Policy No. 1.2006
Subject: Capital Expenditure
Issued By: Controller’s Office
POLICY: This policy applies to all construction, capital improvements, major equipment purchases and other special projects requiring one or more expenditures of $500 or more. This includes projects that are partially or fully funded by outside funding sources (e.g. grants, gifts, etc.).
Florida Memorial University is responsible for establishing adequate controls over capital expenditures to ensure the timely procurement of these assets and the accurate and timely recognition of these assets in the University’s accounting records. The objectives of the policy are to:
- Specify and set up capital expenditure vendors in our master vendor listing
- Allow for management review and approval for investments made in capital equipment
- Recognize qualifying purchases as fixed assets in our accounting records
- Track and review capital projects/expenditures against predefined budgets
- Pay for capital expenditures in a timely manner and consistent with University policy
- Leverage the University’ s purchasing power through centrally negotiated purchase contracts with key capital vendors
All capital expenditures (expenses totaling $500 or more) must be approved by the President. All leases and contracts must be submitted to the President (or his/her designee) for prior approval and execution.
All expenditures of $5,000 or more must be approved by the President and presented to the Board of Trustees in advance of the expenditure.
An Expenditure Authorization Form must be completed to explain, document, and justify the following types of expenditures: proposed capital expenditures ($500 or more), non recurring or extraordinary expenditures which exceed $500 such as:
- Long-term property leases
- Equipment Leases
- Service Contracts
- New or replacement furniture, carpeting, flooring, lighting, or window coverings
- Information Technology or Telecommunication Systems
- Software and Hardware Purchases
- Other Service Commitments in which:
- The annual obligation will exceed $5,000, or
- The total obligation will exceed $5,000
A Purchase Order must be completed and approved for all capital purchases.
Submit the executed Purchase Order, with the appropriate signatures, to the Department of Purchasing and Procurement Services.
All expenditures of $5,000 or more must have the following:
- A minimum of three (3) competitive bids or quotes
- President’s approval
- Board of Trustee’s approval
Once approved, the Purchase Order and contract/agreement must be submitted to the Department of Purchasing and Procurement Services for processing.
No contracts or expenditures can be committed until final approval of the project and funding source has been obtained from the Board of Trustees.
All contracts of $100,000 or more will be provided to the Board of Trustees.