| Project Step |
Organization |
Action |
Notes |
Journal Entry |
| A. Initiation of New Capital Project |
School/Center |
Articulates
a need within
the context of the School or Center's master space
plan. |
Projects
are to be initiated by the School or
Responsibility Center that
occupies (or will occupy) the facility in
which the project is
to occur, even if other responsibility Centers
are to participate
in project funding. In the case of projects that
occur in facilities
occupied by more than one Responsibility Center,
the project
should be initiated by the Responsibility Center that is
the
primary facility occupant. In the case of facilities in which
there is no single primary occupant, projects are to be initiated
by
Facilities Services. |
None
required. |
| |
Facilities
Services |
Confirms
that the proposed project should be
capitalized and therefore
the activity should be recorded in the
Capital Construction Fund
(Fund 000010). |
Projects with estimated total
costs of less than
$100,000 are normally not capitalized, based
on Financial Policy
1106.0, Plant Assets - Definitions. (See
Attachment A.)
Small simple facilities
requests
that do not meet the definition of Plant Assets may be
managed
as Customer Work projects. These requests are budgeted and
charged
directly to the School or Center's Operating Budget using
object
code 5407. Facilities Services records their side of these
transactions
in the Facilities Services Special Fund (Fund 019703).
These
are typically "Point and Do" projects.
Some more complex requests with
estimated costs of less than $100,000 may required a hybrid appoach
that combines the project management procedures developed for
Capital
Projects with the simpler review and approval process
used for
Customer Work. These are typically projects the involve
scheduling
the work of more than one trade. See "Accounting
for Non-Capital
(Less Than $100,000) Facilities Projects"
for detailed
procedures.
|
None
Required. |
| |
Facilities
Services |
Establishes
and assigns a unique capital
project identification number. |
This number was formerly known as the
DFP
number. |
None
Required. |
| |
Facilities
Services |
Requests
a Program value from General
Accounting. |
Most projects will be recorded
in a
single Program value, even if they consist of multiple phases,
but
some large projects that are subdivided into multiple phases
are
assigned a separate Program value for each phase. For each
Program
value, the following information will be recorded in
the general
ledger and/or the program database:
- Building Code: this is the FinMIS
program value in the range 9500-9998 that represents the building.
That record contains the cross reference to the space inventory
database (FIMS) building identifier. If necessary, new building
records are established in FIMS and in FinMIS now.
- Capital Project Number (including
phase, if
only one phase is included in this Program value)
- Fiscal year in which the project
is being
initiated
- School or Center
sponsoring
the project, to be used to derive the CNAC for all
project expenditures
and any internal financing. Note that Center
00 (General University)
and Center 99 (External Organization,
meaning not Penn), are
almost never appropriate choices as the
sponsoring center: a
true operating unit should be identified.
Center 00 or Center
99 is to be used as the Center responsible for
the project only
upon the recommendation of the Capital Advisory
Group.
|
None
Required. |
| |
Facilities
Services |
Identifies
Building Committee members. |
For
large projects (those
expected to cost over $500,000) the School
or Center will name a
Project Sponsor and the Provost or EVP
(or both, as appropriate) will
name a representative. Together
with the Project Manager named by
Facilities Services, these
form the initial Building
Committee. |
None
required. |
|
|
Comptroller's Office
|
Assigns
a unique
Program value, and notifies the School or Center, the
Treasurer's
Office, Facilities Services, and the Budget Office
of the new Program
value via e-mail. |
The
Building, Capital
Project Number, and School or Center identifiers
are also included in
this announcement, so that any potential
misunderstandings or
confusion about who is responsible for a
project are identified and
resolved before any entries are recorded
in the general
ledger. |
None
required. |
|
B. Determine Project
Details
|
Facilities
Services |
Reviews
the
project request and assists the School or Center in understanding
the
potential options to meet the defined need. |
The Project Manager will work
with the School or Center
to define project scope, conduct a
feasibility study (which is
required for all new construction
and sometimes appropriate for
renovation projects), and complete
a detailed cost estimate and a
project schedule.
If Facilities
Services determines that a feasibility
study is warranted they
will:
- estimate the cost
of the feasibility study;
- conduct the feasibility study
in conjunction with the
School or Center; and
- use
the results of the feasibility
study to further define the project
scope and arrive at the detailed
cost estimate.
The School or Center may
elect
to expense the costs associated with the feasibility study by
recording the expenditures as Customer Work . Alternatively,
if the
feasibility study is extensive and costly, it may itself
be
designated the first phase of the capital project, in which
case the
procedures for project review, approval, budgeting and
accounting set
forth in this document will be utilized in the
implementation of the
feasibility study.
In the event the feasibility study is
conducted in the Capital
Construction Fund (Fund 000010) and the
decision is then made
not to proceed with the project, then the costs
of the feasibility
study will be expensed to the School or Center's
General Unrestricted
Fund (Fund 000000).
|
None required. |
| |
Facilities
Services |
Proposes an expenditure budget defining and itemizing
the
anticipated costs of the project (including anticipated costs
in
future fiscal years) and submits the expenditure budget to
the School
or Center for its approval. |
The initial budget
proposed by
Facilities Services may be revised as School or Center
needs,
project scope options, related costs, and funding
availability
are explored and defined, until a final expenditure
budget is
developed.
Once the expenditure budget is determined,
Facilities Services
also prepares a project timetable and a related
project expenditure
cash flow, detailing the level of project
expenditures anticipated
each quarter.
|
None
required. |
| |
School/Center |
Determines
scope and
funding, including the probable need for any internal
financing. |
In addition
to working
with Facilities Services to define the project details
described
above, the School or Center also identifies potential
funding sources
and expected timing.
The
Capital Project Statement
is prepared by the School or Center with
Facilities Services
to summarize the proposed scope, schedule,
budget, funding, and
cash flow. See Attachment B for a sample
statement.
|
None
required. |
| |
Treasurer's
Office
|
Reviews the anticipated need
for internal financing with
the School or Center.
To document
their common understanding of
the terms proposed, the Dean or Vice
President of the School
or Center and the Treasurer (or their
authorized representatives)
will each sign a copy of the Capital
Project Statement (which
documents any planned interim financing) and
a provisional amortization
schedule for any planned long term
financing. A final amortization
schedule will be issued at project
closeout based on the actual
project experience and the then
prevailing interest rate.
|
Schools and
Centers with projects
that need interim internal financing will be
charged the then
current TIF rate as determined monthly by the
Treasurer. Interest
charges will normally accumulate in the Capital
Construction
Fund (Fund 000010) each month and be paid by the
School's General
Unrestricted Fund (Fund 00000) at the beginning of
the following
fiscal year. In this case, the interest charges for
each month
are accumulated as the sum of the simple interest
charges.
If the interest charges for
interim internal
financing are expected to be more than $250,000 for
the project,
the School or Center may request that the interim
interest charges
be capitalized as part of the permanent financing
for the project.
In this case, the interest charges will be
compounded monthly.
Schools and
Centers with projects that temporarily
have excess cash in the
capital construction fund will be paid
the then current TIF rate on
their balances. Simple interest
payments will accumulate in the
Capital Construction Fund (Fund
000010) each month and be paid to the
School's General Unrestricted
Fund (Fund 000000) at the beginning of
the following fiscal year.
Projects
that need long term financing after
construction is completed will be
charged the then prevailing
30 year Treasury bond rate at the time of
project closeout, as
established by the Treasurer. Long term
financing is normally
amortized over 7 years for renovation projects,
and over 20 years
for new construction.
For planning purposes, the assumed TIF rate
and the assumed
30 year Treasury rate for the next 5 years will
be published with
other budget parameters.
In very rare
cases, special self-sustaining
projects and other special projects
that are being funded utilizing
unique or specially-dedicated
financing sources, (as established
by statute or by Trustee
resolution) will be charged a unique
interest rate associated with
that source. Except for these very
rare cases, no School or Center
should assume a rate different
from the published planning parameters
for future years or from
the actual TIF and 30 year Treasury bond
rates for the current
periods.
|
None
required. |
| C. Approval of
New Capital Project |
School/Center
|
Seeks necessary project
approvals
in accordance with the University's Capital Planning
Process
Review and Approval Procedures as issued in June 1999 or as
subsequently
revised. (See Attachment C.)
|
All projects are first
approved
by the Dean or Vice President of the School or Center. For
projects
that are funded entirely by the School or Center's own
resources
and have estimated costs of less than $250,000, no further
review
is required.
For projects
that are funded using central
University resources or internal
financing, or that have estimated
costs of $250,000 or more, the
Provost or Executive Vice President's
approval is also
required.
For projects with estimated costs of $500,000 or
more ("large"
projects), further review by the Capital
Advisory Group and approval
by Capital Council, EVP, Provost,
President and Trustees may
also be required. See the University
Capital Planning Process
Review and Approval Procedures (attachment
C) for more detail
on the steps involved in completing the required
programmatic,
financial, and architectural reviews.
|
None required.
|
| D.
Establishment of Project Budget & Certification
of Funding
Sources |
Facilities
Services |
Initiates
the Request for Certification, and
forwards the proposed Capital
Project Statement to the School or
Center for their approval. |
When
the project consists of
multiple phases, these certification
steps will be repeated for each
phase of the project. At each
phase, the Capital Project Statement
will include an updated
summary of the entire project and the
detailed budget, funding
sources, and cash flow analysis for the
phase being certified. |
None
required.
|
| |
School/Center |
Prepares
budget journals to
budget the transfer of the available funding
sources to the Program
value for the project. |
The
budget journals document
the School or Center's plan to use these
specific amounts of these
specific funds for this specific project
and "reserves"
them so that they cannot be utilized
for other purposes. The
Treasurer's Office cannot certify a funding
source until the School
or Center responsible for that funding
source has shown their
agreement by budgeting the capital funding
transfer. |
See
Budget Entries D1 and D2. |
| |
School/Center |
Ensures
that pledges and any payments so far to Capital Gift Funds are
recorded with the Program value being certified. Budgets the
capital
funding transfer from the capital gift fund. |
The
pledge,
all associated payments, and the capital project being
funded must
all be recorded with the same program value. If the
pledge or any of
the payments is recorded with a different Program
value (for example,
8999, which is "To be Determined,"
or the value for a
previous related project) then the project
will not be able to draw
cash appropriately from the Capital
Gift Fund as expenditures occur,
and interim financing will be
provided instead. The School should
request that the Treasurer
make any necessary changes via the Gifts
system to the pledge
and payments. |
See
Budget Entry D3. |
| |
School/Center |
Documents
the plans for any funding sources that are not yet available,
but
expected to be available in the future. |
These might include
payment schedules
for any significant pledges to Operating Gift Funds
(which, unlike
pledges to Capital Gift Funds, cannot be automatically
applied
to capital projects as received); proposals for Grants which
have not yet been awarded; cash surpluses expected to result
from
future operations (as shown in the School or Center's most
recently
approved Five Year Operating Budget), or any other funding
resources
that are expected but not yet available.
The Treasurer at his discretion
may agree to
certify a funding plan that includes expected resources,
with the
understanding that interim financing will be used in
the event that
sufficient expected resources are not received
and substituted
prior to project expenditure. It is the
School or Center's
responsibility to initiate a substitution
to prevent or replace
interim financing: no automatic process
will trigger the application
of expected resources upon receipt.
|
None
required. |
| |
School/Center |
Documents
anticipated needs
for any internal financing. |
This
is the signed copy of
the Capital Project Statement and projected
amortization schedule
developed with the Treasurer in step B
above . |
None
required. |
| |
School/Center |
Updates
the School or
Center's Five Year Operating Budget, if necessary. |
If
the School
or Center's most recently approved Five Year Operating
Budget already
included plans for any needed capital funding
transfers, internal
financing, expected significant changes in
operations and maintenance
expense, and other significant changes
associated with this project,
then no revision may be needed.
If sufficient funding was not already
in the plan,t he School
or Center may elect to submit a revised Five
Year Operating Budget. |
None
required. |
| |
School/Center |
Requests
liquidation of any
designated investment income funds to be used
as funding
sources. |
Once
the investment has been liquidated, the School or
Center can
budget a capital funding transfer out from the designated
investment
income fund (aka quasi-endowment). |
See Journal Entry
D4 and Budget Entry D5. |
| |
School/Center |
Withdraws
any balances in the University Bank Fund to be used as funding
sources. |
Since
all bank transactions must use the bank transfer
object code
and all capital funding transfers must use that object
code,
the School or Center will first withdraw funds from the
University
Bank and deposit them in their General Unrestricted Fund
(Fund
000000) and then budget the capital funding transfer from
there. |
See Journal Entry D6 and Budget Entry D7. |
| |
School/Center |
Documents
the plan to
satisfy any Sponsor Restrictions and Reporting Requirements. |
When
a
Grant or Contract that will be funding source is awarded, the
School
will convene a meeting of the Project Manager, Facilities
Services,
Research Services, the Treasurer's Office, and the
Comptroller's
Office in order to plan how best to meet the specific
Sponsor
Restrictions and Reporting Requirements for this award.
This plan
will be documented by the School and Research Services
and included
as part of the project documentation package. |
See
Budget
Entry D8. |
| |
School/Center |
For funding sources to be provided from Other Unrestricted
Funds, the School or Center sponsoring the project requests that
the
appropriate office prepares manual journals and/or budget
journals to
transfer the available funding sources to the Program
value for the
project. |
For
the University Research Foundation (URF), the
Research Facilities
Development Fund (RFDF), and the General
University Special Fund,
the School or Center that received the award
will budget the
award (as a resource transfer in) and the capital
funding transfer
out after the award is received.
For
the Renewal & Replacement Fund , each School or Center
will
budget the capital funding transfer for any of its own funds.
For
funds coming from the Facilities Renewal Program, (formerly
known as
the Deferred Maintenance Program), Facilities Services
will budget
the capital funding transfer.
For the Insurance Fund, the
School or Center that suffered the
loss will budget the capital
funding transfer. With the written
approval of Risk Management and
the Treasurer, this may be done
in advance of the receipt of the
insurance proceeds if necessary. |
See Journal Entry D9 and Budget Entry D10.
See Budget Entries D11
and D12.
See Budget Entry D13
|
| |
Treasurer's
Office |
Approves
the Request for Certification and Capital
Project Statement and
forwards them to the Treasurer with any
necessary supporting
documentation. |
|
|
| |
Treasurer's
Office |
For
funding
sources represented to be currently available, the Treasurer's
Office
will confirm that they are available, sufficient, and
appropriate. |
For
currently available
funding sources, the Treasurer will verify
that the budget entries
have indeed been made, and to the appropriate
Program
value. |
|
| |
Treasurer's
Office |
For
funding sources represented to be expected to be
available in
the future , the Treasurer's Office will confirm that
these expectations
are consistent with known pledges and payment
schedules, proposals,
and operating budget plans. |
If the
plan includes expected
(but not yet available) funding sources, the
Treasurer also confirms
that the necessary contingent internal
financing resources are
available, sufficient, and appropriate in the
event the expected
resources are not received as
expected.
The Treasurer
will consult with
Development, Research Services, and the Budget
Office as needed.
|
|
| |
Treasurer's
Office |
For
General Funds and Designated Funds, the Treasurer's
Office will
confirm with the Budget Office that all required funding
has
been included in the School or Center's most recently approved
Five Year Operating Budget. |
If
necessary, the Budget
Office will meet with the School or Center
in order to confirm that
funding is already included in the Five
Year Operating Budget, or to
review the School or Center's updated
Five Year Operating
Budget. |
|
| |
Treasurer's
Office |
For Capital Gift Funds, the Treasurer's Office will
confirm that the pledge, any payments, and the project being
certified have the same Program value. |
Gifts
from multiple donors
and to multiple Schools or Centers may coexist
in a single Capital
Gift Fund. However, a single gift (the pledge
and all associated
payments) may be recorded to one and only
one School or Center and to
one and only one Program value. If
the donor's intention was to fund
projects using more than one
Program, then this must be recorded as
multiple gifts. |
|
| |
Treasurer's
Office |
For
Sponsored Program
Funds, the Treasurer's Office wil confirm that the
plan to satisfy
any Sponsor Restrictions and Reporting Requirements
has been
documented. |
|
|
| |
Treasurer's
Office |
For
funding sources to be
provided from Other Unrestricted Funds
(URF, RFDF, Renewal and
Replacement, etc), the Treasurer's Office
will confirm that any
necessary awards have been made and all
capital funding transfers
have been budgeted. |
|
|
| |
Treasurer's
Office |
For internal
financing, the Treasurer's Office will
confirm that the plan for
internal financing has been documented,
and that the necessary
internal financing resources are available,
sufficient, and
appropriate. |
|
|
| |
Treasurer's
Office |
Certifies
the project and authorizes the approved level
of project expenditures
by preparing a budget journal to the Object
Code CPTA ("Construction
Project Treasurer's Approval") in
the Special Budget. |
If the Treasurer's Office is
unable
to verify that all proposed project funding sources are
available or
expected (as represented), sufficient, and appropriate,
the
Treasurer's Office may forward the Capital Project Statement
to the
Vice President for Finance, who will review the proposed
funding plan
with the Capital Advisory Group. The Capital Advisory
Group will
either recommend the approval of the plan, or request
that the School
or Center propose a revised project funding plan.
All budgets and actuals in the
Capital Construction Fund are to use the CNAC of the sponsoring
School or Center.
If this
certification is not
the first for the Program value, the Treasurer's
Office will
budget the change from the previous level, not the newly
authorized
total.
|
See
Budget Entry D14. |
|
|
Treasurer's
Office |
Budgets the receipt of currently
available project
funding sources in the Capital Projects Fund
(Fund 000010) by
processing a budget journal.
Budgets the approved internal
financing by processing a budget
journal.
Issues the original Certification
Letter for
the project to General Accounting, accompanied by
a Sponsor
Restrictions and Reporting Requirements plan, if any.
Notifies the School/Center, Facilities Services and the Budget
Office
of the approved certification via e-mail.
|
This includes one line for each
object code used as a
funding source: all 4821s are combined
into a single 4821 entry into
the Capital Projects Fund, and
all 4812s are similarly
combined.
This should be
the maximum amount
expected to be outstanding at any time based on
the cash flow
projected in the approved Capital Project
Statement.
The Treasurer also files the word and excel
documents containing
approved and certified Capital Project
Statements and the Provisional
Amortization Schedule.
|
See
Budget Entry D15.
See Budget Entry
D16. |
| E. Following Receipt of Certification
Notification |
Facilities
Services |
Upon
notification from the Treasurer's Office,
budgets the authorized
capital project expenditures by processing a
budget journal to
the Capital Construction Fund.
Processes purchase order, invoices and controls expenditures
to
budget. |
All
budgets and actuals in the Capital
Construction Fund are to use
the CNAC of the sponsoring School or
Center. |
See
Budget Entry E1. |
| |
Comptroller's
Office |
Records the project funding based
on
information in the certification letter.
|
For
all funding sources
except grants and contracts, capital gifts
and internal financing,
all certified funds will be transferred
from the funding source to
the capital construction fund at the
time of certification. (Until
these funds are used for project
expenditures, cash balances will
accrue interest at the TIF rate.
See section B above.)
When the certification letter includes funding from a grant or
contract, General Accounting, on a monthly basis, will record
the
funding equal to the amount expended during the prior month,
up to
the amount certified, subject to the documented Sponsor
Restrictions
and Reporting Requirements.
If funding is certified from a
capital gift fund, the Comptroller's
Office does not make manual
entries. The custom process relies
upon the school and Treasurer
ensuring that the program value
associated with the capital gift is
the same as the program value
for the project.
The
entries necessary to record internal financing balances so
that
interest can be charged (or paid) are generated by the system
as
needed based on the cash position of each project. There is
no
special entry required at certification for this funding
source. |
See Journal Entry E2.
See Journal Entry H1.
See Journal
Entry H2.
See Journal Entry H3.
|
| |
Facilities Services |
Charges the Project
Mangement
Fee |
The project management fee is based on the
budgeted amount,
and is paid at the beginning of the project
for projects less than $2
Million. For projects over $2 Million,
the first 25% of the fee is
paid is paid now, with additional
equal payments at 50% and 75% of
the project, and the final payment
at project closeout.
If the project comes in over budget, no additional
fee is due. If the project comes in under budget, no fee is
refunded.
If the project budget is changed
after the project
starts, whether or not an additional fee is
warranted depends
on the circumstances and is negotiable.
|
See
Journal Entry E3. |
| F. Substitutions |
School/Center |
Notifies the Treasurer's
Office
of a change in the original funding plan or the receipt of
expected
but previously unavailable resources.
Prepares a budget entry to budget the funding
sources.
|
A
revised Capital Project
Statement is required. If the scope or
schedule have also changed
significantly, then updated versions
supplied by Facilities Services
should be included. If the substitution
results in significant
changes to the planned long term financing,
a revised provisional
amortization schedule should be attached.
If, in the judgment of the
Treasurer, there are significant changes
in scope, schedule, budget,
funding, or cash flow, then additional
review and approval by Capital
Advisory Group, Capital Council,
EVP, Provost, President, and
Trustees may also be required. |
See
Journal
Entries F1, F2, and F3. |
| |
Treasurer's
Office |
Verifies
that
the new/changed funding sources are appropriate and
sufficient.
Notifies Facilities Services, the School or
Center, the Budget
Office, and General Accounting via e-mail of the
change to the
certification. |
The
Treasurer's
Office goes through the same steps as during the
original
certification, except that the CPTA amount does not
change.
The Treasurer's Office also files the revised Capital Project
Statement word and excel documents. |
See
Journal
Entries F4
F5, and F6. |
| |
Comptroller's
Office |
Records
the
funding for the project, based on information in the certification
letter. |
These
actions reverse any previous funding
journals and record new
ones as needed. |
See
Journal Entries F7,
F8,
and F9. . |
| G. Additional
Certifications |
School/Center |
Notifies
Facilities Services of the additional certification requirement.
Prepares a budget entry to budget the additional funding
sources. |
A
revised Capital Project Statement is
required. If the additional
certification results in significant
changes to the planned long
term financing, a revised provisional
amortization schedule should
be attached. |
See
Journal Entry G1. |
| |
Facilities
Services |
Reviews
request for additional certification
and forwards request to
Treasurer's Office. |
Prepares
an updated project scope and schedule to be included in the revised
Capital Project Statement. If, in the judgment of the Treasurer,
there are significant changes in scope, schedule, budget, funding,
or
cash flow, then additional review and approval by Capital
Advisory
Group, Capital Council, EVP, Provost, President, and
Trustees may
also be required. |
None
required. |
|
|
Treasurer's
Office |
Verifies that the additional
funding
sources are appropriate and sufficient.
Notifies Facilities
Services, the School/Center, the Budget Office,
and General
Accounting via e-mail of the additional certification.
Budgets the additional funding source in CPTA
and
in the Capital Construction Fund by processing a budget journal.
|
The Treasurer's Office goes through
the same
steps as during the original certification, increasing
(or
decreasing) the CPTA amount.
The Treasurer's Office also
files the revised Capital Project
Statement word and excel documents
in the shared folder.
|
See
Budget Entries G2and
G3. |
|
|
Facilities
Services |
Upon
notification from Treasurer's Office, budgets the additional
authorized expenditures for the capital project phase by processing
a
budget journal. |
|
See
Budget Entry G4. |
| |
Comptroller's
Office |
Prepares
an entry to record the project
funding, based on information
in the revised certification
letter. |
|
See
Journal Entry G5. |
| H. Monthly Processing |
Comptroller's
Office |
Prepares
an
entry to record monthly, in accordance with SFAS 116, the
expiration
of a donor restriction associated with a capital gift.
The entry
reclassifies the gift from temporarily restricted to
unrestricted net
asset class.
Prepares an entry to record the interim
financing needed based
on the net cash position of the Program at
month end. If the
program's cash exceeds its current spending, this
entry will
remove the excess cash so that the project can receive
interest
on it.
Prepares an entry to accrue the
accumulated interim financing
interest earned or charges incurred on
278x balances in the Capital
Construction Funds. |
This is an automatic process
that looks for a Program
value in the Capital Construction Fund
that has expenditures and then
attempts to find a Capital Gift
Fund with cash available in a
matching program value. If more than
one such combination exists, the
process will first match the
same CNAC, ORG, and PROG. If
expenditures remain to be funded
after that source is exhausted, the
process will then match the
same CNAC and PROG. If expenditures
remain to be funded after
thatsource is exhausted, the process will
match any capital
gift fund with the correct PROG.
Interest earned and
charged will
be calculated at the TIF rate based on the ending
balance for
each fund for each month. The TIF rate which is posted to
FinMIS
and used for each month 's calculation is based on the
University's
short term investment performance during the previous
month,
as determined by the Treasurer.
|
See
Journal Entry H2.
See Journal Entry H3.
See Journal Entry H4 |
| |
Facilities
Services |
Monitors the status, scope, schedule,
budget, funding, expenditures and cash flow of the project and
compares them to the approved plan.
Initiates a request for review and approval
of a revised
plan when significant changes occur.
In particular, ensures that the project budget
is within
the authorized CPTA level, that actual charges are
consistent with
the approved budget, and that expenditures are
necessary,
appropriate, and charged to the correct project.
|
|
None
required. |
| |
School /Center
|
Monitors the status,
scope, schedule,
budget, funding, expenditures and cash flow of the
project and
compares them to the approved plan.
Initiates a request for review and approval
of a
revised plan when significant changes occur.
In particular, monitors funding activity in
their projects
and identifies any missing or misdirected funding
entries. Reports
any apparent funding discrepancies to the Treasurer's
Office.
|
The FinMIS 209 and 219 reports
may be used to
assist in this process.
|
None
required. |
|
I. Year End
Processing
|
Comptroller's
Office |
Prepares an entry to move this
year's
interim financing activity into the prior year object
codes. These
are technical entries to facilitate proper funds
checking, but they
have no effect on School or Project performance.
Reviews fiscal year performance with each
School orCenter.
As part of this review, adjusts previously
accrued interest charges
for previously reported discrepancies
where appropriate at the
Comptroller's discretion.
|
|
See Journal Entry I1.
|
|
|
Treasurer's Office
|
Reviews
scheduled and
unscheduled payments against documented amortization
schedules and
stops or revises upcoming scheduled payments for
any loans repaid
earlier than expected. |
|
None required.
|
|
J. Beginning of Year
Processing
|
Comptroller's
Office
|
Prepares
an entry to record the interest charges
incurred on interim internal
financing balances in the Capital
Construction Fund in the prior
year and charge the General
Unrestricted Fund.
Prepares an entry to record the interest
earned on unexpended
balances in the Capital Construction Fund in the
prior year and
credit the General Unrestricted Fund.
Prepares an entry to record the amortization of any long term
Internal Capital Project Loan, with principal and interest shown
separately for each closed program. |
|
See Journal Entry J1.
See
Journal Entry J2
See
Journal Entry J3.
|
|
K. Completion of the
Project
|
Facilities
Services
|
Determines when the project is
essentially complete and
ready for occupancy.
Notifies General Accounting and
Treasurer's Office that the project
is complete.
Forwards the complete records of the project to General
Accounting.
|
If a long term Internal Capital
Project Loan
appears to be needed, the Treasurer will prepare
a draft final
amortization schedule for the School or Center.
In some cases, the
School or Center may elect to make a final
Capital Funding Transfer
before closeout in order to avoid the
need for any permanent
financing.
Documentation should include
specific identification of any fixed
and movable equipment
acquired.
|
None
required. |
|
|
Comptroller's
Office |
Reviews
the
records; records the equipment items separately in the Property
Management System. The remaining construction project costs are
recorded as the capitalized cost of the building in the Property
Management System.
Prepares an entry to capitalize the
project as land, building,
fixed equipment, and movable equipment in
the School surrogate
in the General Unrestricted Fund.
Prepares an entry to close out the project into the School surrogate
in the General Unrestricted Fund
Prepares an entry to
return the unexpended funding (if any) from
the Capital Construction
Fund to the funding sources.
Prepares an entry to move the
internal financing liability balance
(if any) from the Capital
Construction Fund to the General Unrestricted
Fund
Prevents future charges to the project. |
This credit to CIP Closeout will keep the closeout of projects
from having an unwanted effect on the performance and budget
balance
available of the School surrogate's General Unrestricted
Fund.
If multiple funding sources exist, the refunding will
occur on
a pro-rata basis to the funding accounts unless
specifically
directed. The CPTA amount is left at the authorized
level, and
is not reduced.
This entry also contains an
offset (this time a debit) to CIP
Closeout in order to keep the
transfer of the loan from having
an unwanted effect on the
performance and budget balance available
of the School surrogate's
General Unrestricted Fund.
If there are no outstanding
pledges or loans for this project,
the program value is disabled. If
there are outstanding pledges
or loans, then the program value cannot
be disabled. Instead,
all existing COA combinations in the Capital
Construction Fund
are disabled, and a cross-validation rule that
prevents the creation
of any new combinations using the program value
and the Capital
Construction Fund is implemented. |
See Journal Entry K1.
See Journal Entry
K2.
See Journal Entry
K3.
See Journal Entry
K4.
|
| |
Treasurer's
Office
|
Establishes
the long term Internal Capital
Project loan amortization schedule
based on final amounts funded and
spent at closeout, the prevailing
30 year Treasury Bond interest rate
(as established by the Treasurer),
the desired number of years for
repayments, and the expected
useful life of the project.
Long term financing will normally be amortized over 7 years for
renovation projects, and over 20 years for new construction.
If this
results in amortized annual amounts which are significantly
different
(either higher or lower) from the amounts originally
agreed upon
during project certification, the number of years
for repayment may
be revised at the Treasurer's discretion, in
consultation with the
school or center, to result in an annual
amount closer to the
original plan.
Copies of the final amortization schedule are
sent to the School
or Center, the Comptroller, and the Budget Office,
and filed
on the file server shared among the Central
offices.
Reviews donor restrictions on any Capital Gifts
Funds and changes
the reclassification setting from manual to
automatic if appropriate. |
Single
annual payments will
be scheduled and made at the beginning of
each fiscal year, starting
with the next fiscal year following
close out.
The
expected payment schedules for donor pledges are not explicitly
considered as a factor in creating the amortization schedule.
However, to the extent that donor payments in a specific fiscal
year
(either scheduled or unscheduled) are received in excess
of that
amount required to make the scheduled annual payments,
the School or
Center will be required to make additional accelerated
payments
against the long term financing in order to retire the
debt as soon
as possible and free up cash for future projects.
The
interim financing interest charges already accrued in this
fiscal
year and payable at the beginning of the next fiscal year
are not
normally capitalized and made part of this schedule.
A separate
payment will be made for them.
The interest to be charged
from the date of closeout to the beginning
of the next fiscal year
when the first payment is made is normally
capitalized and made part
of this schedule.
As long as total capital gifts are less
than the total project
cost, then in accordance with SFAS 116, the
donor imposed restriction
was met by the completion of the project.
However, until the
gift fund 's restriction status is classified as
automatic, any
payments that are received will remain posted as
temporarily
restricted and in the Capital Gift Fund, and cannot be
used by
the school. |
None
required.
|
|
L. Payments of Capital
Gift Pledges after Closeout
|
Comptroller's
Office
|
Upon
request, prepares an
entry to reclassify donor payments on pledges
in the Capital Gift
Fund that arrive after the project is completed
as unrestricted and
transfer them to the School or Center surrogate
in the General
Unrestricted Fund .
To the extent that cumulative donor
payments this fiscal year
exceed the long term financing payments for
principal and interest
already made by the School or Center, prepares
an entry to apply
the difference as a reduction o f the principal
amount outstanding. |
If
there is no outstanding
long term Internal Capital Project loan
for this project, the School
or Center may use these funds for
any purpose. However, if there is
any outstanding long term financing
for this project, the School or
Center will be required to accelerate
payments on the loan.
This test is necessary to allow the School or Center to substitute
the Donor's payment for their own funds, which would normally
have
already been taken immediately following the final close
of the prior
fiscal year. |
See
Journal Entry L1. |
| |
Treasurer's Office
|
Upon
request, recalculates the amortization schedule to determine
the new expected date of the
last payment and to show the revised
amounts for principal and
interest given the additional payment
of principal. |
Although
any accelerated payment will cause the amount of time necessary
to
fully amortize the loan to be shortened, the scheduled total
payment
for subsequent years will normally remain the same. However,
the
amount of the payment which is applied as principal and the
amount
applied as interest will necessarily change. |
None
required. |
