Policy: XIII.D.2x (inactive)
Issued: February 9, 1994
Owner: Chief Facilities Officer
FACILITIES MANAGEMENT - CAPITAL BUDGET PROGRAM
This policy has been replaced and migrated to the standardized format.
This policy describes the general guidelines for Facilities Management's Capital Budget Program.
2.0 Policy [Top]
Along with affected departments, Facilities Management develops the details of the University's capital budget program for the construction, renovation, improvement, or repair of buildings and facilities. The Senior Cabinet has final approving authority over the capital budget program.
Policy III.A.1, "Budgeting and Budgeting Process."
Capital budget programs are developed on a biennial basis to submit to the General Assembly during even-year sessions. Included are one-time, non-recurring (project oriented) expenses associated with property, plant, and equipment. Each capital project proposed requires detailed justification and study for projects proposed for the forthcoming biennium. There are two submissions associated with capital projects as follows:
- Capital Budget Proposal
The Capital Budget Proposal sets forth the University's perceived capital project needs in priority order, and relates these needs to programs and services. The information is depicted at the agency level: Academic Division, Medical Center Division, and Clinch Valley College. The Capital Budget Proposal is prepared in detailed format to answer specific programmatic questions.
- Preplanning Study
The Preplanning Study presents the more detailed architectural, engineering, and technical information associated with a particular capital project, confirms the technical feasibility, and refines the project cost data. Not all projects included in the Capital Budget Proposal are subject to Preplanning Study requirements.
A Preplanning Study is required when the capital project involves:
- New construction or purchase of a facility which contains in excess of 20,000 square feet or costs in excess of $1,000,000.
- Improvements to existing facilities which exceed $500,000.
- Acquisition of Facilities, if so determined by the Commonwealth's Department of Planning and Budget.
No Preplanning Study is required for major repair projects included in maintenance reserve or for a multiple project appropriation (e.g., umbrella capital appropriation).
Preplanning Studies may be developed by outside architectural or engineering consultants or Facilities Management. Typically, a Preplanning Study is conducted in the biennium preceding that in which project funding is anticipated.
The Senior Cabinet issues detailed guidance for preparing each capital budget program, based upon the current state requirements and guidelines stated in the Commonwealth Planning and Budgeting System Manual. Commencement of the capital budget planning process is announced to all deans and department heads in sufficient time to permit their input.
3.0 Definitions [Top]
4.0 References [Top]
5.0 Approvals and Revisions [Top]
This policy has been replaced by Oversight of University Operating and Capital Budgets and Long-term Financial Plans on 6/8/09.