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Business Procedures Manual

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

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The auxiliary enterprises renewals and replacement (R&R) reserve can be used for renewals and replacement of capitalizable assets. Items that do not meet the capitalizable threshold should be funded from reserve for subsequent years expenditures (operating profits). This R&R reserve can also be used for capitalizable expenditures that extend the useful life of an asset (e.g. add a new roof, major renovation) or improves its usefulness/performance.