Capital Asset Policy

Custodian of Policy: VP Finance & Administration

Relevant Minnesota State System Policy: 7.3 – Financial Administration, 7.7 – Gift and Grants Acceptance

Effective Date: October 2019

Last Review: Fall 2019

Next Review: 2026


MSUM will maintain inventory records for the University’s capital assets.


Capital Assets – An asset with a useful life greater than two (2) years, a cost (or value if donated) greater than a defined capitalization dollar amount, that maintains its identity while in use.

Capital Assets include the following items:

  • Land and land improvements
  • Easements
  • Buildings and building improvements
  • Vehicles
  • Equipment
  • Sensitive items
  • Property rights related to capitalized leases
  • Works of art, historical treasures and other similar assets
  • Infrastructure assets
  • Library collections
  • All other tangible or intangible assets used in operations

Sensitive Items – Assets MSUM has declared as:

  1. Subject to pilferage or misuse and valued at $1,000 or more, such as electronic equipment (digital cameras, camcorders, projectors, etc.), pieces of art, etc.
  2. Computers and related devices (desktops, laptops, tablets, iPads, notebooks, etc.)
  3. Are potentially harmful or hazardous such as weapons (firearms, swords, crossbows, etc.)


To account for Minnesota State Colleges and Universities’ capital assets in conformity with Generally Accepted Accounting Principles (GAAP) and Governmental Accounting Standards Board (GASB).