Effective: April 1, 1999
Responsibility: Vice-President and Chief Financial Officer
Expenditures for improvements to leased properties are normally treated as current operating expenses, charged to the Operating Vote and financed through local budgets. Some costs however, may be financed through the capital vote depending on the nature of the expenditure. Appendix "B" of Corporate Policy 2.3.2 - Assets should be referred to for clarification.
Expenditures for capital items incurred in connection with improvements to leased properties projects, which must remain with the premises at the termination of the lease, are to be treated as operating expenses, while assets which may be legally removed from the premises at the expiration of the lease will be financed from Capital.
Improvements to leased properties projects which are financed from the Capital Vote will be amortized over the remaining years of the lease plus any extension offered under a first renewal option - when it is likely that the option will be exercised.
- This policy was updated November 2003.
- This was originally Corporate Finance and Administration Policy 602.11, Improvements to Leased Properties.
Corporate Policy – 2.3.2 - Assets
All questions pertaining to the interpretation or application of this policy should be referred to the Director, Policy and Internal Control.
DEPARTMENT RESPONSIBLE TO UPDATE THIS WEBPAGE