• An item acquisition value (cost per item) of $4,000 or greater. • An expected useful life in excess of one year.
7.3.2 Grants Each grant will set the acquisition value limits for capital. All assets designated as equipment and/or furniture by the grant-funding agency is capital regardless of cost per unit. 7.3.3 Group Purchases The Purchasing Department will review significantly large purchases with item values under $4,000 to determine if circumstances warrant capitalization. For example, the complete replacement of all furniture in a room may be capital. 7.3.4 Amount Capitalized The amount capitalized (included in inventory file) is the complete purchase price of the item plus freight and set up costs (if any) incurred from an outside vendor.
7.4
Department Responsibilities
7.4.1 Controller Assure that the dollar effect of purchases and retirements affecting the inventory are posted to the general ledger control accounts. Maintain agreement between the general ledger accounts and the inventory. Arrange for periodic physical inventory testing. Maintain the computerized inventory system in a current status. Reconcile physical counts with inventory counts maintained on computer system. Items not found are to be written off after a reasonable investigation. 7.4.2 Deans of Administration Assure that all purchases of movable equipment are coded to the proper general ledger account. Report all sold, scrapped or transferred items to the Controller’s department. Coordinate the clearance and accompaniment where necessary for counting crews. 7.4.3 Campus Receivers Properly tag all purchased items including grant purchases and enter required
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