Section TCS 7.06 - Accounting and financial reporting related to facilities(1) CAPITAL EXPENDITURE PROJECTS. Each district board shall budget and account for all capital expenditure projects for the acquisition of sites, purchase or construction of buildings or lease/purchase of buildings in a capital projects fund type.(2) RENTED AND LEASED PROPERTY AND BUILDINGS.(a) Except as provided in par. (b), each district board shall budget and account for all expenditures relating to an operating lease or rental of real or personal property and buildings in a general revenue fund type or a special revenue fund type.(b) Each district board shall budget and account for all expenses relating to an operating lease or rental of real or personal property and buildings, where the property and buildings are used to provide proprietary services, in an internal services fund type or an enterprise fund type.(3) REPAIR PROJECTS RELATED TO PROPERTY AND BUILDINGS. (a) Each district board shall budget and account for all repair projects in a general fund type or a special revenue fund type, except that expenses incurred for repairs of buildings or sites used primarily for proprietary purposes shall be budgeted and accounted for in an internal service fund type or an enterprise fund type.(b) An expenditure or proposed expenditure of a district shall be considered an expenditure for repairs where fixed equipment, buildings or sites of a district are restored to their original condition from a worn, damaged or deteriorated condition.(c) An expenditure or proposed expenditure to restore fixed equipment, buildings or sites to their original condition where the worn, damaged or deteriorated condition occurred prior to the acquisition of the site, purchase of the building or lease/purchase of the building shall be considered a capital expenditure project of the district and shall be budgeted and accounted for in a capital projects fund type.(4) REMODELING AND IMPROVEMENT PROJECTS. (a) Subject to par. (b) a district expenditure or proposed expenditure for the reconstruction of a building that increases its capacity, usefulness, efficiency, lifespan or economy of operation and intended to benefit future years' operations shall be considered a remodeling or improvement project.(b) For a project to be considered a remodeling and improvement project, the project shall be commenced at least 2 years following acquisition of the building, shall not increase assignable space through the reconstruction of existing external walls or roof and is not a repair project under sub. (3).(c) A district expenditure or proposed expenditure for the reconstruction of a district owned building or a major portion of a district owned building within 2 years of acquisition of the building by purchase or lease/purchase shall be considered a capital expenditure project under sub. (1). (5) EQUIPMENT. (a) Equipment is: 1. "Moveable equipment" if it retains its original shape, appearance and use; is nonexpendable; is not fixed equipment; has a value exceeding $500 per set or item, and has a life of 2 years or more.2. "Fixed equipment" if actual annexation to real property occurs; it is applied or adopted to the use or purpose for which the real property is devoted; and there is an intention by the district making the actual annexation to real property to make a permanent accession.3. "Minor equipment" if it is neither moveable nor fixed equipment and is not a disposable supply item.(b) Each district board shall budget and account for all moveable and fixed equipment in a capital projects fund, except that moveable or fixed equipment purchased with enterprise, internal service or agency funds shall be budgeted and accounted for in the appropriate enterprise, internal service or agency fund.(c) Each district board shall budget and account for all minor equipment relating to a proprietary activity of the district in the appropriate enterprise, internal service or agency fund. All other minor equipment purchased or proposed to be purchased by a district shall be budgeted and accounted for in a general fund, except that all minor equipment purchased within 2 years of the acquisition of a building shall be budgeted and accounted for in the appropriate capital projects fund.Wis. Admin. Code Technical College System Board TCS 7.06
Cr. Register, September, 1983, No. 333, eff. 10-1-83.