Funds invested in institutional properties less accumulated depreciation. Funds held in trust by the University but legally owned by outside entities. Recording of encumbrances typically occurs when a valid internal or external Purchase Order has been prepared and entered into the accounting system. To ensure that encumbrances are fairly stated, payment documents must close out the encumbrance on final payment. Payroll related encumbrances are also created to earmark funds for the payment of salary and fringe benefits through the end of the fiscal year.
Property costing less than that is charged to expense when acquired.
Donated property is recorded at estimated or appraised value. Capital assets are identified based on Account coding of transactions throughout the year and analyzed by Accounting Services for capitalization. Periodic audits may also be conducted by the Internal Revenue Service and granting agencies.