... Capitalized and Controlled Assets

Effective September 01, 2004 (Fiscal Year 2005) the capitalization threshold for Furniture, Fixtures and Equipment(Personal Property) has gone from $1,000.00 to $5,000.00. Capital Assets are assets which cost $5,000.00 or more per single unit and have a useful life greater than one year. Much of the equipment purchased by the university that had been capitalized, will now be expensed. The remainder of the equipment that was classified as capital under the $1,000.00 threshold will become Comptroller controlled assets. Controlled assets are assets which cost between $500.00 and $4,999.99 that the state requires agencies to tag, inventory and report to State Property Accounting. The following chart is a list of the controlled assets and their respective PeopleSoft accounts. Any controlled items that fall below the minimum cost range ($500.00) will be expensed.

Please be aware of the new capitalization threshold as you enter new orders. If you have questions you can contact Capital Assets Management at 713-500-4701.

Controlled Assets:

Title	Cost Range	Account
Hand Guns	Any Cost	67374
Rifles	Any Cost	67374
Data Projectors	$500.00 - $4999.99	67374
Stereo Systems	$500.00 - $4999.99	67374
Cameras	$500.00 - $4999.99	67374
Video Recorder/Laserdisc Player (TV, VCR, Camcorder)	$500.00 - $4999.99	67374
Computer-Desktop or Tower (not Apple)	$500.00 - $4999.99	67378
Computer Printer (not portable)	$500.00 - $4999.99	67378
Computer-Desktop or Tower--Apple	$500.00 - $4999.99	67378
Laptop Computer (not Apple)	$500.00 - $4999.99	67378
Laptop Computer - Apple	$500.00 - $4999.99	67378

Possible expense accounts to use when it is determined that the cost is NOT Capital or Controlled (under $500):

67330 - Parts-Furnishings/Equipment non-capital
67334 - Furnishings & Equipment non-capital
67335 - Computer Parts non-capital
67367 - Maint & Repair Furnishings/Equip. non-capital
67377 - Computer Equipment Expensed
67380 - Computer Software Expensed

This is a partial listing only.

Accounting Principles define capitalized cost as:

• Purchase price
• Freight
• Insurance while in transit
• Storage fees while asset is being readied for use.
• Labor and installation charges
• Maintenance agreements and extended warranties purchased with a capital asset

In short, any significant cost incurred to ready an asset for use is capitalized.

The University of Texas Health Science Center at Houston
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Last updated January 30, 2009