CAPITAL OVERVIEW AND ALLOCATIONS

Transcription

1 CAPITAL OVERVIEW AND ALLOCATIONS for BAR January 25, 2018 Cheryl Bivens (360)

2 OWNED AND LEASED SQUARE FOOTAGE Square Feet 1,143,706 Leased 20,529,467 Owned 21,673,173 Total 2

3 COMMUNITY AND TECHNICAL COLLEGES Our community and technical colleges own or lease more than 21 million square feet This is 18.6% of the entire state facility inventory University of Washington is the only other agency with more square footage in their inventory

4 CAPITAL PRINCIPLES We are required to prioritize our requests for new appropriations. Funding for maintenance and operation of existing facilities is our top priority. Next comes funding for emergencies, minor repairs, and minor program improvement projects to take care of existing facilities. Major projects are added to a pipeline of projects, in rank order from the most recent selection, below the projects already in the pipeline. Requests are structured so that major projects are constructed in pipeline order. This includes requesting design-phase funding the biennium before construction is anticipated. Projects stay in the pipeline until funded for construction. 4

5 WHAT IS A CAPITAL PROJECT? Acquisition of real property Additions, repairs, renovations or improvements to existing facilities (other than ordinary maintenance) Predesign, design, and construction of new facilities Acquisition of certain building equipment (typically where installation requires a permit) 5

6 WHAT IS NOT A CAPITAL PROJECT? Routine maintenance Master plans, feasibility and other studies Painting, carpeting, etc. Movable equipment, glass, custodial equipment, etc. 6

7 CAPITAL BUDGET REQUEST pp p q pp p Priority College Number Phase Project Request 1 Statewide Preventive Facility Maintenance and Building System $22,800,000 2 Statewide Minor Works - Preservation $21,309,000 3 Statewide Minor Repairs - Roof $5,307,000 4 Statewide Minor Repairs - Facility $16,587,000 5 Statewide Minor Repairs - Site $4,166,000 6 Statewide Minor Works - Program $16,389,000 7 Edmonds Construct Science Engineering Technology Bldg $39,257,000 8 Wenatchee Design Wells Hall Replacement $2,840,000 9 Whatcom Construct Learning Commons $34,952, Olympic Design Shop Building Renovation $953, Pierce Fort Design Cascade Building Renovation - Phase 3 $3,508, Big Bend Construct Professional-Technical Education Center $35,346, South Seattle Design Automotive Technology $2,501, Spokane Construct Main Building South Wing Renovation $25,683, Highline Construct Health and Life Sciences $24,221, Bates Design Medical Mile Health Science Center $3,238, Clover Park Construct Center for Advanced Manufacturing Technologies $35,821, Shoreline Design Allied Health, Science & Manufacturing $3,592, Spokane Falls Design Fine and Applied Arts Replacement $2,827, Clark Design North Clark County $5,688, Everett Design Learning Resource Center $4,015, Grays Harbor Design Student Services and Instructional Building $4,151, North Seattle Design Library Building Renovation $3,448, Walla Walla Design Science & Technology Building Replacement $1,156, Cascadia Design Center for Science and Technology $3,421,000 Total: $323,176,000

8 DEVELOPMENT OF CAPITAL BUDGET REQUEST Adoption of major project scoring criteria College budget development workshops in March 2017 Facility condition survey March thru November 2017 Collaboration through June 2017 Utilization & Enrollment College proposals Majors due December 2017 Scored February 2018 Minors due March 2018 State Board adoption in May/June 2018 Submit to OFM in September

9 MAINTENANCE & OPERATING FUNDING IN CAPITAL It started with a fund swap during the biennium to offset a corresponding reduction in the operating budget. When the community and technical college Building Fee account was created the allowable uses were listed in RCW28B Routine facility maintenance and utility costs were not among the allowable uses. Since 2003, the legislature has included an exception to the allowable uses in the capital budget so the fund could be used for routine facility maintenance and utility costs. We have tried and continue to try and get this funding moved back to the operating budget. This funding is part of the operating allocation. 9

10 MINOR CAPITAL PROJECTS Greater than $25,000 and less than $2,000,000 Roof Facilities Site Program Preservation (includes Emergency and Hazardous Materials) These projects are identified and prioritized by each college based on the results of their Facilities Condition Survey. Funds can be transferred between like projects (roof to roof, etc.) with prior approval if campus needs change after the biennium starts. 10

11 MINOR WORK PRESERVATION (UNANTICIPATED REPAIRS) (Formerly known as RMI) Funds allocated to each college for an emergency reserve. These funds may be used for unanticipated repairs. The amount allocated to each college is based on the college s share of the system s total FTE, building area, and building area more than 25 years old. 11

12 EMERGENCY POOL $2 Million available for emergency events first come first serve until fund is exhausted Used when emergency event is declared by the college president and DES is notified Submit emergency assistance request form to SBCTC Shared cost of project between college and SBCTC Deductible = 5% of initial URF allocation Not to exceed $500,000 By College By SBCTC For the first project 50% of cost up to 1/3 of URF dollars Remaining costs For the second project 50% of cost up to /3 of URF dollars for projects #1 and #2 combined Remaining costs For the third and all subsequent projects 50% of cost up to 3/8 of URF dollars for all projects Remaining costs 12

13 HAZARDOUS MATERIALS MITIGATION POOL $2 Million available for hazardous materials abatement first come first serve until fund is exhausted No deductible no campus match Not to exceed $500,000 Will be asked to provide test results and analysis of abatement solutions 13

14 LOCAL FUNDS FOR CAPITAL PROJECTS Some capital projects are not eligible for state funds Enterprise activities (student housing, food services, book store, etc.) Parking lots Repairs to buildings acquired with local funds within the last 7 years Local funds can be used to augment state-funded projects Projects can exceed original estimated cost due to scope creep or increased construction costs. Request to use local funds for capital projects is required Fill out Local Capital Expenditure Request Authority form and send to State Board Projects less than $1 million can be approved by Executive Director Projects a million or more go the State Board at their regularly scheduled meetings Capital projects using local funds can be less than $25,000 14

15 MAJOR PROJECTS Major capital projects are renovations and replacement projects over $5 million Major projects typically span multiple biennium and have phased appropriations regardless of the project delivery type Design / Bid / Build Design Build General Contractor / Construction Manager Typical timing The first biennium will appropriate funding for Predesign and Design The second biennium will appropriate funding for Construction, Art, and Equipment purchases Acquisitions can be in either the design-phase or construction-phase funding depending on need 15

16 MAJOR PROJECT ALLOTMENTS 16

17 MAJOR PROJECT ALLOCATIONS Things to keep in mind: Expenditures cannot be made prior to OFM allotment Design funds available after Predesign is approved Recast budget needed after work is bid and when something has changed Artwork set aside allocated to SBCTC not college Equipment list required before making any purchases Submit list of equipment to SBCTC Capital Budget (Cheryl) The list will be evaluated and non-allowable equipment removed before submission to OFM 17

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19 TRACKING CAPITAL EXPENDITURES Legacy colleges refreshed monthly after FMS closes ctclink colleges refreshed nightly 19

20 FMS CODING ERRORS Watch for blank fields: Appropriation, Project, Description, Appropriation/Reappropriation This means either expenditures have been posted to invalid appropriations or the FMS data table mapping is incomplete Review the following FMS screens: GA1042, GA1062, GA1092 NOTES: Any correcting entries need to be reversed exactly as the offending entry was made. Let the month close to zero out that entry (your cash will be out of balance) Correct FMS tables and make the correcting entry in the new fiscal month 20

21 ESTIMATED ACCRUALS AT YEAR-END / BIENNIUM END Any work completed or materials received but not yet invoiced need to be accrued at year-end. Minor work projects are not re-appropriated. If you miss expenditures for a minor work project from the previous biennium, you will have to use local funds to pay the invoice. Enter an estimated accrual if you don t know the actual cost. See FAM manual for trans codes and GLs that will be affected When the accrual is reversed in the new fiscal year or biennium, expenditures will not be affected. The only GLs impacted will be Cash and Accounts Payable 21

22 BIENNIUM CLOSE ACCRUALS - ENTRIES 22

23 FISCAL YEAR CLOSE ACCRUALS - ENTRIES Please consult with SBCTC Accounting staff for additional guidance 23

24 RE-APPROPRIATIONS Major projects are the only state-funded capital projects eligible for reappropriation. You may see carry over funds from the Design portion of your project as well as a new expenditure authority code for the construction phase of the major project. College leadership will be reminded frequently to finish Minor Works projects within the biennium! Emergency and Hazardous materials Emergency or Hazardous materials funds don t carry over from the previous biennium. However, we can allocate funds from the new expenditure authority for the unspent balance. Local capital projects Local capital projects can span any period of time. The ending balance from the previous fiscal year is used as the opening balance for the new biennium. Notify the State Board when local projects are complete. We will adjust the final allocation to match the total expenditures in order to clear out any unspent balances. 24

25 MAJOR PROJECT STATUS REPORTS 25

26 CHANGING MINOR WORKS PROJECTS Minor Works projects are identified and prioritized years before they are funded It s understood priorities can change when plans change or unexpected events occur The college can request to re-purpose minor works funds from one project to another within the same funding category (roof for roof, facility for facility, etc.) Use the Minor Works Change Tool found on the SBCTC Capital website page If you re moving funds among existing projects, we can make the change immediately If you re funding a new project, it must be approved by OFM in the next quarterly request Watch your expenditures of current projects and be sure you re not transferring more funds than you have available 26

27 DIRECTLINE ENTRIES FOR CAPITAL ASSETS DirectLine is recognized as the primary source for Facilities related data DirectLine is a preferred source for college depreciation records When a capital project is completed and depreciation is to start, the investment records need to be changed from Commodity Code Use GAAP and SAAM guidelines to distribute the expenditures to the correct categories: Value of land - Commodity Code A100 Buildings - Commodity Code 05xx Value of improvements other than buildings (sidewalks, etc.) Commodity Code 06xx or 04xx Equipment that would have different useful life than the building (building system equipment is part of the building and does not need to be broken out) Commodity Code varies 27

28 Questions? SBCTC Capital Website Cheryl Bivens Note: All material licensed under Creative Commons Attribution 4.0 International License.