capital outlay draw request process new mexico ... projects/summer...new mexico higher education...

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?