600 Plant Funds and Fixed Assets

601 Equipment

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.

Related FAQs

602 Construction Projects

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:

  • planning and construction respond to university-wide priorities;
  • planning and construction details respond to requirements of government-agency-adopted Uniform Building Code and land use requirements and any special requirements of Facilities Services; and
  • records accurately reflect actual use of space.

603 Establishing Construction Plant Funds

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. 

Related FAQs

603-01 When is Capitalization Required?

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.


$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 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.

603-02 What Special Accounting is Required for Capitalized Projects?

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. 

603-03 How are Plant Funds Established?

Fiscal Operations Manual
Section 600: Plant Funds and Fixed Assets
Effective: 01/01/2003
Revised: 08/26/2010


  1. Request that a plant fund be established.  This request must identify ALL the funding sources and the amount from each so that the correct type of plant fund(s) can be established.  Each funding source must be set up separately (bond funds, budgeted/general funds, auxiliary funds, gift funds).  Send the request to the Facilities Services Controller who will complete the necessary paperwork.

    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.

  2. The FS Controller will forward the request to the OUS Facilities Division.  A copy will be sent to the OUS Controller’s office with a notation that the original was sent to the OUS Facilities Division.  Staff in the OUS Facilities Division will review and approve the request.  The approved forms are sent to the OUS Controllers Office for Index/Fund (FOAPAL) setup in Banner.  The project number (in the grant code field) will begin with 9xxxx.  The Fund will begin with 8xxxxx.
  3. The FS Controller will provide the project number, fund number and new index number for the plant fund to the FS project manager, and requesting parties.
  4. The FS Controller will transfer monies as required by the plant fund (8xxxxx) process, unless they are gift funds.  Gift fund transfers are the responsibility of the funding department/unit.  This includes funds from the OSU Foundation.

603-04 Use of Correct Account Code

Fiscal Operations Manual
Section 600: Plant Funds and Fixed Assets
Effective: 01/01/2003
Revised: 01/14/2010


  1. Account codes 403xx – 407xx CANNOT be used on general funds.  They MUST be used on Plant Funds beginning with 8xxxx.
  2. Funds with Program Code 90001-90005 are to be used for expenses that are for a new facility (also includes acquisition of facilities), and must be capitalized. 
  3. Program Code 93000 is used for Plant improvement, remodeling or similar improvements to existing facilities that extends the life of the facility.  These expenses are capitalized.
  4. Program Code 97000 includes repair and deferred maintenance projects that do not extend the life of the facility, but rather are required to keep it functional.  These projects are not normally capitalized.
  5. The 4xxxs account codes are for capitalized expenses.
  6. The 23xxx account codes are non-capitalized repair and maintenance expenses.

603-05 Completing a Plant Fund Request Form

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.

  • 800000 - 804999 Unexpended Plant Funds
  • includes Auxiliary Funds and Building Use Credits
  • 805000     Special Unexpended Plant Projects
  • rarely used
  • 807000 - 809999 Gift/Grant/Contract Plant Projects
  • includes SELP loans
  • 810000     State General Fund Appropriations Projects
  • 815000     Article XI-F(1) Bond Plant Funds
  • 820000     Article XI-G Bond Plant Funds
  • 822700     XI-G Bond Interest
  • 823000     COP Plant Funds
  • 825000     Restoration and Insurance Plant Funds
  • 830000     Renewal and Replacement Reserves
  • 840000     Renewal and Replacement – Auxiliary Enterprises

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:

  • General Fund Appropriation
  • Article XI-G Bonds
  • Article XI-F(1) Bonds
  • Auxiliary Enterprise Balances
  • Gifts and Grants
  • Building Use Credits
  • Commingled Student Building Fees
  • State Restoration Funds
  • Certificates of Participation (COPs)
  • Special Funds (i.e. lottery funds, Board’s reserve for Architectural and Engineering Planning)

Other required information includes:

  • Organization Code – the code that represents the function or department responsible for the FUND.
  • Program Code – the code that describes the plant construction or improvement activity.
  • 90000     Plant Construction and Improvement
  • 90001     Plant Construction
  • 93000     Plant Improvement
  • 97000     Renewal and Replacement
  • Fund Manager – name of the person in charge of or having control over the FUND.
  • Budget – a required entry and should give the total budget for the FUND.  In the case of a legislatively approved project, this would be the same as the Expenditure Limitation, unless there will be more than one FUND for the project.  In that case, the amount would be a specific FUND’s share of the expenditure limitation.
  • Requested By – is a required field and must show who is requesting the FUND to be established (OSU Facilities Services Controller).
  • Comments – is a required field and it must give a brief explanation of the project and its relationship (if any) to other established FUNDS.
  • Finally, the document must be signed and dated by the OSU Facilities Services Controller.

Plant Fund Request Forms may be obtained from Facilities Services at 7-4921.

604 OUS Assessments on Capital Projects

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.

Related Frequently Asked Questions

605 Building Use Credits

Fiscal Operations Manual
Section 600: Plant Funds & Fixed Assets
Effective: 09/01/2001
Revised: 09/08/2010


  1. To ensure that funds are set aside from Facilities and Administration (F&A)/Indirect Cost recoveries on sponsored grants and contracts, and appropriately distributed for use.
  2. To identify the requirement to reserve these funds and how they are to be expended is found in OMB Circular A-21; section J.14h quoted below.  (These funds are held in a special Reserve fund awaiting distribution.)

"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:

  1. liquidation of a principal of debts incurred to acquire assets that are used directly for organized research activities, or
  2. payments to acquire, repair, renovate, or improve buildings directly used for organized research."

Oregon State University’s process for distribution of building use credits (BUC) is:

  1. Total funds available are determined by the Budget Office based on prior year actual recovery.
  2. Any recurring institutional commitments for allowable projects are identified and removed from further calculations.
  3. Beginning in FY02, a portion of the BUC Reserve is allocated for further distribution by the Research Office.  This amount is removed from further calculations.  The Vice President for Research will distribute these funds in accordance with OMB Circular A-21 provisions.  The Research Office will notify awarded units of projects funded.  Copies of the notification letter will be forwarded to the Director of Facilities and the Associate Director of Business Affairs.   Transfer of funds from the BUC Reserve is coordinated by Facilities Services with OUS Controller’s Division.
  4. The remaining funds are available to be distributed on a pro-rated basis according to their locus of generation into the F&A recovery pool.
  5. The Budget Office will notify units (colleges) of the approximate funds available.
  6. Units will send in a project request list to the Research Office.
  7. The Research Council will review the project list to determine qualification within the OMB Circular A-21 guidelines.
  8. The Research Office notifies units of the qualified projects and amounts. Copies of the notification letter are forwarded to the Facilities Controller and Business Affairs.   The Facilities Controller completes a request to establish an 802xxx Plant Fund and ZARWxx index for each unit (college) receiving BUC funds for the fiscal year and forwards them to the OUS Chancellor’s Office.   Allocations for each fiscal year must be kept separate.  The OSU Business Affairs transfers the funds from the BUC Reserve Fund to the individual unit (college) BUC funds for that fiscal year.  The amount of the transfer is indicated on the Plant Fund set up sheet.
  9. At least annually, Finance & Administration will complete a review of the use of 802xxx building use credit funds and the current balance.
  10. All remaining dollars in the 802xxx funds at the completion of the designated project(s), or after 5 years, whichever comes earlier, will be returned to the central BUC reserve fund for future redistribution.  OUS Controller’s Division completes this action after a request by OSU Business Affairs and Facilities Services.

606 Year End Processes for Capitalization

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.

  • The Institution may report current year Period 14 transactions in the next fiscal year as a prior year adjustment.
  • For definitions of capital expenditures, see FASOM Section 02.12 and 14.01 CO2, CO3, and IO2.
  • In addition, a report to the Controller's Division is prepared for any changes in:
  • Square feet of existing buildings whether by additions, demolitions, or removals of which the Controller's Division has not been advised.
  • The functional use of buildings so that usage categories maintained in the building master record may be revised.  With regard to the use of buildings, give particular attention to miscellaneous housing properties acquired that may have been converted to offices or similar institutional facilities.
  • Changes in ownership/rededications.

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.

Related FAQs

607 Depreciation

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.

  • When an item is added to the capital inventory, Business Affairs, Fixed Assets assigns an asset type code that corresponds to a specific useful life.  See FIS-Ex 003-04: Capital Inventory Assets Codes for actual codes.
  • Some granting agencies maintain title of equipment until the grant is closed.  If it has been booked as a federally owned asset, when the governmental agency releases the equipment it is then booked at the current value as if it had been the property of OSU and depreciation had occurred from the beginning.  
  • On a gifted item, OSU often pays a percentage of the acquisition cost.  In that case, the value of the gift is booked at only the amount OSU has paid, not the full value of the gift, unless the gifted portion is acknowledged through the OSU Foundation.

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.

Related Frequently Asked Questions