Ø The acquisition of productive assets that will have a life
longer than the financial year they were purchased in.
Ø Includes buildings, water and sewerage installations, lifts,
heating, ventilating and similar equipment forming an integral
part of buildings and structures, land development and
construction site development. Machinery, vehicles, electrical
apparatus, office equipment, computers, furniture, fixtures
and fittings not forming an integral part of buildings, durable
containers, special tooling, etc.
de minimis level
Ø de-minimis level is a figure set by the individual LEA which
distinguishes a revenue expenditure item from a capital
expenditure item. e.g. Say the de minimis level set is £500.
Generally, if the cost is <£500, then this would be classified
as a revenue expenditure item. If >£500, this would be
captured as a capital expenditure item.
Ø If a school purchases some ICT equipment, regardless of
whether it is above or below its de minimis level from its
capital budget then it should record this as capital
expenditure in CE04 & not E20.
Ø If the school purchases the same ICT equipment that is
below de minimis level from its revenue budget then it
should record this in its revenue expenditure codes, E20 –
ICT learning resources.
Ø If the same ICT equipment is purchased and is above the
schools de minimis level from its revenue budget then it
should capitalise this expenditure by coding it to E30 –
Direct revenue financing. E-30 will capitalise the revenue
contribution shown in CI04. The ICT expenditure will then be
recorded in the capital expenditure code CE04.
NB: The same rules above would apply to the purchase of office
furniture or any other capital item that a school may purchase.