Capital Project Defined
There are two types of projects on campus: Capital Projects and Operating Projects. In order to qualify for the formation of a project, the improvement must be a minimum of $50,000.
Capital projects are generally defined as physical improvements that result in the addition of new infrastructure or the revitalization of existing infrastructure. Criteria used to determine an appropriate capital improvement project relate to:
- The gross dollar amount of the expenditure
- The extended useful life of the facility or equipment
- The infrequent recurrence of the expenditure
- The creation or expansion of a building
Not all physical improvements are categorized as capital. Improvements which do not extend the infrastructure’s original life or significantly enhance its net value are not considered capital and are considered operating.
Typical operating improvements are cosmetic improvements, such as carpet or tile replacement and interior painting. Other operating improvements are component part replacements of a larger building system. Funding for operating projects should be requested through the appropriate dean, department head or AVP and included in the departments operating budget, budgeted use of departmental reserves, or annual capital allocation. If these improvements exceed $50,000 in total, consult with Financial Services to determine whether a project needs created.
Please refer to the Policies & Procedures tab above for the complete Projects Policy.