Corresponding Policy: See ‘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

Additions or major improvements to IOTBs or infrastructure should be accounted for the same way as new IOTBs or new infrastructure.
Acquisitions of fixed assets not meeting the above capitalization thresholds should be recorded as an expense in the accounting records.
Note 1: Expenditure may only be made from fund types 11 - Budgeted Operations (fund series 004000), 81 - Unexpended Plant Funds and 83 - Renewal and Replacement Funds.

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