Controller's Division OUS Fiscal Policy Manual

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Section 02.12: Account Codes -- Capital Outlay (40000-49999)

General

The following account codes are used to record the capital outlay (purchase or construction) for non-expendable, tangible personal property and real property from non-proprietary funds only. Non-proprietary funds include all funds except Service Department and Auxiliary Enterprise funds. The capitalization and accumulated depreciation for non-proprietary funded assets should be recorded in the Net Investment in Plant fund 890000. (The capitalization and accumulated depreciation for proprietary funded assets should be recorded in the individual Service Department/Auxiliary Enterprise funds. See A8xxx account series for asset procurements from proprietary funds.)

Non-proprietary funded assets will be capitalized and depreciated by the Banner Financial Information System to the Net Investment in Plant fund 890000 using the A8xxx asset/contra asset accounts but are to be procured using the below 4xxxx capital outlay accounts.

Section Layout:

[1] Capital Outlay - Capitalized
     [A] Personal Property
     [B] Real Property
          [a] Land
          [b] Improvements Other Than Buildings
          [c] Buildings
          [d] Infrastructure

[2] Capital Outlay - Non-Capitalized

[3] Capital Asset Losses

[4] Miscellaneous Capital Outlay

 

[1] Capital Outlay - Capitalized

[A] Personal Property

Personal property is defined as tangible property that meets the following criteria:

• It is owned or considered owned by the University.
• It is held for operations, not for resale.
• Its useful life exceeds one year.
• It has a unit value of $5,000 or more.

The unit-cost limit does not apply in the following situations:

• When materials purchased are used as part of an institutional general collection library for three years or more.
• When an item is included on the equipment inventory as an Attachment to an existing capitalized asset. See attachment definition in Fiscal Policy 55.825 "Components and Attachments of Existing Capital Assets".
• When an exception to the unit-cost limit has been approved by authorized institution personnel. (When an exception has been granted, an inventory record must be recorded in the Fixed Asset subsidiary and a record of the authorization kept on file.)

For all other equipment valued at less than $5,000, use code 20200 - Minor Equipment unless a more specific code is available.

The following ancillary costs should also be capitalized:

• Freight or excess charges on newly purchased equipment if charges exceed $25
• All installation expenses
• The cost of modifications that increase a piece of equipment's value by more than $5,000

For purchases acquired through a lease-purchase or installment payment arrangement, see section [4] Miscellaneous Capital Outlay.

See Fiscal Policy 55.100 " Fixed Asset Accounting Policies" for more information and definition of Non-Expendable Personal Property, including capitalization threshold information.

40190 Library Purchases

Purchases by institutional libraries, or the UO law library, of books, periodicals, films, tapes, slides and reference materials. See account code 40103 - Artworks/Collection Items, for non-depreciable Library special collection purchases.

[B] Real Property

[a] Land

[b] Improvements Other Than Buildings

[c] Buildings

[d] Infrastructure

[2] Capital Outlay - Non-Capitalized

[3] Capital Asset Losses

[4] Miscellaneous Capital Outlay

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