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Section 5: Capital Project Accounting

Institutionally Managed Capital Projects
(Budget Group 36-6XXX-XX and 36-8XXX-XX) Procedures

Effective Date:

02/08/10

Approved By:

Janet Parker, Associate Vice President for Financial Affairs

Last Revised On:

04/27/10

For Assistance Contact:

Assistant Vice President, Financial Affairs and University Controller: (210) 458-6914
Capital and Special Project Accountant:
(210) 458-6167

PURPOSE/scope

This guideline provides UTSA departmental personnel with the approval, accounting and payment procedures for institutionally managed capital projects.

AUTHORITY

UTSA must maintain a record of all capital expenditures to satisfy state and UT system reporting requirements, as per UT System Administration Policy UTS 168-Capital Expenditure Policy.


UNIVERSITY GUIDELINES

Table of Contents

A. Overview

Institutionally managed projects are projects managed by UTSA, rather than by the UT System Office of Facilities, Planning and Construction (OFPC). A project is automatically designated as institutionally managed (and not included in the CIP, unless it is funded in any part with debt) if it is a:

However, OFPC will manage such projects if requested to do so. Projects that exceed these thresholds are managed by OFPC unless designated institutionally managed by the Board of Regents (BOR).

NOTE: Although OFPC does not manage institutionally managed projects, it could still be involved in the project because OFPC records appropriations and expenditures of debt proceeds on behalf of the BOR.

B. Initiating a Project

UTSA department personnel may request construction via an institutionally managed project by completing a Work Request form that is available on the UTSA Office of Facilities (Facilities) website.

EXAMPLE:  A major renovation to an entire floor of a building or a major repair to UTSA’s infrastructure such as boiler may be considered an institutionally managed project, as long as the total project cost does not exceed $4 million.

NOTE: For more information on how to complete the form, see the form for complete instructions.

C. Reviewing Submitted Project Requests

  1. The Office of Facilities reviews departmental requests for institutionally managed projects via a completed Work Request Form.

  2. The scope of work and estimated project cost is identified and documented on a Project Cost Estimate form, with the exception of CIP Projects and/or Deferred Maintenance approved projects.

  3. The Project Cost Estimate Form is forwarded to the requesting department for review and approval.

D. Identification and Approval of the Project Scope and Funding Source

  1. The requesting department must review the Project Cost Estimate form received from the Office of Facilities for the following:

    • The request type and project scope are accurate.

    • The total project cost (TPC) estimate amount is approved.

    • The correct funding source(s) are identified and funds are available.

    • Major repairs and rehabilitation of buildings and facilities may be purchased from appropriated funds, but may not be purchased from general revenue (state) funds that are not expressly identified or allocated for such purposes.

    • Projects that include funds previously allocated for deferred maintenance (from accounts 36-6100-01 or 36-6100-02), a Deferred Maintenance Transfer Request Form signed by the AVP for the Office of Facilities is required. For projects greater than $25,000, documentation with approval from the VP of Business Affairs is required.

  2. The authorized administrator for the funding source(s) and the Vice President (or Vice President’s Designated Representative) must sign the form.

  3. The completed and signed form must be returned to the Office of Facilities for further processing.

E. Account Set-up and Maintenance

Responsibilities for the account setup and maintenance process are determined by total project cost (TPC).

1. Projects with a TPC less than $100,000

  1. The Project Cost Estimate form is signed and retained by the Office of Facilities.

  2. Funds are expended directly from the funding source identified on the Project Cost Estimate Form and coordinated by the Office of Facilities.

  3. The requesting department is responsible for assuring that the account expenditure is correctly coded from a NACUBO program perspective.

    NOTE: UTSA reserves the right to transfer substantial project amounts to appropriated coded accounts for such projects (Plant Operations & Maintenance).

2. Projects with a TPC of $100,000 or greater

  1. The Project Cost Estimate Form is signed by the project requestor and returned to the Office of Facilities.

  2. Facilities Business Operations forwards the form to the Financial Affairs/Controller’s Office - Capital & Special Projects Accountant.

  3. The Capital & Special Projects Accountant reviews the form for completion, accuracy and funding.

  4. The form is forwarded to Accounting Services to create a construction account:

    • If the funding source is Auxiliary, an account is created in the 36-8 budget group.

    • If the funding source is Designated Funds, an account is created in the 36-6 budget group.

  5. The Capital & Special Projects Accountant completes a transfer to the newly created construction account from the funding source identified on the Project Cost Estimate.

  6. The Project Cost Estimate Form is reviewed by the Assistant VP Financial Affairs/Controller and signed, then returned to the Office of Facilities.

  7. Upon selection of a vendor, the Office of Facilities forwards the completed Project Cost Estimate Form, contract and other documentation to the Vice President of Administration for execution of the contract.

F. Payment Process

The Office of Facilities identifies construction costs from institutionally funded projects.

  1. If the project is performed by:

    1. An external vendor: The vendor submits the invoice(s) to the Office of Facilities as construction work is completed and/or in accordance with the terms and conditions of the contract.

      NOTE: External vendors are selected and approved in accordance with established bidding guidelines and procedures. See the UTSA Purchasing & Distribution Services Department Terms of Conditions of Bid for more information.

    2. Facilities: The Office of Facilities creates the invoice(s) and an interdepartmental transfer (IDT).

  2. The appropriate payment document and supporting documentation are forwarded to the Disbursements & Travel Services office for processing.

  3. Disbursements & Travel Services approves the voucher and processes the payment. The voucher is forwarded to Accounting Services.

  4. Accounting Services reviews the voucher to:

    1. Verify that the proper object code is used; and

    2. Whether the project meets the capitalization thresholds.

G. Project Status

Quarterly, the Office of the Assistant V.P. for Financial Affairs/Controller prepares a Capital Project Status Report. The report includes:

The report is sent to the Office of Facilities to update the estimated date of completion and current status field. The final report is sent to the Associate V.P. for Financial Affairs for dissemination to other appropriate audiences.

H. Project Close-out

A Project Close-Out form is completed by the Office of Facilities once construction is completed and contains the total amount expended for the project, project budget and excess funds remaining.

  1. The form is signed by the Office of Facilities.

  2. The completed form is sent to the Capital and Special Projects Accountant to transfer the remaining funds, if appropriate, back to the account that funded the project.

  3. The Capital and Special Projects Accountant initials the form and returns to the Office of Facilities who forwards a copy to the department.


definitions

See Administrative Guideline 2.5.1 – Financial Management of Capital Assets for definitions.

references/links

See Administrative Guideline 2.5.1 – Financial Management of Capital Assets for references.

related forms/worksheets

See Administrative Guideline 2.5.1 – Financial Management of Capital Assets for a list of related forms.


revision history

Date Description

04/27/10

Modified the Identification and Approval of the Project Scope and Funding Source section to include CIP projects supplemented by institutional funds. Also, completed additional edits to the Initiating a Project and Account Set-up and Maintenance sections.

02/08/10

Published guideline.

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Designed & maintained by Financial Affairs—Last update: February 27, 2012