| Title: | Software Asset Capitalization and Tracking Policy |
|---|---|
| Policy Owner: | Accounting Office, Controller’s Division |
| Applies to: | University Workforce Members |
| Campus Applicability: | All UConn Campuses, except UConn Health |
| Approval Date: | June 17, 2026 |
| Effective Date: | June 30, 2026 |
| For More Information, Contact: | Associate Controller and Director of Accounting |
| Contact Information: | accountingoffice@uconn.edu |
| Official Website: | https://accounting.controller.uconn.edu |
BACKGROUND
The State Property Control Manual states that agencies must report software inventory annually to the Office of the State Comptroller on the Annual Inventory Report of all Real and Personal Property (CO-59) form.
PURPOSE
To ensure accurate records of Capitalized Software assets, which are essential for compliance with the State of Connecticut Property Control Manual and for proper valuation in the University’s financial statements. To support this, a Software Librarian will maintain a software asset library for tracking Capitalized Software and will ensure an annual inventory is completed prior to the end of each fiscal year in accordance with Section 4-36 of the Connecticut General Statutes.
APPLIES TO
University workforce members on all campuses except UConn Health
DEFINITIONS
Capitalized Software includes any of the following:
- Software with initial purchases, upgrades, or renewals of software application programs or licenses with a cost of $5,000 or more and a useful life of three or more years. These assets are categorized as intangible assets.
- Software subscription contracts greater than 12 months requiring total payments over the contract term of $100,000 or more in exchange for the right to use a vendor’s information technology software. Such assets are categorized as right-to-use assets and are tracked and accounted for under GASB 96, Subscription-Based Information Technology Arrangements (SBITAs).
- Software projects where the total budget is $1 million or more and require substantial internal labor to develop, test and bring a software application into service. Such assets are tracked and accounted under GASB 51, Accounting and Financial Reporting for Intangible Assets.
Software Librarian: Individual(s) within the Accounting Office assigned to maintain a software asset library which allows for the annual inventory of Capitalized Software assets, provides a means for concise reporting on the status of such software assets, and is the point of contact for software audits and for submitting updated copies of the policy for review to the State Comptroller if the policy is modified.
Software Tracking System(s): One or more systems where Capitalized Software assets are tracked. Such systems serve as the software asset library.
POLICY STATEMENT
Capitalized Software must be tracked in the Software Tracking System(s) to produce a software asset library, and an inventory must be completed annually prior to each fiscal year end, June 30th. Workforce Members in university departments are responsible for assisting in this process through the proper coding of purchase orders and through tracking internal labor on software projects, when applicable as outlined within the project scope.
The Software Librarian is responsible for maintaining the software asset library, and for recording additions, disposals and retirements. Each software record within the Software Tracking System(s) shall contain (when possible/applicable):
- Assigned Identification Number
- Description – software name or functional application
- Manufacturer/Vendor
- Acquisition Type – purchased, leased or donated
- Purchase Order Number or Donation source
- License Term
- Number of licenses
- License identification number
- Cost and/or payment amounts
- Disposal method
- Disposal date
The Software Librarian is responsible for reporting software inventory annually to the Office of the State Comptroller on the Annual Inventory Report of all Real and Personal Property (CO-59) form and for reporting any known losses on form CO-853, Adjustments to State Owned Assets as per the State Property Control Manual.
ENFORCEMENT
Violations of this policy and any related procedures may result in appropriate disciplinary measures in accordance with University By-Laws, General Rules of Conduct for All University Employees, and applicable collective bargaining agreements, and the University of Connecticut Student Code.
PROCEDURES/FORMS
UConn Knowledge Base for Capital Software Object Codes (under Equipment Category)
REFERENCES
State of Connecticut Office of the State Comptroller, Property Control Manual
POLICY HISTORY
Created on: June 17, 2026 (Approved by the University Senior Policy Council and President)