Capitalization Change
Capitalization Threshold Update
The State Comptroller and the Federal Government have increased the capitalization threshold for certain assets at UTA to $10,000. This change affects furniture, equipment, vehicles, boats, and aircraft. Additionally, UTA’s controlled asset thresholds were updated as follows:
- Firearms and computing devices: $0 – $9,999.99
- Other controlled assets: $500 – $9,999.99
Cost Centers and Plant Fund Projects
For transactions recorded on cost centers and plant fund projects, use the new $10,000 threshold. Assets purchased or placed into service before September 1, 2024, will follow the old cost threshold requirements and will not be adjusted in UT Share.
Sponsored Projects
Due to indirect cost (IDC) implications, there is an additional level of complexity for sponsored projects. Our current federally negotiated IDC rate agreement specifies that we cannot charge IDC on equipment costing over $5,000. This will not change until on or about September 1, 2025. To avoid burdening budgets that did not account for IDC on items between $5,000 and $9,999.99:
- Active Grant Projects: Continue using capital equipment expense codes for equipment $5,000 and over. Accounting Services will adjust entries for equipment costing between $5,000 and $10,000 to ensure accurate financial reporting.
- Proposal Budgeting:
New projects will be set up according to the awarded budget, using either the $5,000 or $10,000 threshold as budgeted.
- Non-Federal Projects: Use the $10,000 threshold for budgeting effective immediately. Items below $10,000 will be included in the supply line.
- Federal Projects: Continue using the $5,000 threshold until the new F&A Rate Agreement is finalized. Items between $5,000 and $9,999.99 will be listed as equipment but not capitalized.
New projects will be set up according to the awarded budget, using either the $5,000 or $10,000 threshold as budgeted.
For more details, visit the Business Affairs website.
Contact Information
- Distribution Services: Distribution_services@uta.edu, 817-272-2191 (for asset tagging questions)
- Inventory Services: Inventory@uta.edu, 817-272-9684 (for controlled assets questions)
- Aprell Feagin: Aprell.feagin@uta.edu, 817-272-6180 (for capitalization questions)
Transactions Recorded on Cost Centers and Plant Fund Projects
Controlled
FY2025: ($0 to $9,999.99) FY2024 ($0 to $4,999.99)
| Class Code | Property Item |
|---|---|
| 203 | Servers |
| 204 | Computer, Desktop - Not Apple |
| 214 | Computer, Desktop - Apple |
| 219 | Smartphones, Tablets & Other Handheld Devices - Not Apple |
| 229 |
Smartphones, Tablets & Other Handheld Devices - Apple |
| 284 |
Laptop Computers - Not Apple |
| 294 |
Laptop Computers - Apple |
| 106 |
Handguns |
| 107 | Rifles & Shotguns |
Controlled
FY2025: ($0 to $9,999.99) FY2024 ($0 to $4,999.99)
| Class Code | Property Item |
|---|---|
| 129 | Sound Systems and Other Audio Equipment |
| 130 | Camera - Portable - Digital, SLR |
| 131 | TVs, Video Players / Recorders |
| 218 | Data Projectors |
| 735 |
Unmanned Aerial Vehicle (UAV) Drones |
Transactions Recorded on Grant Projects
Controlled
($0 to $4,999.99)
| Class Code | Property Item |
|---|---|
| 203 | Servers |
| 204 | Computer, Desktop - Not Apple |
| 214 | Computer, Desktop - Apple |
| 219 | Smartphones, Tablets & Other Handheld Devices - Not Apple |
| 229 |
Smartphones, Tablets & Other Handheld Devices - Apple |
| 284 |
Laptop Computers - Not Apple |
| 294 |
Laptop Computers - Apple |
| 106 |
Handguns |
| 107 | Rifles & Shotguns |
Controlled
($500.00 to $4,999.99)
| Class Code | Property Item |
|---|---|
| 129 | Sound Systems and Other Audio Equipment |
| 130 | Camera - Portable - Digital, SLR |
| 131 | TVs, Video Players / Recorders |
| 218 | Data Projectors |
| 735 |
Unmanned Aerial Vehicle (UAV) Drones |
AFR Categories - Transactions Recorded on Cost Centers or Plant Fund Projects
| Category | Description | FY2025 Threshold |
|---|---|---|
| 1 | Land and Land Improvements | $0 |
| 2 | Buildings and Building Improvements |
$100,000 |
| 3 | Infrastructure, Depreciable |
$500,000 |
| 4 | Furniture and Equipment |
$10,000 |
| 5 |
Vehicles, Boats and Aircrafts | $10,000 |
| 6 |
Construction in Progress | $0 |
| 7 |
Infrastructure, Non-Depreciable |
Varies |
| 8 |
Other Assets (Works of Art & Historical Treasures, Libraries, Leasehold Improvements and Livestock) |
$100,000 |
| 9 | Rifles & Shotguns |
$100,000 |
| A | Land Use Rights Various |
Varies |
| B |
Computer Software Various |
Varies |
| C |
Other Intangible Capital Assets |
$100,000 |
AFR Categories - Transactions Recorded on Grant Projects
| Category | Description | Threshold |
|---|---|---|
| 1 | Land and Land Improvements | $0 |
| 2 | Buildings and Building Improvements |
$100,000 |
| 3 | Infrastructure, Depreciable |
$500,000 |
| 4 | Furniture and Equipment |
$10,000 |
| 5 |
Vehicles, Boats and Aircrafts | $10,000 |
| 6 |
Construction in Progress | $0 |
| 7 |
Infrastructure, Non-Depreciable |
Varies |
| 8 |
Other Assets (Works of Art & Historical Treasures, Libraries, Leasehold Improvements and Livestock) |
$100,000 |
| 9 | Rifles & Shotguns |
$100,000 |
| A | Land Use Rights Various |
Varies |
| B |
Computer Software Various |
Varies |
| C |
Other Intangible Capital Assets |
$100,000 |