The University policy is to capitalize all equipment, either moveable or fixed, with a unit acquisition cost of $2,500 or greater and a useful life of two years or more. Acquisition value includes the cost of the equipment and any associated costs incurred to make the equipment usable for the purpose for which it was intended, including installation costs. All capital equipment, whether received directly by the ordering department or via central receiving, must be identified with an American University fixed asset tag. This tag is then entered into the university’s fixed asset system. Examples of equipment include computer equipment, furniture, office machines, vehicles, and scientific equipment.

The Purchasing office must be notified when a transfer of this equipment from one location to another takes place to be able to reflect the new location on the university’s records. Likewise, when a piece of equipment is purchased, the disposition of the old equipment must be handled appropriately. Purchasing must be notified to pick up the old equipment and the department disposing of the equipment must complete a fixed asset disposal form. The old equipment is the property of the university (even if there is no value) and proper disposition of the equipment is to be determined by the Vice President of Finance and Treasurer. Departments are responsible for keeping records of all purchased capital equipment so yearly adjustments can be made to the university’s accounting records. Any unaccounted for or lost equipment will be charged to the department’s operating budget.