When enhancements are made to existing pieces of equipment, a value adjustment may be recorded in the Asset Management System) to reflect the improvement. There are certain rules as to when value adjustments will be made.

First, a value adjustment is only made if the enhancement is valued at $2,000 or greater. Enhancements valued at less than $2,000 are not recorded in the Asset Management system and are not considered equipment expenditures.

Second, the value adjustment is only made for an enhancement to a piece of equipment. Repairs to equipment are not considered value adjustments. Additionally, enhancements made by removing an equally valued part in exchange for the new part are not considered value adjustments.

For example, if a department purchases a $2,500 lens for a microscope already in the Asset Management system, then the lens would qualify as an enhancement to the microscope and be a value adjustment. However, if a department replaced a broken component in a spectrometer with a new $2,500 component, that would be a repair and not a value adjustment.

Questions about value adjustments can be directed to asset-mgt@udel.edu or (302) 831-8951.