Fiscal Operations Manual
Section 600: Plant Funds and Fixed Assets
Effective: 01/01/2003
Revised: 12/27/2012
Assets valued over $5,000 are capitalized at market value at time of acquisition. See the PRO Manual for guidance on determining what costs are capitalized and what costs are expensed. See FIS 1108-01: Banner Processes - Approval Routing - Invoices for Fixed Assets, for further information on the approvals for fixed equipment invoices. Equipment that is constructed, or put together at the University is not capitalized until completion and put into service. Use account code 40199 for purchases of all parts. Upon completion, journal voucher the total cost to 40101 for capitalization. Include all necessary information in the Journal Voucher text. See FIS 406: Expenditures - Vendor Invoice Processing for information on handling trade-ins of capital equipment.
NOTE: There is one exception to the capital threshold. All vehicles licensed for road use are capitalized, regardless of the acquisition value.
Fiscal Operations Manual
Section 600: Plant Funds and Fixed Assets
Effective: 01/01/2003
Revised: 01/14/2010
Construction projects are defined as projects that add to, or change existing physical spaces. They must also meet the following criteria:
Fiscal Operations Manual
Section 600: Plant Funds and Fixed Assets
Effective: 01/01/2003
Revised: 12/27/2012
Any project that meets the capitalization requirements shown below in 603-01 must have plant fund(s) established. Costs for these projects cannot be paid from non-plant funds. The Oregon University System’s (OUS) Facilities Division established the FIS Plant Fund Form to provide institutions with a means of establishing a FUND for capital construction, capital improvement and capital repair projects. Due to various requirements, such as legislatively approved capital construction expenditure limitations and OUS Controllers Division reporting to Salem, it is necessary when establishing a FUND for construction projects (8xxxxx) that the document is completed/approved by OSU Facilities Services and sent to and reviewed by both the OUS Facilities Division and the OUS Controllers Division.
Fiscal Operations Manual
Section 600: Plant Funds and Fixed Assets
Effective: 01/01/2003
Revised: 01/14/2010
Land/Easements & Right of Ways are capitalized regardless of amount.
Library Special Collections
Library special collections are library holdings normally considered inexhaustible and accounted for like works of art or historical treasures. They are held for public exhibition, education. They are protected, cared for, and preserved. They must be capitalized when the total cost of the collection is equal or greater than $5,000. However, they do not depreciate.
Buildings - $50,000 or more are capitalized.
Building Improvements - $100,000 or more are capitalized.
Improvements other than Buildings (IOTB’s) - $50,000 or more are capitalized.
If this real property is included as part of new building construction, then a separate plant fund is not needed. However, use of the 40401 account code is required.
Land Improvements - must have a value of $75,000 or more to be capitalized.
Infrastructure
Infrastructure assets are long-lived capital assets that are part of a network of assets that can have service potential for an extended period, and that are normally stationary. In order to be capitalized they must have a value of $75,000 or more.
Fiscal Operations Manual
Section 600: Plant Funds and Fixed Assets
Effective: 01/01/2003
Revised: 01/14/2010
A “plant fund” or funds (8XXXXX) must be established to track capitalization amounts. The OUS Controller’s Division establishes plant funds in response to a request from the OSU Facilities Services Controller, after approval by the OUS Facilities Division.
Fiscal Operations Manual
Section 600: Plant Funds and Fixed Assets
Effective: 01/01/2003
Revised: 08/26/2010
If the project has been approved by the legislature as part of the capital construction program, use the same name as submitted and approved by the legislature. The names should not exceed 35 characters in length.
Each individual project financed by a particular source of revenue will require a separate FUND with a Fund Code that rolls up to the OUS level Fund Code for that revenue source. The FUND title will be assigned by the institution. It is a descriptive title that may be the same as the project name, or a more descriptive name.
Fiscal Operations Manual
Section 600: Plant Funds and Fixed Assets
Effective: 01/01/2003
Revised: 01/14/2010
Fiscal Operations Manual
Section 600: Plant Funds and Fixed Assets
Effective: 01/01/2003
Revised: 01/14/2010
A FUND within the Unexpended Plant Funds represents a specific source of revenue used to finance all or a portion of a capital construction, improvement or repair project. The Fund Code is a 6-digit number that uniquely identifies a particular FUND. The Fund Codes for plant accounting are as follows and represent the OUS level of FUND groups common to all institutions.
The Revenue Source is required information and must indicate the source of the revenue for the project, and in the case of Article XI-F(1) bonds, the source that will repay the debt service. The Revenue Source should coincide with the Fund Code. The more common revenue sources used for OUS projects are as follows:
Other required information includes:
Plant Fund Request Forms may be obtained from Facilities Services at 7-4921.
Fiscal Operations Manual
Section 600: Plant Funds and Fixed Assets
Effective: 01/01/2003
Revised: 12/27/2012
OUS assesses a .1% fee on any legislatively approved project with a budget that exceeds $10,000. For Plant Funds, the project code is found in the grant code field. Any project beginning with 958xxx, 959xxx, 960xxx, 961xxx, etc. IS legislatively approved. Any project beginning with 900xxx is NOT legislatively approved. The capital projects assessment fee reimburses the Controller’s office for some of the expense related to the work they perform for the institutions on the building projects. Account codes 40318, 40418, 40518, 40718 and 28103 are used for this charge.
Fiscal Operations Manual
Section 600: Plant Funds & Fixed Assets
Effective: 09/01/2001
Revised: 09/08/2010
"Institutions shall expend currently, or reserve for expenditure within the next five years, a portion of F&A cost payments made for depreciation or use allowance under sponsored research agreements, consistent with Section F.2, to acquire or improve research facilities ...These funds may only be used for:
Oregon State University’s process for distribution of building use credits (BUC) is:
Fiscal Operations Manual
Section 600: Plant Funds and Fixed Assets
Effective: 01/01/2003
Revised: 12/27/2012
Buildings & Grounds - Improvements and Adjustments in Excess of $5,000
The annual capitalization report must be completed and submitted by each institution. The report must include all Plant Construction and Improvement Funds that had expenditures during the current fiscal year (see FWRFAAC) plus any other expenditures for buildings, improvements other than buildings, infrastructure, land or land improvements activity that qualify for capitalization. Transactions through period 14 must be included. Prior year adjustments must be clearly identified. Funds with zero or negative balances must be reported if they had capitalized account codes (4XXXX) transactions during the year. Include an explanation for these transactions. If a CO-355 form has not previously been forwarded to the Controller's Division for new buildings, IOTB, infrastructure, land improvements or land being reported through Period 14, attach the form to the Annual Capitalization Report. The contents of the report will be used to classify YTD expenditures through Period 14 and post them to the appropriate subsidiary file. Amounts reported for unfinished (not completed/not accepted) projects at June 30 must be identified as construction in progress (CIP). These amounts will need to be identified for posting to the appropriate asset in a future year. Amounts reported as non-capital maintenance and repairs will be utilized in the indirect cost computations. Data must be reported as whole dollar amounts for each category of expenditure. OSU Office of Business Affairs prepares the journal vouchers to adjust the appropriate Investment in Plant Fund and Asset Accounts.
Use form CO-355 to report all changes including those listed above. Forms and instructions may be obtained from Facilities Services at 7-4921 or on the Business Affairs website.
Fiscal Operations Manual
Section 600: Plant Funds and Fixed Assets
Effective: 01/01/2003
Revised: 12/27/2012
All fixed assets (except land, special art and museum collections, Library Special Collections, and historical collections) valued at $5,000 or greater and with a useful life of more than one year are required to be depreciated.
Capital equipment will be depreciated in compliance with applicable Governmental Accounting and Standard Board (GASB) accounting and reporting standards for State, Higher Education Institutions & 503c charitable institutions.
Depreciation is calculated as part of the monthly closing process through FIS Banner on a straight line method with zero salvage value and useful lives that vary depending on the type of asset. Policies and procedures have been established by OUS Controllers Division in Fixed Assets Accounting Policies 55.100.
In general, an asset purchased during a month will receive a full month of depreciation regardless of the date purchased. For proprietary funds, depreciation expense and gains and losses will post directly to the fund from which the capital asset was purchased. Assets purchased with non-proprietary funds will capitalize and depreciate in the Net Investment-in-Plant fund (890000).
NOTE: Inventory value is driven by the acquisition cost of an asset. Fully depreciated equipment will continue to remain on inventory as long as it is functional and in use.
Equipment is added to the capital inventory through the purchasing process. However, departments need to report the receipt of gifts (both directly to the unit and through OSU Foundation and/or Ag Research Foundation) with a stated market value of $5,000 or greater to Business Affairs, Fixed Assets.
Library general collections must be identified and valued at lower of cost or market value at time of acquisition or donation. The general collections must be capitalized on the general ledger. They do depreciate. The valuation method must be documented and retained for audit purposes. The library general collection holdings are to be separated based on year of acquisition.
Buildings and Improvements other than Buildings (IOTBs) are considered fixed assets (those valued at $50,000 or greater and with a useful life of more than one year) and are required to be depreciated.
Land improvements include infrastructure that broadly serves campus grounds/facilities rather than a specific building or land parcel and specific site improvements that are depreciated.