Original Issuance Date: May 1, 2019
1. Policy Purpose
This policy establishes the parameters for financing University of Wisconsin (UW) Managed Gift & Grant funded capital projects within the UW System.
2. Responsible UW System Officer
Senior Associate Vice President for Capital Planning and Budget
This policy applies to University of Wisconsin System institutions that undertake capital projects financed using entirely gifts and/or grants and as defined in this policy.
In July 2015, as part of Wisconsin Act 55, the statutes were amended to allow the University of Wisconsin System to manage capital projects funded entirely through gifts and grants. The statute requires institutions to utilize only gift and/or grant funds to support capital projects and provides no opportunity for the substitution of non-gift/grant funding in lieu of the statutorily mandated funding source.
A/E: Architect or engineer retained to provide professional consulting services for feasibility studies, planning, and preparation of design and construction drawings, environmental and cost estimating.
Financing Plan: A plan that delineates a scheduled outlay for funding through the life of the capital project. A financing plan describes the sources of the funds and back-up plan(s) in the event gift funding does not materialize, is executed by the chief financial/business officer, and ratified by the University of Wisconsin System Administration (UWSA) Office of Financial Administration.
Account: The project specific account approved by UWSA Office of Financial Administration in the financing plan.
Funding: Gift or grant funds are a source of financing from donations (both restricted and unrestricted) or by federal grant, state grant or private grant or gift funding.
6. Policy Statement
It is the policy of the University of Wisconsin (UW) System to ensure that capital projects solely managed by the UW System deliver financially responsible projects. Capital projects solely managed by the UW System will follow industry best practices and adhere to approved financial plans.
At the time a UW institution submits a UW managed project for consideration to the Capital Planning and Budget Office (CPB), project documentation as mapped by CPB, will also include a project financing plan.
- For studies, the financing plan must state and place all the project funds in the account before solicitation of the A/E begins.
- For design and construction projects, with a total project value less than Board of Regents (BOR) approval threshold, the financing plan must state and place all the project funds in the account before solicitation of the A/E begins.
- For design and construction projects equal to, or greater than BOR approval threshold, the financing plan must state and place all the expected A/E costs throughout the project in the account before solicitation of the A/E begins. The timing of deposits into the account for the remaining funding will be detailed in the financing plan.
For design and construction projects that do not have all the funding in the account prior to starting the project, the financing plan must, at a minimum:
- Have 50% of the total project funds in the account before bid documents are posted for the general contractor selection, and
- Have the remaining funds transfer completed prior to expected construction payments and maintaining a positive balance in the account.
Sufficient funds must be maintained within the account until all related expenses are paid. Withdrawals from the account must be for project costs as detailed in the project budget. If expected costs exceed the approved financing plan budget, the project may be put on hold until a new financing plan is ratified. If at any time, funds are not available in the account, then no new contracts nor contract amendments will be executed.
7. Related Documents
Regent Policy Document 13-1, General Contract Signature Authority, Approval, and Reporting
Regent Policy Document 21-9, Institutional Relationships with Foundations
Section 16.855 (12m), Wis. Stats, Construction Project Contracts
UW System Administration Policy 342, Extramural Support Administration
8. Policy History
First approved: May 1, 2019
9. Scheduled Review