Asset Management & Surplus Property Section (ASM)
POLICY 2
Effective Date: 01/01/1999
Last Modified Date: 08/15/2001
Definition of Equipment
Capitalized equipment, for the purpose of the Asset Management system, is defined as an item with an acquisition cost of $5,000 or more. The acquisition cost of equipment includes tax, installation charges, and freight. Equipment generally has all the following characteristics:
- acquisition cost of $5,000 or more
- a life span of one year or more
- non-expendable material
- not consumed
Only items that are considered capitalized equipment may be purchased by using the 5111-5519 object code range. Other items (supplies, maintenance, replacements, warranty, additions to buildings, etc.) may not be charged to the 5111-5519 object code range. The following object codes are used for capitalized equipment purchases:
5111-5112
Office Furniture & Office Equipment
5211-5212
EDP Equipment & EDP Software(software must cost $50,000 or more)
5311-5316
Educational Equipment
5411-5415
Motor Vehicles
5511-5519
Other Equipment
See ACT Appendix 2, Expenditure Subcode (Object) Listing, for a complete listing of object codes.
Items not considered equipment should not be purchased using the 5111-5519 range of object codes. Some examples of these items are as follows:
- Movable wall/office partitions
- Replacement chromatography columns for HPLC, GC, and FPLC systems
- Software costing less than $50,000
- Software license (regardless of cost)
- Plumbing fixtures (sinks, etc.)
- Repairs and replacements: repair to equipment and the replacement of equipment components that maintain or restore value
- Equipment maintenance contracts
- Diamond knives
- Modular furniture: furniture priced by the piece that can be assembled in various ways, thus continually altering cost and value
- Computer clusters: each independently housed or cased PC, server, or other computing component that contains its own mainboard (central logic board) shall be accounted for as a separate entity, both fiscally and for asset tracking purposes
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