University of Arkansas at Little Rock
Policy Name: Capital Assets
Policy Number: LR 305.6
Original Effective Date: June 16, 2026
Most Recent Revised Date: June 16, 2026
Policy
UA Little Rock shall maintain accurate records of all real, personal, and intangible property belonging to the State. Assets must be recorded and reported based on established thresholds for capitalization and inventory tracking. This policy establishes a uniform system for the perpetual inventory, tracking, and capitalization of property and equipment at the University of Arkansas at Little Rock (UA Little Rock). It ensures compliance with Arkansas State Code § 19-4-1501 et seq. and the Arkansas Capital Asset Guidelines (P1- 19-4-1503).
Definition of Terms:
Capital Asset
Real, personal, or intangible property used in operations that has an estimated useful life of greater than one year and meets the capitalization threshold.
Donation
A voluntary non-exchange transaction entered into willingly by two or more parties.
Historical Cost
The total cost to acquire and asset and render it into service. This includes vendor invoice price (less trade-ins), sales tax, freight, site preparation, professional fees, and installation costs.
Depreciation
The systematic allocation of the cost of a capital asset over its estimated useful life using the straight-line method.
Low Value Equipment
Items valued between $2,500 and $4,999.99.
Low Value High Risk Equipment
Items costing between $500 and $2,499.99 that are easily susceptible to loss or theft, such as laptops, firearms, or specialized camera equipment.
Capitalization Thresholds
| Asset Class | Threshold |
|---|---|
| Land | Capitalize All |
| Land Improvements | $5,000 |
| Easements | Capitalize All |
| Buildings/Building Improvements | $100,000 |
| Leasehold Improvements | $100,000 |
| Equipment | $5,000 |
| Works of Art/Historical Treasures | $5,000 |
| Library Holdings | Capitalize All |
| Other Tangible/Intangible Assets | $5,000 |
| Internally Generated Software | $1,000,000 |
| Infrastructure | $5,000 |
Inventory and Tracking Thresholds
Assets that do not meet the capitalization threshold for financial reporting may still require tracking for internal control purposes. Such assets may include, but are not limited to low value high risk equipment that are susceptible to loss or theft, such as laptops, firearms, tablets, video equipment, and tools.
Revised Dates: 06/2026
Source: Arkansas State Code § 19-4-1501
Status: Active
Originator: Office of Finance and Administration
Custodian: Office of Finance and Administration