Policies & Procedures Manual - Elizabeth City State University

400.1.47Adopted: 06/14/05ELIZABETH CITY STATE UNIVERSITYFixed Assets (FA)CriteriaThere is a statewide fixed asset capitalization threshold of $5,000 for financial statementpresentation. Only assets costing $5,000 or more will be capitalized or added to the total fixedassets of the university at the end of the fiscal year. ECSU classifies assets costing between $500and $4,999 as inventoried fixed assets and maintains control over assets fitting within thisclassification.Two TYPES of FIXED ASSETSInventoriedInventoried fixed assets are those costing between $500 - $4,999. These assets may have a usefullife of more than one year, but do not meet the capitalization threshold of $5,000. The ECSU FixedAssets Officer will maintain a list of such assets for internal control purposes. The purchase pricefor these assets will be expensed on a yearly basis.CapitalizedA capitalized fixed asset is tangible property, such as land, buildings and equipment, with a cost of$5,000 or more and a useful life of more than one year. Fixed Assets are acquired for use in normaloperations and are not for resale. These assets are long-term in nature and may be subject todepreciation, depending on which funds were used to purchase the asset.Fixed Assets Data on FileComputerized data is maintained on all university owned property with a purchase cost of $500 ormore. Every item of University owned property meeting the above criteria is assigned a fixed assetdecal number and entered on a computerized fixed assets system.