Effective July 1, 2025, the new amount threshold for capitalizing equipment as an asset will increase to $10,000 per item. The exception is $5,000 or more for purchases on sponsored awards when the grant start date is prior to 07/01/25. Please note the following updates to our inventory and asset management processes:

• Asset Capitalization: Effective July 1, 2025, equipment purchases with a unit cost of $10,000 or more for all fund types will now be classified as capital assets, except sponsored funds with a start date prior to 07/01/25 will continue with $5K capitalization threshold till the award ends (see the Sponsored Equipment Threshold FlowChart on the Capital Asset website). Items purchased for less than $10,000 will no longer qualify as assets and will not be tagged.
• Inventory Requirements: Only equipment with an original purchase price (OPP) of $10,000 or greater is required to be inventoried. Existing assets with an OPP below $10,000 will no longer require inventory tracking. These items will remain in the Oracle asset system but will be reclassified as non-inventoriable.
• RFID Updates: Sophia and I will update our RFID system to limit to only those items that meet the new inventory threshold. We will not be removing existing RFID tags from items that are no longer classified as assets, as this would be labor-intensive. The RFID reader will not read those assets with an OPP of under $10K.
• Object Code Usage: When purchasing equipment under $10,000, please use the appropriate non-asset object code. Asset object code descriptions have been updated; please refer to Object Code Changes FY26 document on the Capital Asset website.
• Impact: This change will reduce the current number of HMS inventoried assets from 4,607 to 2,705, but the net book value will be only reduced less than 5%. 

There are helpful documents on the Capital Asset website. Direct questions to Jeff DiCiaccio or Sophia Xu.