600.3 General Fixed Assets Accounting Policies

PROPRIETARY FUNDS:  Proprietary funds comprise auxiliary enterprise (fund types 20-29) and service departments (fund type 13). Proprietary funds are intended to be self-supporting. To accurately reflect the financial position of each proprietary fund, capital asset transactions pertaining to proprietary funds are recorded as follows: 

• Expenditures for personal property are capitalized, and depreciated in proprietary funds.
• Expenditures for real property are charged to unexpended plant funds (fund type 81), or renewal and replacement funds (fund type 83) and then capitalized and depreciated in the proprietary funds.

For more information, please see the procedures manual.

NON-PROPRIETARY FUNDS:  Non-Proprietary funds comprise university operations that are not included in proprietary funds. 

• Expenditures for personal property are initially charged as an expense for budget monitoring purposes to the non-proprietary fund using a 4xxxx account code. The purchase is then capitalized and depreciated in the investment-in-plant fund. 
• Expenditures for real property are charged to the unexpended plant funds (fund type 81) or budgeted operating funds (fund type 11), 004000 Repair and Remodeling funds and then capitalized and depreciated in the investment-in-plant fund.

For more information, please see the procedures manual. 

RESERVE POLICIES: Auxiliary enterprises and service departments are required to complete a 5 year reserve fund plan and  to set aside those funds on a periodic basis to help ensure that sufficient funds are on hand for equipment replacement and building repair. This is outlined in more detail in Building/IOTB Repair & Equipment Reserves