Costs incurred for the purchase, construction, or renovation of buildings or portions thereof should be capitalized only if:
  • the total eligible costs related to a capital construction project (see definition) equal or exceed $50,000.

Costs incurred for the purchase of furniture or equipment should be capitalized only if:

  • the cost of an individual piece of furniture or equipment, including delivery and set up charges, equals or exceeds $10,000.
  • the amount of a single item is less than $10,000 but the aggregate cost of a quantity of the same item being purchased is in excess of $10,000. The items should be capitalized as a group, if it is Suffolk’s normal business practice to purchase and replace the items as a group. Examples are: computers purchased to create a computer lab; a single purchase of computers with a total cost exceeding $10,000 to be used in multiple offices; the bulk purchase of lap tops each costing less than $10,000 for the faculty.

All other costs not specifically addressed in this policy statement are to be considered as operating expenses and should be included in the administration, school or department budgets.

Policy for Capitalizing Expenditures (docx)