Corresponding Policy: See /wiki/spaces/~655483049/pages/988086934‘Fixed Assets General Accounting’ policy.
Corresponding Forms: N/A
Process: Deciding what Should be Capitalized and to what Account for Proprietary Funds
| Account Codes Used in Proprietary Funds | |||
| Type of Capital Asset | Capitalization Threshold | for PURCHASE | for CAPITALIZATION in Investment in Plant Fund |
| Equipment, Livestock, Vehicles, Vessels | Unit cost ≥ $5,000 | A8011 - Equipment (includes livestock) A8012 - Vehicles A8015 – Vessels | Same |
| Museum Collections | Total cost of museum collection ≥ $5,000 | A8031 - Museum Collections | Same |
| Works of Art and Historical Treasures | Unit or total cost of artwork ≥ $5,000 | A8032 - Works of Art & Historical Treasures | Same |
| Library Special Collections | Total cost of collection ≥ $5,000 | Not applicable to proprietary funds. | Not applicable to proprietary funds. |
| Library Purchases (General Books, not online subscriptions) | University library purchases are capitalized regardless of amount. Online subscriptions & departmental library purchases are expensed. | Not applicable to proprietary funds. | Not applicable to proprietary funds. |
| Land | All acquisitions of land are capitalized regardless of amount. Purchases of buildings require that a portion of the cost be allocated to land. | Land purchases may only be charged to unexpended plant funds (fund type 81). Account code 403xx, except 40303 and 40304 | A8121 - Land |
| Land Improvements | Land Improvements ≥ $75,000 | See Note 1 | A8123 - Land Improvements (non-depreciable) A8124 - Land Improvements (depreciable) |
| Buildings | All buildings ≥ $50,000 are capitalized. Purchases of buildings require that a portion of the cost be allocated to land. | See Note 1 | A8111 - Buildings |
| Buildings - Additions | Total cost of additions ≥ $100,000. | Construction of building additions are charged to unexpended plant funds (fund type 81) Account code 405xx | A8111 - Buildings |
| Buildings - Major Improvements | All major improvements - See Capitalization of Real Property - Additional Clarifications. | Account code 405xx See Note 1 | A8111 - Buildings |
| Buildings - Normal Repair and Maintenance | Not capitalized | Use a maintenance/repair 235xx account code. | Not capitalized |
| Buildings - Major Repair and Maintenance | Not capitalized | Use a maintenance/repair 235xx account code. See Note 1 | Not capitalized |
| Improvements other than Buildings (IOTBs) | IOTBs ≥ $50,000 | Account code 404xx. See Note 1 | A8131 - Improvement Other Than Buildings |
| Infrastructure | Infrastructure ≥ $75,000 | Account code 407xx. See Note 1 | A8141 - Infrastructure |
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