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1.7 - Capital Budget Expenditure |
To define the policy with regard to the expenditure of funds related to capital projects and equipment.
Capital expenditures are defined as the construction, renovation, purchase or lease of an asset (facilities, equipment, software) that costs $50,000 or greater and has an expected useful life of at least one year. This includes major capital equipment costing $50,000 or more.
A capital budget is developed based on submissions from departments to the portfolio owners. Portfolio owners submit to the Administration and Finance Divisions for approval. The Administration and Finance Divisions submit a proposed capital budget to the President and Board of Trustees for approval.
The Capital Budget Expenditure Request (CER) is the method for approving unbudgeted projects and equipment totaling $50,000 or greater. Signatures on the CER represent full authorization to proceed with the project or equipment purchase. If the expenditure is listed in the approved capital budget, or a completed and approved Capital Budget Expenditure Request (CER) accompanies the requisition, the Purchasing Department is authorized to process a purchase order.
For research expenditures, the Capital Budget Research Expenditure Request (CRE) is the method for approving all projects and equipment totaling $50,000 or greater. Signatures on the CRE represent full authorization to proceed with the project or equipment purchase. Purposely splitting project costs into several Requisitions to circumvent the Capital Budget process or delegation of authority requirements Policy 1.6 Expenditure Authority will be considered an irregular activity. Offenders are potentially subject to disciplinary action, including loss of purchasing privileges.
To inquire about
Revised 3/02