Business Procedures Manual

Fiscal Affairs Division

7.13 Auxiliary Enterprises Renewal and Replacement (R&R) Reserve

(Last Modified on May 1, 2017)

The auxiliary enterprises renewals and replacement (R&R) reserve was established to be used for capital improvements to institutionally owned auxiliary capital assets. Major repairs, such as roof replacements, which do not meet applicable capitalization thresholds, may also be funded from these reserves. However, general repairs and maintenance should be funded from operating funds.

The R&R reserve should not be used to make any improvements to Public Private Venture (PPV) projects. PPV project lease payments include a maintenance component that is held by a third party trustee for use in making repairs and renovations to existing PPV projects.

Please refer to Section of this Manual for instructions on capital improvements and reserve requirements related to dining and catering contracts.

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