Title: Business Procedures Manual | 7.4 Buildings and Building Improvements | University System of Georgia
Headings: 7.4 Buildings and Building Improvements
Business Procedures Manual
Essential business procedural components for University System of Georgia institutions.
7.4 Buildings and Building Improvements
7.4.1 Building Definition
7.4.2 Building Improvement Definition
7.4.3 Depreciation Methodology
7.4.4 Capitalization Threshold
Purchased Buildings
Constructed Buildings
Building Improvements/Replacements
7.4.5 Building Maintenance Expense

Content: Permanently attached fixtures or machinery that cannot be removed without impairing the use of the building
Additions to buildings, such as expansions, extensions, enlargements, etc. Building Improvements/Replacements
The following are examples that should be capitalized as improvements to buildings if (1) the addition of value to the existing building meets or exceeds the capitalization threshold, or (2) the addition increases the life or value of the building by 25 percent of the original life or cost. Conversion of attics, basements, etc., to usable office clinic, research, or classroom space. Structures attached to the building, such as covered patios, sunrooms, garages, carports, enclosed stairwells, etc. Installation or upgrade of heating and cooling systems, including ceiling fans and attic vents
Original installation or upgrade of wall or ceiling covering, such as carpeting, tile, paneling, parquet, etc. Structural changes, such as reinforcement of floors or walls, installation or replacement of beams, rafters, joists, steel grids, or other interior framing
Installation or upgrade of window or doorframes, upgrading of windows or doors, built-in closets and cabinets, etc. Interior renovation associated with casings, baseboards, light fixtures, ceiling trim, etc. Exterior renovation, such as installation or replacement of siding, roofing, masonry, etc. Installation or upgrade of plumbing and electrical wiring
Installation or upgrade of phone or closed circuit television systems, networks, fiber optic cable, wiring required in the installation of equipment that will remain in the building, etc.