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Capital Planning UpdateSenate Fiscal Committee/COPE Presentation

January 3, 2012

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Capital Planning

Prepared by Administration & Planning, Office of Physical Planning and Real Estate

A refined approach to capital planning must ensure capital investments are aligned with strategic priorities, long-term financial perspectives, and the One University Framework vision.

Capital Planning

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Capital Planning Culture Change

Prepared by Administration & Planning, Office of Physical Planning and Real Estate

PastCollege/Unit-Centric

incremental; decentralized goals; internal competition; short-term perspective; inefficient solutions

Transitionstrategic plans; facility condition assessments;

Framework Plan

FutureIntegrated Planningdriven by academic mission;

comprehensive; linked to strategic and long-term financial planning processes; data-informed; transparent; efficient

solutions meet multiple goals

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Annual Capital Planning Process

Prepared by Administration & Planning, Office of Physical Planning and Real Estate

Target Milestones

April – First review of Five Year Capital Investment Program (CIP) and FY13 Capital Budget

June - Action on Five Year CIP and FY 13 Capital Budget

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Initiate Annual Process

• Review existing Capital Investment Program (CIP)

• Identify and weight high-level criteria to assist with evaluation of capital needs

• Determine initial financial guidelines

• Develop general schedule, data collection tools, and communications strategies

Prepared by Administration & Planning, Office of Physical Planning and Real Estate

Summer/Fall

6 Initiate Annual ProcessAlignment w/ Strategic Principles and Objectives

• Advancement of the Academic Mission

• Business Continuity and Risk Management

• Civic Infrastructure

• Competitive Advantage

• Patient Care

• Renewal and Deferred Maintenance

• 24/7 Campus Life

• Sustainability and Energy Conservation

Prepared by Administration & Planning, Office of Physical Planning and Real Estate

Summer/Fall

7Identify Needs/Opportunities

15-Year ViewFallWork with colleges and units to develop a

comprehensive list, pulling from numerous previously-siloed plans

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Analyze Needs

• Gather data and use Framework planning tools to assess implications of potential investments

• Engage stakeholder groups and refine scopes of projects

Prepared by Administration & Planning, Office of Physical Planning and Real Estate

Fall/Winter

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• Engage broad-based interdisciplinary team to develop CIP scenarios guided by the Framework

• Review with university community

• Prioritize and align CIP scenarios and cash flows with financial capacity

Prepared by Administration & Planning, Office of Physical Planning and Real Estate

Develop Five-Year CIPWinter

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Approve CIP and Capital Budget

• Finalize and document the recommended five-year Capital Investment Program (CIP)

• Prepare a detailed one-year Capital Budget

Prepared by Administration & Planning, Office of Physical Planning and Real Estate

Spring

11Implement Projects and Refine the Planning Process

• Establish project delivery teams, contract for professional services, finalize project budgets and schedules…

• Further align the annual capital planning cycle with strategic, financial, and budgeting processes

• Initiate next cyclePrepared by Administration & Planning, Office of Physical Planning and Real Estate

Ongoing

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Capital Needs Inventory (CNI)

Review Initial CNI

• Developed from Framework, strategic initiatives, and facility condition data

Refine CNI

• Identify any additional capital needs driven by unit’s strategic plan

• Placeholder cost threshold of $100,000

• 15 year planning horizon

Enter Needs Data

• Enter CNI data through the Web-form

Prepared by Administration & Planning, Office of Physical Planning and Real Estate

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Questions/Discussion