Acquiring and Capitalizing Real Property Procedures

Procedures

New Construction and Renovations

All construction projects are managed by Planning, Design, Construction (PDC), Facilities Services (PPD), IFAS, or Housing.  While real property is being constructed, Construction Accounting works with project managers to ensure costs for the construction project are properly identified and tracked.

  1. Each new construction and renovation project is assigned a project number in myUFL
  2. All costs related to the project are tracked individually
  3. At the end of the project, if the costs meet the capitalization threshold , the costs are capitalized to the related building and/or as infrastructure on the financial statements

Donations

Donations of buildings are done through the UF Foundation and/or the UF Research Foundation.

  1. Send supporting documentation to Asset Management at PO Box 115300, 116 Elmore Hall
  2. The real property is added to the Asset Management subsystem in myUFL and recorded as an asset on the financial statements

Leased Property

  1. Send all lease agreements and amortization schedules to Asset Management at PO Box 115300, 116 Elmore Hall
  2. Capital leases are property leases that include clauses stipulating:
    • The title of the building(s) will be transferred to the University of Florida
    • Where the lease term is greater than or equal to 75% of the property’s life
    • The value of the payments is greater than or equal to 90% of the fair market value of the property
  3. Asset Management will research whether the lease qualifies as a capital lease
  4. All capital leases are added to the Asset Management subsystem in myUFL and recorded as an asset on the University of Florida’s financial statements

Leasehold Improvements

Whether or not a lease qualifies as a capital lease, if a department makes improvements to a leased building, the costs are capitalized as a leasehold improvement as long as the improvements meet the capitalization threshold.  Projects will be managed by Facilities, IFAS, or Housing.

Contacts

Asset Management: (352) 392-2556

Construction Accounting: (352) 392-5778

Directive Statement

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