What is Capital?
Capital is considered to be a one-off project or purchase that may result in a capital asset for the University of Tasmania.
Indicators of capital include:
- Building works
- Projects requiring the involvement of/or management by Information Technology Services (ITS) or Commercial Services & Development (CSD) project managers
- Purchase of a property
- Works that fundamentally change the use/functionality of an existing asset
- Improvements that increase the asset’s productive capacity
- Significant one-off expenditure/project outside of normal operating expenses such as research vessels, equipment, IT networks etc
- Items, over $10,000, of a long term nature that provide value to the University such as equipment and vehicles.
It is important that the University of Tasmania captures all capital costs for financial reporting purposes and to improve transparency between the ongoing operational costs of running the university and the significant expenditure invested in capital.
What is a Capital Project?
A capital project will meet the above criteria for capital, will not fall within the operating budget of an Organisation Unit (OU), have a total project value greater than $300,000 and require more rigorous approval and oversight. Capital items under $300,000 are still managed through these guidelines and the annual budget process.