Capital Expenditures & Sensitive Items
Major account classification of expenditures for property items including land, buildings and equipment. Further guidance for determining the proper classification can be found in the University of Alaska Accounting and Administrative Manual, Section 100 A-25. Entries for budget, payroll or accounting purposes may not be made to this account code.
For capital expenditures budget entry purposes only by chief financial officers of MAUs and Statewide Budget.
Budget reserved for unanticipated costs relating to identified budgeted construction costs.
Expenditures incurred for the purchase of land or interest in land. When the purchase of a piece of real property includes both land and buildings, the cost should be apportioned or allocated between the land and buildings and specified amounts recorded under sub account accounts 5010 (land) and 5111 (buildings). Also includes improvements to land to ready the site for its intended use.
Expenditures incurred in the acquisition or construction of buildings and other structures, including the cost of all equipment permanently attached to and made part of the building or structure.
Buildings have a cost of $100,000 or more and an expected useful life of greater than fifteen years. Building costs include structural additions, nonstructural improvements, field equipment (either added or replaced) and related freight.
Projects exceeding $100,000 for major repairs and alterations to existing buildings and structures, which change the nature of the building or structure and/or extends its useful life.
Expenditures exceeding $100,000 for remodeling a leased building. The expenditures extend the useful life of the building.
Expenditures which do not meet the definition of equipment, fixed equipment, buildings, infrastructure, etc., but have a unit cost of $50,000 or more.
Expenditures exceeding $100,000 for intangible assets. Intangible assets are non-financial capital assets that lack physical substance and have a useful life greater than one year. Examples include patents, copyrights, franchises, trademarks, goodwill, secret processes, and other technology or manufacturing rights.
Equipment items or other assets costing $5,000 or more per unit that are physically attached or fastened to the building (not merely plugged in), but not permanently affixed. Fume hoods, counters, and lab benches will be considered as physically attached to the building, but not permanently affixed, if they can be removed without the need for costly or extensive alterations.
Use 5225 for artwork with a cost of $5,000 or more.
Expenditures for library books.
Expenditures for the cataloging and binding of books and periodicals.
Expenditures for film and audiovisual programs acquired for library purposes.
Expenditures for books and periodicals in an electronic format.
Expenditures for microfilmed and microfiched periodicals and other materials.
Expenditures, or donated cost, for paintings, sculpture, artifacts, film and other museum acquisitions.
Expenditures for projects of $100,000 or more for the construction or acquisition of infrastructure.
Infrastructure are long-lived capital assets that normally are stationary in nature and can be preserved for a significant number of years. Infrastructure assets are often linear and continuous in nature. See A-25 in the University of Alaska Accounting and Administrative Manual, Section 100 for more details.
Equipment & Sensitive Items
Equipment is defined as tangible, nonexpendable personal property having an acquisition cost of $5,000 or more per unit and an expected life greater than one year. Equipment costs include the related freight, postage and installation charges. Use the 4xxx account codes for equipment costing under $5,000, unless it is classified as a sensitive item.
A sensitive item is defined as nonexpendable equipment having an acquisition value less than $5,000, which is subject to special university title requirements or liability exposure. Transportation equipment and firearms are considered sensitive items. Items in the following account codes will be added to the Banner Fixed Asset module.
Expenditures for individual pieces of furniture or appliances of $5,000 or more.
Use account code 4017 for individual pieces less than $5,000.
Use account code 5331 for educational appliances and 5332 for research appliances.
Expenditures for art, or fair market value of donated art. Includes art that is permanently attached to a building or structure, or is extremely large, bulky or heavy as to be considered immovable. Does not include museum acquisitions.
Expenditures for specialized equipment used for medical, fire and safety purposes.
This account is to be used for any or all of the following purposes:
- electronic media, such as research data sets, with a cost greater than $100,000,
- software with a unit value cost of $100,000 or more and useful life of more than one year, and
- internally developed software with a cost of $500,000 or more and useful life greater than 10 years.
Expenditures for PC and Macintosh computers used in educational, research, and office environments. Includes local area networks (LANs), printers, monitors, and other peripherals. Does not include mainframe computers.
Expenditures for mainframe computers and related peripheral equipment. Includes the University of Alaska Computer Network systems. Excludes microcomputers, local area networks (LANs), and related peripheral equipment.
Expenditures for telephone equipment including switches, modules, cards, cabinets or other devices that may be connected to the telephone system.
Expenditures for apparatus, gear and machinery for use in the classroom or instructional laboratory environment (use account code 5328 for microcomputers.)
Expenditures for specialized laboratory and scientific apparatus, instruments or machinery for research purposes (use account code 5328 for microcomputers).
Expenditures for pistols, rifles and shotguns required for security purposes.
Expenditures, of any amount, for motor vehicles, trailers, and heavy equipment that will be driven on the road. Includes parts, which should be capitalized separately.
Expenditures for maintenance and custodial equipment.
Expenditures for equipment, which will be used in an office or administrative environment (use account code 5328 for microcomputers).
Expenditures for farm equipment such as rakes, combines, spreaders, plows, small tractors and attachments.
Expenditures for equipment used specifically for the purpose of broadcasting.
Expenditures for the construction of equipment. This account code is monitored by each campus property coordinator. Once the construction is completed, equipment will need to be added to the Banner Fixed Asset module like other university fixed assets.