Roles and Responsibilities
Chairpersons, deans and directors have general stewardship responsibilities for the maintenance and control of all property and equipment in their custody and control.
An independent inventory management firm is contracted by the University to provide management oversight for the identification, tagging, recording and reporting of capital equipment.
Types of Capital Assets
Rare books and collectibles
Any moveable capital equipment having a total cost (or donated estimated value) equal to or greater than $5,000 and meets the following criteria must be capitalized:
The estimated useful life of the item is equal to or greater than two years,
The asset is moveable and is not permanently affixed to a building or structure,
The asset is a non-expendable, tangible, personal property,
The asset does not lose its identity in use,
The property is of a non-consumable nature, and
The property is not intended for sale in the ordinary course of operations, e.g. contract deliverables.
Costs That May be Capitalized
The net invoice price (after discounts or credits) of the equipment, including modifications, attachments, accessories, or auxiliary apparatus necessary to make it usable for its intended purpose.
Ancillary charges, such as taxes, duty, freight, installation and protective in transit insurance.
Capital equipment that is part of a fabrication project is also considered capital equipment, regardless of the dollar amount of the component items, provided that the total aggregate cost is $5,000 or more and the final fabricated asset will have a useful life of at least two years. If a new component extends the useful life or capability of an existing asset, it should be capitalized.
Costs That May Not Be Capitalized
Separate warranty costs of maintenance contracts, including items for which periodic invoices are received either monthly or annually such as software, licensing fees, separate warranty costs of maintenance contracts, etc.
Government furnished property.
Rearrangement, transfer, or moving of equipment from one University location to another, including the costs incurred in dismantling, transporting, reassembling and reinstalling such items in a new location.
Equipment repair costs.