Section 02.36: Account Codes -- Fixed Assets/Accumulated Depreciation (A8000-A8999)
General
The following account codes are used to record the capitalization and accumulated depreciation
of all non-expendable, tangible personal property and real property (also known
as 'Fixed Assets') from
proprietary and
non-proprietary funds.
Proprietary funds include all auxiliary enterprise and service department
funds while
non-proprietary funds include all funds
except
auxiliary enterprises and service departments.
The capitalization and accumulated depreciation of non-proprietary funded
fixed assets should be recorded in the Net Investment in Plant fund 890000 using
the below asset/contra asset accounts but are to be procured using the 4xxxx
capital outlay accounts. The capitalization and accumulated depreciation of
proprietary funded fixed assets should be recorded in the individual
auxiliary enterprise/service department funds using the below asset/contra asset
accounts.
The
following asset account codes are also used to procure fixed assets with
proprietary funds.
(See 4xxxx account series for asset procurements
from non-proprietary funds.) The following account codes are
used for recording fixed assets and accumulated depreciation in the General
Ledger as well as in the Banner Fixed Assets system.
Section Layout:
[1] Personal
Property
[2] Real
Property
[3] Accumulated
Depreciation
[1] Personal Property
Personal property is defined as tangible property that meets the following criteria:
- It is owned or considered owned by the University.
- It is held for operations, not for resale
- Its useful life exceeds one year.
- It has a unit value of $5,000 or more.
The unit-cost limit does not apply in the following situations:
- When materials purchased are used as part of an institutional general collection library for three years or more.
- When an item is included on the equipment inventory as an Attachment to an existing capitalized asset. See attachment definition in Fiscal Policy 55.825 "Components and Attachments of Existing Capital Assets".
- When an exception to the unit-cost limit has been approved by authorized institution personnel. (When an exception has been granted, an inventory record must be recorded in the Fixed Asset subsidiary and a record of the authorization kept on file.)
For all other equipment valued at less than $5,000, use code
20200
- Minor Equipment, unless a more specific code is available.
The following ancillary costs should also be capitalized:
- Freight or excess charges on newly purchased equipment if charges exceed $25
- All installation expenses
- The cost of modifications that increase a piece of equipment's value by more than $5,000
For purchases acquired
through a lease-purchase or installment payment arrangement,
see section 02.12 [4] Miscellaneous Capital Outlay.
See Fiscal Policy 55.100 " Fixed Asset
Accounting Policies" for more information and definition of Non-Expendable Personal
Property, including capitalization threshold information.
A8011 Equipment
Equipment is defined as non-expendable personal property that is not otherwise categorized by a separate account code. Includes livestock for breeding, as draft animals, for dairy or beef production, for experiments or for instruction. (The costs of raising immature animals to maturity are treated as current operating expenses. For example see account codes
21055 - Feeds - Grains,
21056 - Feeds - Hay and Straw,
21057 - Feeds - Concentrates and
21008 - Animal Care.) (For purchases from non-proprietary funds see accounts
40101 - Equipment and 40102 - Livestock.)
A8012 Vehicles
Purchase of a motorized vehicle that is registered for road use. For vehicles not registered for road use or for non-motorized vehicles (i.e. trailers, lawn tractors or farm implements), use account code A8011 - Equipment. (For purchases from non-proprietary funds see account
40104 - Vehicles.)
A8014 Construction in Progress (Equip)
Expenditures during the fabrication period of a constructed item that will eventually be classified as equipment. At completion of fabrication, an adjustment is done to move the total cost to account code A8011 - Equipment. Do not use this code to purchase an inventory of supplies to be used on unspecified future projects. Also, do not use this code when fabricating equipment in an on-campus self-sustaining shop for transfer to another department. CIP is non-depreciable. (For purchases from non-proprietary funds see Account
40199 - Construction in Progress (Equipment).)
A8015 Vessels
Expenditures for the purchase of vessels, including any materials and supplies used in the improvement of the vessels themselves or equipment on board the vessel. A vessel is defined as a boat, ship or craft that is made to float or travel upon the water and is greater than 25 feet in length. It may or may not be powered by a marine engine. For anything less than 25 feet (e.g., canoes or rafts), use
A8011 - Equipment . For docks and ramps see
[2] Real Property. (For purchases from non-proprietary funds see account
40201 - Vessels.)
A8031 Museum Collections
Collection items that are not permanently attached to buildings and that can be moved from one area to another (e.g., paintings) and the cost is $5000 or more. Includes museum collection procurements and purchases of non-depreciable Library special collection items. Museum Collections are non-depreciable. (For purchases from non-proprietary funds see account
40103 - Artwork/Collection Items.)
A8032 Works of Art & Historical Treasures
Artwork/historical treasures that are not permanently attached to buildings and that can be moved from one area to another (e.g., paintings) and the cost is $5000 or more per item. Works of Art & Historical Treasures are non-depreciable. (For purchases from non-proprietary funds see account
40103 - Artwork/Collection Items.)
A8033 Library Special Collections
Library special collections that cost $5000 or more. Library Special Collections are non-depreciable. (For purchases from non-proprietary funds see account
40103 - Artwork/Collection Items.)
A8042 Library Books (General)
Institutional library general collections of books, periodicals, films, tapes, slides and reference materials. Library Books - General are depreciable. (For purchases from non-proprietary funds see account
40190 - Library Purchases.)
[2] Real Property
All Real Property expenditures are to be charged to Unexpended Plant funds or Renewal and Replacement Funds (fund
types 81 & 83) using the
4xxxx account codes, with the possible exception of expenditures for Improvements Other Than Buildings (IOTB's). The following accounts are used for recording the capitalization of real property either in the Net investment in plant fund 890000 or in the proprietary funds themselves depending on the asset's responsible unit's predominant funding source.
A8111 Buildings
This account code should be used to capitalize the expenditures for the purchase of buildings, or disbursements to contractors for the construction or improvement of buildings. Charges from the Physical Plant and other service activities for construction or improvements of buildings are also included. This code covers the following:
- New building
- Addition to existing building
- Capital improvements
See Fiscal Policy 55.713 "Capitalization Thresholds - Additional Clarification" for additional guidance in distinguishing capital improvements from maintenance and repairs. (see account codes 235xx - Maintenance and Repairs).
(See accounts 405xx for procurements.)
A8112 Construction in Progress (Building)
This account code should be used to capitalize the expenditures incurred during the construction of a building that is not completed within an accounting cycle. Capitalized expenditures recorded as CIP should be re-classified to
A8111 - 'Buildings' at completion of the project. CIP is non-depreciable.
A8121 Land
This account code should be used to capitalize the expenditures for land purchase. The entire purchase price, which includes buildings not intended for use, is included in the value of the land. Other costs are also included, such as land conditioning, provided it is not associated with a building or construction of an improvement other than a building or infrastructure. Land is not included in depreciable assets. (See accounts 403xx for procurements.)
A8122 Easements/Right of Ways
This account code should be used to capitalize the expenditures for purchase of easements and right of ways. The cost is not depreciated unless the agreement has a limited term. (See account
40302 for procurements.)
A8123 Land Improvements (non-depreciable)
This account code should be used to capitalize the expenditures for improvements that ready land for its intended use and produce permanent benefits. Examples include:
- Excavation
- Fill
- Grading
- Landscaping
(See account
40303 for procurements.)
Note: Distinguishing between infrastructure, improvements other than buildings, and land improvements (depreciable and non-depreciable) is not always clear. See Fiscal Policy Manual section 55.795 for examples of major categories of "real property other than buildings" and their associated account code and asset type.
A8124 Land Improvements (depreciable)
This account code should be used to capitalize the expenditures for improvements that ready land for its intended use and that deteriorate with use or the passage of time. Charges from the Physical Plant and other service activities for land improvements are also included. Examples include:
- Parking Lots
- Fencing and gates
- Paths
- Retaining Walls
- Tennis Court
- Athletic Field
- Golf course
Improvements that increase the value by less than $5,000 are coded as maintenance (see account codes 235xx - Maintenance and Repairs). (See account
40304 for procurements.)
Note: Distinguishing between infrastructure, improvements other than buildings, and land improvements (depreciable and non-depreciable) is not always clear. See Fiscal Policy Manual section 55.795 for examples of major categories of "real property other than buildings" and their associated account code and asset type.
A8125 Construction in Progress (Land Imp)
This account code should be used to capitalize the expenditures incurred during the construction of land improvements that are not completed within an accounting cycle. Capitalized expenditures recorded as CIP should be re-classified to either
A8123 - Land Improvements (Non-Depreciable) or
A8124 - Land Improvements (Depreciable), at completion of the project. CIP is non-depreciable.
A8131 Improvement Other Than Buildings
This account code should be used to capitalize the expenditures for the installation or construction of Improvements Other Than Buildings (IOTBs). Charges from the Physical Plant and other service activities for construction of improvements other than buildings are also included. IOTBs include the following:
- Fountains
- Bleachers
- Dugouts
- Goal posts
- Scoreboards
- Similar improvements not part of the land or building itself
Improvements that increase the value by less than $5,000 are coded as maintenance (see account codes 235xx - Maintenance and Repairs). (See accounts 404xx for procurements.)
Note: Distinguishing between infrastructure, improvements other than buildings, and land improvements (depreciable and non-depreciable) is not always clear. See Fiscal Policy Manual section 55.795 for examples of major categories of "real property other than buildings" and their associated account code and asset type.
A8132 Construction in Progress (IOTB)
This account code should be used to capitalize the expenditures incurred during the construction of an IOTB that is not completed within an accounting cycle. Capitalized expenditures recorded as CIP should be re-classified to
A8131 'Improvements Other Than Buildings' at completion of the project. CIP is non-depreciable.
A8141 Infrastructure
Infrastructure assets are long-lived capital assets that normally can be preserved for a significantly greater number of years than most capital assets and are normally stationary in nature. Examples include the following:
- Roads
- Bridges/Culverts
- Sidewalks/Curbs
- Alleyways
- Street lighting systems
- Traffic lights/signs
- Fire hydrant
- Drainage systems
- Gas/electric/fiber optic distribution systems
- Tunnels and conduit systems
- Water and sewer systems
- Dams
- Wells
(See accounts 407xx for procurements.)
Note: Distinguishing between infrastructure, improvements other than buildings, and land improvements (depreciable and non-depreciable) is not always clear. See Fiscal Policy Manual section 55.795 for examples of major categories of "real property other than buildings" and their associated account code and asset type.
A8142 Construction in Progress (Infrastr)
This account code should be used to capitalize the expenditures incurred during the construction of an infrastructure asset that is not completed within an accounting cycle. Capitalized expenditures recorded as CIP should be re-classified to A8141 'Infrastructure' at completion of the project. CIP is non-depreciable.
[3] Accumulated Depreciation
A8511 Acc Dep-Equipment
(See associated asset account
A8011 and depreciation expense account
80511.)
A8512 Acc Dep-Vehicles
(See associated asset account
A8012 and depreciation expense account
80512.)
A8515 Acc Dep-Vessels
(See associated asset account
A8015 and depreciation expense account
80515.)
A8542 Acc Dep-Library Books (General)
(See associated asset account
A8042 and depreciation expense account
80542.)
A8611 Acc Dep-Buildings
(See associated asset account
A8111 and depreciation expense account
80611.)
A8624 Acc Dep-Land Improvements
(See associated asset account
A8124 and depreciation expense account
80624.)
A8631 Acc Dep-IOTBs
(See associated asset account
A8131 and depreciation expense account
80631.)
A8641 Acc Dep-Infrastructure
(See associated asset account
A8141 and depreciation expense account
80641.)
