OFFICE OF THE STATE COMPTROLLER

MEMORANDUM NO. 2018-15

June 15, 2018

TO THE HEADS OF ALL STATE AGENCIES

I. PURPOSE
The purpose of this memorandum is to provide information new coding for certain property and to clarify the use of Capital Equipment Purchase Funds (CEPF). This memorandum supersedes Memoranda 2003-25 and 2015-09.

II. AUTHORITY
The Capital Equipment Purchase Fund is authorized pursuant to Section 4a-9 of the Connecticut General Statutes.

III. CAPITAL EQUIPMENT PURCHASE FUNDS
CEPF funds may be used as an appropriate financing source for acquisition of software that is preloaded as part of a hardware purchase. CEPF may not be used to purchase standalone software, i.e., software that is not packaged as part of a computer hardware acquisition.

IV. ACCOUNT CODES

A. Non-Capitalized Property
Effective July 1, 2018 the following codes are to be used when purchasing non-capitalized property (all other account codes for capitalized property remain unchanged):

 

54150 Controllable Property
Property with a unit value less than the capitalization threshold, an expected useful life of one or more years and requires identity and control at the discretion of the agency head. Property charged to this account code is not capitalized for GAAP reporting purposes, and is not reported on the CO-59, and does not include software.

 

54151 Non-Controllable Property
Property with a unit value less than the capitalization threshold, an expected useful life of one or more years and requires identity and is not controlled. Property charged to this account code is not capitalized for GAAP reporting purposes, is not reported on the CO-59, and does not include software.

 

B. Software
Effective July 1, 2018 the following codes are to be used when purchasing software:

 

53755 Non-Controllable Software
Expenditures for licensed and/or internally generated software with a unit value less than the capitalization threshold and is not controllable. Software charged to this account code is not capitalized for GAAP reporting purposes, not reported on the CO-59, and is listed on the agency software library.

 

54152 Controllable Software
Licensed software and internally generated software with a unit value less than the capitalization threshold, an expected useful life of one or more years and requires identity and control at the discretion of the agency head. Property charged to this account code is not capitalized for GAAP reporting purposes, is not reported on the CO-59, and must be listed on the agency software library.

 

55725 Capitalized Software
Licensed software and internally generated software that meets the capitalization threshold. Software charged to this account code is capitalized for GAAP reporting purposes, reported on the CO-59, and must be listed on the agency software library.
 

V. GENERAL

The State Accounting Manual and the Property Control Manual will be revised to reflect these changes.
 

VI. QUESTIONS

Please direct questions or requests for assistance as follows:

 

Memorandum Interpretation: Administrative Services, (860) 702-3440.

 

KEVIN LEMBO
STATE COMPTROLLER

KL:ED

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