The capital improvements program includes all capital projects, regardless of size, financed with state and University funds, and all departmentally funded projects exceeding $100,000 (see the Special Situations section for information on projects less than $100,000). The capital improvements program is an ongoing process that includes:
- Assessing capital needs, opportunities and resources
- Ensuring that potential projects conform with academic priorities & investment strategies
- Establishing priorities for project funding.
Provosts, Chancellors and Vice-Presidents submit their capital improvement needs for review by the Capital Improvements Advisory Committee which recommends systemwide priorities to the Senior Officers of the University. The President submits the capital budget to the Regents.
Exclusions
Purchases of free-standing instructional and research equipment, even those large enough to be categorized as a "capital expense", should be funded through the operating budget, and should not be submitted to the capital budgeting process. None of the funding sources available for allocation through the capital budget are available for free-standing equipment purchases.
Special Situations
Self-funded projects of
less than $100,000 do not require individual approval by the Regents, and are, therefore, excluded from the capital budget process. These projects are handled as follows:
- Projects are initiated by submitting a Form 1395 request to Capital Planning and Project Management with the dean's sign-off that the proposed project:
- Conforms with academic priorities of the University
- Has adequate funding identified
- Projects are briefly reviewed to ensure that the proposed project:
- Is within a facility worth investment
- Will not significantly increase the cost of maintaining and operating the facility
- Addresses code compliance issues
- Causes no negative impact on adjacent space/facilities
- Conforms with campus master planning principles
- Projects that meet the preceding criteria will be scheduled for implementation immediately. Projects that do not appear to satisfy all of these criteria will be referred to the CIAC for review and recommendation, and to the Senior Officers for concurrence.
- If during the planning and design stage the cost of a project increases beyond the $100,000 threshold, the project will be considered in the next capital budgeting cycle, or if the need is urgent, it may be handled as an amendment to the capital budget, requiring the review and recommendation of the CIAC, the concurrence of the Senior Officers, and the approval of the Regents.
Purchases of free-standing instructional and research equipment, even those large enough to be categorized as a "capital expense", should be funded through the operating budget, and should not be submitted to the capital budgeting process. None of the funding sources available for allocation through the capital budget are available for free-standing equipment purchases. However, if the equipment purchases require adjustments to building systems (examples: expanded electrical capacity, HVAC modification) or remodeling of space, those facility improvements should be submitted to the capital budgeting process in accordance with the definitions regarding project size and funding source contained in Section C. A department purchasing equipment which requires building adjustments must either invest departmental funds to achieve those modifications, or must request central funds through the capital budgeting process. If the purchase of equipment represents a high programmatic priority, the priorities for distributing capital resources may be influenced.
To assist the President in preparing the capital budget and capital improvements program. To facilitate informed investment decisions and promote effective management of existing capital assets.
- Capital Budget / Capital Improvements Program
- The Board of Regents has directed the administration to annually prepare an all-funds capital budget and a six-year capital improvements program. The capital improvements program is an ongoing process of assessing capital needs, opportunities and resources, evaluating the conformity of potential projects with academic priorities and facility investment strategies, and establishing priorities for project implementation. The capital budget, the part of the capital improvements program approved by the Board of Regents each May, includes all capital projects for which funding is available in the fiscal year which begins the next July. Anticipated capital needs for the following five fiscal years comprise the remainder of the capital improvements program. Each August the Provosts, Chancellors, and Vice Presidents are asked to review the capital needs of the units for which they are responsible, prioritize these needs, and submit them to the Office of Budget and Finance in October.
- Capital Improvements Advisory Committee (CIAC)
- This committee consists of representatives from each Provost, Chancellor, and Vice President unit, reviews each request and recommends system-wide priorities to the President to assist in the preparation of the capital budget and six-year capital improvements program.
- Capital Project
- A capital project is defined as any nonrecurring capital expenditure for the acquisition, construction, or improvement of a permanent facility. Capital projects are classified into five types:
- Construction of a new facility for new, expanded, or enhanced programs/uses, replacement of an existing facility, or the acquisition of land or a facility.
- Adaptation of an existing facility for new, expanded, or enhanced programs/uses.
- Adaptation of an existing facility for code changes, improved access for persons with disabilities, or legal liability purposes.
- Renewal of an existing facility with no expansion of programs/uses.
- Non-building projects (such as special assessments paid to other jurisdictions).
- Departments
- Identify a capital need, determine available department funds, complete a project identification form and submit it to the College or Resource Responsibility Center (RRC). Attach a copy of the project identification form.
- Colleges / RRCs
- Review the requested capital improvement, assign a priority ranking to the request, and submit it to the Provost/Chancellor/Vice President.
- Provosts/Chancellors/Vice Presidents
- Review the requested capital improvement, assign a preliminary priority ranking to the request, submit it to the Office of Budget and Finance, and present it to the Capital Improvements Advisory Committee (CIAC) at budget hearings.
- Capital Improvements Advisory Committee (CIAC)
- Reviews each request and recommends system-wide priorities to the President to assist them in the preparation of the capital budget and six-year capital improvements program.
- President
- Prepare the capital budget and the capital improvements program for review by the Regents.
- Budget & Finance
- Prepare annual instructions and determine the level of funding available.
- Capital Planning and Project Management (TC campus)
- Prepare or approve project cost estimates. On the TC campus, assess, prioritize and submit projects to the capital budget process that relate to ADA access or repair or replacement. Maintain information database. Staff the CIAC committee and provide information to other units.
- Facilities Management / Plant Services (other campuses)
- On coordinate campuses, assess, prioritize and submit projects to the capital budget process that relate to ADA access, repair or replacement, hazardous material abatement or air quality.
- Environmental Health & Safety
- Assess, prioritize and submit projects to the capital budget process that relate to hazardous material abatement or air quality.
- University Building Official
- Assess, prioritize and submit projects to the capital budget process that relate to fire and life safety.
- Real Estate
- Approve appraisals for proposed land or facility acquisitions.
There is no FAQ related to this policy.
- Amended:
- April 2005 - Facilities Management changed to Capital Planning and Project Management.
- Amended:
- January 2000 - Updated Internal Loan Program information in Sources and Eligible Uses of Capital Project Funding appendix.
- Effective:
- August 1994
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