capital outlay draw request process new mexico ... projects/summer...new mexico higher education...
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NEW MEXICO HIGHER EDUCATION DEPARTMENT
Capital Outlay Draw Request Process
Susana MartinezGovernor
Dr. Barbara DamronCabinet Secretary
March 30, 2016
NMHED INSTITUTIONAL FINANCE DIVISION
Dr. Harrison Rommel, Interim Institutional Finance Director
Ronald James, Capital Projects Director
Scott Eccles, Institutional Finance Auditor
Paula Escudero, Financial Coordinator
Loretta Marquez, Financial Coordinator
PURPOSE OF THE PRESENTATION
State Bonds General Obligation Bonds Severance Tax Bonds
Process for Funding from appropriations Grant Agreements Notice of Obligation (NOO) Paper Periodic Reports Monthly Reporting
PURPOSE OF THE PRESENTATION
Process for Reimbursement from appropriations Draw Requests Thresholds Soft Costs
Questions
STATE BONDS AND FUNDING
General Obligation BondsSeverance Tax BondsOther State Funding Sources
GENERAL OBLIGATION BONDS
These occur every other year, in an even year. Funding for GOB is mainly from property tax Part of the GOB funds large construction
projects. Higher Ed received: 2014 - $139,755,000 2016 - $131,456,000 if approved by voters
GOB also funds State Libraries - NMCAL $3,500,000 in 2014 $3,250,000 in 2016
SEVERANCE TAX BONDS
These occur every year Funding for STB is from oil, gas, metals,
uranium, and other items “severed” from the ground
These fund smaller projects Funded around $34M in 2015 2017 Higher Ed STB appropriation may only be
around $10M for all IHEs
EXECUTIVE ORDER 2013-006Establishing Uniform Funding Criteria and Grant Management and Oversight
Requirements for Grants of State Capital Outlay Appropriations by State Agencies and Other Entities
GRANT AGREEMENTS
WHY IS THE GRANT AGREEMENT USED?
For any funds that pass through a State Agency Independent Community Colleges Tribal Institutions NMCAL
For an understanding on how the funds are to be used per the bond language
FIN 9.2 Grants Management – Funding Criteria and Oversight Requirements
Pertains to tribal and non-tribal colleges The complete FIN 9.2 can be found on the DFA
Capital Outlay Bureau Requires that the DFA Grant Agreement
template be utilized. Audits have been performed
Material weaknesses, significant deficiencies and findings have be remedied
Have an approved annual budget
EXECUTION OF THE GRANT AGREEMENTS
Happens after Bonds are sold by State Board of Finance (SBOF)
Signature Authority requests are sent out to each Institution’s Finance Staff
Grant Agreements completed and sent to the person listed as the Representative and signed
HED signs the Agreement (Legal Counsel, then the Draw CFO, and Secretary)
Then draw process may begin for reimbursement
DOCUMENTS WITHIN THE GRANT AGREEMENTS
Draw Request Form Notice of Obligation (NOO) Paper Periodic Reports
NOTICE OF OBLIGATION (NOO)
Must be submitted for each contractor/supplier/vendor Anything to be purchased with the appropriation No minimum limit NMCAL is the exception
Submit the NOO with backup data Design Professional’s agreement Contractor’s agreement Cost Proposal – not estimate Institution’s Purchase Order - before issuing
NOTICE OF OBLIGATION (NOO)
Must be submitted prior to signing any agreement IF HED does not have an NOO, then the State is not
obligated to reimburse
Submit by email only in PDF form If too big, access to the ftp website can be provided
PDF is to be labeled:NOO [DFA #] [Inst. Acronym] - [vendor] [20xx-mm-dd]Ex: NOO 15-0965 SJC – CES Honeywell 2016-02-17
PAPER PERIODIC REPORT (PPR)
Must be submitted monthly IF HED does not have up to date PPR, then draw
requests will not be processed Must submit for each vendor Also required for NMCAL
Submit by email only in PDF form PDF is to be labeled:PPR [DFA #] [Inst. Acronym] - [vendor] [20xx-mm-dd]Ex: PPR 14-1302 SFCC – Johnson Cont 2016-03-31
CAPITAL PROJECTS MONITORING SYSTEM (CPMS)
Must report: Monthly for Independent Colleges and Tribal
Institutions Quarterly for Constitutional and Branch Institutions HED does NMCAL reporting
Has to be done by the 15th of that month
QUESTIONS?
BONDS AGAIN AND DRAW REQUESTS
5% spent in the first 6 months after funds are available
85% spent within 3 years Not meeting these requirements moves bonds
from non-taxable to taxable Same as if bonds are not spent correctly
HOW YOU MAY RECEIVE SOME INVOICES
DRAW REQUESTS
Draw Request and Certification - Utilize CPMS for Bond Information
General Ledger Check Detail must accompany the draw request
Expenditures must be per the language of the appropriation
Invoices and/or receipts to support the expenditure must be submitted Verification that they have been paid Draws are reimbursement Emphasize or highlight items that are part of the draw
and on the General Ledger Check Detail
DRAW REQUESTS
Notice of Obligation must be approved prior to entering into agreement with vendor No draw request will be approved unless an
approved NOO is in place
Draws must be over $1,500, except the final Draw
PPR and CPMS must be current
DRAW REQUESTS Hard copies with original signatures
Emailed Draw Requests will not be accepted Not wanting them to get lost with other emails
HED submits draw requests to SBOF on the 1st
and 15th before 3:00 each month Draws must be submitted to HED by the 8th or 23rd
Only one draw per DFA funding number per draw period
Draws must be over $1,500, except the final
WHERE ARE DRAW REQUESTS FIT IN THE PROCESS
THRESHOLDS
Before Constitutional Institutions can submit any draw request to SBOF they must have HED verification of required review compliance
Thresholds for projects If FTE over 1,500 >> $300,000 If FTE of 1,500 or less >> $50,000
Require NMHED Project Approval Verification form found on the HED website
THRESHOLDS REQUEST
When requesting, submit the following: Project Approval Verification spreadsheet in EXCEL Project Description - the location, size of the project in gross
square feet (GSF), its contents, general nature of space/use and any special characteristics.
Is this part of a larger project? Cost breakdown, or manufacture’s information and cost
proposal What is the schedule of these projects?
Start or purchase date Project completion date Status of professional services and amount of those services
Statement if other funds involved Additional questions will be emailed if necessary
SOFT COSTS
For projects over the thresholds, but not ready for HED Capital Project Committee review
What is classified as Soft Costs: Design Professional fees –Architects/Engineers Surveyors Geological Engineering and other testing Existing Conditions Verifications
These are items necessary to provide a submittal to HED for the Committee meeting
SOFT COSTS
Requirements for payment of soft costs: Dollar amount requested to be reimbursed Total Construction Cost (T.C.C.) of the project
Not including soft costs Need paid statements/invoice of vendor Banner Screen Shot When project will be submitted to HED Existing Conditions Verifications
The soft cannot be more than 1% of the T.C.C
Thank you for attending
QUESTIONS?