About Capital Equipment and Inventory
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Capital Inventory's mission is to:
- Maintain a capital equipment inventory system that is accurate and up to date.
- Maintain adequate inventory records.
- Assist Internal Audit in conducting the required physical inventory every two years.
Definition of Capital Equipment
- "Capital Equipment" is any single asset with an acquisition cost of ≥ $5,000 and has a useful life of at least 2 years.
- Capital Equipment also includes certain component parts (or system) that comprise a single asset.
- All new Capital Equipment has to be tagged and inventoried.
- All equipment donations with a current value determined by the donor ≥ $5,000 are also capitalized as a donation. A Gift-in-Kind form from UW-Platteville Foundation is required.
Why is a Capital Equipment Inventory System necessary?
- It is a valuable strategic planning tool at the executive, college, and departmental levels. It provides a history of capital spending, which tells the campus where it has expended its resources. It provides a detail of the current resources available for operational needs. It also provides a foundation with which to plan future capital expenditures in order to fulfill strategic planning directions and objectives.
- It is the basis for insurance coverage and allows for proper accountability in the case of loss or damage. The State Self-Funded Property Insurance Program requires periodic reports of inventory valuations so proper coverage is maintained on our equipment and supplies, including library books.
- It is used to compile the annual Summary of Changes in Equipment Inventory which is required by the UW System Financial Reporting Office. This report is used to complete campus asset valuation elements of the UW System Annual Financial Statements.
- It is the accountability record of all capital equipment on campus.
- It is used as a basis for establishing reserves for new equipment, comparative analysis of equipment for maintenance and purchasing purposes, and various other management functions.
- It is used in establishing annual depreciation, in determining the Indirect Cost Rates and in producing accrual based financial reports.
For visual illustrations of the Capital Equipment Inventory process, view our flowcharts.
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