Control Procedures Manual addresses the guidelines for properly accounting for these items.

Since the threshold for capitalizing equipment has been increased to $5,000, it has been determined necessary for each unit to track other non-capitalized items due to their sensitive nature.

The definition of Non-Capitalized Personal Computers is:

Personal computers with an initial value less than $5,000 but greater than $1,000, with a useful life of more than two years, and are easily convertible to personal use.

The University has decentralized budget planning and decision making to give departments more control over their expenditures.  The University’s Fiscal Responsibility Policy provides guidance to those employees in the proper and legal use of scarce University resources.

The University receives funding from diverse sources ranging from taxpayers and students to benefactors.  The recording of non-capitalized personal computers is an extension of the belief that regardless of the source, the University has an obligation to demonstrate that it has been, and continues to be, a wise steward of these funds.