Capital projects refer to new construction, expansion, renovation, fabrication, replacement or improvement of a new or existing facility. Capital projects should increase the life of an asset and the quality of services derived from it.
The University’s capitalization threshold for capital projects is $50,000 and the project must have a useful life of more than one year. However, capital projects will be capitalized regardless of the cost, if funded with OHEFC bond funds.
Included are the policies and forms that will help you better understand the initial protocol and handling of capital projects and the classification of these expenses as capital or non-capital for external reporting purposes.