Purchases of property and equipment will be capitalized and subsequently depreciated with a minimum 2 year life, based upon the following thresholds:
|Asset Category||Unit Cost|
1Group Purchases/ Minor Equipment
Items usually considered to be “minor equipment” may be capitalized if they are purchased in bulk with a total cost of $50,000 or more and have a useful life of two or more years.
An example would be 250 dorm bunk beds and 500 mattresses, totaling over $100,000, purchased at one time. Capitalized “group purchased assets” will not be subject to asset tagging procedures since the individual value is less than $5,000.
Gifts-in-kind will follow the relevant capitalization policy listed above depending on the type of asset donated to the University.Non-Capital Property and Equipment – examples of assets that are not to be capitalized include:
- Library books
- Equipment with an individual cost of less than $5,000.
- Tamburitzan Costumes
- Art Work
Currently, the University uses the straight-line method of depreciation for property and equipment. A full month of depreciation will be taken in the month of acquisition and will continue up to the month of disposal or the useful life of the asset, whichever comes first.