Annual Budgets

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					            Annual Budgets
            Annual Budgets for Capital
                    Projects




4/27/2009      Cecile L. Nunley, Herb Calderon   1
            Annual Budgets




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               Annual Budgets
               In the business world, the
            rearview mirror is always clearer
                  than the windshield.
                    Warren Buffett
               US financier & investment
                 businessman (1930 -


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            Annual Budgets
 Why
 Background

 Cash Flow

 Contingencies

 Transfers

 Controlling




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            Annual Budgets Why

   Business Office

   State Requirements

   Board Reporting

   Parent Expectations

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                  PROJECT BUDGET
           SCOPE DEVELOPMENT
            VS. FUNDING LIMIT
               Take Funding for the site and work
                backwards.
               Identify the need for improvements
                and Develop Budget.




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                PROJECT BUDGET
           SOFT COSTS
               Site Costs
               Agency Fees
               Consultants
               Bid Costs
               Construction Support
               Furniture & Equipment
               Interim Housing

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                PROJECT BUDGET
             DEVELOPING SOFT COSTS
                          Project Soft Cost Mark-Up's for New
   Site Costs                                                   0.5%
   State Agency Fees                                            1.0%
   Design Fees                                                  7.5%
   Project Management Fees (carried at the program level)       2.0%
   Haz-Mat Identification/Design/Monitoring                     1.0%
   Printing/Advertising                                         0.8%
   Inspections                                                  2.0%
   Testing                                                      0.5%
   Construction Manager Fees                                    7.0%
   Furniture & Equipment                                        2.0%
   Construction Contingency                                     5.0%
   Project Contingency                                          4.2%
      Sub-Total                                                 33.5%


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              PROJECT BUDGET

   FUNDING LIMIT

   FUNDING SHEET.xls




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                PROJECT BUDGET
   Developing Costs
           Checklist of Costs
           Example




     Checklist.xls
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                PROJECT BUDGET
           Estimating
               Conceptual Phase
               Schematic Design Phase
               Design Development Phase
               Construction Phase
           Estimate Development.xls



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 MASTER LIST OF PROJECTS
   Components
           Funding
           Names of Projects
           Fiscal Years for funding
           Project Budgets
           Administrative Costs
           Inflation
           Loss Reserve
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            MASTER PROGRAM
                BUDGET
   Putting it all together



   Master Program Budget Report.xls




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            CASH FLOW WORKSHEET

   List of projects
   Project Budgets
   Time periods for projects
   Program costs
   Calculation of interest
   Calculation of inflation for projects
   Loss Reserve
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      CASH FLOW WORKSHEET
   Putting it all together

   Cash Flow report.xls




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                        Annual Budgets
   Escalation
           Definition

                “Inflation is when you pay fifteen dollars for the

                 ten-dollar haircut you used to get for five dollars

                 when you had hair.” Sam Ewin



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                       Annual Budgets

           Which Rate?

                How to calculate

           Adjusting the rate

           Revenue vs. Expenditures



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                    Annual Budgets
   Loss Reserve
           Definition

           What types of events

           Importance

           How to use

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                   Annual Budgets
   Interest

           State apportionments


           Bond revenue




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            Annual Budgets




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                    Annual Budgets
   Transfers
           How?

           Why?

           What?

           Cautions!

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             Annual Budgets
   Controlling

     Budget: a mathematical confirmation of
                your suspicions.
                  A.A. Latimer




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                     Annual Budgets
   Controlling
           Provide INFORMATION – Get results

           Get it First

           Interpret the Information

           Adjust monthly or Quarterly

           State Requirements

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                   Annual Budgets
   Those Accounts Dreaded SACS
           Descriptive and specific
           Amount for each description




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            Annual Budgets




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            Annual Budgets



                  Website
               Capitalpm.com



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