Fixed Asset Capitalization Policy and Inventory Procedure
Vice-President Finance and Operations
To establish guidelines for the control of capital assets owned by the University.
The purposes of the controls are to
protect capital assets, to preserve the life expectancy of capital assets, to avoid unnecessary duplication of assets on
campus, to provide a guide for the future replacement of assets, and to establish a basis for the amount of insurance
A capital asset, for the purposes of this policy, is defined as tangible or intangible property owned by the institution and
property leased from others that qualify as a capital lease or leasehold improvement with a useful life that extends beyond
the year it is placed in service and meets the definition and minimum dollar amount for capitalization per asset category as
– Real property that is purchased or acquired by gift or bequest for operating purposes regardless of value.
– Gifts acquired or costs incurred to prepare land for its intended business use in excess of
$5,000, such as landscaping shrubbery, roads, sidewalks, fences, bridges, lighting, sewers, and athletic fields,
tracks and courts.
Buildings and improvements
– All structures used for operating purposes including all permanently attached
fixtures, machinery, and other components that cannot be removed without damage, such as boilers, furnaces, air
conditioners, elevators, wiring, and lighting fixtures.
All alterations, renovation, and repairs to existing structures
in excess of $5,000 that increase the value of the property, make it more useful, or lengthen its life.
– All alterations, renovations, and repairs to leased facilities in excess of $5,000 that
increase the value of the property, make it more useful, or lengthen its life.