Currently, the level at which individual items are capitalized and depreciated for financial reporting purposes is $5,000.  Effective July 1, 2008, this level will increase to $10,000.

If the amount of a single item is less than the $5,000 threshhold, but the aggregate cost of a quantity of the same items being purchased exceeds $5,000, then the items should be capitalized as a group, provided the items are to be used for a single project (i.e. computers purchased for a computer lab).  A single purchase of a quantity of items with a total cost in excess of $5,000 to be used in multiple locations should not be capitalized (i.e. computers purchased for several offices).

Policy for Capitalizing Expenditures