Durable goods with an acquisition cost of less than $5,000 or goods with an acquisition cost of greater than $5,000 and useful life of less than one year will be expensed in the year purchased.
All capital equipment and projects, regardless of the funding source, shall be presented to the Board of Regents for approval in an annual capital budget. This includes gifts-in-kind of fixed assets and donation of services to improve facilities. The annual capital budget should include a designated amount of discretionary authority granted to the President to approve capital purchases not included in the capital budget to manage unplanned equipment and project acquisitions.
KSU depreciates assets on a straight-line basis over their estimated useful lives as follows:
| Asset Type | Useful Life |
|---|
| Land | Unlimited |
|---|
| Land improvements | 10 years |
|---|
| Buildings | 40 years |
|---|
| Building improvements | 20 years |
|---|
| Library holdings | 10 years |
|---|
| Works of art (held for exhibition, not resale) | Unlimited |
|---|
| Enterprise Resource Planning (ERP) software | 7 years |
|---|
| Heavy equipment | 10 years |
|---|
| Furniture and equipment | 7 years |
|---|
| Technology equipment | 5 years |
|---|
| Vehicles | 5 years |
|---|
Use of KSU property for personal purposes is not permitted. It is to be explicitly understood that if KSU property is used for personal purposes, the KSU insurance policy does not provide for coverage and the liability (i.e., repairs, replacement, etc.) rests with the individual and department assigned custody of the asset.
Approved fixed assets shall be purchased in accordance with the KSU Purchasing Policy and the Kentucky Model Procurement Code.
All KSU assets, regardless of funding source, will be maintained in the accounting system with a unique identifying number. Each asset is assigned to a department of KSU with a named custodian.
Custodians conduct an annual physical inventory of assets under their care to confirm the existence, condition, and location of KSU's fixed assets. Change to an asset's condition or location will be reported to the accounting office.