How does Fixed Assets Support Campus?
The Fixed Assets department is responsible for the recording of university assets, thereby safeguarding the integrity of our financial statements. We provide training and consultative services to campus users to foster a consistent and shared understanding of proper asset recording practices.
Asset Characterization
Items Classified as Assets
Tangible items used in operations with a useful life of more than one year and the capability of independent operation. Depending on the unit price, they would be classified as non-taggable, track or capital assets.
Capital Assets (definition from Policy 6270)
Tangible assets acquired for use in normal operations with a value equal to or greater than $5,000 and with a useful life greater than one (1) year, Capital Assets include items of property and equipment, such as buildings, office furniture and fixtures, and library collections, computers and other related technology equipment, including fabricated assets.
Track Assets (definition from Policy 6270)
Non-Capital Assets with a purchased value between $2,000 – $4,999.99 and with a useful life greater than one (1) year. These assets are not capitalized for financial statement purposes but are required to be tracked in the Property Inventory System for inventory purposes.
Capital and Track assets are tagged and tracked for inventory purposes. Please see the Inventory Control page for more detailed information.
Items Not Classified as Assets
- Consumables/supplies: These are items used and depleted during operations and are not intended for long-term use.
- Software under $200,000: Software purchases below this threshold are typically treated as expenses, not capitalized as assets.
- Accessories: These are often considered optional or interchangeable items, not standalone assets.
- Prototypes: Prototypes are typically developmental or experimental items not yet in a state for regular operational use.
- Modular cubicle furniture: such as panels, work surfaces and drawers, can be assembled in multiple configurations and relocated with ease. Its flexible design allows for easy movement and customization. Unlike traditional furniture, modular cubicle furniture isn’t considered taggable equipment.
Capital Asset Upgrades and Repairs
A capital asset upgrade involves adding new components that significantly boost the asset’s capacity and increase its value by at least $5,000. It’s more than a repair; it’s a substantial enhancement. The upgrade should be charged to the same capital account code as the original asset.
If you purchase a part intended for a capital asset upgrade, please include the corresponding Boise State tag number in the purchase description. Providing this tag information is crucial for streamlining our reconciliation research and ensuring accurate asset tracking.
A capital asset repair involves replacing an existing, worn or damaged part with a new, functionally equivalent part, restoring the asset to its original operating condition. This constitutes ordinary repairs and maintenance and should be charged to a non-taggable operating expense account.
Acquisition Costs
Acquisition costs are all expenditures required to render an asset ready for its intended use. These costs need to be recorded using the same account code as the asset.
Included Costs: Freight/shipping, design, installation, freight insurance, tariffs.
Excluded Costs: Add-on accessories, warranties, training, licenses, support/maintenance packages for hardware and software.
Discounts
When a vendor offers a general discount on a multi-item purchase, the discount shall be allocated proportionally across all line items. A discount shall be applied exclusively to a single item only if it is explicitly designated for that item.
Asset Account Codes
Non-Taggable Assets (Under $2,000)
Non-taggable assets with a per-unit cost less than $2,000 shall be recorded using operating expense codes beginning with ‘5’ and ending in ’00’.
Example: A $1,000 laptop is coded to 558000.
Track Assets ($2,000 – $4,999.99)
Track assets with a per-unit cost between $2,000 and $4,999.99 shall be recorded using operating expense codes beginning with ‘5’ and ending in ’25’.
Example: A $2,000 laptop is coded to 558025.
Capital Assets ($5,000 or more)
Capital assets with a per-unit cost of $5,000 or more shall be recorded using capital account expense codes beginning with ‘6’.
Example: A $5,000 computer is coded to 649900.
For assistance in selecting the appropriate account code, please refer to our Account Code Cheat Sheet.
Note: Including acquisition costs and discounts may impact the asset’s classification due to a change in its total unit price. Therefore, calculate all related costs before selecting an account code.
Invoice Allocation Examples
Please review our fixed asset invoice examples to ensure accurate account coding and allocation of discounts and acquisition charges. If you have any questions beyond these examples, don’t hesitate to contact us. We’re here to help!
Asset Donations
Donations to the university are processed through the University Foundation. Donors must provide an estimated fair market value. Items valued at $2,000 or more require reporting to the Fixed Asset Department. Refer to the University Foundation website for detailed donation information.
Best Practices
P-Card Purchases
To expedite the review of p-card purchases over $2,000 that utilize account codes from the Account Code Cheat Sheet, please attach a receipt in Works. This practice significantly reduces the time required to identify taggable items and minimizes the need for additional information requests. Keep in mind that you are still required to maintain a copy of the receipt in your local files for audit purposes.
Invoice Payments
To avoid automatic invoice rejections when submitting invoice payments in Bronco Hub, please remember to check the “Track as Asset” box for any invoice distribution combination that includes an account segment beginning with “6” or ending in “25”.