Issue Date: 2001-09-01
Revised Date:

Object Type

Cash — Capital Outlay


Specific definitions for capitalized, controlled and expensed asset classifications are located in the SPA Process Users Guide.


To record payment for a capital lease of fixed or movable tangible assets to be used in the state's operations, the benefits of which extend beyond one year from the date of acquisition and rendered into service.

To qualify as a capital lease, the lease agreement must meet any one of the following criteria:

  • The lease transfers ownership of the property to the lessee by the end of the lease term.
  • The lease contains a bargain purchase option.
  • The lease term is equal to 75 percent or more of the estimated economic life of the lease property.
  • The present value of the minimum lease payments at the inception of the lease, excluding executory costs, equals at least 90 percent of the fair value of the lease property.


This code does NOT include:

  • Interest (7802)

The following must be included if directly related to the acquisition of the asset; otherwise, it must be included in the appropriate operating expense object code:

  • Freight/delivery service (7286)

If the asset meets or exceeds the capitalization threshold of $5,000, it must be reported to SPA and in the financial statements as a capital asset.

USAS Values

Appropriation Year 20
Object Group 10 – Expenditures
USAS Status A
Rev/Exp Category 13 – CAPITAL OUTLAY