3451 Walnut St. Franklin Bldg, Suite 737 Philadelphia, PA 19104
The mission for Debt Managment is to provide competitive real returns for the University's working capital pool while maintaining sufficient liquidity to meet University cash requirements.
Internal Finance
Internal Finance manages internal capital project certifications and Internal Capital Loans (ICPL). We provide services for certifying funding for approved Capital Projects, including Internal Capital Project Loans (intra-University lending).
We also administer the Equipment Purchase Loan Program (EPLP) to finance equipment purchases for schools and centers.
Copies of all loan document are maintained and are available at the request of schools and centers.
Loan Periods and Rates
Interest rates are determined by the University's cost of capital.
Capital Project Funding and Financing
"Capital projects" are renovations and new construction with estimated total costs of $100,000 or more. (See Financial Policy 1106, Plant Assets.) Renovations and other projects with estimated total costs of less than $100,000 are normally not capitalized. These projects are budgeted and charged directly to the school/center's operating budget using object code 5407. (See Non-Capital Procedures for more information on non-capitalized projects.)
The expenses, funding, and financing of all capital projects are recorded in the "capital account". This is a 26-digit FinMIS account composed of:
The Office of the Treasurer will verify and "certify" capital project funding for certain schools/centers.
The Office of the Treasurer also certifies capital project financing. An amortization schedule with the anticipated interest rate, principal and term is distributed to the school/center. At the project closure, a copy of the final amortization schedule with the final interest rate and principal is sent to the school/center showing their debt scheduled payments during the life of the loan.
The Internal Finance department manages all anticipated Internal Capital Project Loans and periodically distributes a 5 year forecast to each school/center reflecting their anticpated debt service and/or project loan status.
Interim Interest
At the end of every month, the dollar difference between the amount of funding and the total expenses in each capital project generates either an Internal Capital Project Loan or a surplus in the Capital Account. This loan/surplus incurs/earns an interim interest amount that is charged to/credited to the school/center at the beginning of the following fiscal year. The Internal Finance department strives to prepare funding certifications promptly to minimize the interim interest expense a school/center incurs when an unanticipated loan is generated.
