Policy Contact: Accounting Office
Purpose
This policy implements the applicable provisions of the South Dakota Bureau of Finance and Management (BFM) Accounting Systems Procedure Manual and SDBOR Accounting Policies and Procedures Manual and sets forth the guidelines regarding infrastructure reporting at the University.
- Definitions
- Infrastructure Assets: Long-lived capital assets that normally are stationary in nature and normally can be preserved for a significantly greater number of years than most capital assets. Examples of infrastructure assets include roads, bridges, tunnels, drainage systems, water and sewer systems, dams, and lighting systems. Buildings, except those that are an ancillary part of a network of infrastructure assets, are not considered infrastructure assets.
- Banner Finance Module: the formal record keeping system utilized by the University to maintain sufficient information needed for financial reporting and support needed for audit purposes.
- Infrastructure Assets: Long-lived capital assets that normally are stationary in nature and normally can be preserved for a significantly greater number of years than most capital assets. Examples of infrastructure assets include roads, bridges, tunnels, drainage systems, water and sewer systems, dams, and lighting systems. Buildings, except those that are an ancillary part of a network of infrastructure assets, are not considered infrastructure assets.
- Policy
- University employees are responsible for following the applicable guidelines and procedures set forth in the BFM Accounting Systems Procedure Manual and the SDBOR Accounting Policies and Procedures Manual, as well as other applicable laws and policies when reporting the University’s infrastructure assets to the state.
- All infrastructure assets must be entered onto the Banner Finance Module, or successor formal record keeping system developed by the University to maintain sufficient information needed for financial reporting and support needed for audit purposes.
- All infrastructure assets must be depreciated over their estimated useful life using the straight-line method for depreciation, with no salvage value. The estimated useful life is the estimated number of years that an asset will serve the purpose for which it was purchased or constructed. The estimated useful life must fall within the estimated useful life range established for each category as set forth by the SDBOR.
- All infrastructure assets acquired by the University (through purchase, construction, or donation) or that receive major renovations, restorations, or improvements that increased the asset’s serviceability or extended the asset’s original useful life must be capitalized for financial reporting purposes at their historical cost, estimated historical cost, or fair market value at date of acquisition, if they are equal to or greater than the state’s capitalization threshold for infrastructure assets.
- The state’s capitalization threshold for reporting infrastructure assets is as follows:
- Governmental Funds & Fiduciary Funds: $1,000,000
- Proprietary Funds and Component Units: $50,000
- The state’s capitalization threshold for reporting infrastructure assets is as follows:
- University employees are responsible for following the applicable guidelines and procedures set forth in the BFM Accounting Systems Procedure Manual and the SDBOR Accounting Policies and Procedures Manual, as well as other applicable laws and policies when reporting the University’s infrastructure assets to the state.
Responsible Administrator
The Vice President for Finance and Budget, or designee, is responsible for the annual and ad hoc review of this policy. The University President is responsible for approval of this policy.
Approved by President on 10/09/2014. Revised 08/05/2024 (clerical).
Sources: ; SDBOR Accounting Policies and Procedures Manual