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Capital Plan and Investment Report - SuperBuild

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How The Capital Plan and Investment Report Relates to Other Capital Reporting Requirements. The Capital Plan and Investment Report is supported by four

Ministry of Training, Ministère de la Formation

    Colleges and Universities et des Collèges et Universités

    SuperBuild

    Ministry of Training, Colleges and Universities

    Capital Plan and Investment Report

    Users Guide

    2003

SuperBuild

    Capital Plan and Investment Report Users Guide

    Ministry of Training, Ministère de la Formation

    Colleges and Universities et des Collèges et Universités

    TABLE OF CONTENTS

    INTRODUCTION .................................................................................................................................. 2 OVERVIEW ........................................................................................................................................... 3 GENERAL INSTRUCTIONS ................................................................................................................. 6 DEFINITION OF TERMS ...................................................................................................................... 7

    - 1 -

SuperBuild

    Capital Plan and Investment Report Users Guide

    Ministry of Training, Ministère de la Formation

    Colleges and Universities et des Collèges et Universités

     INTRODUCTION:

    The SuperBuild Capital Plan and Investment Report has been developed in consultation with the

    Association of Colleges of Applied Arts and Technology (CAAT) Administrative Services Committee,

    the Association of CAAT Facilities Administrators, the Council of Ontario Universities, and the Ontario

    Association of Physical Pant Administrators.

    It is important that the Government is able to demonstrate prudent management of public investments

    made in postsecondary infrastructure. As a condition of award under the SuperBuild Fund for

    Postsecondary Education, each institution was required to submit a signed copy of the Statement by

    Applicant under the Terms and Conditions of SuperBuild Growth Fund for Postsecondary Education

    Support. The Terms and Conditions for SuperBuild Support includes the following statement in

    Section 5 with respect to the Capital Plan and Investment Report:

Capital Plan and Investment Report:

    The Recipient shall prepare an Annual Capital Plan and Investment Report that, as a minimum:

    a) Reports on all planned capital investment(s) at the institution for the year regardless of

    funding source;

    b) Clarifies how the institution is maintaining and renewing existing infrastructure (for

    example, through the establishment of an annuity or other funding commitment to fund

    the ongoing maintenance of the proposed facility or a plan that provides for institutional

    funding targeted to meet recognized performance targets in plant condition through

    such mechanisms as a Facilities Condition Index);

    c) Provides details on planned and continuing projects for creating more student spaces

    through capital investment and other efficiency improvements; and,

    d) Reports on the progress and performance of the Recipient’s Capital Plan during the

    previous year.

    The Ministry will provide a template to the Recipient for the Capital Plan and Investment Report. The

    report is expected to provide retrospective information, as well as the investment planned to address

    both growth needs and existing physical plant.

    - 2 -

SuperBuild

    Capital Plan and Investment Report Users Guide

    Ministry of Training, Ministère de la Formation

    Colleges and Universities et des Collèges et Universités

    OVERVIEW:

    The purpose of the Capital Plan and Investment Report is to provide an accountability framework for

    SuperBuild, report on all planned capital investments at the institution for the year, and to clarify how

    the institution is maintaining and renewing existing infrastructure.

    The Capital Plan and Investment Report will provide the ministry with data in a consolidated and

    comparable manner across both the college and university sectors on things like facilities condition

    assessment, campus development activity, and the total level of postsecondary infrastructure

    investment.

    This document is intended to provide details in support of the annual submission of the SuperBuild

    Capital Plan and Investment Report to the ministry including a description of each of the report

    elements and the relevant definition of terms.

    How The Capital Plan and Investment Report Relates to Other Capital Reporting Requirements

    The Capital Plan and Investment Report is supported by four input elements:

    ? the SuperBuild Project Status Report;

    ? the Facilities Condition Assessment Report;

    ? the institution inventory of space; and,

    ? the institution strategic capital plan.

    The concept and requirements of each of the reporting elements is described below:

    The SuperBuild Project Status Report captures details and the status of individual major projects

    funded under the SuperBuild initiative in terms of finances, space, and physical construction as

    compared to the original plan as approved. The report is intended to provide information on the

    general progress of the project and on fund raising achieved. Reports are requested bi-annually to

    coincide with the ministry’s internal reporting cycle to the Ministry of Finance.

    The ministry will continue to assist institutions in the preparation of these reports by providing

    automated electronic templates that will be e-mailed to the institution one month prior to submission

    deadline.

    Beginning in 2001-02, colleges and universities provided MTCU with annual Facilities Condition

    Assessment reports using the Facilities Condition Index as a means to report relative building condition. The provision of these reports, and the introduction of a common computerized database

    management system to report on the state of facilities, was agreed to by the Council of Ontario

    Universities, the Association of Colleges of Applied Arts and Technology of Ontario and their

    supporting Committees in order to provide standard information that will account for past investments

    and help plan new ones.

    - 3 -

SuperBuild

    Capital Plan and Investment Report Users Guide

    Ministry of Training, Ministère de la Formation

    Colleges and Universities et des Collèges et Universités On an annual basis each institution will audit a minimum of 20% of its entire physical infrastructure

    and will provide reports, which document the estimated value of deferred maintenance and current

    replacement value. The institutions will at a minimum collect system level data for infrastructure and

    report the information on total systems basis. This information will not be used to determine grant

    allocations to individual institutions. However, the information will be used to support capital funding

    policy recommendations.

    Section 3 of the Capital Plan and Investment Report asks for high level summary data from The

    Institution Inventory of Space in order to monitor the physical impact that infrastructure investments

    are having on postsecondary campuses across the province.

    The Council of Ontario Universities (COU) “Building Blocks” space formula and inventory of space classification of system has been in place since the 1970’s. Since it’s inception, COU has conducted

    a series of triennial surveys in order to monitor existing university space inventory and changes in

    space requirements. For ease of reporting, this element of the report has adopted the “Building

    Blocks” format and methodology of categorizing space to make better use of available data.

    It is understood that Colleges of Applied Arts and Technology are in the process of implementing a

    pilot project to adapt the “Building Blocks” methodology and space standards for college use. Once

    fully implemented, Colleges will be able to report summary college space inventory data in the same

    standard format using readily available data. In the interim, colleges are asked to apply the

    definitions of space provided in the User Guide to the extent possible adjusting available data where

    necessary to capture comparable college space data.

    Most universities and colleges prepare an Institution Strategic Capital Plan as part of their internal

    planning processes. Such a document typically sets out the institution’s capital investment priorities

    over a 3-5 year time horizon (or longer). It usually provides information on the expected costs and

    sources of revenues for each major project, and it sets out the institution’s plan for bringing existing

    facilities to a state of good repair.

    If such a document has been prepared within the past 12 months, the institution is asked to provide it

    to the Ministry. If such a document does not exist, Section 5 of the Capital Plan and Investment

    Report provides a series of optional text boxes that an institution may use to ensure that the Ministry

    is aware of its capital priorities. The Ministry does not intend to use this information as the means to

    solicit major project funding requests from the institutions. However, institutions may take the

    opportunity to use the “investment report” to describe the capital pressures it faces and to describe

    the role that the Government and other funding partners might play in addressing them.

    - 4 -

SuperBuild

    Capital Plan and Investment Report Users Guide

    Ministry of Training, Ministère de la Formation

    Colleges and Universities et des Collèges et Universités

Reporting and Audit Requirements that are replaced by The Capital Plan and Investment

    Report:

    Steps have also been taken to streamline major project audit requirements. Annual CSP progress

    audits of major projects is no longer required. Pursuant to Section 8. Public Reports of the Terms of Conditions for SuperBuild Support, the ministry now requires separate note disclosure in the

    institution’s annual audited financial statements to report on the use of the grant, and any accrued

    interest. A final project audit will be required at project completion.

    GENERAL INSTRUCTIONS:

    The templates provided in this report are largely self-explanatory. When completing the report,

    reference should be made to the Definition of Terms below whenever clarification is required. Should

    additional clarification be required, institutions are asked to contact ministry staff to ensure a

    consistent approach to securing valid data is taken by all institutions. A listing of ministry contacts is

    provided below.

    Provisions have been made within the prescribed templates to accommodate institutions with multiple

    owned campuses. In these circumstances, institutions are asked to use the additional columns

    provided to replicate templates as appropriate. Please ensure that the name and location of each

    owned campus is reported where it is clearly indicated on the templates to avoid possible confusion.

    Institutions have been working in cooperation with the ministry for many years to measure and

    communicate the relative state of postsecondary infrastructure using the Facilities Condition Index.

    Beginning in 2001-02, colleges and universities implemented the Facilities Condition Assessment

    Program and its VFA computerized database management system. Institutions are asked to use the

    Facilities Condition Assessment Methodology and its attendant software to generate the source data

    for the report to the extent possible.

    After the report is endorsed by the institution’s Executive Head, they are to be submitted to:

    Colleges: Universities: Ken Decker Jess Gillespie Chief Policy Analyst Senior Policy Advisor thth9 Floor, Mowat Block 7 Floor, Mowat Block 900 Bay Street 900 Bay Street Toronto, ON M7A 1L2 Toronto, ON M7A 1L2 Telephone: 416-325-4019 Telephone: 416-325-2813 Facsimile: 416-327-1853 Facsimile: 416-325-1959 Email: ken.decker@edu.gov.on.ca Email: jess.gillespie@edu.gov.on.ca

    - 5 -

SuperBuild

    Capital Plan and Investment Report Users Guide

    Ministry of Training, Ministère de la Formation

    Colleges and Universities et des Collèges et Universités

    DEFINITION OF TERMS

    Land Holdings:

    Area Developed in Hectares:

    Number of hectares occupied by permanent facilities including: buildings, parking lots, roads and service infrastructure.

    Area for Development in Hectares:

    Land that is not occupied by permanent facilities including: buildings, parking lots, roads, and service infrastructure and therefore could be easily and inexpensively utilized for development. Area Unsuitable for Development:

    Land that is unavailable for utilization due to environmental considerations, easements, natural features (e.g., flood plain, escarpment, contaminated soils, waterways, lakes, ponds, protected wood lots, government prohibition, etc.) or any other consideration that impacts the ability to utilize the land for institution purposes.

    Number of Permanent Buildings:

    Total number of all buildings as captured by the Facilities Condition Assessment Program and the facilities audit software in use by your institution (e.g., recently acquired Vfa software). Number of Portable Academic Buildings:

    Number of temporary or relocatable facilities in use only for academic purposes at your institution. Number of Portable Support Buildings:

    Number of temporary or relocatable facilities in use for support purposes at your institution (e.g., used for purposes other than the direct delivery of academic teaching or research).

    Total Number of Buildings:

    Buildings used predominantly for the purpose reported (e.g., academic and support, ancillary, and student residences) that have a singular footprint and/or are designated in your campus plan with a specific name (i.e., Buildings A through E count as 5 structures regardless of the fact that they are under one continuous and conjoined roof structure). It is expected that institutions will follow the building designations as categorized by the recent implementation of the Facilities Condition Assessment Program.

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SuperBuild

    Capital Plan and Investment Report Users Guide

    Ministry of Training, Ministère de la Formation

    Colleges and Universities et des Collèges et Universités

    Current Replacement Value:

    The total amount of expenditure required to replace the facilities used predominantly for the purpose reported. Institutions will use the methodology developed as part of the postsecondary Facilities Condition Assessment Program to determine these costs. Insurance replacement values or book values should not be used.

    Deferred Maintenance Backlog:

    The total backlog of renewal, adaptation and maintenance projects that are known, but are not included in the operating or plant renewal maintenance processes because of perceived lower priority status than those funded with available resources. It is the total dollar amount of accumulated major maintenance repairs and replacements identified by the postsecondary Facilities Condition Assessment Program methodology. It does not include projected maintenance, and replacements or other types of work, such as program improvements or new construction.

    This is to be the total backlog and it should reflect the accumulated value, not the annual expenditures.

    Deferred maintenance backlogs will be used in the determination of relative building condition by building category/type.

    Facilities Condition Index (FCI):

    The Facilities Condition Index (FCI) is a comparative indicator of the relative condition of facilities. The FCI is expressed as a ratio of the cost of remedying maintenance deficiencies listed in the deferred maintenance backlog to the current replacement value.

    The FCI provides a methodology to determine the relative condition of a single building, group of buildings or total facilities (physical plant).

    FCI = Deferred Maintenance Backlog

     Current Replacement Value

    Average Age of Buildings:

    Based on original year of construction except when part of a building has undergone major renovation work * (i.e. architectural, mechanical and electrical space renewal, a major renewal that effectively reduces the age of the building or part of the building) identify the year that the renovation was completed and identify the NASM of the area renovated, subtracted from the original building NASM. * Renovation is defined as building construction activities that replace and/or upgrade facilities or their components that have reached the end of their economic life, have failed prematurely or are required

    - 7 -

SuperBuild

    Capital Plan and Investment Report Users Guide

    Ministry of Training, Ministère de la Formation

    Colleges and Universities et des Collèges et Universités

    for code compliance. Upon completion of the renovation the facilities could be considered equivalent to new construction.

    Number of Buildings Audited for Condition (in last 3 years):

    Total number of buildings the institution has inspected using the Facilities Condition Assessment Program methodology over the past three years utilizing a recognized systematic approach to identify specific building/system deficiencies and the costs related to correcting them.

    Ancillary Facilities:

    Facilities used predominantly for non-academic or administrative purposes that generally have a revenue stream associated with an enterprise that is sufficient enough for it to be self-supporting (e.g., student residences, bookstores, food services, retail operations, parking facilities and lots, student centres, etc.).

    SuperBuild Specific Major Capital Projects:

    Any project for which the institution received a specific award from the Government of Ontario through the Ministry of Training, Colleges and Universities and the SuperBuild initiative. Award recipients would have received a letter from the ministry indicating support for a specifically named project.

    Other Specific Major Capital Projects:

    Projects that are generally of a multiyear nature and are funded from sources other than SuperBuild or the Ministry of Training, Colleges and Universities regular capital support program. These projects will generally result in the construction of a new facility and/or the major renewal of an existing building.

    Minor Projects:

    Projects that are normally undertaken in-year and are not included in the regular facilities operating or plant maintenance budgets. These projects are generally in excess of $10,000 in value and are tracked as “projects” by financial information systems.

    SuperBuild and MTCU Capital:

    Awards for capital projects reported from the Government of Ontario through the Ministry of Training, Colleges and Universities including what is referred to as the Facilities Renewal Program allocation.

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SuperBuild

    Capital Plan and Investment Report Users Guide

    Ministry of Training, Ministère de la Formation

    Colleges and Universities et des Collèges et Universités

    Institutional and Other Funding:

    Funds deployed to undertake capital projects from sources other than those provided by the Ministry of Training, Colleges and Universities or the SuperBuild Corporation through the Ministry of Training, Colleges and Universities (e.g., other SuperBuild projects funded in partnerships with municipalities and/or participating ministries or agencies should be reported as “other sources”.

    Continuing Projects:

    Projects that were not completed during the fiscal year. These are projects for which funding is in place and work is in progress (e.g., work for which contracts have been let and expenses have been incurred).

    Completed Projects:

    Projects that were completed during the fiscal year regardless of start date. These are projects that have reached substantial completion and occupancy permits have been issued.

    Campus Service Infrastructure:

    Campus service infrastructure includes all underground services, electrical distribution systems, and support buildings (e.g., garages, maintenance facilities, central utility buildings, co-generation facilities, roadways, underground tunnels, high voltage distributions systems and external campus lighting). Building Systems Categorization:

    Please use the groupings derived from the VFA software to report building systems. Renovations and Alterations:

    Projects required to meet the evolving physical needs of an institution and to meet compliance mandates. These projects are in addition to normal maintenance, and are not usually contained within the operating budget. They are projects that are undertaken outside of the normal maintenance cycle. Examples of renovation and alteration projects include such items as barrier free access projects, asbestos removal, directed code compliance, and changes in classrooms, research, and laboratories to accommodate current technology or programmatic needs.

    Renewal and Maintenance:

    Renewal and maintenance expenditures include all expenditures required to keep the campus facilities in reliable operating condition for its present use. These expenditures are over-and-above the normal maintenance for items with a life cycle in excess of one year and are not normally contained in the annual operating budget (i.e., the annual facility operating expenditures). Plant renewal focuses on maintaining the operability, suitability, and value of the capital asset. It is

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