Financial Administration

Account Definitions Appendix 1

Guidelines for Coding Remodeling and Maintenance Projects

The Building Inventory was established to provide a complete overview of all state-owned buildings. Part of this overview is the remodeling which occurs to each building, the type of work performed, its cost, and the value to be added to the building due to the betterment effect of the remodeling. In addition to the cost aspect, the list of the remodelings highlight any particular problem areas that may have occurred in a given building. For example, persistent major roof repairs might indicate poor initial design or improper construction. In either case, a problem that might be overlooked becomes highlighted. The building can then be examined, the problem determined, and appropriate remedial action taken. More important, the identification of factors producing the situation reduces the possibility it will be repeated on future buildings.

In order to categorize the degrees of remodeling and the effect they have on the longevity or functional aspects of a building, they have been broken into two categories according to whether or not they result in a betterment to the building. A betterment is defined as a contribution to the building resulting in either an extension of its remaining physical life, an increase in the functional ability of the building to perform, or the addition of a new building service such as an elevator or air conditioning. The two categories of betterment resulting from remodeling are as follows:

Category #1 -- Expenditure Code 4520 or 4525

Those that are a full betterment to the building and, as such, 100% of the cost of the remodeling is added to the value of the building. These include the following items and services which did not exist in the building prior to the remodeling:

  1. An elevator or dumbwaiter
  2. Air conditioning
  3. Fire alarm system
  4. Television cameras and monitors
  5. Security windows
  6. Surveillance equipment
  7. Storm windows
  8. Sprinkler system
  9. Acoustical treatment
  10. Remodeling to bring building up to DILHR code. Coding of these transactions should be judged on the basis of the work done.

Category #2 -- Expenditure Code: 2420

The second type of remodeling consists of major repair and maintenance items. These improvements are required to maintain the building in an operating condition but add nothing to its value. These include:

  1. Roof and/or flashing repairs
  2. Window repairs and glass replacement
  3. Tuckpointing
  4. Painting
  5. Masonry repairs
  6. Floor repairs
  7. Replacement carpeting

Housekeeping chores and routine repair and maintenance serve to minimize building deterioration, but nevertheless add nothing to the value of the building. Where an agency has its own crews of skilled craftsmen who perform remodeling, these improvements should be treated as one of the two categories listed above and the building value adjusted accordingly.