Capital Assets

A movable capital asset is a piece of equipment with a useful life of one year or greater and has a cost of $5,000.00 or more. Also, included are fixed replacement parts, which exceed $5,000.00, and are not included in the cost of the building.

Cost Threshold

There is a cost threshold that assets must reach before they can be classified as capital. There is a cost threshold that assets must reach before they can be classified as capital.

Moving Assets

There are set procedures for moving and disposing of capital assets.

Federal Funds

Federally purchased equipment has additional rules and requirements to consider.

Annual Physical Inventory

An annual physical inventory of all capital assets is completed every year.

Building an Asset

If you are planning on building a capital asset from purchasing parts which would be considered below threshold, please call our office to plan the tracking of the purchases. All of the purchase orders will need to be charged to the 185XXX account and the totals will be compiled together, forming the new capital asset, valued at a total exceeding the $5,000.00 threshold.

Process for Building an Asset

Related Links

Building Location Codes

Capital Asset Account Codes

Asset Management Guidelines and Procedures

Forms

Property Pass

Location Changes, Transferring and Disposing Capital Assets