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MSFA board unanimously raises capitalization threshold to $50,000
Summary
The MSFA voted unanimously to revise its Capital Asset Management Policy, redefining capital assets as those with an initial cost in excess of $50,000; the change was recommended by the director of finance citing GASB guidance and asset composition.
The Minnesota Sports Facilities Authority voted unanimously on March 19, 2026, to amend its Capital Asset Management Policy and increase the capitalization threshold from $5,000 to $50,000.
Ms. Michelle Hoffman, the Authority’s Director of Finance, told commissioners that the MSFA first set the threshold at $5,000 in 2012 and recommended an increase to reflect inflation, recent Governmental Accounting Standards Board (GASB) guidance, and the Authority’s overall asset base. "We would like to recommend increasing the capitalization threshold to $50,000," Hoffman said while presenting the recommendation (Exhibit C).
Hoffman said a review of capital assets as of June 30, 2025, showed assets under the current $5,000 threshold accounted for about 1.2% of total capital assets, and that GASB guidance requires bulk purchases to be treated as a single acquisition for capitalization assessment. The board considered the recommendation and approved the following motion: "The Minnesota Sports Facilities Authority authorizes revisions to the MSFA Capital Asset Management Policy to redefine a capital asset as having an initial cost in excess of $50,000." Commissioner Sharon Sayles Belton moved the motion and Commissioner Tony Sertich seconded. A roll call vote recorded Ayess from Chair Michael Vekich, Commissioners Laura Bishop, Sharon Sayles Belton, William McCarthy, and Tony Sertich; the motion was adopted unanimously.
The action modifies the Authority’s capitalization practice going forward; the memorandum in Exhibit C served as the administrative basis for the board’s decision. The meeting record does not specify an implementation schedule or whether the change will trigger retrospective adjustments to prior fiscal reporting.
