Announcement memo

Office of the Comptroller
June 23, 2006
Department Heads
Mr. John C. Lamb
Vice President of Finance
Increase to Capital Asset Threshold
The University has revised the capital asset threshold from $1,000 to $5,000 effective
July 1, 2006 for equipment, furniture and fixtures. This accounting policy change allows
the University to align its threshold with that allowed by the federal government for most
contracts and grants and concentrate its efforts on protecting and safeguarding the higher
valued items by eliminating the requirement to record and track relatively low valued
items. This should enhance the University’s overall control and stewardship of its assets
and promote our compliance with external regulations and University policy and
Two documents providing additional information about this change may be found on the
Comptroller’s website. The first is the full accounting policy entitled “Capitalization,
Inventory, Depreciation and Retirement of Property, Buildings and Equipment”. This
provides detailed guidance on the accounting process followed in the Comptroller’s
Office for capital purchases, including how those determinations are made. The second
document is a Question and Answer document for the accounting policy change. This
addresses some “frequently asked questions” that may arise from business managers or
others within the University. Specifically, the impact of this accounting policy change on
existing, approved grants is addressed in this document. In addition, the UPP on Capital
Budgeting has been updated to reflect the increase in the threshold.
Questions about this accounting policy change may be directed to one of the following
Comptroller’s Office – Dennis Butler (8-7933), Peg Burns (8-0833), Sa Yang
(Sponsored Programs 8-5444)
Budget Office – Jay Kutka (8-7481)
Straz Tower, 175 P.O. 1881 Milwaukee, Wisconsin 53201-1881 Telephone (414) 288-5160 Fax (414) 288-3104