BS5610 - Capital Purchases and Accounting

1. Institutional Regulations
   
   All Capital purchases shall be charged against specified accounts and the Business Office shall maintain a detailed inventory record of such items.
    
2. Procedure
   1. A Capital item is identified as all items meeting the definition of equipment (below), library books and films, buildings and fixed equipment (attached to or part of the building), vehicles, land, and other structures and improvements such as parking lots, fencing, and landscaping.
   2. An equipment item is a unit of furniture, an instrument, tool, machine or apparatus which meets the following requirements:
      1. It retains its original shape and appearance with use;
      2. Has a life expectancy in excess of one-year;
      3. Does not lose its identity through incorporation into a different or more complex unit or substance;
      4. Is not a building or permanent component of a building;
      5. Costs $5000 or more.
   3. Correct Capital Accounting Distribution
      1. Capital accounts are defined as follows:
         1. 7100 - Furniture, Machinery and Equipment
         2. 7120 - Lease Purchase Equipment
         3. 7400 - Vehicles
         4. 7500 - Library Books and Films
         5. 7600 - Buildings and Fixed Equipment
         6. 7700 - Land
         7. 7800 - Other Structures and Improvements
   4. An equipment item that is charged to 7120 (Lease Purchase Equipment) must have the approval of the Vice President of Business Services.