The University will maintain fixed assets in accordance with GASB 34/35, which requires that not-for-profit organizations depreciate their fixed assets. Fixed assets are defined as items of both real property (land, buildings and improvements) and personal property (equipment) which will be recorded as assets within the
plant fund section of accounts. Property having historical significance will not be depreciated.
The Business Office uses administrative software developed by SCT to track individual capital items.
To be capitalized, personal property, here after referred to as equipment, will have a useful life of more than two years and an acquisition cost of more than five thousand dollars ($5,000). See the attached schedule for equipment types and useful life. Other items, which do not meet these two tests, may be tracked but will not be capitalized. Repairs to a capital asset may also be capitalized if they extend the life of the item beyond that originally established.
Real property will be capitalized during year-end closing of the fiscal year of acquisition. Real property assets, which are classified, as buildings will be divided into four functional units each with a unique useful life. Those units are:
Improvements to real property (sidewalks, roadways, etc.) will also be capitalized and will have a fifteen (15) year useful life.
The construction of real property will be recorded in unexpended plant funds and will not be capitalized until the project is completed. These accounts will be maintained by project year rather than by fiscal year. During year-end closing, construction expenditures made during that year will be recorded as ‘construction in progress.’ Each construction in progress project will be capitalized when the project is completed.
updated 2/13/2012 3:34:35 PM
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