Property Control and Sponsored Projects Fiscal Management interpret this policy as needed. Land Acquisition by Purchase - Land purchased by the university is recorded at cost. This category consists of land improvements outside the building. This category includes roads, walkways, tunnels, utility facilities, drainage systems, landscaping, parking lots, tennis courts, athletic fields, fences, curbs, streetlights, and similar items. Examples of construction costs include, but are not limited to, building materials, architects' fees, building permit fees, subcontract fees, rent for property, other than real property , to complete construction, operating and maintenance costs for property used in the construction, site preparation, compensation for work performed, and cost of supplies consumed in the construction.
Capitalization takes place during the completion of the project.
Building Components - Building components are items permanently attached to the building shell necessary for the building to be used as intended. Building components are either integral to the building or cannot be removed without damaging the building or component. Examples of building components are plumbing systems, electrical wiring, and air-conditioning duct work. Building Additions - New additions to buildings resulting in additional square footage are capitalized regardless of the dollar threshold. If new construction is not planned, the demolition costs are not capitalized.