CONTROL ENVIRONMENT PURPOSE

Transcription

1 CONTROL ENVIRONMENT PURPOSE To account for the budget and expenditures of construction projects. Projects are identified by Facilities Management (FM), validated by the Office of the Vice President for Administrative Services and assigned a project number by the USF Controller s Office (UCO). Personnel 1 P age Vice President for Administrative Services Director for Design and Construction, Facilities Management (FM) Fiscal & Business Manager, Controller s Office (UCO) Fiscal & Business Analyst Administrative Services Business Center (ASBC) Fiscal & Business Specialist, Administrative Services Business Center (ASBC) RISK ASSESSMENT FM/ASBC/UCO implements procedures to meet applicable laws, rules, etc. and accomplishment of those duties required by law are complied with; identifies any risks associated with Construction and informs the FM staff of these changes through , memos, and meetings with appropriate personnel. CONTROL ACTIVITIES The fiscal year legislative appropriation included project allocations for specific University construction projects. These allocations were made pursuant to budget requests prepared by the Division of Colleges and Universities based upon 5 year capital improvement plans submitted by the University. Such budget requests were prepared using a formula based on enrollment projections, existing square footage, and other factors. Legislative appropriations designated the funding source of each project. In recent years, such funding has been provided from Public Education Capital Outlay, Capital Matching, Concurrency, Capital Improvement Fees, Debt Service Trust Fund appropriations and the proceeds of bonds sold by the former Board of Regents (University System Improvement Revenue Certificates). University construction projects are reported by the University and are accounted for in the Construction Capital Projects Fund. Procedures for determining project need and priority An Education Plant Survey is developed from a team of individuals to evaluate the enrollment, space analysis and other factors to meet the academic need of the university and develop a budget. This evaluation and planning process takes into account historical cost indexes

2 accumulated by the university, user groups planning to build space for (i.e. classes, labs), and program phases. Procedures for determining sources of project funding Legislative appropriations designate the funding source of each project. In recent years, such funding has been provided from Public Education Capital Outlay, Capital Matching, Concurrency, Capital Improvement Fees, Debt Service Trust Fund appropriations and the proceeds of bonds sold (University System Improvement Revenue Certificates). Procedures for allocating fixed capital outlay appropriations to construction projects Annually, the Construction in Progress (CIP) Plan, (3-5 year plan), is submitted to the Florida Board Office of Educational Facilities for approval. Budget requests are prepared using a formula based on enrollment projects, existing square footage and other factors that are encompassed in the 3-5 year CIP plan. Once a project is included on the 3 year list, there is probability it will probably become an appropriation. Subcontractor/Procurement Process There are two processes of subcontractor/procurement bidding, depending upon the delivery method. General Contractor/Low Bid A General Contractor (GC) is required to provide a list of major subcontractors to the University. This list identifies the major subcontractors as required by the University. A complete list of subcontractors is submitted to the University within 30 days after the award. Construction Manager (CM)/Design Build The Construction Manager (CM)/Design Build Contractor by contract advertise the work for bidding. Individual subcontract bidders are requested to supply a list of qualifications and references. After pre-qualification, each vendor is asked to submit documents for bidding including: proposal, addenda acknowledgement, scope of work, exclusions or clarifications, licensure, and bond. The opening of the bids is a formal meeting of the Construction Manager (CM)/Design Build Contractor and the FM Project Manager. The Project Manager initials each bid as processed. A tab summary of the bids is attached to the bids and forwarded with the recommendation for low bid proposal. The bid tab, bond, other proposals and buy out savings notations drive the schedule of values in the invoice. Schedule of Values Comparison to Subcontract Values The schedule of values for the work by the Construction Manager (CM)/Design Build Contractor includes estimated value as well as allowances. The actual subcontracts are let to subcontractors for 2 P age

3 specific work. This work awarded to the subcontractor is part of the schedule of values. The relationship of subcontracts to scheduled values may be more than one subcontract to scheduled value. The schedule of value may include more than one subcontract, plus bond cost. The subcontractor cost is apportioned relative to the value of the amount of the contract. The variances exist throughout the course of the construction. These variances are tracked as part of the monthly report of the contractor and reflect in the schedule of values. While the CM/DB provides a bond for the entire scope of work under contract, a bond may be required for major subcontractors. Minor projects (non-capital projects) require a bond for contracted amounts over $100,000. Monitoring of Contractor s Verification of Subcontractor Licensure In the General Conditions of the Contract, the Contractor is required to verify the licensure of each subcontractor. Each time the contractor applies for payment, they sign a certification that they are complying with all terms of the contract. USF relies on this signature for the contractor s verification of subcontractor licensure. No other procedures are performed by USF to monitor this verification. Monitoring of Subcontractor s Payment On each pay request, the Construction Manager certifies that all just and lawful bills against them and their Subcontractors for labor and equipment employed in the performance of the contract have been paid in accordance with the terms and conditions. Procedures for determining when a construction project is complete There are two aspects of completion of a construction project. The first is the substantial completion stage, which is when a building is ready for occupancy and furniture has been put in place (classroom ready). This phase completes the construction contract. The second phase includes final items to be accomplished. This is when the budget is committed to buy art and state building fiscal items. The university has up to 18 months to complete the art phase of the project. Procedures for determining the amount of Fixed Capital Outlay appropriations committed at February 1 of the applicable fiscal year and not subject to reversion The Controller s Office in coordination with the Office of the Vice President for Administrative Service prepares the certification that is submitted to DOE that details the projects subject to reversion. Procedures for analyzing Fixed Capital Outlay appropriation amounts certified as committed in previous fiscal year to ensure that those funds were expended for appropriate projects Annually, the Certified Forward Report is prepared by the Controller s Office in coordination with Office of the Vice President for Administrative Services and the amounts are tied to the 3 Page

4 State funding by appropriation year, fund and project. This report is used to justify the project need to retain remaining funds. Major Records & Reports related to Fixed Capital Outlay: Certified Forward Report for Construction documentation of the construction certified forwards for each fiscal year, stored in the Controller s Office. SUS Legislative Appropriation/Allocation Reversion Status Report documents projects to be reverted to the State and is prepared by the Controller s Office in coordination with the Office of the Vice President for Administrative Services. Education Plant Survey evaluation developed to indicate projects that are to be requested for appropriation by the State, obtain from the Director of Planning, FM. Selection of Engineers and Contractors Construction projects are divided into three phases: Planning, Construction and Furniture and Equipment. The engineers and/or architects are selected during the planning phase. The selection of the engineers and/or architects is done through a selection committee. This selection committee is made up of USF representatives. The selection committee recommends the most qualified engineers or architects or both based on the submission of proposals, which include their qualifications and experience for approval by the Vice President of Business and Finance. Contractors are selected either through a general contractor/low bid process or through a construction manager/design build contractor. A selection committee of USF representatives is used for the construction manager process. If the project is selected through a general contractor/low bid process, then the award is made to the lowest qualified bidder as approved by the Vice President of Business and Finance. If the project involves a construction manager/design build contractor, then a competitive selection process is used. The proposals are submitted and the committee reviews the qualifications of the firms. Three or four firms are selected from those submitted. Then, they are interviewed, and the selection committee evaluates their qualifications. The selection committee recommends the most qualified firm, and the selection is sent to the Vice President of Business and Finance for approval. The Guaranteed maximum price is based upon the Florida Administrative Code provisions. During the equipment phase, all of the furniture and equipment for the facility is purchased. Accounting for Projects An appropriation letter is received from the FBOE. The project number is assigned based upon the numbering convention developed by the Controller s Office. The project is established within FAST. Any subsequent changes to these accounts, such as budgeted amounts, are changed by a 4 Page

5 project set up sheet or authorizing . An OEF 352 spending authorization is prepared by the Controller s Office in coordination with the Office of the Vice President for Administrative Services and sent to the University President for signature. Upon approval by the President, the OEF 352 is forwarded to the FBOE. Within a month the approved OEF 352 is returned to the University. With the approved OEF 352, a project identification number and budgets are established for each project within FAST. Invoices for architects and engineers are submitted to the ASBC and forwarded to the FM Project Manager for approval prior to being received by the Fiscal & Business Specialist within FAST. Work-order system A work-order system is used by FM and Information Technologies for maintenance jobs, utility jobs, and occasionally at the end of a construction contract job they might do some work such as keying for buildings. The auxiliary accounts are billed for any work that is done by FM whether it is maintenance or not. The E & G accounts are only billed for non-maintenance type work. When a department needs work done, FM is contacted and a work-order is prepared. A team is appointed to work on the problem. The team is made up of electricians, carpenters, painters, A/C mechanics, etc., and a supervisor. The time spent on the job and the materials used are noted on the work-order. At the end of the job, the department is billed for the work done. INFORMATION AND COMMUNICATION The University's accounting system is maintained in accordance with the principles of fund accounting. Construction in progress budget expenditures and encumbrances are recorded within fund Construction Capital Projects. All accounting transactions are retained within FAST until the project is complete. Each project is a self-balancing fund. Prior to transferring the completed building to the Property Asset Fund, the project transactions are reviewed. Major Reports 5 P age Budget Overview Report GL Activity Report Budget Transaction Detail Report Major Records Contracts, change orders - authorization forms, budget approvals, appropriation letters, bids, contract invoices etc., are all maintained in FM/ASBC/UCO.

6 MONITORING The Vice President of Business and Finance and the Chief Financial Officer must approve the award of a contract to contractor for a construction project. Invoices are thoroughly reviewed by personnel in FM and the ASBC prior to payment to ensure compliance with the Guaranteed Maximum Price agreed to in the contract. 6