Board of Regents Policy CSCU Software Asset Capitalization and Tracking Policy

The purpose of this policy is to adopt a Software Asset Capitalization and Tracking Policy to ensure that software assets are tracked and capitalized consistent with applicable best practices and the Office of the State Comptroller’s Revised Property Control Manual.

CSCU: Connecticut State Colleges and Universities. This includes all institutions, collectively or singularly, in the CSCU system including Central Connecticut State University, Eastern Connecticut State University, Southern Connecticut State University, Western Connecticut State University, Connecticut State Community College (CT State), Charter Oak State College, and the CSCU System Office. 

Software Librarian: Individual assigned by their respective institution to maintain a software asset library consistent with this policy.

General Provisions

1. Software purchases with a cost of $5,000 or more and a life of more than 12 months shall be capitalized and amortized over the life of the license.
2. Software subscriptions where the total payments are $5,000 or more, and where CSCU is committed to future payments under a signed agreement or contract shall be categorized as a Subscription Based IT Agreement (SBITA) and will be tracked as a SBITA contract under GASB 96.
3. Major software projects with a budget of $1 million or more requiring substantial internal labor related to developing and testing will be capitalized based on the guidance provided by GASB 51, Accounting and Financial Reporting for Intangible Assets.
4. Each institution shall assign a Software Librarian to maintain a software asset library that includes the types of software listed above. Each software asset record shall contain (when applicable):
   1. Title of Software
   2. Software asset description
   3. Manufacturer
   4. Acquisition Type
   5. Purchase Order or Donation Source
   6. License term
   7. Number of Licenses
   8. License identification number
   9. Cost and/or payment amounts
   10. Software asset contact name
   11. Disposal method
   12. Disposal date