Category: FINANCE FACILITIES AND TECHNOLOGY
Approved By: Board of Trustees
Beginning with the 2002-2003 fiscal year, the College will be required to meet the reporting requirements of the Governmental Accounting Standards Board (GASB) Statements 34 and 35, “Basic Financial Statements – and Management’s Discussion and Analysis – for Public Colleges and Universities.” In order to meet these financial reporting requirements, institutional policy for capitalization of assets must be defined.
For financial statement purposes, any asset acquired, donated, or purchased by the College, with a useful life of longer than one year, and a unit cost of $3000 or greater, will be capitalized and depreciated.
A related group of assets acquired at the same time, with unit that values are less than $3000, but with a total value of $3000 or greater, will be considered as a unit, and depreciated.
Assets with a useful life of over one year, but a value of less than the threshold, will be charged as an expense.
Value of Assets
Existing capital assets will be recorded at historical cost at acquisition date, or at estimated cost if adequate records are not available.
Newly purchased assets will be recorded at cost.
Donated assets will be valued at fair market value at date of receipt.
Guidelines for useful life, based on experience and circumstances (and subject to revision when necessary):
- Land will be capitalized but not depreciated.
- Infrastructure will be depreciated over expected useful life.
- Buildings will be depreciated over a life of 30 years.
- Building Improvements that extend the useful life of the building will be depreciated over a life of 20 years.
- Technology equipment, including computer hardware and software, will be depreciated over a useful life of 3 years.
- Furniture, fixtures, and equipment not categorized as technology equipment, will be depreciated over a life of 7 years.
Depreciation expense is recognized for financial statement purposes only. For budgetary purposes, the full cost of a capital asset is recognized at the time of acquisition.