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Capital Planning Update
Senate Fiscal Committee/COPE Presentation
January 3, 2012
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Capital Planning
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.
Prepared by Administration & Planning, Office of Physical Planning and Real Estate
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Capital Planning Culture Change
Past
College/Unit-Centric
incremental; decentralized goals; internal competition; short-term
perspective; inefficient solutions
Transition
strategic plans; facility condition assessments;
Framework Plan
Future
Integrated Planning
driven by academic mission;
comprehensive; linked to strategic and long-term financial
planning processes; data-informed; transparent; efficient
solutions meet multiple goals
Prepared by Administration & Planning, Office of Physical Planning and Real Estate
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Annual Capital Planning Process
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
Prepared by Administration & Planning, Office of Physical Planning and Real Estate
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Initiate Annual Process
Summer/Fall
• 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
Initiate Annual Process
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Alignment w/ Strategic Principles and Objectives
Summer/Fall
• 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
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Identify Needs/Opportunities
15-Year View
Work with colleges and units to develop a
comprehensive list, pulling from numerous
previously-siloed plans
Fall
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Analyze Needs
Fall/Winter
• 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
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Develop Five-Year CIP
Winter
• 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
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Approve CIP and Capital Budget
Spring
• Finalize and document the
recommended five-year
Capital Investment
Program (CIP)
• Prepare a detailed oneyear Capital Budget
Prepared by Administration & Planning, Office of Physical Planning and Real Estate
Implement Projects and 11
Refine the Planning Process
Ongoing
• 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 cycle
Prepared by Administration & Planning, Office of Physical Planning and Real Estate
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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