Property Control System Manual (PCS)

Effective: 6/30/2010

Revised: 7/1/2012

PCS 103: Remodeling and Other Building Costs

Purpose

To outline the accounting classifications of remodeling and other building costs

Sources

Property Control

Financial Services

Applicability

All university agency/orgs

Policy

Remodeling changes the use of building space or refurbishes to make space more functional or more cosmetically appealing.

Other building costs include installing equipment that is permanently attached to a building structure so that it cannot be removed without costly or extensive alterations. Such permanent equipment includes the following: non-portable, single-room air-conditioning units; fire protection systems; water distributing systems; heat distributing and electrical distributing systems; elevator shafts; utility outlets; and computer cabling.

Coding Criteria

If $100,000 or More

If the total acquisition cost of remodeling or other permanent modifications is $100,000 or more, the purchase is coded as a capital acquisition to object/sub-object code 7890 11, “Building Improvements/Remodeling.”

If Less than $100,000

If the total acquisition cost of remodeling or other permanent modifications is less than $100,000, the item is coded as an operational (“Repairs and Maintenance”) purchase. Object/sub-object code 7320 17 is used for materials and 7310 52 is used for labor.

Cross-Reference

For information on the use of capital object codes, see the Financial Services Policies and Procedures Manual—FIN 430–01, “Overall Expenditure Coding Structure.”

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