Proposed Revisions to 901.1 - Renewal and/or Replacement of Equipment in Recharge Centers; Montana University System
Board Policy:
1. The units campuses of the Montana University System are authorized to establish "Renewal and
Replacement" (R & R) accounts in the PLANT FUND for the systematic
accumulation of funds for the renewal and/or replacement of equipment used to
support a particular recharge center.
2. Requests for such an R & R account must
be accompanied by a "life cycle plan" outlining the procedures to be
followed in accumulating R & R funds. Action plans must be approved by the Commissioner of Higher Education.
Procedures:
Each
campus requesting approval for the establishment of an R & R account
relating to equipment replacement in recharge centers must provide the
Commissioner of Higher Education with the following information:
1. an inventory of the major equipment items
included in the particular recharge center, (asset class with a combined cost
exceeding $10,000), the estimated useful life, and the salvage value;
2. the cost of the asset class (new equipment)
or the fair market value (used equipment);
3. the remaining useful life for each existing
asset class together with a specific R & R rate. The useful life for an asset class must be consistent from campus
to campus. (However, depending upon
campus usage, specific rates may include a "range" for a particular
asset class);
4. a projection of the annual R & R that
would be recovered through recharge rates over the remaining useful life of the
equipment, and
5. following approval, the accumulated amounts
would be identified as R & R funds and transferred to an interest earning
account in the PLANT FUND.
Definitions:
Recharge
Center - An account in the DESIGNATED SUBFUND established for the purpose
of accumulating costs and revenues for campuswide service activities. Typical recharge centers include, but are
not limited to, computing, motor pool, telephone systems, and reprographics
(copy machines/printing services). Other recharge centers may be designated by the University units campuses.
Repair
and Replacement (R & R) Fund - The systematic accumulation of funds
over a specified period of time that would equal the cost of an asset (or asset
class) less any salvage value.
History:
Item 69-001-R1090, Renewal and/or Replacement of Equipment in Recharge Centers; Montana University System, October 25, 1990.