Vice President for Finance and Administration
Vice President for Finance and Administration
|April 8, 2019|
Last Revision Date:
This policy describes procedures for development of fixed capital outlay project furnishings and equipment budgets and the expenditure of funds designated for this purpose.
This document describes procedures for determining furnishing and equipment budgets, budget approvals, and coordination with construction projects.
A. RESPONSIBILITY FOR FURNISHING AND EQUIPMENT BUDGET
The Sr. Associate Vice President for Facilities, or designee, is responsible for the development and approval of the Fixed Capital Outlay Project Furnishings and Equipment (F&E) Budget. The Budget should be developed with consideration given to availability of existing equipment, other fund sources available for replacement or enhancement of equipment to support program functions, and conformity to guidelines for eligibility of items as fixed capital outlay expenditures.
B. ELIGIBLE FIXED CAPITAL OUTLAY F&E EXPENDITURES
Generally, the F&E portion of a Fixed Capital Outlay Project Budget is restricted to moveable furnishing and equipment items to be housed within the facility. The following types of expenditures are eligible as charges to a Fixed Capital Outlay (appropriated) Project F&E Budget:
- Moveable furniture, e.g. chairs, desks, tables, open office partitions.
- Moveable equipment to be located within the facility such as portable machines, lab equipment, building maintenance or cleaning equipment, computers, and telecommunication equipment such as phone instruments, routers and servers for internet access, card readers, and classroom AV equipment.
- Furnishings that are not required to make the building functionally operational, such as window treatments.
- Equipment that directly supports programs or activities to be housed within the facility and requires some installation such as equipment that must be mounted to a wall or permanently connected to utilities, providing the equipment does not include essential building systems components.
- Telecommunications wiring to user stations, i.e. terminated at the data outlet.
- Delivery and installation charges for eligible equipment may be included in an F&E Budget.
- Moving costs for purchased or re-used equipment which requires special expertise, such as manufacturer’s certification, or moving costs when the magnitude of the moving task is beyond the normal capability of the University to perform.
- Computers and software purchases shall be reviewed for eligibility. Recurring costs are not eligible. Computer/software required to operate building systems should be included in construction costs.
C. INELIGIBLE F&E EXPENDITURES IN A FIXED CAPITAL OUTLAY BUDGET
Due to their necessary role in building function, the following items are generally ineligible in a Fixed Capital Outlay F&E Budget and should be included in a Construction Budget:
- Equipment, such as fume hoods and exhausts, which operate as essential components of the building mechanical system are not eligible to be included in an F&E Budget.
- Built-in equipment such as laboratory casework, benches, and cabinets that are required to make the building function.
- Floor coverings, such as carpet, sheet vinyl, or LVT.
- Any item required to make the building function for its intended purpose.
- Fixed seating, such as auditorium or fixed classroom seating, should be included in the Construction Budget.
D. BUDGET DEVELOPMENT
For Projects whose construction cost exceeds $2,000,000.00, budgeting for F&E begins in the Facilities Program developed by FSU Planning and Space Management or by an independent programming consultant. For Projects whose construction cost is less than $2,000,000.00, the project team meets during Project kick-off to determine if new F&E is required to assure project functionality. Specifics of F&E Budgets are determined through early discussions with the user department. After the construction is awarded and the project schedule has been established, the project team holds a meeting to finalize the F&E list. The team evaluates the project needs, the lead time for procurement, the time necessary to fabricate and deliver, and installation requirements for the F&E. Generally, budget development and F&E procurement begin 6-12 months prior to Substantial Completion in order to allow for availability immediately after Substantial Completion of the construction. The user department representative signs the proposed list, acknowledging those items to be purchased, and the proposed list is submitted to the Sr. Associate VP for Facilities or designee for approval.
E. F&E PURCHASES FROM FACILITIES ACCOUNTS
F&E purchases funded by appropriated budgets or carryforward accounts managed by Facilities are selected from the approved list and are competitively procured following Purchasing processes. FD&C ensures that the Budget is available in Construction Accounting, then transmits a copy of the approved list to the user department for entering of requisitions. The requisitions are submitted to FD&C for approval by the Project Manager, who reviews the requisition for consistency with the approved list and maintenance of the overall Budget. At Project completion, savings or unexpended funds are not eligible for transfer into department budgets.
F. F&E PURCHASES FUNDED BY DEPARTMENT FUNDS
If F&E is funded by department funds and transferred to Construction Accounting for management by FD&C, unexpended balances will be returned to the department.
G. F&E INVOICES
F&E invoices are submitted electronically to the Facilities Design and Construction Project Administration email. for review by the Project Administrator and approval by the Project Manager. Invoices are paid within statutory time limits.
III. LEGAL SUPPORT, JUSTIFICATION, AND REVIEW OF THIS POLICY