Accounting for Construction and Renovation Projects
Directive Statement
This directive establishes the proper methods of accounting for construction and renovation projects. All projects require a unique project to track associated transactions. Construction Accounting will request the appropriate project and handle all accounting transactions for the projects they manage.
Expenditures for capital projects must be recorded in one of the university capital projects funds. See Fund Groups and Definitions for more information.
Reason for Directive
To ensure unexpended resources derived from various sources to finance the acquisition, construction, or renewal and replacement of long-lasting plant assets and the associated liabilities are accurately accounted for.
Who must comply?
All University Departments.
Procedures
Expenditures must be correctly identified by the use of account codes to indicate whether or not the expense can be capitalized or considered an asset. A capital expenditure is incurred when money is spent either to buy or fix assets or to add value of an existing asset. A noncapital expense would be considered an expense necessary to complete the project but does not increase the value of an asset.
A limited number of capital and noncapital expenditure accounts are available for use. A complete list of valid accounts is available on the General Accounting Account Code website.
Last Reviewed
Last reviewed on 06/28/2024
Contacts
Construction Accounting: (352) 392-5778
General Accounting & Financial Reporting: (352) 392-1326