Capital Asset Accounting

All expenses related to new construction or renovation projects with a cost of $100,000 or more and all acquisitions of land and building must be accounted for in Plant Funds - Ledger 8 accounts. Capital Asset Accounting (CAA) oversees the account creation and maintenance of Ledger 8 accounts, and is responsible for the management of the capitalization and depreciation processes associated to University capital projects.

Account create and maintenance:

  • Account Creation 
    • Facilities or unit managed?
      • Facilities managed: If a unit would like Facilities to manage the project, they must contact Facilities. Facilities is responsible for initiating any account create requests for projects they manage.
      • Unit managed: The unit will work directly with CAA to request a project account. Units are responsible for ensuring proper approvals (see next section) have been obtained prior to the completion of a Form 70A.
  • Verify Project Authorization
  • Process funding and budget entries for approved projects
    • CAA is the only authorized group on campus to submit funding and budget transfers to/from Ledger 8 accounts
    • Budget increases on existing capital project accounts must comply with University Policy 1301.
  • Monitoring of existing capital project accounts
    • CAA is responsible for the on-going FAS maintenance of existing accounts (e.g. updating Authorized Signers/Account Administrators, reviewing capitalization criteria for budget adjustments, etc.).
    • CAA is responsible for monitoring the overall portfolio of Ledger 8 accounts, including capital indicator, budget balance available, etc.
  • Close completed project accounts
    • Facilities or the unit is responsible for notifying CAA of any accounts that are ready for closure (e.g. all construction is complete and all trailing charges have posted to the account). Prior to requesting account closure, Facilities or the Unit must:
      • Review the status of the account to ensure that there are no open encumbrances, the voucher payable balance in the General Ledger is zero and that the account is not over budget.
      • Submit a closure memo or email requesting the account to be closed. If there are funds remaining in the account, CAA will return the funds to the original funding account, unless otherwise noted in the closure request.

Capitalization and Depreciation: