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Internally Generated Computer Software

Internally generated computer software is:

  • Created or produced by the government or an entity contracted by the government; or
  • Acquired from a third party, but requires more than minimal incremental effort to achieve expected service capacity.

All internally generated computer software should be capitalized and depreciated over the anticipated useful life if the cost is over the capitalization threshold of $2,000,000 (Note: threshold for purchased software is $5,000).

Internally generated computer software typically has costs that are spread out over time, therefore the costs must be recognized in construction in progress until complete. When the project is complete, a manual fixed asset document will be entered in WOLFS by the SAO Accounting Division upon notification from the agency.

Please report any software that has not been previously capitalized in WOLFS. Each agency is responsible for maintaining support for all costs (payment vouchers, invoices, payroll costs) and the useful life (i.e., industry standards).

ALL Agencies are required to report, please review the three sections below to determine what information is required to be reported by your agency based on what category applies to your agency and then fill out the form on the “Form” Tab.

Complete projects that are ready to be capitalized
If your Agency has Internally Generated Computer Software that is considered complete (i.e. the software is being used) please complete the following fields on the Form:

  • Agency #
  • Agency Name
  • Contact Person
  • Phone #
  • Computer Software Name
  • All of Section 1

Ongoing projects that will cross fiscal years
If your Agency has a project not complete by fiscal year-end, provide cumulative project costs as of June 30th in order to be properly reflected in Construction-In-Progress. Please complete the following fields on the Form:

  • Agency #
  • Agency Name
  • Contact Person
  • Phone #
  • Computer Software Name
  • All of Section 2

If your Agency has NO Internally Generated Computer Software to report click on link below.
N/A Reporting Survey Form

If your Agency DOES have  Internally Generated Computer Software to report, complete form below.

Internally Generated Computer Software

  • Section 1

    Completed projects that are ready to be capitalized

  • Internally generated computer software is:

    • Created or produced by the government or an entity contracted by the government; or
    • Acquired from a third party, but requires more than minimal incremental effort to achieve expected service capacity.
    • (Costs may include any of the following: ITD costs, outside vendor costs, internal payroll and payroll related costs, materials and services consumed in developing or obtaining software costs, etc.)

  • Section 2

    If a project is not complete by fiscal year-end, we will report cumulative project costs as of June 30th in Construction-In-Progress as a capitalizable cost. The agency will need to send a completed form to SAO Accounting Division when the project is complete to remove it from CIP and enter it into WOLFS Fixed Assets.