Therefore, before it is submitted to the Budget Committee, each Vice President's/Provost area must review their capital requests with Facilities (for building-related projects) and/or Technology Services (for technology projects or systems). Projects such as building repairs or routine maintenance are evaluated campus-wide and are submitted in Facilities' and Technology Services' own capital budget requests. Each department should ensure a specific funding source is available before a project is considered for Budget Committee approval. While the operating budget process requests actual funding for necessary expenses, the capital budget approval process assumes funding is already available and reviews the spending of those funds on projects in the scope of overall University expense and cash flow constraints and against the priorities of the Master and Strategic Plans. Capital budget requests differ from operating budget requests in that respect. Only projects with available funding should be submitted through the capital budget process. Depreciation - The allocation of the cost of an asset over a defined useful life for that type of asset. ![]() Capital Investment - Includes physical assets or technology over $5,000 that has a useful life of greater than one year, including: new buildings building improvements system infrastructures (such as security, fire prevention, utilities) new and replacement machinery and equipment major upgrades or repairs technology and vehicles.Ĭ. Budget Committee - The Committee comprises: the Provost the University Vice Presidents and an Academic Senate representative.ī. The capital budget comprises part of the operating budget process, because it impacts operating expenses through depreciation expense, affects cash flow projections and requires funding decisions.Ī. While the operating budget focus is the twelve months of the fiscal year, the focus of capital budgeting is the planning process used to determine an organization's long term investment in assets that have a useful life of greater than one year. ![]() Capitalization & Depreciation Policy University Budget PolicyĪssociate Vice President, Financial Planning, Institutional Research and Assessment tel.
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