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:
- CNAC and org of the school/center responsible for the project
- Budgetary control of "0"
- Fund "000010"
- Program value unique to the capital project
- Center Reference "0000"
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.