An important factor in determining if an equipment TCC is proper is whether the items are to be added to the equipment record. Costs charged to TCC 602, 605, 606, 637, 638 will be added to the University equipment records. TCC 620 is available for use in state appropriated funds (fund range 3000 - 3999) for other costs which would be considered a subsequent enhancement or add-on would be added to the book value of land or buildings.

Equipment items will be added to the 'capitalized section' of the equipment records if their cost (including freight, installation, and trade-in allowance) is greater than $5,000.00, and they are deemed to have a useful life of at least one year. The expendable equipment category (within Operating Expenses) must be used for the purchase of equipment items less than $750.01. Supply items and expendable equipment (TCC 570 or 572) are considered to have a short useful life. Purchases between $750 and $5,000 are made under TCC 600 (all other equipment) or 608 (IT equipment). Purchases under TCC 608 are added to the noncapitalized section of the equipment records. These are tracked for IT planning purposes.

Situations occur when an equipment purchase is comprised of an itemized billing where some component parts are individually under $5,000.00. A decision has to be made as to whether these parts can be considered on an individual basis, and if under $5,000 be classified and charged to expendable equipment. When an item consists of several connected components that cannot work independently of each other, the components should be considered one system and the cost would be the total of all essential components. For instance, office panels, work surfaces, etc., are viewed as one system and should be charged to the equipment category when the total of all components is greater than $5,000.00. Another example is for new PC purchases components such as: RAM, internal hard drives, internal modems, ethernet cards, video cards, video RAM, CD ROM drives, software (if included in initial purchase), monitors, keyboards, would all be examples of component parts that comprise a computer system. This entire computer system would be capitalized as a single item and all of the components must charged to the equipment category. Printers and other items connected externally to a PC are not considered a component part of a PC and are inventoried separately, if over $5,000.00.

The 600 TCCs described below can be used in all fund groups except plant funds (7000's). TCC 720 will be used for capitalized equipment purchased from plant funds.

Non-Capitalized Equipment (greater than $750.00 and less than $5,000.01)

Expendable Equipment > $750 and <=$5,000 - (TCC 600) - to be used for purchase of equipment, other than information technology equipment, valued between $750 and $5,000.01. This equipment is not capitalized on the equipment records.

Expendable Information Technology Equipment > $750 and <=$5,000 - (TCC 608) - to be used for purchase of information technology (IT) equipment valued at greater than $750 and less than $5,000.01. This equipment will be added to the University's equipment records only for purposes of the state's IT plan. Use of this TCC will generate an inventory document for purposes of adding the item to the noncapitalized section of the equipment records. These items should be tagged and tracked similar to the capitalized equipment (> $5,000) discussed below.

Capitalized Equipment (greater than $5,000.00)

Lease purchases - (TCC 602) - to be used for items which have been added to the equipment records and have been acquired on a lease or installment purchase agreement. In Current-Unrestricted state appropriated funds (3000's), lease/installment purchases of equipment can be coded TCC 455. .

Equipment fabrication - (TCC 606) - to be used for expenses incurred to construct an equipment item that will be added to the equipment record.

Livestock - (TCC 610) - to be used for the purchase of livestock by the Agricultural Experiment Station. .

Other plant acquisitions - (TCC 620) - established for use in Current-Unrestricted state appropriated funds (3000's). It should be used for acquiring items which are capitalizable to a building or land, but not capitalizable on the equipment records. This would include items which are permanently attached to a building or land that will be added to the book value of land or buildings. TCC 475 (capitalized repairs) or TCC 476 (capitalized repairs - labor) would be used for this type of expenditure in all other funds; except plant funds (7000's), where a TCC in the 701 -711 range would be used. .

Capital Equipment >$5,000 - (TCC 605) - Should be used for the purchase of equipment items, not used in information technology (see TCC 637 & 638 below), which individually have a value greater than $5,000.00 (including freight and installation costs), a useful life of one years or more, and are capitalizable on the equipment records. The initial purchase of equipment greater than $5,000.00 must be charged to TCC 605 and capitalized on the equipment records.

Subsequent enhancements or add-ons to equipment should be capitalized when the enhancement/add-on is greater than $5,000.00 and the useful life is one years or more. These subsequent enhancements or add-ons to existing equipment should be charged to either TCC 475 or 605.

If the subsequent enhancement or add-on to equipment is $5,000 or less, the enhancement/add-on should be coded TCC 471 (or TCC 716 or 717 if charged to a plant fund). These costs are considered minor enhancements/add-ons and they will not be capitalized. These costs cannot be charged to the equipment category.

Subsequent enhancements or add-ons to computers should be capitalized when the enhancement/add-on is greater than $5,000.00 and the useful life is one year or more. These subsequent enhancements or add-ons to existing equipment should be charged to either TCC 475 or 637.

If the subsequent enhancement or add-on to equipment is $5,000 or less, the enhancement/add-on should be coded TCC 471 (or TCC 716 or 717 if charged to a plant fund). These costs are considered minor enhancements/add-ons and they will not be capitalized. These costs cannot be charged to the equipment category.

For instance, the initial purchase of a computer with its component parts (i.e., keyboard, monitor, hard drive, etc.) should be capitalized as one unit and charged to TCC 637, if the total cost is greater than $5,000.00. However, a subsequent enhancement or add-on (for example, a second hard drive) should not be capitalized or charged to the equipment category, unless the cost is greater than $5,000.00.

The following is a listing of old TCC's on the University System's chart of accounts that should no longer be used:

• Expendable equipment <= $300 - (TCC 601) - (See TCC 570).
• Expendable equipment <= $500 - (TCC 603) - (See TCC 570).
• Expendable equipment > $500,=<$750 - (TCC 604) - (See TCC 570).
• Capital Equip >$300 <$500 - (TCC 607) - (See TCC 570).
• Capital Equipment (over $500) - (TCC 608) -
• Fixed Equipment < $500 > $300 - (TCC 621 and TCC 625) -
• Capital Equip,movable=>$500 - (TCC 630) -
• Capital Equip,Fixed =>$500 - (TCC 635) -
• Fixed Equip > $750 - (TCC 636) -