Issue Date:
Revised Date: 2004-09-01

Object Type

Cash — Capital Outlay




To record payment for improvements made to a leased building. Total cost must be equal to or greater than $100,000.

Expenditure code 7344 includes, but is NOT limited to:

  • Remodeling (state leased buildings)


  • This code is used to record improvements or additions that will revert to the lessor at the expiration of the lease.
  • Moveable equipment or office furniture that is not attached to the leased property is not considered a leasehold improvement.
  • Capitalized leasehold improvements are amortized (depreciated) over the shorter of the remaining lease term or the useful life of the improvement.
  • This code should be used for improvements made by agencies occupying TFC leased buildings.

Please refer to AG Opinion JC-170 and Art. VII, Sec. 18(i) of the Texas Constitution for information on certain restrictions on construction and related expenditures with GR and GR-dedicated funds by Institutions of Higher Education.

Specific definitions for capitalized, controlled and expensed asset classifications are located in the SPA Process Users Guide.

USAS Values

Appropriation Year 20
Object Group 10 – Expenditures
USAS Status A
Rev/Exp Category 13 – CAPITAL OUTLAY