Acquiring Capital Assets

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Directive Statement

This directive establishes the proper methods of acquiring capital assets.  Capital assets can be acquired by four different ways: the capital assets can be purchased through Procurement or Disbursements, donated to the University of Florida through the UF Foundation, transferred in with incoming faculty from another university, or loaned (“furnished”) to UF by a federal agency or other agencies.

Reason for Directive

The Board of Governors and UF directive defines which items are required to be tracked as capital assets.  A capital asset is long-term property that UF owns and uses in fulfilling its mission, and it is not expected to be consumed within one year of acquisition.  There are several types of capital assets: tangible property, real property, and intangible property.  Capital tangible property is property that can be physically relocated, costs a minimum of $5,000 per item, and has a useful life longer than one year (excluding library resources, these items only require a minimum of $250).

The following capitalization thresholds define the criteria for capitalizing University of Florida assets:

  1. Furniture & Equipment – Includes moveable equipment of a non-consumable nature, where the value or cost (less discounts) of the asset including freight, installation, other costs incurred to acquire the asset is $5,000 or more, and the normal expected life of which is one year or more.  Note: Repairs and maintenance expenses, service contracts, and extended warranties are not additions to the capital assets.
  2. Artwork – Depreciable – Includes all artwork purchased by a department (not including the Harn Museum or the University Gallery) the value or cost of which is $5,000 or more and the normal expected life of which is one year or more.
  3. Artwork – Non-Depreciable – Includes all artwork purchased by the Harn Museum or the University Gallery ONLY where the value or cost of which is $5,000 or more and the normal expected life of which is one year or more.  Note: All donated artwork is donated through the UF Foundation and reported on the Foundation’s financial statements.
  4. Software – Computer Software is treated as an intangible asset.  Software includes software licenses that have a unit cost of $4,000,000 or more, the life is one year or more and does not have a time-limited license for current or future use (i.e. does not require payment or return each year).
  5. Livestock – Includes animals with a value or cost of $5,000 or more and the normal expected life is one year or more.
  6. Library Resources – Includes Library resources with a value or cost of $250 or more and having a useful life of one year or more.
  7. Leased Furniture and Equipment – Includes leases of furniture and equipment with total annual payments of $5,000 or more per item and with a lease term longer than 12 months (including all optional extensions).
  8. Leased Real Estate – Includes the lease of real estate with total annual payments of $100,000 or more and with a lease term longer than 12 months (including all optional extensions).

Who must comply?

All University of Florida departments.  It is the Property Custodian’s responsibility to identify and safeguard all capital assets owned by their departments.  The Property Custodian will identify Departmental Contacts who will be delegated daily tasks.

Procedures & Best Practices

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