Repair & Replacement Reserve Administrative Policy

The purpose of this policy is to allow departments to establish repair and replacement reserves to accumulate funding for the replacement of assets costing more than $50,000 and that are funded from departmental operating budgets.

The major requirements of this policy are as follows:

• Specific equipment items must be funded up front.
• The cost must exceed $50,000.
• The equipment is of the type that would not be replaced on an annual cycle.
• The reserve must be funded each year.
• Reserve funds may not be returned to the operating budget.

Any questions about this policy should be directed to the University Controller, (804)828-5470, jasatter@vcu.edu.