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See Texas A&M Engineering Experiment Station information related to capital equipment fabrications and government-furnished property.

Construction in Progress – Capital Equipment Fabrications 

Individual pieces are purchased and put together to create one single item which must:

  • Reach a value =/> $5,000.
  • Have a useful life for more than one year.
  • Have a term date.
  • Be functional at the time of completion.
  • Be a standalone asset, i.e. provide power source and it functions.

Things to note:

  • The first voucher does not have to exceed $5,000.
  • Vouchers may cross fiscal years.
  • Depreciation does not begin until CIP is complete.
  • All transactions should be coded Object Class Code 8733(01).
  • The principal investigator (PI) is responsible for identifying invoices applicable to the fabrication.
  • The PI must also notify their accounting staff if parts are removed, so that the value of the fabrication may be adjusted accordingly.
  • Smaller values which would typically be expensed can be capitalized as long as the items become a permanent part of the end item, are not consumables, and will not be removed from the end item.
  • Extended maintenance/repair/service agreements are not included in the value.
  • At the end of construction, transactions are processed to identify the item as a capital asset.
  • This process should not be used for prototypes. A fabrication of equipment should have a clear objective prior to beginning the build or construction. The function of the equipment being constructed should be known.

Government Furnished Property

Government-furnished property (GFP) is typically shipped from the sponsor to the PI without notification to the Property Management Office. Title to GFP remains with the sponsor throughout the contract and frequently requires annual reporting, currently handled by Texas A&M Sponsored Research Services.   

When assets are acquired with a value at $5,000 and above the records are created using the appropriate capital class code.  Records for assets valued at $0–$4,999.99 are created using class codes 578901–578904.  The sponsor’s inventory number is also maintained in our records, when provided.