Capital projects, generally those costing more than $1 million, are funded from various sources. These sources, which include State of Georgia, Board of Regents, Georgia Tech Foundation, and campus funds, usually dictate who has administration of the project.
The State of Georgia funds the construction of buildings and the Georgia State Finance and Investment Commission (GSFIC) coordinates the project and disburses the funds.
The Board of Regents (BOR) receives an allocation from the state legislature referred to as Major Repair and Rehabilitation (MRR) funds. The MRR Fund is generally used for projects costing less than $1 million. The Board of Regents allocates these funds to the various units of the University System. These funds may be funneled through GSFIC if they are bond funds. The administration of the project may be handled by GSFIC or Georgia Tech depending on the type of project.
The Georgia Tech Foundation (GTF) funds various capital projects on campus. GTF retains administration of some of the projects and the facilities office/plant operations administers the remainder. These GTF projects require prior approval from the Board of Regents.
Some projects are funded by resources held by Georgia Tech, i.e. discretionary endowment funds and Auxiliary Enterprises reserve funds. These projects are controlled by Georgia Tech personnel after receiving Board of Regents approval.
State of Georgia Funding
Each year a "Five-year Capital Outlay Budget Request" is prepared by the units of the University System of Georgia and submitted to the Board of Regents. The Board of Regents examines all requests and prepares a consolidated priority list. Only a portion of the list is funded by the legislature's allocation. The unfunded projects normally remain on the priority list the following year. Funds for the approved projects are transferred to GSFIC for disbursement and project administration. These projects are defined as new buildings, building additions, and building renovations estimated to cost $1,000,000 or more.
Board of Regents Funding
The Board of Regents receives a special allotment from the State of Georgia called Major Repair and Rehabilitation (MRR) funds. Each unit of the University System submits to the Board of Regents a prioritized list of repair/renovation projects estimated to cost less than $1,000,000 each. At Georgia Tech this list is prepared by the Space Administration Committee. The Board of Regents reviews each submission and decides which projects will be funded from the MRR allocation. The Board of Regents assigns a project number and authorizes GSFIC to make disbursements from the MRR allocation if the source is bond proceeds. Occasionally projects in excess of $1,000,000 will be funded from MRR funds. When this happens they are usually funded in phases.
Georgia Tech Foundation Funding
GTF funds special projects as determined by the President of Georgia Tech and the Board of Trustees of GTF. These projects may be coordinated by GTF or the funds may be transferred to Georgia Tech and handled by Georgia Tech personnel.
These are discretionary funds held by Georgia Tech consisting mainly of endowment funds and Auxiliary reserve funds. The use of discretionary endowment funds must have the President's approval or his designee prior to establishing a project budget. The Auxiliary Reserve funds are used to renovate existing Auxiliary Enterprise facilities, construct new Auxiliary Enterprise facilities, and purchase equipment needed by Auxiliary Enterprise units.
Unexpended Plant Funds
This fund group is used to account for the construction or acquisition of physical properties, renovation of existing properties, and purchase of inventories and non-inventoried equipment.
Expenditures in this fund group are categorized as follows:
- Buildings - New
- Buildings - Additions (Cost a minimum of $5,000 and a useful life of more than three years)
- Buildings - Renovations (Cost a minimum of $5,000 and a useful life of more than three years)
- Improvements Other Than Buildings - landscaping, parking lots, fences, etc.
- Equipment/Inventories - items costing $1,000 or more; (items made of glass or other fragile materials are supplies)
- Equipment items costing $5,000 or more are capitalized and depreciated
- Equipment/Non-inventoried - items costing less than $1,000 are considered supplies
Capital Budgets Form
The Capital Budgets Form is used to establish plant fund projects and is provided to the units by the Budget Office. The project account numbers for new projects will be assigned by the Budget Office after the project has been approved. If discretionary endowment funds are shown as the source, the President or his designee must approve the project. All plant fund projects must have the Board of Regents' approval.