Annual Budgets

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Annual Budgets

• Annual Budgets for Capital Projects

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Annual Budgets
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Annual Budgets

• In the business world, the rearview mirror is
  always clearer than the windshield.
• Warren BuffettUS 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 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