• Professional fees – legal, architects, engineers, management
• Remodeling, reconditioning, or renovation costs to make it available for its intended purpose, including plans and permits
• Payment of accrued property taxes
• ■ Costs of temporary buildings used during construction
• ■ Environmental compliance
• Cancellation or buyout of existing leases
• oCosts to include in the construction of a building:
• Materials, labor, overhead
• Accrued interest during construction
• ■ Excavation, grading, or filling of land
• Plans and permits
• Professional fees – legal, architects, engineers, management
• ■ Costs of temporary buildings used during construction
• Permanently attached fixtures or machinery that cannot be removed without impairing the use of land
• ■ Additions to buildings
• Building improvements – Renovations which extend the useful life of an asset or increase its value (utility) beyond what it was before the renovation. Maintenance or repairs that do not materially extend the useful life of the asset are expensed, e.g. paint, carpeting, new furnishings, etc.
• Library holdings – Library books are capitalized annually as a group asset for all volumes added to the holdings. Periodicals and subscription-based library resources are expensed in the period of subscription.
• Works of art – Collections that are held for public exhibition, education, or research in furtherance of public service, rather than for financial gain. The collection is to be protected and preserved. Net proceeds for the sales of works of art from the collection are to be used to acquire other items for the collection.
• ERP software – Computer systems utilized to manage the resources of the university.
• Furniture and equipment – Moveable and fixed goods with an acquisition cost greater than the capitalization limit and a useful life of greater than one year.
• Technology equipment – Moveable and fixed equipment of a technological nature that form the basis of information systems or connectivity infrastructure, e.g. servers, network equipment, telecommunications systems, testing devices, etc. These generally have a shorter useful life than general equipment.
• Vehicles – Transportation equipment, e.g. automobiles, trucks, buses, forklifts, dump trucks, etc.

Procedures

Acquisition of Fixed Assets

Fixed asset purchases that meet the university's capitalization threshold as defined by policy must be included in the board-approved annual capital budget or approved under the President's discretionary authority. Fixed assets purchases must be charged to capital expense accounts.