Finance


Capital Expenditure

Capital Expenditure Projects and Special Revenue Projects

Capital Expenditure Projects are broadly:

  • Any individual piece of equipment costing more than £50,000
  • Land and building projects costing more than £150,000 (any projects below these values will be classed as revenue)

The definition is, however, subjective and it is possible that projects above these thresholds (primarily land & buildings) are not considered to be capital in nature but instead are classified as revenue. A key factor in deciding the nature of a project is usually whether the project provides increased value to the University rather than maintenance of value (see additional details below).

Special Revenue Projects will include any major projects, including:

  • New business initiatives
  • Property and equipment leases
  • Other agreements that commit the University of Manchester to significant expenditure which is not capital in nature

When trying to decide whether a project is capital or revenue, consideration should be given to the type and level of expenditure.

The following subsections aim to facilitate navigation through the various stages and actions of the capital process, from start to finish, regardless of whether you are a finance or non-finance professional:

Expenditure classification & Levels

Type and level of spend to be classed as capital

Provides an explanation of enabling works to be included as the cost of equipment
General rules and approval process workflows Rules around capital expenditure – how, when and by whom it should be approved and with what supporting documentation
Business Case guidance Guidance on completing business cases and templates
Capital lifecycle processes Details on enabling works, commissioning, donations, physical verification, depreciation, prepayments, disposals, etc.
Registers Link to the current consolidated register, N8 asset sharing, etc.
Leases Guidance and approval process workflow
Shortcut to capital forms Easy access to capital related forms
Contacts Who to contact Faculty/Centre/Estates

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