00-a-019 - Raising of the Capitalization Threshold and Establishment of Expenditure Sub-object Codes 4XX9 (April 24, 2000) (Supplemented by 00-a-021)
Posted on October 21, 2021 at 12:49 PM by Kansas Department of Administration
|INFORMATIONAL CIRCULAR NO. 00-A-019|
|DATE:||April 24, 2000|
|SUBJECT:||Raising of the Capitalization Threshold and Establishment of Expenditure Sub-object Codes 4XX9|
|EFFECTIVE DATE:||July 1, 2000|
|A & R CONTACT:||Bill Perry||(785) 296-7217||(firstname.lastname@example.org)|
|Gary Bond||(785) 296-2287||(email@example.com)|
|SUMMARY:||The capitalization threshold for inventory purposes is being raised to $2,000 and expenditure sub-objects 4XX9 are being reestablished.|
Capital outlay purchases will be classified under a dual sub-object code system to be determined by the cost of the item being purchased. Items with a useful life expectancy of one year or more and costing less than $2,000 will be coded as sub-object 4XX9 (non-inventory), and items with a useful life expectancy of one year or more and costing $2,000 or more will be classified as sub-object 4XX0 (inventory). Only those items with a useful life expectancy of one year or more and costing $2,000 or more, should be classified as "capital outlay" and maintained on inventory.
Effective with fiscal year 2001 business, the expenditure sub-object series 4XX9 is being reestablished and the definition of capital outlay will be amended to define capital outlay/inventory as any item with a useful life expectancy of one year or more and costing $2,000 or more. Items purchased in fiscal year 2001 and costing between $500 - $1999.99 will be classified as "non-inventory capital outlay" and coded 4XX9. When submitting encumbered items for DA-118 transactions for fiscal year 2000, please continue to use the current capital outlay coding policy to record items.
|The following expenditure sub-object codes will be reestablished effective July 1, 2000:|
|4019||Agricultural Equipment and Machinery - Non-Inventory|
|4029||Household, Laundry and Kitchen Equipment and Furniture - Non-Inventory|
|4039||Office Furniture, Fixtures and Equipment - Non-Inventory|
|4049||Professional and Scientific Equipment - Non-Inventory Road and Highway Machinery and Equipment (Agencies 276, 710) - Non - Inventory|
|4079||Road and Highway Machinery and Equipment (Agencies 276, 710) - Non-Inventory|
|4089||Shop and Plant Maintenance Equipment - Non-Inventory|
|4099||Other Equipment, Machinery, Furniture and Fixtures - Non Inventory|
|4109||Livestock - Non-Inventory|
|4119||Books and Library Material - Non-Inventory|
|4129||Reprographic Equipment - Non-Inventory|
|4139||Microcomputer Systems and Support Equipment - Non-Inventory|
|4169||Information Processing Equipment - Non-Inventory|
|4189||Computer Systems, Information Processing or Microcomputer Systems Software - Non-Inventory|
|4619||Telecommunications Termination Equipment - Non-Inventory|
|4629||Telecommunications Switching Equipment - Non-Inventory|
|4639||Telecommunications Transmission Equipment - Non-Inventory|
|4649||Radio (Portable) Equipment - Non-Inventory|
|4659||Radio (Fixed) Equipment - Non-Inventory|
|4669||Data Communications Equipment - Non-Inventory|
These additions will be reflected in the Uniform Expenditure Classification of Expenditure Sub-object Codes filing (P.P.M. No. 7,002) on the Division of Accounts and Reports website http://www.da.ks.gov/ar/ppm/ppm01001.htm. Property Inventory (PPM No. 13,001) will also be updated July 1, 2000 to reflect the new threshold.
Items under $2,000 may be deleted from your agency inventory listing immediately and should not be included in the FY 2000 totals provided to the Division of Accounts and Reports. Items that appear on your Capital Outlay Report (DAFR8460) in amounts less than $2,000 for the remainder of FY 2000 should be disregarded and not added to your inventory listing.