Capital Outlay Process Overview For NonState Entities September 2017 Understand the definition of Capital Outlay Objectives Understand th e step s of th e Capita l Outla y process Objectives ID: 764519
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Capital Outlay Process Overview For Non-State EntitiesSeptember 2017
Understand the definition of Capital Outlay Objectives
Understand th e step s ofthe Capital Outlay process Objectives
Understand general obliga tion bond prioritiesObjectives
Understand th e dif f erence between an appropriation and fundingObjectives
Understand ho w t o readan appropriationObjectives
Understand th e limits of an appropriationObjectives
Understand the informa t ion required in a capital outlay request Objectives
Know where t o go for helpObjectives
What is Capital Outlay? Understand the definition of Capital Outlay
expenditures for acquiring lands, buildings, equipment, or other permane n t propertie s , o r for t h eir preservation or development or permanent improvement. Capital Outlays are…
Permane n t – useful life ofat least 10 yearsMajor – complex, requ i ring coordinatio n of tw o o r more tradesCapital Outlay Projects
are entered into eCORTSrequire a letter of supportare due Novembe r 1st Capital Outlay Requests
appropriation funding means o f financegeneral obligation bondsline of credit noncash rescission reappropriation The Language of Capital Outlay
Capital Outlay ProcessUnderstand the Steps of the Capital Outlay Process
STATE OF LOUISIANA There is no quick check!
Capita l Outla y is not designed to be a quick fix. Plan Ahead
Submit C a pi t al O u tlay R equest R eceive an A p propri a tion in t he C a pi t al O u tla y Act R eceive Fu ndin g o f t he A pp ro p ri a tion Ex e cut e the Cooperative Endeavor AgreementProceed with ProjectReceive Disbursement The Capital Outlay Process
Fund s R e questedFunds Appropriated Proj e c t Funded Fund s A va i la b le Co opera t i v e En d eavor Agreemen t E xec u ted July 2 01 8 Sep 2 01 8 Oct 2 018Nov 2018BEST CASE SCENARIO Nov 2017 When do funds become available?
Capital Budget Development
Origina l Ho u s e Bil l 2 Budget Development R e q u ests Capacity Prioritie s
$2 00 mi l lion, adjusted for inflation put th e li m it at $ 3 85 mi l lion for FY 17- 1 8 . Includes noncas h t o c ash (P5 t o P1 ) and ne w (P2) lines of credit. Does not include P1.R.S. 39:112 FG.O. Bond Capacity
26 State Agenc ie s Requests Rece ived: $ 1.66B To t al R eq u e s t s : 771Nons t a t e Ent i ties R e q u e st s r e ce i ve d : $ 1. 23B Total Requests: 1128FY 17-18 Capital Outlay Requests for Discretionary Funding
Go vernor Ho u se of R ep r esen t a t ives Hous e W ays a n d M e a ns C o m m ittee Ho u se App ropr i a t ions C o m m ittee Flo or o f the Ho u se of RepresentativesOn to the Senate
Senate Senate R e venue and Fi s c a l Af f a irs Committee Senate Finance Committee Floo r o f the Senate Hous e of R epresent a t i ves for Co n c u r r ence Gove rnor
General Obligation BondsUnderstand general obligation bond priorities
Priority 1 Al w ays a reauthorization of appropriationswith PR I OR lines o f credit Pr ior i ty 1 Prio r ity 1Priority2Prior ity 3 Priority 4 Prio r ity 5
New auth o rizati on forCASHTo be s p en t in the fiscal y ear of the ActPriority 2
New authorization f orCASHNOT t o be spen t in the fisca l y ear of the ActPriorities 3 and 4
New o r reauthorized “Budget Authority”Can only be g ranted a NONCASH line of credit Priority 5
Appropriations Understand the difference between an appropriation and fundingUnderstand how to read an appropriationUnderstand the limits of an appropriation
Being “in the A ct” is NOT the same as “receiving fund i ng.” Appropriated vs Funded
R epresents budg e t auth ority(legislative approval for you t o receive funding I F GRANTE D ) Appropriations
Allocation of funds “Funding” can be a Cash Line of Cred i t or a Noncash Line of Cre d it Funding
Ap p rop r iations Memos are distributedGene r al Obligatio n B o n d ap p r o priations areconsidered for fundingLines o f Credi t are g r anted by th e State Bond Co m mission Notifica t i on of Line of Credi t Status Memosare distributedAfter the Legislative Session
B D E Understanding Appropriations F C A
21 22 5 0/MZZ (345) MARAIS Fir e S t at i o n Expa n sion , Acquisition,23Plann i n g and C o ns t ru c t i on 24 (E v a n gel i n e )25 Payable from General Obligation Bonds 26 Priority 1 $ 900,000Example Appropriation
…to a specif ic entit y , for a specifi c purposeAppropriations are made…
21 5 0/MZZ M A RAIS22(1 2 3) Fir e S t at i o n Expa n sion , Acquisition,23 Pl a n n i n g a n d Construct i on 24 (Eva n gel i n e ) 2 5 Payable from General Obligation Bonds 26Pr iority 1 $ 900,000How is th e intent of an appropriation determined?By reading the Capital OutlayRequest! Scope Interpretation
Capital Outlay RequestsUnderstand the information required in a capital outlay request
Capital Outlay Requests Shall include a detailed project description and justification including ananalysis of n eed R.S. 39:1 0 2
Required Information
A Letter o f Support [R.S. 39:101 ] A 2 5% local match [ R.S. 39:11 2 E(2)] Requirements
ResourcesKnow where to go to get help
https:// wwwcfprd.doa.louisiana.gov/ecorts/default.cfm eCORTS Instructions
http : / /ww w .doa.la.gov/Pages/ofpc/Index.asp x Non-state Entity Training Manual
htt p ://ww w .doa.louisia na.gov/fpc/fpc.htmEmail: CapitalO utl a y@l a .g o v Phone : 2 2 5.342.0823 Contact Capital Outlay Staff Lanetta Barthelemy, Analyst Joyce Jenne, Analyst Marc Parenti , Analyst Claire Vermaelen , Analyst Brian Criss, Capital Outlay Manager Simonne Whitmore, Capital Outlay Administrator
Edwi n Lee, Senior ManagerRene Becnel, Project ManagerGus Cretini, Project Manager Bil l Es k e w , Projec t Manager Jim Lee, Project ManagerJohn Richard, Proje c t Man a ger L yle Sava n t , Projec t Manag e r Project Management Team
Conclusion Important points to take away from this seminar
Submit Cap ital O utl a y R e q ue s t R ec e ive a n A p pr o pr i ati o n in th e Cap ital O utl a y A c t R e c e i ve F u nding of the Appropriation E x e cute the Cooperative Endeavor Agreement Pro c e ed with ProjectThe Capital Outlay Process
Detailed D e scriptio n of theProjectJustification o f th e Pr o ject including an Analysi s o f NeedStatutorily Required Information
Pr ior i ty 1 Priority1Priority 2Priority 3 Prio r ity 4 Priority 5 General Obligation Bonds Priorities 1-5
A pp r o p riations Authority to Rec ei v e F u n d ing F u n d ing Commitment of funds Appropriations vs Funding
B D E Understanding Appropriations F C A
…to a specif ic entit y , for a specifi c purposeAppropriations are made…
Capita l Outla y WebpageeCORTS Instructions Nonstate T raining Manual Capita l Outla y Staff Resources