Cost Thresholds

In order to be capitalized, equipment purchases with a cost of $5,000.00 or greater should be charged to one of the capital equipment account codes beginning with 185. This includes the cost of a system which is defined as:

Items associated with the acquisition and installation of capital equipment, irrespective of cost, which are acquired for the purpose of assembling or constructing a finished product. These items are physically connected and are essential or enhancements to the capital equipment.

An example of a system would be a computer system which includes the computer, monitor and keyboard. They can be purchased separately but rely on each other to work. In order to be considered a system, all items must be purchased within 30 days of the original associated purchase order.

Also included in the value of an asset is the freight, installation, accessories, labor, software, etc. which enables that capital asset to work.

Non-Capital Items

Departments should maintain their own equipment list to aid in the tracking of all equipment. Special attention should be given to non-capital items which can easily be converted to personal use or are marketable for resale. Examples of this type of equipment would include computers, audiovisual, video equipment, tools and digital cameras. It is important to maintain identifying information including serial numbers to aid with identification, in the event of the loss or theft of the equipment.