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1004.4 Building and Building Renovation Construction Costs

Subject Area: Accounting
Responsible Office: Financial Services
Sponsor: Associate Vice President for Finance
Originally Issued: October 1992
Revised: January 2010
Refer Questions To: James Ribikawskis, 773-702-3690


Purpose: To properly account for building and building renovation construction costs.

Policy

1. Financial Services is responsible for accounting for all building and building renovation construction costs in accordance with the applicable financial accounting guidance.

2. All gifts received for the purpose of funding building and building renovation construction must be recorded in the Unexpended Plant Fund.

3. All construction costs will be recorded in the Unexpended Plant Fund until such time as the construction is capitalized in the Investment in Physical Properties Fund.

4. At the time the newly constructed building or building renovation is completed and has useful occupancy, all construction costs will be depreciated in accordance with applicable University policy (See Financial Policy No. 1004.2). Research related building construction and renovation, when completed, will be componentized and recorded as such in the Property Management System.