PROJECT APPROVAL REQUEST (PAR) A refresher on Source and Use template

PROJECT APPROVAL REQUEST (PAR) A refresher on Source and Use template preparation October 21, 2021

THE BRIEF AGENDA The Project Approval Request (PAR) Instructions Capital Source and Use Template Use Case – Example – North Campus Residential Expansion

The Project Approval Request (PAR) Instructions Four page document rich in definitions and tools for support Provides guidance on the proper entry of the Source and Use template Breaks down the role of the Project Manager and the Finance Manager

Project Funding (through this PAR) Section 1: Project Funding (through this PAR) Identifies how the project will be funded Current Request (i.e. “this PAR”) Previous Request (i.e. “to-date”) Place associated account numbers and dollar amounts next to the appropriate funding source. Bolded Funding Sources (Gifts In Hand), represent calculated fields This section should be filled out by the Finance Manager(s).

The Project Approval Request (PAR) Instructions Should be referenced when completing Section 1: Project Funding (Through this PAR) of the Source and Use Template.

The Project Approval Request (PAR) Instructions Funding source definitions continued

The Project Approval Request (PAR) Instructions Transfer Guidance When transferring funds into capital project accounts, transactions must include the proper KFS Project Code Using the Sub-Fund Group Code for the funding source, use the table to determine the proper Project Code.

The Project Approval Request (PAR) Instructions Transfer Guidance Continued

Timing of Estimated Total Project Budget Funding Sources Section 2: Timing of Estimated Total Project Budget Funding Sources Input the estimated timing of need for funding in hand Funding Sources are required to be committed (i.e. in-hand) at the time of circulation of the PAR for each phase. Timing should reflect each expected value and the fiscal year during which the PAR is expected to circulate This section should be filled out by the Finance Manager(s).

Timing of Estimated Total Project Expenditures Section 3: Timing of Estimated Total Project Expenditures Input the estimated timing of the cash flow of expenditures over the project life, that is when the spending is anticipated It is not required that fiscal years align with the funding source commitments as long as funding is committed before it is expended. Fiscal Year Surplus/Deficit line calculates any differences between the estimated project funding sources and project expenditures. This section should be completed by the Project Manager.

Project Contact Information Section 4: Project Contact Information Enter Name, Net ID and Phone Number of both the Unit Finance Manager and the PAR Finance manager responsible for funding the project Contact for Transfer of Funds: Individual responsible for authorizing the transfer of funds. Backstop Funding Source: An alternative funding source to be used, if and only if the funding sources outline in the PAR worksheet are unavailable or depleted. This section should be completed by the Finance Manager(s).

Example – North Campus Residential Expansion Project Information Capital Budget Project Name: North Campus Residential Expansion LV Capital Budget Number: 0010 Capital Budget: 250,000,000 - 329,450,000 Funding Sources: Unit Funding and Debt Financing Project Phases: Phase 1 - Project Plan and Conceptual Design Phase 2 – Design and Construction Phase 3 - Project Budget Variance

Example – North Campus Residential Expansion Phase 1: Project Plan and Concept Design

Example – North Campus Residential Expansion Phase 2: Design and Construction

Example – North Campus Residential Expansion Phase 3: Project Budget Variance

Resources and Support PAR Instructions: https://dbp.cornell.edu/home/offices/university-budget-office/additio nal-resources / Capital Planning Help EGA: [email protected]

Questions?