Amendment to Operating Capital Outlay Definition

John P. Kruczek, University Controller

Effective July 1, 1999, the definition of operating capital outlay (OCO) as provided in Chapter 216, Florida Statutes, is amended. The dollar value of OCO increases from $500 to $1,000 for equipment, fixtures, and other tangible personal property of a nonconsumable and nonexpendable nature. In addition, the value of hardback-covered bound books to be recorded as OCO increases from $100 to $250.

Encumbrances and accounts payable which are approved as a certified forward obligation in a particular category as of June 30, 1999, will be allowed to be expended in the category in which approved. It will not be necessary to change the categories on certified forward obligations to comply with the new definition.

Also effective July 1, 1999, Section 273.02, Florida Statutes, is amended to reflect the dollar values stated above for the purposes of recording inventory in the property records. As a result, all equipment, fixtures and other tangible personal property with a cost of $1,000 or greater will require the issuance and affixing of a University Property decal and will be inventoried on an annual basis.

For purposes of assessing indirect cost for the fiscal year 1999-2000, the federal government will still require the University to account for property with a cost greater than $499.99 and less than $1,000. Although this property will not require University decals and will not be inventoried, it must be separately identified in order to exempt it from the overhead charges on sponsored contracts and grants. As a result property purchased in the Expense Category will have to be classified as costing 1) greater than $99.99 and less than $500; or 2) greater than $499.99 and less than $1,000. Please use the following object codes for the purchase of property in the Expense Category:

512048 Furniture & Equipment – Unit Cost greater than $99.99 and less than $500
512058 Furniture & Equipment – Unit cost greater than $499.99 and less than $1,000

512102 Cellular Telephone – Unit Cost greater than $99.99 and less than $500
512103 Cellular Telephone – Unit cost greater than $499.99 and less than $1,000

513032 Educational Equipment – Unit Cost greater than $99.99 and less than $500
513033 Educational Equipment – Unit cost greater than $499.99 and less than $1,000

514006 Medical Equipment – Unit Cost greater than $99.99 and less than $500
514007 Medical Equipment – Unit cost greater than $499.99 and less than $1,000

515004 Agricultural Equipment – Unit Cost greater than $99.99 and less than $500
515005 Agricultural Equipment – Unit cost greater than $499.99 and less than $1,000

516060 Data Processing Equipment – Unit Cost greater than $99.99 and less than $500
516061 Data Processing Equipment – Unit cost greater than $499.99 and less than $1,000

519081 Information Resources Equipment – Unit Cost greater than $99.99 and less than $500
519083 Information Resources Equipment – Unit cost greater than $499.99 and less than $1,000

519082 Communication Resources Equipment – Unit Cost greater than $99.99 and less than $500
519084 Communication Resources Equipment – Unit cost greater than $499.99 and less than $1,000

Property that meets the new OCO definition and $1,000 unit value should be classified using the existing OCO object codes. A complete listing of object codes is available at the Finance & Accounting website under University Accounting Services http://www.admin.ufl.edu/DIVISION/FA/. Please contact me at 392-1321 if you have any questions.