Capital Improvement Budgeting Procedures
REG 07.15.2
Authority: Vice Chancellor for Finance and Business
History: First Issued: February 1, 2002
Contact Info: NCSU Budget Office Director (919-515-2175)
1. General Guidelines
The following provide general guidance on the establishment, maintenance,
and control of capital improvement project budgets.
1.1. Memorandum, Office of State Budget and Management, (New Capital Budgeting
Procedures, dated July 9, l982)
1.2. Budget Manual, Office of State Budget and Management
1.3. UNC Board of Governors and UNC General Administration
2. Capital Improvement Project Definition
2.1. A renovation, repair or major maintenance to existing facilities, a major
landscape improvement, land or one-time major equipment purchase, or a utility
modification in excess of $100,000 and are accounted for in the University's
capital improvement budget code.
2.2. All new construction projects are categorized as capital
improvement projects regardless of their cost.
2.3. If the project is clearly a repair to an existing facility, then we may
request State Budget Office approval to do the project as a repair from
operating funds. This approval should be secured before proceeding with
the project and must follow State Construction guidelines for completion.
3. Project Approval Process
3.1. A capital improvement project funded from state funds must be approved
as a part of the State Biennial Budget process. It requires the approval
of the UNC Board of Governors, the Governor and the General Assembly.
3.2. A capital improvement project funded from non-state sources (gifts, federal
or private grants, trust fund revenues, or other receipts) may be submitted
for approval at any time on an individual project basis. The project, including
the source of funding, requires the approval of the Vice Chancellor for
Finance and Business, UNC Board of Governors and the Governor.
4. Establishment of a Capital Improvement Project
4.1. For a project that is included in the University Biennial Budget, the
college, school, department, or division must send proposals in writing,
in response to the budget call, to the Office of Campus Planning for an
OC-25 to be established. These proposals are presented at Campus Budget
Hearings to a University Budget Committee and, if approved, are submitted
in the form prescribed by UNC General Administration to the UNC Board of
Governors with a recommended University priority for each proposal. The
proposal then follows the approval process set forth above in #1 under the "Project Approval Process" section.
4.2. For a project established outside the biennial budget process, the need
and method of financing is submitted by a college, school, department, or
division, to the Vice Chancellor for Finance and Business. If the University
Administration grants approval, the proposal will be referred to the Office
of Campus Planning for processing. A cost estimate is prepared and sent
to the Office of State Construction for approval of the estimate. Once approved,
a written request justifying the need and identifying the funding source
is submitted to the Vice Chancellor for Finance and Business and to UNC-General
Administration where it follows the approval process specified above in
#2 under the "Project Approval Process" section.
5. Project Management Responsibilities
5.1. The Offices of Facilities Planning & Design and Construction Management
are responsible for the construction contract award, the day-to-day construction
progress by the contractor, the approval of invoice payments for all active
contracts, and serving as liaison between the University and the contractor.
5.2. The University Budget Office is responsible for creating and maintaining
a budget for each approved project; processing all state budget revisions
and allotments to establish, increase, decrease, or close-out a project;
and all accounting functions including payment of all invoices and preparing
and submitting all monthly and special reports for Capital Improvements
Projects.
6. For Additional Information
6.1. For information regarding establishment of a project or status of a current
project, please call Facilities Planning & Design (515-2121) or Construction
Management (515-2989).
6.2. For information regarding the budget or expenditures on a project (current
or new project), please call University Budget at (515-2175).
