U.S. Geological Survey Manual
U.S. Geological Survey Instructional Memorandum
No. OFM 98-02
Date: February 10, 1998
Subject: Capitalization Thresholds
1. Purpose. The purpose of this Instructional Memorandum (IM) is to define the U.S. Geological Survey (USGS) policy regarding the capitalization thresholds for both personal and real property assets of the USGS.
2. Background. Survey Manual chapter 408.2 prescribes policies, responsibilities, and procedures for the management of USGS personal property. Survey Manual chapter 427.1 prescribes policies, responsibilities, and procedures for the management of USGS real property.
3. Policy.
It is the policy of the USGS to capitalize and record in the bureau General Ledger accounts for capitalized assets personal property with a per item acquisition cost of $5,000 or greater, and real property with an acquisition cost of $50,000 or greater.
4. Definitions.
- A. Personal property - Any property, except records of the Federal Government and real property.
- B. Real property - Buildings, structures, and land.
- C. Capitalized Property - Non-expendable personal property with an acquisition cost of $5,000 or more, or real property with an acquisition cost of $50,000 or more, which is charged to an asset account (general ledger control account) in the Office of Financial Management. To be capitalized, assets also must have estimated useful lives of one year or more, and are not intended for sale in the ordinary course of operations.
5. Responsibilities.
- A. Acquiring Offices - Responsible for accurately identifying capitalized property during its acquisition and providing this information to the Office of Financial Management, so that the value of the asset can be properly recorded
- B. Office of Financial Management (OFM) - Responsible for defining capitalization criteria and the proper recording and depreciation of all capitalized assets of the USGS.
6. Procedures. Procedures for acquiring, valuing, and recording assets are contained in the property management handbook (408-2-H).
7. Effective Date. This IM is effective upon date of issuance.
8. Cancellation Date. This IM will remain in effect until superseded or canceled.
John J. Blickley, Acting Chief
Office of Financial Management
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URL: http://www.usgs.gov/usgs-manual/im/ofm-98-2.html
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Last modification: 10-22-98(bt)