Initiation of New Project
a need within
the context of the School or Center's master space
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,
should be initiated by the Responsibility Center that is
primary facility occupant. In the case of facilities in which
there is no single primary occupant, projects are to be initiated
that the proposed project should be
NOT be capitalized but needs
to be recorded initially in the Capital
Construction Fund. for
project management purposes.
Projects with estimated total
costs of less than
$100,000 are normally not capitalized, based
on Financial Policy
1106.0, Plant Assets - Definitions. (See
Small, simple facilities
requests that do not meet the definition
of Plant Assets may be
managed as Customer Work. 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 019704). These are
typically "Point and Do"
Some more complex requests with
estimated costs of less than $100,000 may require the hybrid
detailed here 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
involve scheduling the work of more than one trade.
and assigns a unique project
||This number was
formerly known as the
B. Determine Project
project request and assists the School or Center in understanding
potential options to meet the defined need
The Project Manager will work
with the School or Center
to define project scope, and complete
a detailed cost estimate and a
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. For projects
under $100,000, the entire project is often
contained in a single
quarter, so the timetable and cash flow are
very simple. This
information is summarized in the Non-Capital
Facilities Project Statement.
working with Facilities Services to define the project details
described above, the School or Center also identifies the funding
source. This is typically a single funding source for projects
$100,000. Internal financing is not available for these
(formerly known as the Deferred Maintenance Program),
an appropriate funding source for these projects; this is
by Facilities Services within the context of the overall
for the Facilities Renewal Program and the School or Center's
master space plan. If the use of this funding is contemplated,
School or Center will request this funding at this point.
|C. Approval of New Capital Project
Project and Budget, as detailed in the Non-Capital
$100,000) Facilities Project Statement.
estimated costs of less than $100,000 are approved by the
Vice President of the School or Center. No further review
|D. Establishment of Project Budget &
of Funding Source
Center 97 Center Reference (CREF) value for the project.
References values will be established in CNAC
970, in the range
starting with 1000.
budget amount to Facilities Services using the established
Activity for projects less than
$100,000 will be recorded in Facilities Services' CNAC, using
9703, which is Customer Work, in the Facilities Services Special Fund (019704).
Program used will be 9200, which is Non-Capital (less than
Facilities Projects. The CREF is unique to each project,
and is 1987
in this example.
For the Renewal and Replacement
each School or Center will make the journal entry to actually
transfer any of its own funds. For funds coming from the Facilities
Renewal Program, Facilities Services will make the journal entry
transfer to do the actual transfer. The center reference used
the Facilities Renewal Program denotes the school or center.
The School or Center (or, for
Facilities Renewal Program, Facilities Services) notes the
for the actual transfer on the approved Non-Capital
$100,000) Facilities Project Statement.
We are assuming the funding source
budgeted appropriately. If not, a budget reallocation
may also be
necessary, but the funding source does not need to
be budgeted to
this specific project.
| E. Following Receipt of Funding
notification from the School or Center, budgets the
project expenditures by processing a budget journal to the
Processes purchase order,
invoices and controls expenditures
project will be budgeted
in detail and have actuals recorded in
detail in the Capital
Construction Fund, by CREF.
the Project Management Fee
project management fee is
based on the budgeted amount, and is paid
at the beginning of
the project. The fee for these projects is 3% of
costs before any contingency.
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
activity out of the Capital Construction Fund and into the
Work Fund each month.
where 1990 is the sum of the
in the 19xx objects.
the status, scope, schedule,
budget, funding, expenditures and cash
flow of the project and
compares them to the approved
Initiates a request
and approval of a revised plan when significant changes
In this case, return to step
Completion of the Project
unspent funding to the school.