Upcoming Change: Asset Capitalization Threshold Increasing on July 1, 2025

What’s Changing?
Starting July 1, 2025, the minimum dollar amount at which UND capitalizes assets will increase from $5,000 to $10,000. This change follows updates to North Dakota law and guidance from the North Dakota University System (NDUS) and the ND Office of Management and Budget (OMB).

What Does This Mean?

• For UND’s financial statements: Asset purchases of $10,000 or more will be treated as capital assets.
• For grants and contracts: UND will continue using the $5,000 threshold until a new F&A/indirect rate proposal is submitted and approved. This means:
  • Assets costing $5,000 or more will continue to be excluded from indirect cost (F&A) calculations.
  • Assets costing less than $5,000 will continue to be included in indirect cost (F&A) calculations.

How Will This Affect You?
Starting July 1, 2025, you’ll need to use different account codes depending on the cost of the asset:

• Under $5,000: Use account codes starting with 551XXX or 552XXX.
  (e.g., 551005 for non-capital computer equipment)
• $5,000 to $9,999: Use account codes starting with 553XXX or 554XXX. These accounts will be available to use starting 7/1/2025. These asset purchases will NO LONGER receive a Major Equipment tag from Asset Management.
  (e.g., 553005 for computer equipment in this range)
• $10,000 and above: Use account codes starting with 691XXX or 693XXX. These accounts will be renamed to reflect the new $10,000 threshold starting 7/1/2025.
  (e.g., 693005 for computer equipment in this range)

Have Questions?
Email the Asset Management team at: und.assetmanagement@und.edu