FIN 116: Expenditure of Building Renewal Funds
To provide guidance on the expenditure of building renewal funds
Arizona Revised Statutes § 41–790
Arizona Board of Regents Policy Manual, Chapter 7
Arizona Revised Statutes § 41-790 defines building renewal as:
“. . . major activities that involve the repair or reworking of a building and the supporting infrastructure that will result in maintaining a building’s expected useful life. Building renewal does not include new building additions, new infrastructure additions, landscaping and area beautification, routine maintenance, or demolition and removal of a building.”
Building renewal funds shall be calculated for every eligible building by the university each year. The amount of funds generated by the building renewal formula for each eligible building shall be included in the Building Inventory Report, which is incorporated in the Capital Improvement Plan.
Building Renewal funds allocated to the university are to be used in accordance with state statute and session law. The current state statute definition of building renewal is included in this policy. Session law appropriating building renewal funds for a specific fiscal year may also contain additional guidance. Since fiscal year 1997– 98, session laws have specified that 25 percent or less of the appropriation may be spent for state building modifications to comply with the federal Americans with Disabilities Act or for major maintenance and repair activities for state infrastructure. Per Board of Regents’ policy, consultant fees related to building renewal projects are an allowable use of building renewal funds. Additionally, building renewal monies may be allocated for fixed equipment and interior wall/furniture systems with the intent of permanent use in that location.
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