The University of Chicago

Financial Services

  

1016 Private Gifts and Grants for Buildings and Equipment

Subject Area: Accounting
Responsible Office: Financial Services
Sponsor: Associate Vice President for Finance
Originally Issued: May 2000
Revised: January 2010
Refer Questions To: James Ribikawskis, 773-702-3690

Purpose: To provide guidance on the accounting treatment for private gifts and grants for buildings and equipment.

Introduction

The University reports private gifts and grants for buildings and equipment as additions to temporarily restricted net assets and amortizes the additions to unrestricted operations over the useful life of the assets acquired or constructed.

Policy

  1. Land, buildings, and equipment will be capitalized in accordance with Financial Policy No. 1004.
  2. Private gifts and grants for land shall be reported as a change in non-operating unrestricted net assets.
  3. Private gifts and grants for specific buildings and equipment, which cumulatively total less than $100,000, shall be reported as operating revenue.
  4. Private gifts and grants for specific buildings and equipment which cumulatively total $100,000 or more shall be reported as additions to temporarily restricted net assets and amortized into unrestricted operating revenue over the useful life of the asset acquired or constructed. The amount amortized will be revised periodically to take into account additional contributions received and adjustments to pledge receivables.

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