Effective July 1, 2008, the policy for including the cost of movable equipment in the calculation of Dartmouth’s Facilities and Administrative (F&A) rates changed from a dollar threshold of $2,500 to $5,000. This change impacts what equipment is included in the College’s movable equipment inventory (“Fixed Asset System”). This policy is in addition to the College’s capitalization policy for financial statement purposes.
All movable equipment having an acquisition cost of $5,000 or more will be recorded in the Fixed Asset System and tagged with a capital equipment number for tracking purposes. This equipment will be tracked by building and room and depreciated for F&A purposes based on estimated useful life.
Software is considered intangible property and is not considered movable equipment under this policy. The value of pre-loaded computer software may be included in the cost of the equipment recorded in the Fixed Asset System when the cost of this software is not separately identified on the sales invoice.
Accessory equipment that meets the policy criteria (i.e., it is movable equipment with an acquisition cost of $5,000 or more) will be included in the Fixed Asset System as a separate piece of movable equipment. Accessory equipment that does not meet the policy criteria and is not required to make the equipment operable will not be included in the Fixed Asset System.
Equipment repair, replacement, and upgrade costs will be included in the Fixed Asset System only when these costs are $5,000 or more AND they extend the useful life of the original piece of equipment by one year or more. When these costs are included in the inventory, the asset value and useful life of the original piece of equipment – as recorded in the Fixed Asset System – must be updated to reflect the new value and remaining useful life of the equipment.
Equipment donated to the College by a third party is covered by this policy. To be included in the Fixed Asset System, the acquisition cost of the donated equipment will be the fair market value of the equipment at the date of the gift and must be greater than or equal to $5,000.
Fabricated equipment is equipment that is assembled by the College using purchased materials, in-house machinery or tools, and College labor. Fabricated equipment meeting all the criteria of this policy (i.e., it is movable equipment with an acquisition cost of $5,000 or more) will be recorded in the Fixed Asset System. Please see the Fabricated Equipment policy for more information and requirements.
Last Updated: 5/13/10