99-6  Obsolete

Postponement of the Capitalization Threshold Change
June 30, 1999

Note: This Important Notice is being sent to Account Managers, Chairpersons, Deans and Chancellors. Please forward to others who have a need to know.)

Important Notice 99-5 previously announced that effective July 1, 1999, the threshold amount for the capitalization of equipment would be raised from $1,000 to $5,000. Due to procedural difficulties in obtaining formal approval from the Department of Health and Human Services (DHHS), this change has been postponed. Instead, the capitalization limit of $5,000 will be implemented on July 1, 2002 along with the next F&A agreement.

As a result of these events, please take note of the following:

Cost

Object Code

Description

F&A Cost Applied

$0 – 999.99

4910

General Durables < $500

YES

 

4616

Computer Software < $1,000

YES

 

5200

Expendable Equipment

> $500 and < $1,000

YES

 

5215

Expendable Computer Equip.

> $500 and < $1,000

YES

$1,000 or >

7XXX

Appropriate capital object

NO

DO NOT USE

5202

Non-capital Equipment

 
 

5217

Non-capital Computer Equipment

 
 

5218

Non-capital Software

 
 

4908

Expendable Computer Equipment < $1,000