Property Control System Manual (PCS)

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Effective: 6/30/2010

Revised: 3/1/2014

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PCS 103: Remodeling and Other Building Costs

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Purpose

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To outline the accounting classifications of remodeling and other building costs

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Sources

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Property Control
Financial Services

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Applicability

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All university agency/orgs

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Policy

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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.

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Additional Information

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For information on the use of capital object codes, see the Financial Services, Financial References Web page.

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