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: Plant Fund | Financial Services & Operations | Michigan Tech
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Plant Fund
Plant Fund Definition
This fund group is used to account for the acquisition, construction, and maintenance  of the University's physical plant and to control the resulting assets. The fund type  categories of the Plant Fund include
Investment in Plant—All long-lived assets in the service of the University, except  those of endowments and similar funds. Renewal and Replacement—Funds transferred to finance maintenance and replacement of  physical assets. Retirement of Indebtedness—Interest and principal payments and other debt service  charges relating to plant fund indebtedness. Unexpended—Unexpended resources from various sources used to finance the acquisition  of plant assets. Capitalization of Plant Fund Assets Definition
Physical property acquired by the University by purchase, gift, trade, or fabrication  and which take the form of land, buildings, equipment, improvements to land or buildings,  and other tangible items are capitalized. Financial Services and Operations is responsible for all accounting and budget control  functions for plant fund (construction) projects, and preparation of financial reports. Plant assets are stated at actual or estimated cost at date of acquisition. Construction  is capitalized as expended and reflected in net investment in plant. Current fund  expenditures of $50,000 or greater for renewals and replacements are capitalized only  to the extent that such expenditures represent long-term improvements to properties  or significant alterations, renovations, or structural changes that increase the usefulness  of the building, enhance its efficiency, or prolong its useful life.