Fayetteville Policies and Procedures  313.2 

Inventory/Equipment Capitalization Thresholds

The University of Arkansas uses equipment capitalization thresholds to determine which equipment items are included in University inventories and what methods must be used for tracking. Thresholds are determined by the State of Arkansas Department of Finance and Administration’s Capital Asset Guidelines, P1-19-4-1503. In addition, the University has determined that certain items such as cell phones, tablets and weapons shall be tracked regardless of cost.  The University has established distinct tracking requirements for Capitalized Equipment, Low Value Equipment, and Low Value-High Risk Equipment, as defined and explained in this policy.

  1. Definitions and Threshold Levels
    1. Capitalized Equipment
      The capitalization threshold (minimum value) for Capitalized Equipment is $5,000.00. In addition to having a first cost or initial value of at least $5,000, in order to be considered Capitalized Equipment, each capitalized item must have an estimated useful life of greater than one year, an identity that does not change with use, and a nature that makes formal accountability practical.
    2. Low Value Equipment
      All equipment with a useful life in excess of one year and an initial value of at least $2,500 but not more than $4,999.99, which is classified as Low Value Equipment.
    3. Low Value-High Risk Equipment
      Assets valued from $500 to $2,499.99 that are easily susceptible to loss or theft, including, but not limited to, computers, monitors, laptop computers, tablets (e.g., iPad, Kindle Fire, etc.), guns, camera equipment, video equipment, video gaming equipment, printers, scanners, tools, cell phones, handheld radios, and binoculars, are classified as Low Value-High Risk Equipment.

  2. Responsibilities
    1. Property Accounting
      An inventory of the University’s equipment in the Capitalized Equipment and Low Value equipment categories (those items with an initial value of $2,500.00 and up) shall be maintained by the Property Accounting Office, with the assistance of all Departments or Units, as required by the Arkansas Department of Finance and Administration. All capitalized, low value, and low value-high risk equipment must be tracked in Workday.
    2. Departments
      • Technology purchases as defined by Fayetteville Policies and Procedures 313.6, Information Technology Asset Management (ITAM) Policy, must be tagged and tracked in accordance with the requirements of that policy.
      • Departments have ultimate responsibility for maintaining and safeguarding all assets assigned to them, including maintaining an inventory of their Low Value-High Risk equipment.
      • Departments may identify other items as being significant to their operations beyond those they are required to track. Those items may be tracked at the Departmental level in Workday.

August 15, 2022
Reformatted for Web April 2, 2014
Revised December 6, 2012
Revised August 1, 2012
Revised September 2, 2009
July, 2001