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Section 5: Capital Project Accounting

Institutionally Managed Capital Projects

Effective Date:

02/08/10

Approved By:

Lenora Chapman, Associate
Vice President for Financial Affairs

 

Last Revised On:

10/12/12

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 the approval, accounting and payment procedures for institutionally managed capital projects.

AUTHORITY

UT System Policy UTS168, 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 UT System-managed Capital Improvement Program (CIP) if the project is:

  • new construction or repair and rehabilitation under $4 million,
  • not funded with debt, and
  • not architecturally or historically significant.

 However, OFPC will manage such projects if requested to do so.  Projects that do not meet these criteria are managed by OFPC unless designated as institutionally managed by the UT System 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 departments may request  an institutionally managed construction project by completing the Major Project Request form available on the UTSA Office of Facilities (Facilities) website (instructions are included in the form)..

EXAMPLE:  A major renovation of an entire floor of a building or a major repair to UTSA’s infrastructure (such as a boiler) may be considered an institutionally managed project as long as the project  does not exceed $4 million, is not architecturally or historically significant, and is not funded with debt.

C. Reviewing Submitted Project Requests

  1. Facilities reviews the completed Major Project Request form.
  2. The scope of work and estimated project cost are identified and documented on a Project Cost Estimate (PCE) form, with the exception of CIP Projects and/or Deferred Maintenance approved projects.
  3. The PCE form is sent to the requesting department for review and approval.  

 

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

The requesting department reviews and approves the PCE form to ensure the following:

    a. The request type and project scope are accurate;
    b. The total project cost (TPC) estimate amount is approved; and
    c. The correct funding source(s) is identified and funds are available.

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

      ·The authorized administrator(s) for the funding source(s) and the appropriate Vice President or designee must sign the form.
      ·The completed and signed form is returned to Facilities for further processing.

E. Account Establishment and Maintenance

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

1. Projects with a TPC less than $100,000
    a. The PCE form is signed by the project requestor and retained by Facilities.  
    b. Funds are expended directly from the funding source identified on the PCE form and coordinated by Facilities. 
    c. The requesting department is responsible for assuring that the expenditure account  has the correct NACUBO Program Code (see FMOG Chart of Accounts). 
UTSA  may transfer project amounts to appropriately coded accounts for such projects.
2. Projects with a TPC of $100,000 or more
      a. The PCE form is signed by the project requestor and returned to Facilities.
      b. Facilities Business Operations forwards the form to the  Capital and Special Project (CSP) Accountant.
      c. The CSP Accountant reviews the form for completion, accuracy and funding.
      d. The form is forwarded to Accounting Services to create a construction account: 
        1. If the funding source is Auxiliary (see FMOG Chart of Accounts), an account is created in an Auxiliary Enterprises fund account. 
        2. If the funding source is Designated Funds (see FMOG Chart of Accounts), an account is created in a Designated fund account. 
      e. The CSP Accountant completes a transfer to the newly created construction account from the funding source identified on the PCE form..
      f. The PCE form is reviewed and signed by the Assistant Vice President for Financial Affairs/University Controller (AVPFA/Controller) and returned to Facilities.
      g. Upon selection of a vendor, Facilities forwards the completed PCE form, contract and other documentation to the Vice President of Administration for execution of the contract.

F. Payment Process

Facilities identify construction costs from institutionally funded projects.

    1. If the project is performed by:
      a. An external vendor: The vendor submits invoices to 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.

      b. Facilities: Facilities creates the invoices and interdepartmental transfers (IDTs). 

    2. The appropriate payment document with supporting documentation is forwarded to Disbursements and Travel Services (DTS) for processing.

    3. DTS approves the voucher and processes the payment. The voucher is forwarded to Accounting Services.

    4. Accounting Services reviews the voucher to:
      a. Verify that the proper object code is used; and
      b. Determine whether the project meets applicable capitalization thresholds.       
                                                                                                                                                   

G. Project Status Report

The Office of the AVPFA/Controller prepares a Capital Project Status Report quarterly. The report includes:

  • budget information,
  • amount expended,
  • amount encumbered, and
  • available budget balance.
The report is sent to Facilities to update the estimated date of completion and current status field.  The final report is sent to the Associate Vice President for Financial Affairs for dissemination as appropriate.

H. Project Close Out

Form 4/5, also referred to as the Project Close Out Form or the Construction Project Completion Report,  is completed by Facilities when construction is completed and expenses are no longer recorded against the project.  The form includes the total amount expended for the project, the project budget and any excess funds remaining. The form is signed by Facilities and sent to the CSP Accountant to transfer any remaining funds back to the account that funded the project.  The CSP Accountant then initials the form and returns it to Facilities.  Facilities sends a copy to the department.


definitions

None at this time.

 

references/links

UT System Policy UTS168, Capital Expenditure Policy
(http://www.utsystem.edu/bor/procedures/policy/policies/uts168.html)

related forms/worksheets

1.  Major Project Request Form

2.  Construction in Progress Transfer Request Form

3.  Project Cost Estimate Form

4.  Deferred Maintenance Transaction Request Form

5.  Form 4/5 (sample)


revision history

Date Description

10/10/12

Updated title of FMOG. Added links/references/forms and updated existing links. Edits for language consistency.

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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