I. Scope
This policy applies to all George Mason University organizations and employees at all university owned or leased locations.
It pertains to all Capital Assets owned or held by the university, including those purchased with university or grant funds, leased, or acquired through other means.
II. Policy Statement
Ownership or title to all Capital Assets funded by the Commonwealth, the university, or grant resources vests with George Mason University unless stipulated otherwise by the funding source. Title does not rest with any department or employee, regardless of the source of funds or donations associated with the acquisition.
All acquisitions meeting the definitions below and the thresholds in the Capital Asset Valuation and Depreciation Procedures (“Procedures”) are Capital Assets. They are valued and recorded on the university’s Statement of Net Position and depreciated or amortized, if applicable, in accordance with the Procedures and generally accepted accounting principles. All Capital Assets are assigned a tracking number and recorded in the university’s fixed assets database.
Acquisitions not meeting the definitions and thresholds for Capital Assets or meeting the definition of Non-Capital Expenditures will not be recorded on the university’s Statement of Net Position and will be expensed.
This policy imposes the requirement that proceeds from sale of items held in uncapitalized collections of works of art or historical treasures as described in Section VI of the Procedures, will be used to acquire other items for collections, or to preserve collections.
III. Definitions
A. Capital Asset: tangible or intangible asset with a useful life extending beyond a single reporting period and a cost equal to or exceeding the University’s valuation thresholds for that category. The following are categories of Capital Assets:
- Buildings: roofed structures that are permanently attached to land.
- Building improvements: updates to buildings that significantly extend the useful life or significantly enhance the value of the building.
- Construction in progress: includes all expenditures directly related to the construction or development of Buildings, Infrastructure, Intangible Assets, renovations, or
- Furniture and equipment: includes all personal property that is not permanently affixed to land or buildings and has a useful life greater than one year. A unit of furniture or equipment is defined for purposes of this policy as an individual item or group of items which is usable for its intended function, and which cannot be separated without a diminishment in the usability of the item for its intended purpose. Personal property acquired for resale is not recorded as a capital asset but as merchandise inventory.
- Infrastructure: long-lived assets that are normally stationary in nature and can be preserved for a significantly greater number of years than most capital assets.
- Intangible assets: assets that lack physical substance, are nonfinancial in nature, and have a useful life greater than one year. Intangible assets include computer software, easements, water rights, patents, copyrights, trademarks, right-to-use lease assets, and right-to-use subscription assets. Intangible assets developed or purchased for internal use with a useful life of more than one year are governed by this policy.
- Land: consists of real property.
- Land improvements: includes site preparation and site improvements (other than buildings) that ready the land for use.
- Leasehold improvements: capital improvements to a leased property that revert to the lessor at the end of the lease term.
- Library materials: books and other resources held by the library considered to have a useful life of more than one year.
- Works of art and historical treasures: collections or individual items that are held for public exhibition, education, or research as part of a public service rather than for financial gain.
B. Non-capital expenditures: include expenditures for repairs, maintenance, or replacement of component parts or accessories, which do not extend the unit’s original estimated useful life or significantly enhance its net value.
IV. Responsibilities
Fiscal Services is responsible for establishing and maintaining capitalization standards, recording capital assets in the financial records, and providing guidance regarding the application of this policy. Fiscal Services shall maintain the official capital asset records and ensure that capitalized assets are accounted for in accordance with applicable accounting standards.
Department management is responsible for safeguarding capital assets, providing adequate supporting documentation for asset acquisitions, improvements, transfers, and disposals, and notifying Fiscal Services of transactions affecting capital assets. Departments shall ensure that assets are used for authorized business purposes and that asset records are accurate and current.
Employees entrusted with capital assets are responsible for exercising reasonable care in their use and protection and for promptly reporting lost, stolen, damaged, transferred, or disposed assets to their department and Fiscal Services, as applicable.
V. Compliance
Compliance with this policy is required of all departments and employees involved in the acquisition, management, custody, and disposition of capital assets. Fiscal Services will monitor compliance through periodic reviews of asset records, capitalization practices, and supporting documentation. Additionally, Fiscal Services will oversee an annual physical inventory of Equipment to verify the existence, location, condition, and accuracy of recorded asset information. Failure to comply with this policy may result in disciplinary action.
Capital Assets purchased under federal contracts (contractor acquired) or provided to the university by the government (government furnished property) must be managed in accordance with the Federal Acquisition Regulation (FAR) requirements and specific contract terms. Contractor acquired property or government furnished property under a federal contract may not be used for any other contract or purpose without sponsor approval.
VI. Timetable for Review
This policy, and any related procedures, shall be reviewed every three years or more frequently as needed.
VII. Amendments
Amendments will be approved by the Senior Vice President and Chief Financial Officer, Senior Vice President and Chief Operating Officer and the Provost and Executive Vice President.
VIII. Dates
Approved: April 3, 2006
Revised: August 17, 2010
Revised: April 16, 2012
Revised: May 18, 2021
Revised: January 16, 2025
Revised: September 15, 2026