Property Management

1. Property Management Capitalization Quick Review

2. Why It’s Important • Subject to audit by our external auditors • Annual property review by ONR • Property reporting on sponsored agreements • Financial Statement impact

3. Capitalization Thresholds • Capitalized equipment has a cost of => $5,000 per single functional unit, inclusive of shipping and installation. Equipment to be capitalized must have a useful life of 1 year or more • Computer Software –with a cost of => $100,000 or more per license • Fabrications consist of purchases that can be < $5,000, but are combined to form a single functional unit of equipment => $5,000

4. Equipment Line Items • 5410101 - Equipment => $5,000 – Computer Equipment Office • 5410201 - Office Computer Software Equipment => $25,000 per License • 5410301 - Equipment => $5,000 – Office & Communication • 5410401- Equipment => than $5,000 – Research & Educational

5. Equipment Line Items continued… • 5410501 – Equipment => $5,000 – Household & Furnishings • 5410602 – Equipment => $5,000 – Medical Equipment • 5410701 – Equipment => $5,000 – Vehicles • 5410802 – Equipment => $5,000 – Farm & Construction Equipment • 5410902 – Equipment => $5,000 – Other Capital Equipment

6. Equipment Component Line Items Components increase the value of existing units of capitalized equipment or are combined to fabricate a unit of equipment with a cost of =>$5,000 • 5410112 Equipment Components < $5,000 – Computer Related • 5410411 Equipment Components < $5,000 – All Other

7. What does it mean when I pay something on a capitalized line item (5410XXX series)? • The item meets the definition of capitalized equipment • A WVU tag number prefixed with the alpha characters of ‘OCXXXXX needs to be affixed/assigned • An asset acquisition form or fabrication modification form should be submitted to Property Management • If the purchase does not result in an asset being added or increased in value in the Fixed Asset module, use a general expense line item

8. Coding Shipping/Freight on Equipment Purchases • Shipping charges should be coded the same line item as the equipment • If supply and equipment items are billed on one invoice – the shipping should be prorated between the items. • Contact Property Management to assist you with prorated shipping charges

9. Procurement Card Purchases • If you code a p-card purchase with a capitalized line item (5410XXX series), please send a copy of the invoice/packing list to Property Management upon receipt of the documentation. • Fax to Randy Powers at 293-6856, or • Scan and email copy to assetmg@mail.wvu.edu, or • Mail to Property Management, PO BOX 6001

10. Examples • Tires are replaced on a vehicle – are they a component? – NO – expense line item • 14 computers are acquired @ $3,400 each that are to be individually functional for a total price of $47,600 – capitalize? – NO – use general expense line item • A specialized lens for a capitalized microscope is acquired – is this a component? – YES – use the component line item

11. Line Item Coding Tips • Repairs fall under the line item prefixed by 5340XXX • Replacement parts for units of equipment that do not increase the value fall under the line item prefixed by 501XXXX • General expense equipment (cost < $5000) fall under the line item prefixed by 501XXXX • Maintenance of existing equipment falls under the line item prefixed by 501XXXX

12. Line Item Coding Tips • Software with a value of < $100,000 should be recorded as a general expense: • Software < $5,000 should be coded 5011105 • Software => $5,000 but < $25,000 should be coded 5011111

13. Property Management IU’s • When items are coded incorrectly, Property Management is creating the IU’s to correct the erroneous coding • We use the following numbering scheme for IU’s: IU (Invoice Number) (period invoice processed) (initials of person) Example: IU54892DEC08JB • If you do not use this numbering method, be certain to reference the invoice number and period name of the original purchase on theIU