Fixed assets are tangible or intangible assets used in normal business operations, not held for resale, and have a useful life of over one year. These assets are accounted for at a historical cost, and all assets, except for land and works of art, are subject to depreciation. Departments are responsible for the care, maintenance, and use of all long-lived assets in their custody.

The University capitalizes all assets with a value of more than $5,000 and a useful life of more than one year. Fixed assets are valued at acquisition cost which includes the purchase price or construction cost, net value of any assets given in exchange (trade-ins), as well as costs incurred to place the asset in its intended location in an operable condition, such as shipping, installation, site preparation, legal costs, etc. In the case of donated assets, the value is set at the fair market value at the date of the gift, if determinable, or the appraised value.

Renovations to buildings, infrastructure, and land improvements that significantly increase the value or extend the structure's useful life are capitalized. Routine repairs and maintenance are expensed in the year in which the expense is incurred.

Construction expenses related to ongoing projects are recorded as Construction in Progress and are not depreciated until construction is complete and the asset is placed in service.

Durable goods with an acquisition cost of less than $5,000 or goods with an acquisition cost of greater than $5,000 and useful life of less than one year will be expensed in the year purchased.

All capital equipment and projects, regardless of the funding source, shall be presented to the Board of Regents for approval in an annual capital budget. This includes gifts-in-kind of fixed assets and donations of services to improve facilities. The annual capital budget should include a designated amount of discretionary authority granted to the President to approve capital purchases not included in the capital budget to manage unplanned equipment and project acquisitions.