Finance (July 2012 News)
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Property Policy Change for Noncapitalized Equipment
There has been a change in the University's policy on noncapitalized equipment. We have and will continue to capitalize equipment costing $5,000 or more - tagging each item, tracking it in the PeopleSoft Asset Management database, and recording the total value of equipment as a capital asset in the financial statements. Previously, we also tagged and tracked noncapitalized computer equipment costing between $500 and $5,000. Effective immediately, the latter practice has been discontinued.
There are several reasons for this change:
- The CSU issued new guidance superseding EO 649, which allows campuses the discretion to set the dollar threshold for noncapitalized equipment.
- In recent years, the price of information technology has dropped and equipment has become portable.
- The security of information on IT devices has become more of a concern than the devices themselves, and tracking hardware does not safeguard that information.
- The Property Office recently upgraded its tags to Radio Frequency Identification (RFID) technology. The RFID tags are bulkier than the traditional barcoded tags and are not appropriate for some equipment.
Although the Property Office will no longer track noncapitalized equipment centrally, this equipment is still University property and departments have the same responsibility as always to safeguard it. It should not be used for personal purposes and should be disposed of through the regular University process described in the Property Office Procedure Manual (PDF). Department property custodians should still maintain a Property Checkout Authorization Policy Authorization (PDF) form for any equipment taken off-campus, but no longer need to submit a copy of this form to the Property Office.
new sales and use tax rates
Effective July 1, 2012, the district tax rate for Santa Clara County increased from 8.25% to 8.375%. The new tax rate applies to purchases made after July 1, 2012, regardless of when the purchase order was created.
For any questions regarding sales tax, please contact Finance Connect at email@example.com or 924-1558.
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