Policy

In accordance with Generally Accepted Accounting Principles (GAAP), the state Office of Financial Management's State Administrative and Accounting Manual (SAAM), the National Association of College and University Business Officers (NACUBO) guidelines, and the federal Office of Management and Budget (OMB) Uniform Guidelines, University policy requires that capital plant expenditures be treated as follows:

A.   Land

All land should be capitalized. This includes land use rights with indefinite lives acquired with the purchase of the underlying land, and ancillary costs.

B.   Infrastructure

Infrastructure, with a cost of $250,000 or greater, should be capitalized. Examples of infrastructure assets include roads, sidewalks, bridges, tunnels, drainage systems, water and sewer systems, dams, and lighting systems.

C.   Buildings

Buildings, with a cost of $250,000 or greater, should be capitalized.

D.   Improvements Other Than Buildings

Improvements other than buildings, with a cost of $250,000 or greater, should be capitalized. Examples of improvements other than buildings include fences and retaining walls.

E.   Leasehold Improvements

Leasehold improvements, with a cost of $250,000 or greater, should be capitalized.