Instructions FY15 Capital Budget Submission...For your reference, detailed instructions for completing the input templates are on the following ... If you need help with your submission

Office of Budgets and Planning Tim Woodward Fiscal Year 2015 Capital Budget Submission Instructions

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Guidelines and Instructions

for Fiscal Year 2015 Capital Budget Submission and Input Spreadsheet


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Contents

Executive Summary………………………………………………………………………………… p. 3 Submission Overview.……………………………………………………………………………… p. 4 Input Template 1. Cover Page..………………………………………………………………..…… p. 6 Input Template 2. Continuing Capital Projects………………………………………………..…… p. 7 Input Template 3. New Capital Projects………..……………………………………………..…… p. 11 Input Template 4. External Debt Funded Projects………..……………………………………..… p. 17

Appendix

Attachment A. CPDCM Project Guidelines Cost per Square Ft. ………………………..…..…… p. 19


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Executive Summary

The Capital Budget for Fiscal Year 2015 will be reviewed for approval by the Board of Trustees at the

annual meeting on May 15-16, 2014. The Office of Budgets and Planning provides a consolidated capital

budget to the Board of Trustees which includes total project costs for all projects that will begin design

and/or construction in FY15. Major projects submitted for design cost only in last year’s capital budget

are resubmitted for construction cost approval in the FY15 Capital Budget.

The following key features highlighted in the FY15 Capital Budget presented to the Board of Trustees:

• expected timing of capital expenditures in Fiscal Years 2015-2017

• sources of funding from gifts, operations and/or external debt

• uses of funding by Medical Center, River Campus, ESM, MAG and University-wide

• uses of funding by project type: new construction, renovation, mixed, IT, renewal/replacement

• segmentation of Routine and Non-routine project costs

• total capital for deferred maintenance

In addition, a forward looking 3 year capital plan that includes potential projects, non-routine capital

requests and placeholders contingent on further review, funding sources and debt capacity is also

presented. A review of credit ratings and analysis of debt capacity is presented. Key capital ratios used to

measure and monitor debt capacity are calculated for Board of Trustee consideration.

A status of major continuing capital projects with estimated completion dates is presented. By definition

these are projects with cost greater than $0.5M and that had construction approved or started in the prior

fiscal year with major expenditures continuing into the capital plan years.


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Submission Overview

The capital budget input templates are designed by Office of Budgets and Planning to meet the

aforementioned information needs of the Board of Trustees and to support effective decisions.

For your reference, detailed instructions for completing the input templates are on the following

pages. The due date is Friday January 31, 2014.

Please email your capital budget submission spreadsheet to [email protected]

by this deadline. Four input templates need to be completed in the submission file, including:

1. Cover Page to identify the department/division submission and contact person

2. Continuing Capital Projects to input existing major projects greater than $0.5M approved

in prior fiscal years that have costs continuing in FY15 or beyond

3. New Capital Projects to input new projects beginning in FY15 the Capital Budget and

potential new projects beginning in FY16 and FY17 the 3 Year Capital Plan

4. External Debt Funded Projects to input new projects that require financing from existing

external bond issues and/or from new external debt.

New External Debt Requires Advance Approval from Ron Paprocki, SVP & CFO

The University will have limited access to borrowed capital. All requests for external debt

funding including operating and capital leases must be approved in advance by the Senior Vice

President and CFO. Please contact Holly Crawford (273-4734) if you have leasing and/or

external debt requirements for FY15.

If you need help with your submission or have questions please call Tim Woodward (275-3245).


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Key Requirements

• We need to know about ALL projects being contemplated even if they are not fully

developed. More and more we are finding out about projects after the budget has been

approved! Please identify and submit all capital projects being considered, even if timing and

cost are not fully known at the time of submission. For these situations we label the project as

a placeholder and estimate a cost; we will update with the most recent information (or

delete) before the capital budget becomes finalized in May.

• Categorize projects as non-routine or routine (annual capital). For significant non-routine

capital projects greater than $0.5M please provide a detailed project narrative, cost flow and

timeline.

• Reference projects listed in your FY14 Capital Budget approval letter sent to you last June

when completing the Continuing Capital Projects template. Against this list determine if the

approved projects will be completed by June 30, 2014.

• Indicate if the project is deferred maintenance. Final determination of deferred maintenance

will be made by Richard Pifer, Associate Vice President University Facilities & Services.

• Make sure to submit $ in thousands ($000’s); rounding up to the nearest thousand.


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1. Cover Page

Please enter your division and/or department name in the appropriate cells. Use the drop down

menus to select Division number and name. First place cursor in cell (D6) and a triangle icon

appears, click on icon and select your division number from the drop-down list. Repeat process

to make selection for Division name. Note drop-down menus are available in all the input

templates. Please select from drop-down list where indicated as their use standardizes data for

consolidation and reporting.

Manually type the name of the submitting individual, along with email and phone contact

information. This information entered on the cover page will link to titles in the other input

templates.


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2. Continuing Capital Projects

Use this worksheet to input existing major continuing capital projects. These projects should

have been already reviewed and approved by senior administration and the Board of Trustees as

appropriate.

The following criteria must be satisfied for a project to be submitted as continuing capital:

(a.) a project with cost greater than $0.5M,

(b.) a project approved in a prior fiscal year that has been started or a project with construction

approval but has not yet been started, and

(c.) has costs continuing into FY15 and/or beyond.

Again, please reference projects listed in your FY14 Capital Budget approval letter sent to you

last June when completing the Continuing Capital Projects template. Against this list determine

if the approved projects will be completed by June 30, 2014.

Input Sections have separate column headers highlighted in olive green. In the first screen shot

from the continuing capital projects template on the next page three input sections are visible.

This include for Major Project (Title), Basic Project Information and Approval Authorization.

The section on Cost Flows is only partially seen.


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2. Continuing Capital Projects (cont.)

Basic Project Information:

Enter the project title then select from drop-down list to provide Basic Project Information for:

University Campus, Routine or Non-Routine and Project Type. Simply place cursor in

spreadsheet cell, click on triangle button and select item from list to input a value.

For your reference, the key to abbreviations used in the University Campus and Project Type

drop-down lists are displayed in the following table.

Approval Authorization:

In this section, type the most recent approval date or anticipated approval date for the project and

type in the estimated completion date in the format shown in the example. Enter the approved

total project cost ($ in thousands). Cost flows by fiscal year when summed must equal this total.


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Project Cost Cash Flows:

Input cost flows ($ in thousands) flows for estimated project cost to be incurred to date through

FY14 and cost flows projected for FY15, FY16, FY17 and beyond. The sum of the cost flows

must equal the approved total project cost.

Sources of Funding:

Enter sources of funding ($ in thousands) from operations/reserves, gifts and/or external debt for

the continuing capital project. The sum of the funding sources must equal the approved total

project cost.

If external debt is a funding source, then the amount of continuing project debt needs to be

recorded also in a different budget input template called External Debt Funded Projects.


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In this External Debt Funded Project template, shown again below, type in the same project title

from earlier and select from drop-down list to input Continuing in the Basic Project Info section.

Determine whether project is funded from existing external debt (borrowed before 7/1/14) or

new external debt (incurred after 6/30/14). For existing debt, select from drop-down list to input

the bond series or lease. For new debt, select from drop-down list to input either bond or lease.

Questions:

Return again to the Continuing Capital Projects input template. Here you need to update the

latest status of the continuing project and type in your answers to the following questions.

• If funded by gifts/grants, are all gifts/grants in hand?

• If not all secured, then what amount the gifts/grants still need to be?

Provide any supporting documentation and budget detail if previously prepared for other uses.


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3. New Capital Projects

The New Capital Projects input template is for new projects beginning in FY15 the Capital

Budget and potential new projects beginning in FY16 and FY17 the 3 Year Capital Plan.

Key Requirements:

• We need to know about all projects being contemplated even if they are not fully

developed. Please identify and submit all capital projects being considered, even if

timing and cost are not fully known at the time of submission. For these situations, label

the project as a placeholder and estimate a cost. We will update with the most recent

information or delete the project before the capital budget becomes finalized in May.

• Submit $ in thousands ($K); rounding up to the nearest thousand.

• Input new projects with cost greater than $25K individually; projects with costs less than

$25K should be aggregated and input in total as lump sum projects.

• Input new projects or subsequent phases of existing projects that will require

additional review and approval.

• Strategic plan projects need to be specifically identified.

• Categorize projects as non-routine or routine (annual capital). Major non-routine capital

projects greater than $0.5M require a detailed project narrative, cost flow and timeline.

• Indicate if the project is for deferred maintenance.

• Indicate if the project is needed for faculty recruitment.


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3. New Capital Projects (cont.)

Basic Project Information:

Type in the title of the new capital project then select from drop-down list to input Basic Project

Information for the project. Drop-down lists are provided for: University Campus, Routine or

Non-Routine, Project Type, Faculty Recruitment, Deferred Maintenance and Estimate %

Deferred Maintenance. Simply place your cursor in the spreadsheet cell, click on triangle button

and select item from list to input a value. University Campus is demonstrated below.

For your reference, the key to abbreviations used in the University Campus and Project Type

drop-down lists are displayed in the following table.

• All new Information Technology (IT, ITRR) projects greater than $25K should be

reviewed with appropriate University Information Technology personnel. Please contact

Kate Crowley, Director of University IT (273-4068).


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• All Construction (C) or Major Renovation (R) projects should be reviewed with the

Campus Planning, Design, and Construction Management (CPDCM) Office. Please

contact Jose Fernandez (275-3897) or Patrick O’Neill (275-4795). For your reference see

also Attachment A for CPDCM guidelines and cost per square foot project models.

Indicate if the new capital project is for Deferred Maintenance and select from drop-down list

Yes/No. Deferred Maintenance projects relate to work on or within buildings and campus

infrastructure (roads, parking lots, etc.) that is deferred due lack of funding.

If Yes, then also select from drop-down list provided to input the percentage of the project that is

deferred maintenance; for example 100% (shown as 1.0), 50% (shown as 0.5), etc. The final

determination of Deferred Maintenance will be made by Richard Pifer, Associate Vice President

University Facilities & Services.

• All Deferred Maintenance projects should be reviewed in advance with UF&S

Management. Please contact Richard Pifer (273-5830) or Jeff Foster at (273-5788).

Indicate if new capital project needed for Faculty Recruitment and select from drop-down list

Yes/No. Recruitment projects relate to capital for laboratory or office renovations and equipment

purchases incurred in connection with faculty recruitment/hiring.


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Project Costs Cash Flow:

In this section, type the annual project cost ($ thousands) in the appropriate fiscal years. A

formula sums the project total cost. It is likely that depending on project scope, the cash flows

will cross multiple fiscal years. We recognize that timing of project costs are estimates and

subject to change.

Outside the scope of the 3 Year Capital Plan:

The 3 Year Capital Plan is FY15 through FY17. There is a column in the spreadsheet for cost

beyond FY17. This captures future cash flows for projects that have begun in FY14, FY15 or

FY16 and continue forward.

Submitted projects beginning beyond FY17 are outside the scope of the 3 Year Capital Plan; and

as such, any cost entered in this column for projects starting beyond FY17 will be eliminated

from your submission when consolidated by the Office of Budgets and Planning.


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Sources of Funding:

The sources of funding for capital projects are one/or a combination of operations, reserves

(766XX) accounts, gift or grant accounts, and/or external debt financing.

New External Debt Requires Advance Approval from Ron Paprocki, Sr. VP & CFO:

The University will have limited access to borrowed capital. All requests for external debt

funding including operating and capital leases must be approved in advance by the Senior Vice

President and CFO. Please contact Holly Crawford (273-4734) if you have leasing and/or


Type the amount ($ thousand) from each applicable source of funding in the appropriate column

and input the associated ledger account number. Submissions with incomplete or missing

account numbers will be returned. Also make sure the operating or reserve account you provide

has a sufficient balance available to fund the capital project.

If funding is from an operating account, this spending must be included in the FY15 Operating

Budget submission. Please confirm this with Cheryl Bennett (273-8372). Remember that while

funding comes from operations, the capital charges should still be made from ledger 7 accounts.

If external debt (existing bond series, new bond or lease) is a funding source, then the amount of

debt for the new project also needs to be input in the External Debt Funded Projects template.

The sum of the funding sources must equal the approved total project cost.


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Balanced Submission:

Total Sources of Funding = Total Project Cost

Please inspect that your submission is in balance by project line item. If the above equation does

not hold true for each project line item then the submission will be returned. The template has a

built in sense check to test for this condition, which is displayed below.

Project Description:

Provide detailed project description and narrative of the capital project. The cells are formatted

to wrap text, so please capture all salient information about the project in terms of business need,

scope and project deliverables.

Major non-routine capital projects greater than $0.5M require a detailed project narrative, cost

flow and timeline. The Office of Budgets and Planning will be in further contact if your project

is selected as a highlighted capital project in the FY15 Capital Budget Book.


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4. External Debt Funded Projects

All requests for external debt funding including operating and capital leases must be approved in

advance by Ron Paprocki, Sr. Vice President and CFO. The University will have limited access

to borrowed capital. Please contact Holly Crawford (273-4734) if you have leasing and/or


Basic Project Info.

Type in the same project title used in the New Capital Project template earlier and select from

drop-down list to input New in the Basic Project Info section.

Funding From Existing/New External Debt

Determine whether project is funded from existing external debt (borrowed before 7/1/14) or

new external debt (incurred after 6/30/14).

For existing debt, select from drop-down list to input the bond series or lease. A recommended

reference document is the Bond Reimbursement report issued by Katie Sturm (275-6451),

Finance Plant and Debt Department.

For new debt, select from drop-down list to input either Bond or Lease.

Type the total amount ($ in thousands) of project funded by new external debt and/or the total

amount ($ in thousands) of project funded by existing external debt in the appropriate column.


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4. External Debt Funded Projects (cont.)

Cash Outflows of Borrowed Proceeds

Type the debt amount ($ in thousands) in the appropriate fiscal years of the 3 Year Capital Plan.

The amounts represent the cash outflow of the borrowed proceeds that fund the capital project.

Balanced Submission:

External Debt Sources of Funding (Continuing and New) = Total External Debt Funded Projects

The total in the External Debt Funded Projects template is the sum of Existing and New External

Debt. It should be equal to the subtotal of External Debt Sources of Funding input submitted in

both the Continuing Capital Projects and New Capital Projects templates.

Please inspect that your submission is in balance by project line item. If the above equation does

not hold true for each project line item then the submission will be returned.


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Attachment A

Campus Planning, Design, and Construction Management

Guidelines for Estimated Square Foot Cost Models

Minor Alterations: Cosmetic upgrades-mostly upgrade of finishes/fixtures. No wall

demolition, construction or HVAC work. Medium Alterations: Some demolition, new partitions/doors, new mechanical/electrical/

plumbing work. Major Alterations: Total gutting and rebuilding. Notes: Estimates include Architecture and Engineering fees, Project Management costs,

telecommunications, work orders, etc.

Estimates exclude medical/scientific equipment, office equipment, and furniture/furnishings. Lab renovations may require extensive HVAC work. To ensure accuracy please call Jose

Fernandez at (585) 273-3897. Cost estimates are for projects over 1,000 square feet only. For help with smaller spaces

please call Campus Planning, Design, and Construction Management Patrick O’Neill (273-4795).

Documents

Instructions FY15 Capital Budget Submission...For your reference, detailed instructions for completing the input templates are on the following ... If you need help with your submission