Title: Plant Fund | Financial Services & Operations | Michigan Tech
Headings: Plant Fund
Plant Fund
Plant Fund Definition
Capitalization of Plant Fund Assets Definition
Componentization
Capitalization Guidelines
New Construction
Purchase of Existing Buildings
Building Improvements
Site Work
Utilities
Land
Equipment
Capital Leases
Property Trade-In
Gifts
Library Books
Mineral Specimens

Content: Building improvements may include interior or exterior construction of a building  or building systems, such as electrical or plumbing systems. They may also include  the completion of interior or exterior appointments or finishes, so long as they are  done as part of a significant alteration or renovation. Capital Improvements
Categories of building improvements include alterations, renovations, and betterment. Alterations - A change in the internal arrangement or other physical characteristics  of an existing asset so that it may be effectively used for a newly designated purpose. Renovations - The total or partial upgrading of a facility to higher standards of  quality or efficiency than originally existed. Betterment, Renewal, Replacement - The overhaul or replacement of major constituent  parts that have deteriorated because of the elements or usage. The deterioration has  not been corrected through ongoing or required maintenance. An example would be replacement  of old or broken windows with a new thermal variety. Expensed Improvements
Costs that neither significantly add to the permanent value of a property nor prolong  its intended useful life are expensed. The types of plant costs are expensed include  maintenance, preservation/restoration, and project costs below the capitalization  threshold.