Capitalization Equipment Threshold Policy

The threshold for tracking assets in the College’s fixed assets system changed from $2,500 to $5,000. This is accompanied by the change in description of a number of Natural Class values used for equipment purchases. Instead of <$2500 and $2500-$24999, these descriptions will specify <$5000 and $5000-$24999 respectively.

Effective Date

July 1, 2008

Office of Primary Responsiblity

Controller's Office

Please note that Computer Store inventory has been reclassified so that it will be posted to the correct natural class value reflecting its dollar threshold.

When deciding which natural class to use when purchasing equipment, please use the following guidelines:

If the item(s) you are purchasing are each individual items that work on their own, use the dollar amount for each one to determine the natural class.  For example, if you are purchasing ten rowboats at $4,000 each, with a total bill of $40,000, you would choose a natural class in the <$5000 category.  The total bill is not relevant if each piece works on its own.

In contrast, if you are purchasing an equipment system where ten pieces, at $4,000 each work together to perform a function, this would be considered capital equipment at >$25,000.

Installation and freight must be included in the capital equipment natural class.  Consumable supplies and training invoiced along with an equipment purchase are not considered to be capital equipment; please record in a supply or purchase services natural class.

If the items being purchased are consumable (replaced on an annual or regular basis), such as sneakers, pencils, and uniforms, please use a supplies natural class rather than an equipment natural class.

The affected Natural Class values are below:

Natural Class Level 4 Parent Natclass Child Code Natural Class Description
NONOPERATING NONCAP EXPENDITURES 5474 NONOP NONCAP Intnl Equip under 5000
NONOPERATING NONCAP EXPENDITURES  5484 NONOP NONCAP Intnl Equip 5000-24999
EQUIP FURN FIX UNDER 5000 BUDGET  7020 EQUIP FURN FIX UNDER 5000 Budget
EQUIPMENT UNDER 5000  7031 EQUIP UNDER 5000 Athletic
EQUIPMENT UNDER 5000  7032 EQUIP UNDER 5000 Audio Visual
EQUIPMENT UNDER 5000  7033 EQUIP UNDER 5000 Communication
EQUIPMENT UNDER 5000  7034 EQUIP UNDER 5000 Computer Hardware
EQUIPMENT UNDER 5000  7035 EQUIP UNDER 5000 Laboratory
EQUIPMENT UNDER 5000  7036 EQUIP UNDER 5000 Mechanical
EQUIPMENT UNDER 5000  7037 EQUIP UNDER 5000 Medical
EQUIPMENT UNDER 5000  7038 EQUIP UNDER 5000 Office
EQUIPMENT UNDER 5000  7039 EQUIP UNDER 5000 Specialized
EQUIPMENT UNDER 5000  7041 EQUIP UNDER 5000 Teaching
EQUIPMENT UNDER 5000  7042 EQUIP UNDER 5000 Technical
EQUIPMENT UNDER 5000  7043 EQUIP UNDER 5000 Machines and Tools
FURNITURE AND FIXTURES UNDER 5000  7061 FURN FIX UNDER 5000 Furn Fixtures
FURNISHINGS UNDER 5000  7071 FURNISHINGS UNDER 5000 Carpet
FURNISHINGS UNDER 5000  7072 FURNISHINGS UNDER 5000 Drapes
FURNISHINGS UNDER 5000  7073 FURNISHINGS UNDER 5000 Mattresses
EQUIP FURN FIX 5000 TO 24999 BUDGET  7100 EQUIP FURN FIX 5000 to 24999 Budget
EQUIPMENT 5000 TO 24999  7111 EQUIP 5000 to 24999 Athletic
EQUIPMENT 5000 TO 24999  7112 EQUIP 5000 to 24999 Audio Visual
EQUIPMENT 5000 TO 24999  7113 EQUIP 5000 to 24999 Communication
EQUIPMENT 5000 TO 24999  7114 EQUIP 5000 to 24999 Comp Hardware
EQUIPMENT 5000 TO 24999  7115 EQUIP 5000 to 24999 Fabricated
EQUIPMENT 5000 TO 24999  7116 EQUIP 5000 to 24999 Laboratory
EQUIPMENT 5000 TO 24999  7117 EQUIP 5000 to 24999 Mechanical
EQUIPMENT 5000 TO 24999  7118 EQUIP 5000 to 24999 Medical
EQUIPMENT 5000 TO 24999  7119 EQUIP 5000 to 24999 Office
EQUIPMENT 5000 TO 24999  7121 EQUIP 5000 to 24999 Specialized
EQUIPMENT 5000 TO 24999  7122 EQUIP 5000 to 24999 Teaching
EQUIPMENT 5000 TO 24999  7123 EQUIP 5000 to 24999 Technical
EQUIPMENT 5000 TO 24999  7124 EQUIP 5000 to 24999 Machines and Tools
FURNITURE AND FIXTURE 5000 TO 24999  7131 FURN FIX 5000 to 24999 Furn Fixture
FURNISHINGS 5000 TO 24999  7151 FURNISHINGS 5000 to 24999 Carpet
FURNISHINGS 5000 TO 24999  7152 FURNISHINGS 5000 to 24999 Drapes/td>
FURNISHINGS 5000 TO 24999  7153 FURNISHINGS 5000 to 24999 Mattresses
VEHICLES 5000 TO 24999  7171 VEHICLES 5000 to 24999 Vehicles
INTERNAL DEPT REVENUE OTHER  4875 INT DEPT Computer Equip less 4999
INTERNAL DEPT REVENUE OTHER  4876 INT DEPT Computer Equip more 5000
INTERNAL DEPT CHARGES OTHER  7875 INT DEPT Computer Equip less 4999
INTERNAL DEPT CHARGES OTHER  7876 INT DEPT Computer Equip more 5000
 
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