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4209 PR.02 Non-Building Capital Project Requests
June 28, 2017
When purchasing equipment (Fixed/Moveable) or software/systems which involve internal debt financing or gift funding, please fill out the Non-Building Capital Project Request Form. If the purchase involves moveable equipment and an alternative funding source, please follow Procurement’s approval process and use MEI Spend Categories to record the purchase.
For University purposes, equipment is tangible non-expendable University property that has an estimated useful life of greater than one year and a unit value equal to or greater than $5,000. (See Policy 4209 Equipment for additional information).
Capital Software/Systems will be capitalized if the total eligible costs of a project (excluding hardware costs) are $500,000 or greater. Costs incurred on projects to develop software for internal use in which total eligible costs are less than $500,000, must be expensed as incurred. (See Policy 4203 Accounting for Internal Use Software Costs, Including Cloud-Based Computing Arrangements, and Business Process Reengineering for additional information).
A. Step 1: Prepare (COA) Request Form
- Go to the Chart of Accounts website and obtain a New Project Request Form, located at: https://your.yale.edu/policies-procedures/other/workday-coa-project-forms
- Follow the instructions in order to fill out the request form
- Any questions involving Capital Projects, please e-mail firstname.lastname@example.org
- Submit completed form to Chart of Accounts at email@example.com
B. Step 2: Determine Type of Funding on Capital Project
- Non-Debt (Gifts, Unit Operating, & Capital Allocation):
- No Interest & Amortization schedule is necessary
- If project is using gift funds – please provide Plant Gift Fund Worktag
- For other funding sources (Unit Operating/Capital Allocation) please provide COA charging instructions
- Debt Financing:
- E-mail firstname.lastname@example.org for an Interest & Amortization (I&A) Schedule on the amount to be financed
- Please provide the proposed amount to be debt financed
- Please provide estimated in-service date of the capital project
C. Step 3: Approval/Capital Project Set-Up Process
- Review New Project Request Form and Interest & Amortization (I&A) schedule with the Operating Analyst, Lead Administrator and other individuals (BOLT, Provost Office, or Officers as applicable) to determine the possible impact on the Units Operating Budget
- After receiving appropriate approval within your department; forward e-mail approvals and New Project Request Form to email@example.com in order to set up the capital project
- Capital Management will send out Project Notification to individuals contained in the e-mail request. If you would like to include other individuals on the Project Notification e-mail firstname.lastname@example.org
D. Step 4: Purchase of Capital Equipment and Software/Systems
- Use the COA charging instructions on the Project Notification to purchase the equipment or software/systems
- For fixed equipment, use building location
- Include shipping and handling as part of the total cost of the purchase price
E. Step 5: Monitoring Capital Project
- Departments should use the Capital Project Status Report after month-end close to monitor project expenses, funding, and bridge loans (unfunded project expenses)
- If the capital project has an Expense Over Budget (EOB); the department will need to immediately notify the Operating Analyst, Lead Administrator and other individuals (BOLT, Provost Office, or Officers as applicable) of the increase in project expenses and the reason for the increase.
- Please e-mail email@example.com with an updated New Project Request Form with the approval e-mails.
- For Non-Debt funding; please confirm previous COA has additional fund balance
- Request a revised Interest & Amortization schedule for debt financing
- Capital Accounting will increase the approved budget
- Capital Accounting will e-mail an Updated Project Notification.
- E-mail firstname.lastname@example.org the actual in-service date when the equipment or software/system was functional in the department
Capital Accounting – Ensures that costs charged to capital projects are accurate and reported properly in the University’s financial statements. Verifies budget approval and sets up capital project. Interprets policy regarding capital assets. Oversees accounting and reporting of capital assets.
Lead Administrator – responsible for obtaining budget approvals for capital assets and monthly monitoring of capital project expenses and funding.