Financial Reporting Updates - Capitalization Threshold Policy Changes
The financial reporting updates highlight changes to the capitalization threshold policy effective 07/01/2024. The new threshold for purchases for the UR will increase from $1,000 to $5,000 per unit cost. Active fabrications under the current threshold will be grandfathered, while new fabrications requested after 07/01/2024 must adhere to the revised threshold. Procure-to-pay invoices for purchases greater than $1,000 per unit cost must route to the UR Asset Manager by May 31, 2024. Research equipment surveys and reminders were also addressed in the updates.
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Presentation Transcript
Financial Reporting Updates May 28, 2024 Carrie Ballou Assistant Controller, Financial Reporting
Financial Reporting Updates Capitalization threshold policy 2024 research equipment surveys 2 CLASP Monthly Research Administrator's meeting May 28, 2024
Capitalization threshold policy Effective 07/01/2024, the capitalization threshold for purchases for the UR will increase Current threshold is $1,000 per unit cost Revised threshold will be $5,000 per unit cost Acquisition cost includes the following: Modifications, attachments, and accessories necessary for the asset s intended purpose Delivery, installation, and initial calibration of equipment included in capitalization cost SMH s (CM050) capitalization threshold increased 07/01/2022 to $5,000 per unit 3 CLASP Monthly Research Administrator's meeting May 28, 2024
Capitalization threshold policy Active fabrications approved under the current threshold will be grandfathered at the current $1,000 aggregate cost Fabrications requested after 07/01/2024 will need to be at the $5,000 aggregate cost 4 CLASP Monthly Research Administrator's meeting May 28, 2024
Capitalization threshold policy Procure to pay invoices Divisions using a trackable spend category for the UR (excluding SMH) for purchases greater than $1,000 per unit cost must route to UR Asset Manager by 5 PM on May 31, 2024 Financial Reporting capitalizes fixed assets based on the accounting date of the invoice For fiscal year 2024 only, Financial Reporting will consider receipt date in UR Financials Purchase orders initiated on or after 5 PM on 05/31/2024 must take into account the revised capitalization threshold for fixed asset purchases 5 CLASP Monthly Research Administrator's meeting May 28, 2024
2024 Research equipment surveys Research equipment survey requests were sent to cost centers in March 2024 Reminder emails were sent 05/10/2024 to cost centers that have not fully certified Due date of 05/31/2024 Please contact equipment administrator at equipadmin@Finance.Rochester.edu if you need assistance. Financial Reporting is targeting to complete all equipment updates by 07/22/2024 for fiscal year 2024 and will be locking down URSpace for the equipment module at that time 6 CLASP Monthly Research Administrator's meeting May 28, 2024
