Capital Improvment Budget Guidelines

Capital Improvement Budget (CIB) Guidelines
(Updated January 2008)

BUDGET DATA Campus:  Identify Campus, Office of President Division, or DOE Laboratory facility responsible for the project. Project Title:  Provide a complete and accurate title as presented in the Regents Budget or the University's Capital Improvement Program and consistent with the project title used in the Project Planning Guide (PPG). Campus Reference: Provide the project plant account number of record for the project. Asset Number: For a project involving an existing facility, use the facility asset number of record of that structure. For a new building or structure, insert the new asset number if known, or leave blank. Cost indexes: Note that both State and Non-State projects use the California Construction Cost Index (CCCI) and University of California Equipment Price Index (EPI) system to index costs for inflation. However, the procedure varies between State and Non-State projects. (Note: a State project is any project that includes a formal State appropriation, even if it also includes other non-State funding; a Non-State project is one that is funded only from sources that do not include State appropriations). State: Use the CCCI and the EPI approved by the State for the budget year reflected in the CIB. Non-State: Use the forecast CCCI reflecting the initial contract bid date for construction in accordance with the project schedule contained in the PPG, and the forecast EPI.

A. Funding Schedule: This section is intended to present a breakdown of the project funding by fiscal year in which the funding is approved or appropriated, not the year in which it is expended. This results in a significant difference between a Funding Schedule for a State project and for a Non-State project, as is discussed below. Note that all funding figures in this section are presented in thousands of dollars only (round to thousands and delete the last three zeros). State:  As noted above for a State project, all funding not yet approved is shown in the fiscal year it is scheduled to be appropriated or approved. This means that funding may be shown for Preliminary Plans in one year, Working Drawings in the following year, etc. Non-State funding involved in a State project normally is shown the same way because its commitment is linked to that of each increment of the State funds. In a CIB for a State-funded project that includes some funding from non-State sources, the non-State source is identified by using one of the standard abbreviations (e.g. HR for Hospital Reserves, G for Gift funds, F for Federal funds, X for campus funds, and U combining various other University fund sources. All State funding is considered from one source and no special identification is needed. Place brackets around each funding entry for non-State funding to clearly distinguish it from State funding; for example: C [1,000] HR. In the "Totals" column, present the total for each phase of the project (e.g. P 444, W 600, C 2,000, E 175) without a breakdown by fund source. The "Prefunded" column should show all funding that has already been appropriated, with separate figures for each fund source in each phase and the identification of the phase and any non-State source. For each future fiscal year in which funding is anticipated, enter the dates for the appropriate year in at the head of the fiscal year column. Enter the funding in the appropriate column, showing (as noted above) separate figures for each fund source and each phase and identifying the phase and any Non-State source with the approved abbreviations. University of California Office of the President – Budget Office Guidelines for Preparation of the Capital Improvement Budget (CIB)

Non-State: For Non-State projects, all phases of funding are normally approved, by The Regents or as delegated, in a single action through amendment of the Capital Improvement Program. Therefore, all funding (P, W, C and E) wouldbe presented in a single column for the fiscal year that approval is sought; enter the appropriate fiscal year in the blank in that column head. Funding presented in the "Totals" column is summed by phase. Funding presented in the fiscal year columns is shown separately for each different fund source within each phase. The source of each funding element is identified in the fiscal year column using the appropriate "key abbreviation" from the full list of approved abbreviations (more detailed than the State project list; see attachment). B. Funding References: State: Use only if requested by OP. Non-State: The Plant Account Number for the project is to be shown on the "Account Number" line of the "Total All Sources" column. If multiple plant account numbers are used for a particular project, present each plant account number in same column which, in Section C: Costs below, contains the detailed breakdown of costs for that account.

C. Costs: This section is intended to provide a breakdown of costs by category of expenditure, rather than by project phase. A detailed description of each cost category is provided in the “Guidelines for Preparing Section C: Costs of the Project Capital Improvement Budget (CIB).” Figures are rounded to the nearest thousand in CIBs except at the time of project completion. These costs may be divided into separate columns when separate plant account numbers are used, or when desirable to clarify the implications of separate project elements (e.g. to separate the costs of a major renovation from that of a major addition within a project that includes both). In such a case, the subject should be identified in the column head, and the costs summed in the "Total" column. If only one set of figures is provided, it is presented in the "Total" column. The percentage distribution is provided in the column on the right, based on total PWC cost and rounded to one decimal place. Each item included on Line 8 "Special Items" is separately identified, with its cost, in the "Notes" section on Page 2 of the CIB. Line 9 "Construction Contingency" pertains to Cost Lines 0, 1, 2, and 4. The percentage in the left column is of the defined total construction cost. This line is for change orders during construction only. The figure for "Available Funding" is filled in only if there is a funding deficit or surplus, and should reflect the total project funding as approved and entered in Section A - Funding Schedule above. For State-funded projects, the total of "administrative" costs should not exceed the total construction cost (Lines 0, 1, 2, and 4) by more than 13% and “construction contingency” costs should not exceed the total construction cost (Lines 0, 1, 2, and 4) by more than 5% for new construction and 7% for renovation projects, except in unusual circumstances with approval of the Office of the President. University of California Office of the President – Budget Office

'''D. Funding Sources: State: '''Each source identified above in Section A - Funding Schedule is listed and the total funding from that source presented in the right hand column and summed at the bottom. Sources should be identified using the following generic titles: State Funds, Hospital Reserves, Gift Funds, Campus Funds, or University Funds (to reflect various other University sources). UCOP may request other descriptions as appropriate to a specific project. Identify individually the approved fund sources and amounts corresponding to the funding sources identified in''' A: Funding Schedule. '''For a State project involving a request for approval of an augmentation, show the augmentation by source, separate from prior approved fund sources. Prior to bid, this proposed augmentation amount will not be included in A: Funding Schedule, but will be reflected as a “deficit” in C: Costs; however, once bids are received and if the decision to proceed requires a budget augmentation Sections A and C will be updated to reflect the higher budget. (Section D still should show the separate amount by fund source for the augmentation.).''' Non-State: '''Each fund source identified in Section A: Funding Schedule is listed by title as defined below, and the total funding from that source is presented in the right hand column and summed at the bottom. Acceptable wording includes: External Financing Campus Funds University Funds Registration Fee Reserves Hospital Reserves Gift Funds''' Wording that should not be used includes: '''Commercial Loan Pool 2 Equity Parking Fees

E. Project Status: The objective is to report the status of work on which the CIB cost information is based, using consistent terms that allow computer search. At the time a PPG is prepared and first submitted for approval, this normally should read "PPG Submission" and reflect a concept budget analysis. Subsequent steps may include the following. When appropriate, add further clarifying notes in parenthesis. "Preliminary Plans in preparation" (i.e. prior to completion of schematic design) "Completion of Schematic Design" "Completion of Preliminary Plans" "Working Drawings in preparation" (or __% complete) "Completion of Working Drawings" "Award of Construction Contract" "Completion of Construction" Signatures: To be approved, the CIB must be signed by the person authorized by the campus to make capital budget commitments for the campus. Budget Number and Date: Each CIB must be dated when issued and when subsequently revised. The sequence starts with "Budget No. 1" and its revisions. No. 1 typically reflects the concept budget, No. 2 preliminary plans, No. 3 working drawings, etc, but actual usage may vary by campus. In all cases, the numbering must allow the sequence of budget changes to be clearly and accurately tracked. University of California Office of the President – Budget Office Guidelines for Preparation of the Capital Improvement Budget (CIB)

Page 2: ANALYTICAL DATA Note: This page is required only for projects involving building area; it is not needed for infrastructure projects unless required for inclusion of notes in Section H - Notes. Campus, Project Title, Project Number, Asset Number, and Cost Indexes fields should be completed as on Page 1. F. Analytical Data: Individual figures should be provided in separate columns for each project element defined in similar separate columns under Section C - Costs on Page 1. If only one set of figures is provided, use the "Total All Sources" column. Areas: ASF per PPG: Enter the project assignable square feet as defined in the most recent PPG that was approved (e.g. the original PPG or a subsequent amendment that was approved and, for State PPGs, was acted upon by the State). Enter the date of that PPG on the line in the left column. ASF Current: Leave blank if this is the first PPG. If not the first PPG, enter the current assignable square feet of the project as reflected in this CIB. OGSF Current: Current outside gross square feet of the project as reflected by this CIB. If the project is for renovation, this figure may not be available, in which case "N/A" should be entered instead. Ratio (ASF Current / OGSF): Enter current ratio of ASF to OGSF as a percentage to one decimal. Unit Costs: Intent of the construction cost items is to provide pertinent information for evaluation of cost per square foot of space. If large, special costs confuse this basic information, such costs may be footnoted and excluded from the construction unit costs as presented here (review with Office of the President). Construction Cost per ASF: Use the building construction cost from Line 1 in Section C: Cost on Page 1, and divide by the current ASF from above. Construction Cost per OGSF: Use the building construction cost from Line 1 in Section C: Cost on Page 1, and divide by the current OGSF from above. Enter "N/A" if no OGSF figure is available. Total PWC Cost per ASF Total PWC Cost per OGSF Group 2&3 Equipment Cost per ASF H - Notes: Use this section to itemize Cost Line 8 "Special Items", to clarify aspects of a particular budget item or cost that are confusing, or to explain contingencies, administrative costs, or other items that do not conform to guidelines. EXAMPLE AND TEMPLATE The intent is to maintain precise consistency in format because of the complexity of the form and resulting difficulty in review of many projects internally or by the State (template, example).