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1 Page 1 of 15 EXPENSE GENERAL LEDGER ACCOUNT DEFINITIONS The University Payroll Systems are designed so that salary and wage charges initiating from them will be against the appropriate General Ledger (GL) These charges will be for services as described by salary and wage GL accounts below ADMINISTRATIVE SALARIES Administrative Salaries All costs incurred for base salaries of executive and administrative personnel with an EE subgroup code of Administrative Extra Service All costs incurred for extra service pay of executive and administrative personnel Longevity Pay All costs incurred for longevity pay of executive and administrative personnel Administrative Salary Recoveries centers or collected from outside sources that are to be applied as recovery against salary expense which was charged to one of the above GL FACULTY SALARIES Faculty Salaries All costs incurred for base salaries of faculty personnel with EE subgroup codes of 01 or Faculty Extra Service All costs incurred for extra service pay of faculty personnel Longevity Pay All costs incurred for longevity pay of faculty personnel Faculty Recoveries centers or collected from outside sources that are to be applied as a recovery against salary expense which was charged to one of the above GL GTA, GA, GRA SALARIES GTA, GA, GRA Salaries All costs incurred for salaries of Graduate Teaching Assistants, Graduate Assistants, and Graduate Research Assistants with EE subgroup codes of 25, 27, or GTA, GA, GRA Salary Recoveries centers or collected from outside sources that are to be applied as a recovery against expense which was charged to the above GL account PROFESSIONAL/OTHER ACADEMIC SALARIES Professional/Other Academic Salaries All costs incurred for base salaries of personnel with an EE subgroup code of Professional/Other Academic Extra Service All costs incurred for extra service pay of professional and non-faculty academic personnel Longevity Pay All costs incurred for longevity pay of professional and non-faculty academic personnel Professional/Other Academic Salary Recoveries

2 Page 2 of 15 centers or collected from outside sources that are to be applied as recovery against expense, which was charged to one of the above GL SUMMER SCHOOL Summer School Salaries All costs incurred representing additional compensation for instruction during the summer quarter for faculty on 9 months service appointments or on term appointments. Additional compensation for administrative or research services rendered during the summer quarter will be processed as extra service pay in the appropriate area of service rendered-generally Academic Salaries Summer School Recoveries centers or collected from outside sources that are to be applied as a recovery against expense which was charged to the above GL account CLER/TECH/MAINT - SALARIED Cler/Tech/Maint - Salaried All costs incurred for the base salaries of Clerical/Technical/Maintenance personnel with EE subgroup codes of 05 or Cler/Techl/Maint Overtime All costs incurred for overtime worked by Clerical/Technical/Maintenance personnel paid on the monthly salary payroll Longevity Pay All costs incurred for longevity pay of Clerical/Technical/Maintenance personnel paid on the monthly salary payroll Cler/Tech/Maint Salaries - Recoveries recovery against expense which was charged to one of the above codes STUDENT EMPLOYEES Student Wages - Salaried and Hourly Wage All costs incurred for hours worked by Student Employees with EE subgroup codes of 20, 23, or 30 and paid on the monthly or bi-weekly salary payrolls Student Wages - Recoveries centers or collected from outside sources, which are to be applied as recovery against expense which was charged to the above GL account NON-WAGE AND CONTRACTUAL PAY Other Non-Wage Payments All costs incurred for non-wage payments made on the monthly payroll. These payments consist of fellowships and non-taxable stipends paid on the monthly payroll and the monthly fellowship payroll Employees Meal and Lodging The estimated cost of meals and lodging being furnished to employees as a condition of employment which cost is includable in wages subject to Social Security taxes Contractual Pay All costs incurred for services rendered during short-term employment by individuals who cannot be classified as independent contractors Non-Wage Payment Recoveries centers or collected from outside sources which are to be applied as recovery

3 Page 3 of 15 against expense which was charged to one of the above GL STAFF BENEFITS - REQUIRED Retirement Contribution - ORP/B All costs incurred for employer contributions for employees covered under the ORP/B program Retirement Contribution - State All costs incurred for employer contributions to Tennessee Consolidated Retirement System for employees covered under this program Retirement Contribution Federal All costs incurred for employer contributions to Federal Retirement Program Social Security Contribution All costs incurred for employer contributions to the Social Security Program Unemployment Compensation All costs incurred to fund the Unemployment Compensation Reserve maintained by the University to pay unemployment benefits chargeable against University employment Workers Compensation All costs incurred for Workers Compensation Retirement Contribution - ORP/A All costs incurred for employer contributions for employees covered under the ORP/A program Social Security Contribution - Flex The Social Security and Medicare charges applicable to salary reductions due to employee participation in the flexible benefits program. All amounts that are transferred from other University cost centers or WBS elements or that are collected from outside sources which are to be applied as a recovery against one of the above Required Staff Benefit codes shall be indicated by entering the regular three character GL account and followed by 09; i.e , , , , , , All normal adjustments to correct charges made shall be transferred GL account to GL account for WBS element/cost center charged and WBS element/cost center credited ( to , to , etc.) STAFF BENEFITS - OPTIONAL Group Insurance All costs incurred for employer contributions to the Group Hospitalization Insurance Program. This also includes Federal funds applied as contributions to the Federal Group Life Insurance Program Staff Tuitions The value of fee remissions resulting from eligible staff taking courses at the University under the University's approved employee fee waiver policy Death Benefit - Sick Leave All costs incurred for payment of accumulated sick leave portion of final death benefits K Matching All costs incurred for payment of the matching portion of 401-K plans Staff Dependent Tuitions The value of fee remissions resulting from eligible staff dependents taking courses at the University under the University's approved staff dependent fee remission policy.

4 Page 4 of Accrued Staff Benefits Staff benefits applying to accrued salaries of units that accrue salaries each month for reporting purposes. This code should be used with specific authorization from the Controller's Office Graduate Student Employee Health Insurance All costs incurred for employer contributions to the Group Hospitalization Insurance Program for graduate student employees. All amounts that are transferred from other University accounts or collected from outside sources which are to be applied as a recovery against one of the above Optional Staff Benefit codes shall be indicated by entering the regular three character GL account followed by 09; i.e , , , , , All normal adjustments to correct charges made shall be transferred GL account to GL account for WBS element/cost center charged and WBS element/cost center credited ( to , to , etc.) TRAVEL Travel - In State All costs incurred in connection with travel performed entirely within the State of Tennessee excluding costs applicable to the use of a U.T. Motor Pool Vehicle for transportation. Included are lodging accommodations, meal allowances, automobile mileage allowance (personal car), tickets on commercial carrier, taxi or limousine fares, and commercial vehicle rentals Travel - Out of State All costs incurred in connection with travel performed for which the primary destination of the travel is outside the State of Tennessee. Exclusions and inclusions are the same as for in state travel above Motor Vehicle Operations - Travel in State All costs incurred applicable to the use of a U.T. Motor Pool Vehicle for transportation while in travel status within the State of Tennessee Motor Vehicle Operations - Travel Out of State All costs incurred applicable to the use of a U.T. Motor Pool Vehicle for transportation while in travel status for which the primary destination of the trip is outside the State of Tennessee Travel International All costs incurred in connection with travel performed for which the primary destination of the travel is outside the United States of America. Exclusions and inclusions are the same as for in state travel above Team Travel Travel Recoveries MOTOR VEHICLE OPERATIONS Motor Vehicle Operations - Local and Trucks All costs incurred in operating U.T. owned vehicles locally in the performance of the maintenance and upkeep of the campus and the servicing of local transportation needs. Also, all costs incurred on U.T. vehicles signed out on a permanent basis to approved personnel at a given location Motor Vehicle Operations Recoveries

5 Page 5 of 15 recovery against expense which was charged to the above GL account PRINTING, DUPLICATING AND BINDING Printing All costs incurred for printing charges on booklets when paper used is being furnished by the customer or charged separately as supplies, whether done on campus in central services facilities or contracted to outside vendors. Prepared forms ordered by lot are to be charged as Operating Supplies (GL account ). Normally, these charges shall be for long runs on press type equipment Duplicating All costs incurred, excluding equipment rentals and equipment purchase costs, in the maintaining and operating of various types of copying equipment (XEROX and similar copiers) and for user departments in recording charges for use of this type of equipment. Normally, this equipment shall be used to produce limited numbers of copies from a single original. Long runs should be processed through a printing operation Binding All costs incurred in binding or rebinding old or new volumes Publications and Reports All costs incurred by the University in procuring books, reports, pamphlets, loose-leaf services and other publications (except magazines) with the exception of organized libraries Printing, Duplicating, and Binding Recoveries UTILITIES AND FUEL Fuel Oil All costs incurred for fuel oil to be used for heating purposes Coal All costs incurred for coal to be used in power plant operations to produce heat and steam Electricity All costs incurred for electricity Gas All costs incurred for gas used in power or heat production, excluding gasoline for motor purposes Water All costs incurred for water Gasoline and Diesel All costs incurred for gasoline and diesel fuel that is to be used as a fuel in motorized vehicles Other Utilities and Fuel All costs incurred for any utility or fuel not described in detail in this section Sewage and Garbage All costs incurred for sewer and garbage fees and charges Utilities and Fuel Recoveries

6 Page 6 of COMMUNICATION Postage All costs incurred for postage and mailing Freight All costs incurred for freight or package shipments Telephone All costs incurred for local and long distance telephone services Telegrams All costs incurred for telegrams Telecommunications All costs incurred for audio, video, data, fiber optic, satellite, and other specialized transmission modes Cellular Telephones All costs incurred for cellular telephone services Communications Recoveries MAINTENANCE AND REPAIRS Maintenance and Repairs All costs incurred for operations maintenance and repairs performed to keep University Physical Plant and/or equipment in a suitable condition to insure its proper functioning for the purpose for which it was originally obtained. This classification includes such contractual services as elevator services and permits, pest control, janitorial and maid service Specially Approved Deferred Maintenance All costs incurred during major renovation work for which the funds are made available on a project-by-project basis. This differs from Maintenance and Repairs in that it is really a major reconditioning process, not for general minor improvements Maintenance and Repairs Recoveries PROFESSIONAL SERVICES AND MEMBERSHIPS Publicity All costs incurred for advertising and promotional services Subscriptions All costs incurred for subscriptions to periodicals, newspapers, magazines, etc., except those purchased through organized libraries and included in their indexing and reference system (see GL account ) Institutional Membership Fees and Dues All costs incurred for institutional membership fees and dues in professional associations. Individual memberships are considered personal and are not to be charged to the University Legal and Professional Fees

7 Page 7 of 15 All costs incurred for legal and professional services rendered under contract to the University. Examples: Lawyer's for handling specific cases, auditing services of outside Certified Public Accountants, contracted medical services, royalties, honorariums, etc. For services rendered without a contract see GL account Joint Faculty/Staff Salaries Joint Faculty/Staff Benefits Professional Services Recoveries COMPUTER SERVICES Computer Services - Internal to the University All costs incurred in using University operated electronic data processing center to conduct work for the University. These are transfer charges from University Computer Centers. Computer costs or rentals are not to be charged here. (See Supplies and Rentals ) Computer Services - External to the University All costs incurred in using non-university operated electronic data processing centers to conduct work for the University. These are direct payments to outside commercial computer operations. Computer costs or rentals are not to be charged here. (See Supplies and Rentals ) Computer Services Recoveries recovery against expense which was charged to the above GL SUPPLIES Operating Supplies All costs incurred for materials and consumable supplies incidental to the activities funded by the account. These include office supplies, envelopes, letterheads, forms, tags, institutional supplies, drugs, medicines, chemicals, laboratory supplies, maintenance materials and supplies, athletic apparel, food and provisions, small tools, hardware, and other consumable tangible items not properly chargeable to any other object. Minor equipment that does not meet the criteria of Sensitive Minor Equipment (GL account ) should also be included in Operating Supplies Computer Software All costs incurred in acquisition of application computer programs, compilers, operating systems, utility computer programs, etc., whether purchased from outside vendor or developed internally by other departments of the University Laboratory Supplies All costs for consumable materials and supplies incurred for use in laboratories or in research and other sponsored projects. Laboratory supplies may include such materials as chemicals, laboratory-specific consumables, drugs, and medicines Sensitive Minor Equipment ($1,500-4,999.99) These are items which are both vulnerable to theft and have a unit cost or fair value between $1,500 and $4, The following specific items are defined as sensitive minor equipment: boat motors, boat trailers, boats, cameras, camera lenses, canoes, computers, fax machines, forklifts, ham radios and

8 Page 8 of 15 receivers, LCD/multimedia projectors, marine band transmitters and receivers, microscopes, motorized vehicles, musical instruments, oscilloscopes, printers, riding lawn mowers, radio scanners, spectrum analyzers, switches/routers/hubs, televisions, tractors, two-way radio transmitters and receivers, vector scopes, video cameras, video recorders and players, waveform monitors, and weapons. All weapons must be recorded regardless of price. Any equipment purchased that falls within this price range but not listed above should be given the general ledger expenditure account Supplies Supply Recoveries RENTALS Rentals - Copying Machines All costs incurred under rental agreements for copying equipment Rentals - Computer Equipment All costs incurred under rental agreements for electronic data processing equipment and peripheral equipment needed to support the central computer operations Rentals - Real Property All costs incurred under rental agreements for real property - land, building, etc Rentals - Other All costs incurred for rentals of other equipment and other items not covered under above rental GL accounts or vehicles included under the travel GL This includes room and truck rentals Rental Recoveries INSURANCE, INTEREST AND BAD DEBT Insurance All costs incurred for general insurance coverage. This object does not include employee-related group hospitalization insurance Interest - Installment/Lease Purchase All costs incurred in paying interest on purchases made under installment or lease-purchase agreements Interest - Prompt Pay Act All costs incurred in paying interest incurred under the State's Prompt Pay Act Automobile Loss Liability Charges assessed for the cost of automobile liability insurance coverage under the Tennessee Claims Commission Act Workers Compensation Liability Charges assessed for the cost of workers compensation insurance coverage under the Tennessee Claims Commission Act Bad Debt Expense The estimated amounts due to the University arising from auxiliary or hospital sales which are expected to become uncollectible.

9 Page 9 of Insurance & Interest Recoveries recovery against expense which was charged to the above GL AWARDS Awards - Student Aid and Stipends All costs incurred for awards made directly to students from scholarships, fellowships, stipends, and other student aid funds. These awards do not require work by the students Awards - Faculty and Other All costs incurred for awards made directly to faculty and others that are not to be considered as earnings to be paid through the payroll process Awards - Assistance for Individuals For costs incurred on behalf of qualified individuals under certain sponsored projects with a statement of work that includes this activity. Costs do not include direct payment to the individual, but payments made to vendors on behalf of or for the benefit of the qualified individual Awards - Recoveries recovery against expense which was charged to one of the above objects codes GRANTS AND SUBSIDIES Student Fees The assessed value of in-state student fees that is charged to restricted accounts or the assessed value of student fees that is waived for undergraduate and graduate students under approved policies of the University Patient Care Costs (Grants Only) All costs incurred for patient costs per special grant or contract arrangements. This object may be used on restricted accounts only Alterations (Grants Only) All costs incurred in making major renovations to space for special use under a specific grant or contract and to be paid from grant or contract funds. Specific authorization must be given in the award or by letter. This object may be used on restricted accounts only Cost Sharing All costs incurred in meeting the direct cost-sharing requirement of grants or contracts Grants and Subsidies Recoveries MANDATORY TRANSFERS Interest Costs involved in paying interest of required indebtedness obligations. During the fiscal year such amounts are reflected in budgets and expenditures as current items; however, at the end of the fiscal year such amounts are reflected on official reports as transfer to Funds for Retirement of Indebtedness Debt Retirement Costs involved in retiring principal and meeting reserve requirements of

10 Page 10 of 15 required indebtedness obligations. During the fiscal year such amounts are reflected in budgets and expenditures as current items; however, at the end of the fiscal year such amounts are reflected on official reports as transfer to Funds for Retirement of Indebtedness CONTRACTUAL AND SPECIAL SERVICES Casual Labor All costs incurred in hiring student or other very short-term help for only a day or two at a time with no intent to continue; for example, students used during registration. Also, this code includes payments to organized employment services for personnel furnished by them under contract; for example, Kelly Service, Manpower Inc., University-operated temporary employment service, etc Group Arranged Events All costs incurred for group arranged events. Group arranged events are defined as those hospitality events hosted for primarily University faculty, staff and students. Generally, meals should not be provided at routine meetings attended solely by university employees, except on formal occasions such as banquets, retreats, receptions, employee relations council meetings, employee picnics, service award recognition, and other group meetings. Employees should pay for their own meals at ad hoc meetings. All cost (meals, refreshments, supplies, equipment rental, etc) must be charged to General Ledger Code Cultural or Entertainment Fees All costs incurred in bringing cultural or entertainment groups or individuals on the campus for special performances. An example is contracts with performers through the Student Services area Other Educational or Government Agencies All costs incurred as the result of special contracts with other educational or government agencies for specific purposes. Examples are contracted personal services and special administrative charges Specialized Commercial Services All costs incurred for specialized services procured from commercial enterprises. Included are such items as bus charter, linen services, microfilm charges, bank charges, etc. This GL account does not include maintenance services such as janitorial services, elevator services, etc., since these items are included under GL account Maintenance and Repairs Other University Departments All costs incurred for specialized services provided by other University departments such as photographic services, health care, central administration charges, etc Other Personal Services All costs incurred for honorariums and any other personal services not under a formal contract arrangement and not on a payroll Seminar and Conference Registration Fees All costs incurred for seminar and conference registration fees Contractual and Special Services Recoveries centers or collected from outside sources which are to be applied as recovery against expense which was charged to one of the above GL SERVICE DEPARTMENT CREDITS Service Department Credits - Recovery All amounts being credited to those departments of the University that have been established to provide service to the University community. Examples

11 Page 11 of 15 are Graphic Arts Service, Photographic Center, Transportation Services, etc OTHER EXPENDITURES Other Expenditures All costs incurred that are not properly includable in any of the other GL accounts in this list should be entered under this code Entertainment All costs incurred for entertainment. Entertainment is defined as those hospitality events hosted by the University for non-employees or non UT students. These include, but are not limited to, donor/student events, employee candidates, hosting speakers, refreshments for volunteers, awards. All nontravel costs (meals, refreshments, rentals, supplies, tickets, etc.) must be charged to General Ledger Code The appropriate travel general ledger code must be used if any of the participants are in travel status for travel related expenses that are not entertainment Food Expenses for UT-Sponsored Conferences and Seminars is defined as all food costs associated with meals, breaks or receptions for conference-type events sponsored by the University. Fees are typically collected by the University from external parties to cover these costs. Events would include, but are not limited to, training provided through a conference center, the Institutes for Public Service or Agriculture, a sponsored grant or other event in which funding is provided to the University to conduct training Other Expenditures Recoveries centers or collected from outside sources which are to be applied as recovery against expense which was charged to the above GL account through STORES FOR RESALE All costs incurred in purchasing goods for resale in commercial type operations of the University should be included in this group of GL Examples are bookstores and food service areas of auxiliary operations. Eight individual expenditure GL accounts and one recovery GL account have been established under each of the budget level codes MINOR EQUIPMENT (NON F&A) Minor Equipment (Non F&A) A GL code temporarily used in fiscal years 2000 and 2001 when a UT campus or institute s F&A agreement had an equipment capitalization threshold that differed from UT s policy. Items in this GL code cost less than UT s capitalization threshold but were above the amount designated in the F&A rate agreement as equipment. This code was excluded from the F&A calculation for the MTDC base Minor Equipment (Non F&A) Recovery centers or collected from outside sources which are to be applied as recovery against expense which was charged to the above GL account EQUIPMENT This budget GL account group includes costs of moveable equipment purchased for the University having an acquisition cost of $5,000 and over with an expected life of one or more years. Items under this GL account group will be included in the centrally controlled moveable equipment inventory Furniture and Office Equipment All costs incurred for general furniture and office equipment Computer, Educational, and Scientific Equipment

12 Page 12 of 15 All costs incurred for classroom and laboratory furniture, computers, and equipment needed to conduct the normal program of the activity Vehicles and Heavy Equipment All costs incurred for vehicles and heavy equipment Equipment (Installment Purchases) All costs incurred for equipment purchased under an installment or leasepurchase arrangement. Only the principal portion of an installment payment should be charged to this GL account. The interest portion should be charged to GL account Interest Equipment Recoveries centers or collected from outside sources which are to be applied as recovery against expense which was charged to one of the above GL LIBRARY ACQUISITIONS Library Acquisitions All costs incurred in the acquisition of research, instructional, and related information, including but not restricted to books, periodicals, serials, audiovisual materials, databases, and machine-readable data by organized librarians and included in the indexing and reference systems Library Bindings All costs incurred by organized libraries for binding or rebinding collection materials Library Book Recoveries centers or collected from outside sources which are to be applied as recovery against expense which was charged to one of the above GL LIVESTOCK Livestock All costs incurred for livestock purchases to hold for breeding or experimental purposes. Livestock purchases for immediate slaughter purposes should not be included here but under operating supplies (GL account ) Livestock Recoveries All amounts that are transferred from University WBS elements/cost centers or collected from outside sources which are to be applied as recovery against expense which was charged to the above GL account SOFTWARE-CAPITAL OUTLAY Software (Greater then $5,000) Costs incurred to record the payment for the purchase of computer software whose unit value cost is $5,000 or greater and has an estimated useful life of more than one year. Capitalization of computer software includes software license fees if the total dollar amount of the fee divided by the number of units served (terminals) meets the criteria to capitalize the purchase LAND - CAPITAL OUTLAY Land - Capital Outlay All costs incurred in the purchase of land. Normally, land will not be purchased from Current Funds. Land is defined as the surface or crust of the earth, which can be used to support structures, and may be used to grow crops, grass, shrubs, and trees. Land is characterized as having an unlimited life (indefinite) BUILDINGS - CAPITAL OUTLAY Buildings - Capital Outlay

13 Page 13 of 15 All costs incurred in purchase of or fabrication of buildings. Normally, buildings will not be purchased from Current Funds Construction Contract Buildings Costs incurred by the primary contractor in the construction of a building. Typically, only used in Unexpended Plant Funds for projects in excess of $100, Designer Fees Buildings Professional fees incurred for the design and supervision of the construction of a building. Typically, only used in Unexpended Plant Funds for projects in excess of $100, Engineering & Inspection Fees Buildings Professional fees such as engineers or inspection fees incurred during the construction of a building. Typically, only used in Unexpended Plant Funds for projects in excess of $100, Special Contractual Work Buildings Other contractual arrangements that are made during the construction of a building. Typically, only used in Unexpended Plant Funds for projects in excess of $100, Fixed Equipment Buildings Permanently attached fixtures or machinery that cannot be removed without impairing the use of the of the building Miscellaneous Capital Expenses [Advertising, Insurance, Taxes] Buildings Other costs incurred during construction of a capital nature IMPROVEMENTS OTHER THAN BUILDINGS Infrastructure Assets that are long-lived capital assets that normally are stationary in nature and can be preserved for a significantly greater number of years than most capital assets. Infrastructure assets are often linear and continuous in nature. Examples of Expenditures to be Capitalized as Infrastructure Roads, streets, curbs, gutters, sidewalks, fire hydrants Bridges, railroads, trestles Canals, waterways, wharf, docks, sea walls, bulkheads, boardwalks Dam, drainage facility Radio or television transmitting tower Electric, water and gas (main lines and distribution lines, tunnels) Fiber optic and telephone distribution systems (between buildings) Light system (traffic, outdoor, street, etc.) Signage Airport runway/strip/taxiary/apron Construction Contract Infrastructure Costs incurred by the primary contractor during construction of an infrastructure project. Typically, only used in Unexpended Plant Funds for projects in excess of $100, Designer Fees Infrastructure Professional fees incurred for the design and supervision during construction of an infrastructure project. Typically, only used in Unexpended Plant Funds for projects in excess of $100, Engineering & Inspection Fees Infrastructure Professional fees such as engineers or inspection fees incurred during the construction of an infrastructure project. Typically, only used in Unexpended

14 Page 14 of 15 Plant Funds for projects in excess of $100, Special Contractual Work Infrastructure Other contractual arrangements that are made during the construction of an infrastructure project. Typically, only used in Unexpended Plant Funds for projects in excess of $100, Fixed Equipment Infrastructure Permanently attached fixtures or machinery that cannot be removed without impairing the use of the asset. Typically, only used in Unexpended Plant Funds for projects in excess of $100, Miscellaneous Capital Expenses [Advertising, Insurance, Taxes] Infrastructure Other costs incurred during construction of a capital nature. Typically, only used in Unexpended Plant Funds for projects in excess of $100, Land Improvements Land improvements consist of betterments, site preparation and site improvements (other than buildings) that ready land for its intended use. The costs associated with improvements to land are added to the cost of the land Construction Contract Land Improvements Costs incurred by the primary contractor during construction of Land Improvements. Typically, only used in Unexpended Plant Funds for projects in excess of $100, Designer Fees Land Improvements Professional fees incurred for the design and supervision during construction of Land Improvements. Typically, only used in Unexpended Plant Funds for projects in excess of $100, Engineering & Inspection Fees Land Improvements Professional fees such as engineers or inspection fees incurred during the construction of Land Improvements. Typically, only used in Unexpended Plant Funds for projects in excess of $100, Special Contractual Work Land Improvements Other contractual arrangements that are made during the construction of Land Improvements. Typically, only used in Unexpended Plant Funds for projects in excess of $100, Fixed Equipment Land Improvements Permanently attached fixtures or machinery that cannot be removed without impairing the use of the asset. Typically, only used in Unexpended Plant Funds for projects in excess of $100, Miscellaneous Capital Expenses [Advertising, Insurance, Taxes] -- Land Improvements Other costs incurred during construction of a capital nature. Typically, only used in Unexpended Plant Funds for projects in excess of $100, DEPRECIATION Depreciation Expense This object is to be used for recording memo entries on equipment used in service center operations. The offsetting entry will always be GL account Allowance for Depreciation. Subsidiary records, i.e., depreciation schedules, etc., should be maintained in the department to substantiate entries using this GL account Allowance for Depreciation This GL account is to be used only as the offsetting entry for GL account Depreciation Expense SUBGRANTS AND SUBCONTRACTS (TO $25,000)

15 Page 15 of Subgrants and Subcontracts (to $25,000) All costs incurred to cover reimbursement to others for the first $25,000 of each subgrant or subcontract. "Subgrants and Subcontracts" are defined as awards made by the University for the performance of a substantive portion of the work of a sponsored project or other activity. Replaces GL account SUBGRANTS AND SUBCONTRACTS (OVER $25,000) Subgrants and Subcontracts (Over $25,000) All costs incurred to cover reimbursement to others for subgrant and subcontract amounts in excess of $25,000. The first $25,000 of each subgrant or subcontract would be included in GL account Modifications and additions to existing subgrants and subcontracts should be added to existing award amounts to determine the amount in excess of $25,000.