This change will bring UW in line with the $5,000 capitalization threshold that our peer institutions have implemented. All of our top 25 research peers now use the $5,000 threshold.
Over 40,000 of UW’s assets fall between $2,000 and $4,999. A full costing study of the administrative burden of maintaining a physical inventory for these 40,000 assets revealed that the cost and burden of maintaining the lower threshold is significant. The driving force behind this change is a significant reduction in both faculty and staff administrative burden at all three campuses. The change will also address threshold alignment issues between the UW and federal, State and local government. Almost all government agencies use the $5,000 threshold and, at times, o
A webpage was created on Equipment Inventory Office’s (EIO) website for information specific to the equipment threshold change. Visit the webpage periodically, we will continue to post information as it becomes available.
Historically, the UW has defined capital equipment as tangible property (other than land, buildings, improvements other than buildings, or infrastructure) with a unit cost of $2,000 or more (including ancillary costs) used to conduct UW instruction, research and public service with a useful life of more than one year.
Effective July 1, 2016, the unit cost threshold will increase to $5,000.
The documented use of materials or equipment in the business process compared to the planned use.
When applied to material and property, use is engaging the asset or material into the business process for value.
The physical inventory of University owned assets with a total cost greater than $5,000. These inventories are distributed to campus in early May of each non-biennium year and are due back to the Equipment Inventory Office by August 31st of the same year.
Equipment item brought into the University or department from another university, agency, or another University department. Equipment transferred in is treated as equipment if it meets the equipment definition. University departments must approximate the fair market value of equipment transferred in at the time of receipt. Equipment that has an estimated fair market value of $5,000 or more, with a life expectancy of more than one year, must be tagged and inventoried.
Items purchased from the Surplus Property Office Warehouse. These are viewed as being acquired from an outside vendor. They are considered equipment if they meet the equipment definition; current market value of $5,000 or more and an original life expectancy of more than one year.
The physical inventory of Sensitive Inventory Items (Small and Attractive Assets) regardless of cost. These inventories are distributed to campus in early May of each non-biennium year and are due back to the Equipment Inventory Office by August 31st of the same year.