| VOLUME: I |
POLICIES RELATED TO ACCOUNTING ADMINISTRATION |
| SUBJECT: |
Capitalization of Infrastructures |
| SOURCE: |
American Institute of Public Accountants (AICPA) Guidelines for Colleges and Universities, GAAP, GASB 34/35
|
| DATE ISSUED: |
July 1992, Revised July 2002 |
| POLICY NO.: |
I-210 |
| RATIONALE: |
To define expenditures which will be classified as capital infrastructures. |
| POLICY: |
Improvements on land that have a life of their own exclusive of the land or building(s) on that land should be capitalized in this category.
The cost of the project must be greater than $75,000 for it to be capitalized.
|
| DEFINITIONS: |
Infrastructure covers improvements related to land but not associated to buildings. Infrastructure expenditures have a life exclusive of a building. The infrastructure category of capital fixed assets include sidewalks, outside lighting, steam pipes, maintenance tunnels and sewer systems.
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| PROCEDURE REFERENCE: |
In order for an item to be secured as a capital infrastructure, the correct object code should be utilized on the Purchase Order and disbursement documents.
All capitalized building projects should be processed through a construction account or renewal and replacement account and should not be recorded in an operating account. Any federal funds used should be allocated to the correct disbursement object code.
A list of the current object codes (income and expense classes) is available by contacting your campus Chart Manager (see listing; http://www.fms.indiana.edu/) or the Financial Information System's Object Code References Tables.
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| CROSS REFERENCE: |
For more detail and definition on this policy, refer to the Indiana University Capital Asset Manual, Accounting for Assets at Indiana University, URL: http://www.fms.indiana.edu/cams/Manual/Manual.asp distributed by the Financial Management Services department.
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| RESPONSIBLE ORGANIZATION: |
Financial Management Services |
