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UAFR Capitalization Construction Project

UAFR Capitalization Construction Project

Per University policy and procedures (Sect 12) the costs of certain construction projects need to be capitalized, which requires use of a unique plant fund to track the project costs in Banner. Only projects with a cumulative cost of $250,000 or more are capitalized.

The main question that needs to be answered is: Does the project significantly increase the usefulness or service life of the building or site? Please use the table below to see if you need to establish a separate plant fund for the project.

Does a project significantly increase the usefulness or service life of the building or site?

caption

NO

Yes

  • Normal Repair & Maintenance
  • Painting
  • Carpet replacement
  • Lighting replacement
  • Sidewalk repair, Etc.
  • Office space being converted into new lab space
  • Creation of a Parking lot

Do not need to capitalize. Submit work order using department's CFOAP.

Capitalization is warranted. Plant fund needs to be created prior to work order creation. The new fund will then be used in the CFOAP of the work order for audit reporting purposes. You can find the Banner Fund, Program, Index Code Request Form on the page below.

https://www.obfs.uillinois.edu/forms/accounting-financial- reporting/

If you need more clarification, please contact Aaron Rund at (217) 300-1738 or arund@uillinois.edu




Keywords:UAFR Capitalization Construction Project   Doc ID:119482
Owner:Erik O.Group:University of Illinois Training and Development Resources
Created:2022-07-08 11:48 CDTUpdated:2022-08-23 15:43 CDT
Sites:University of Illinois Training and Development Resources
CleanURL:https://answers.uillinois.edu/training/uafr-capitalization-construction-project
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