Equipment Threshold Increase from $5,000 to $10,000
This article provides an update on the impact of the recent equipment threshold changes for 麻豆免费版下载Boulder.
Key Dates & Background
- On October 1, 2024, the U.S. Office of Management and Budget released an updated 2 CFR 200 Uniform Guidance Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (鈥淯niform Guidance鈥), which included an increase in the equipment capitalization threshold from $5,000 to $10,000 (2 CFR 200.1 Equipment).
- Effective July 1, 2025, the State of Colorado and the University of Colorado system (System) changed their equipment threshold from $5,000 to $10,000. As these changes took place, the Office of University Controller (OUC) of the University of Colorado (CU) advised 麻豆免费版下载campuses that they should adopt the new equipment capitalization threshold when their next rate agreement is approved with the Department of Health and Human Services (DHHS).
- On December 8, 2025, 麻豆免费版下载Boulder completed an approved rate agreement with DHHS. This new rate agreement included an increase in the equipment capitalization threshold from $5,000 to $10,000 effective 7/1/2025.听
Impact on 麻豆免费版下载Boulder
For the 麻豆免费版下载, this new rate agreement had the following impact:
- All non-sponsored project Speedtypes (ST) retroactively adopted the threshold increase effective 7/1/2025.
- Active sponsored projects that include $5,000 thresholds have no change.
- Sponsored projects proposed from 12/9/2025 going forward use the new $10,000 threshold, except for projects under the Federal Acquisition Regulations (FAR, see next item).
- For sponsored projects under FAR, which are (awarded as contracts), the FAR threshold has not changed and remains at $5,000. Federal contract capitalization follows FAR Clause 52.245-1 Government Property: Alternate II.
For non-sponsored project SpeedTypes, the Campus Controller鈥檚 Office (CCO) Property Accounting Office (PAO) is analyzing the population of equipment that was capitalized on and after 7/1/2025 that do not meet the new $10,000 threshold. Additionally, some equipment purchases charged to account 810100 (and other capital expense accounts) have not yet been capitalized and will need to be expensed. PAO will work with impacted departments to un-capitalize and reclassify impacted amounts from capital expense accounts to 5xxxxx expense accounts.
For sponsored project awards that include a line item in the awarded budget for capital equipment, OCG will use the following account codes in infoEd:
- For awards with capital equipment that fall within the new threshold ($10,000), the budget account code is 鈥810001 鈥 Capital $10k Thrshd Budget.
- For awards issued under FAR and/or under the previous indirect (F&A) cost rate agreement with the lower threshold ($5,000) for capital equipment, the current budget account code 鈥810000 鈥 Cap Assets Gen Bud ($5k-<$10k) is used.
For Marketplace purchases and expenditure processing, departments and institutes should continue to use account 810XXX, which is the correct expenditure account code for fixed assets.
麻豆免费版下载System is in the process of updating the account names of accounts that include 鈥済reater than $5k鈥 threshold wording to 鈥済reater than threshold鈥 wording to accommodate these changes.
Resources
Please contact property@colorado.edu or ocgproperty@colorado.edu with any questions.