Title: 2.10 Capitalization of Tangible Assets | Financial Policies
Headings: 2.10 Capitalization of Tangible Assets
2.10 Capitalization of Tangible Assets
Last Revised Date
PHYSICAL PLANT ACQUISITIONS:
LAND
LAND IMPROVEMENTS OTHER THAN BUILDINGS:
UTILITIES:
TELECOMMUNICATIONS NETWORK SYSTEM:
BUILDINGS AND SPORTS FACILITIES:
REMODELING AND BETTERMENTS vs. MAJOR MAINTENANCE AND REPAIRS
LEASEHOLD IMPROVEMENTS:
PUBLIC ART
CONSTRUCTION IN PROGRESS:
SPECIAL CONSIDERATIONS:
LIBRARY ACQUISITIONS:
EQUIPMENT ACQUISITIONS:
FABRICATION: See 5-EQUIPMENT FABRICATION.
SPECIAL CONSIDERATIONS:
ARCHIVES, HISTORICAL MATERIALS, ART, AND OTHER SPECIAL COLLECTIONS
DISPOSITION OF MATERIALS:

Content: Examples of construction costs include, but are not limited to, architects and engineering fees, site preparation, including demolition costs, building permit fees, contractor and sub-contractor fees, building materials, construction equipment rental, construction supplies and utilities, construction equipment operating and maintenance cost, and wages and benefits, as compensation for construction work performed. BUILDING COMPONENTS: Consists of items permanently affixed/installed to the building shell, necessary for the building to be used as intended, which are integral to the building and can not be removed without damaging the building. Examples include, but are not limited to elevators, HVAC, plumbing system, electrical wiring, fixed theater or classroom seating, telecommunication/data wiring, fire alarm and sprinkler systems, and other fixtures and equipment installed with the intent of permanent use in the building. REMODELING AND BETTERMENTS vs. MAJOR MAINTENANCE AND REPAIRS
REMODELING, BETTERMENTS, AND RENOVATION: The reworking of an existing building or portion of an existing building, including upgrading the major systems, which extends the building’s usable capacity or useful life shall be capitalized. This includes the major replacement, or upgrading of building systems, components, or fixed equipment that is necessitated by facility obsolescence, change in use, code requirements, physical plant wear-out, and/or related interior space modifications and aesthetic improvements. Examples include, but are not limited to: demolition of the interior of a building or portion thereof including the removal and subsequent replacement of electrical, plumbing, ventilating and air conditioning systems, fixed equipment, floor coverings and interior walls and partitions (whether fixed or moveable). If an individual project cost less than $100,000, the expense is to be charged to repair and maintenance operations object code, rather than capital.