7-9.2 Characterizing the Material and Property

The item manager and client must ensure that the material or property type is appropriately classified, because the type dictates accountability processes and procedures. Material and property types include:

  • Capital — has a service life of more than 1 year, is identified as a stand-alone item of property throughout its useful life, has a unit cost of $3,000 or more, and depreciates in value.
  • Expense — items that cost less than $3,000; repair parts and replacement components (e.g., batteries, motors), regardless of cost; and, for the most part, MTE, neighborhood delivery and collection box units (NDCBUs), workroom furniture, and similar items.
  • Sensitive — materials considered especially vulnerable to theft or loss (e.g., calculators, computers, cameras, valuable portable equipment).