Transfers General Fundto Plant Fund by JDxImxW5

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									Topic:        Transfers of General Funds to Plant Fund Renewal and Replacement
Accounts


Date: January 1, 1993

              Original___ Rev_X_


Approved by: ____________________________________
              Chancellor


                ____________________________________
                Budget Director


                ____________________________________
                Director of Accounting

Policy Statement:

Each General Fund operation that uses capital facilities and/or capital
equipment should establish and maintain a plan for the systematic renewal of its
facilities and replacement of its equipment. For Long Bill or other approved
capital construction projects, appropriate transfers shall be accomplished to
provide the authorized funding, reserves and guarantees. This policy and
procedures provides information specifically applicable to General Fund accounts
maintaining renewal and replacement accounts. Refer to UCB Accounting Policy
and Procedure 4:00 `Renewal and Replacement Account Management' for additional
information and procedures applicable to auxiliary/self-funded operations.

Procedures:

1.    Each General Fund operation, department, school or college should maintain
      cognizance of the condition of the facilities it occupies and, as
      necessary, bring forward through facilities planning channels an
      initiative for the preparation of a renovation program plan.

2.    Each General Fund operation should:

      a.    maintain an up-to-date inventory of equipment in accordance with the
      Property Accounting System Inventory and Data Creating Guidelines and
      Procedures manual, and,

      b.    establish a useful life and replacement schedule for all equipment
      identified in its inventory.

3.    Replacement prices for assigned equipment should be updated at least
      annually.

4.    Each General Fund operation should set aside a portion of its capital
      outlay allocations and/or year-end unexpended balances to provide for
      necessary space modifications and renovation of a minor nature and for the
      systematic replacement of its equipment.
5.   One or more renewal and replacements accounts should be opened in the 1-0-
     75XXX series for this purpose.

6.   Transfers should be made periodically to renewal and replacement accounts
     as resources become available and especially during year-end closing as
     additional unexpended and unencumbered balances become apparent. Refer to
     `Account Control Code 48X-49X, 58X-59X - "Transfers"' for complete
     information on processing General Fund transfers to the plant fund.

7.   Transfers of year-end unexpended balances are also an appropriate source
     of funds for approved cash-funded capital construction projects.

8.   All General Fund activities should assign a high priority to the transfers
     of year-end unexpended and unencumbered appropriated balances to the Plant
     Fund, as necessary, to assure adequate provision for minor modifications,
     systematic equipment replacement and funding of approved capital
     construction.

9.   Transfers to the Plant Fund renewal and replacement accounts may only be
     made for the purposes described above. Current operating expenses will
     not be charged to the Plant Fund accounts.

								
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