ABAC 7.6 Capital Planning and Expenditures

Policy goal – define authority, chain of command, procedure, and practice for capital investment, which includes, but is not limited to land, buildings, and capitalized equipment.  Rationale – certain assets must be included in the capital inventory of either Abraham Baldwin Agricultural College [College] or Abraham Baldwin Agricultural College Foundation, Inc. [Foundation].  Compliance with federal, state, and University System of Georgia laws, regulations, and procedures is essential.

Applicability 

·         Construction or alteration of properties and buildings.  Renovation, alteration, new construction, or modification of real estate (including land clearing, fencing, road construction, or demolition) shall be subject to review and approval by the Cabinet.  This requirement applies to:

o   All properties and facilities owned by the University System of Georgia and assigned for use by the College, and

o   Properties owned by the Foundation, or any of its subsidiary legal entities, that are leased to or used by the College for programmatic purposes.  Examples include, but are not limited to, the Forest Lakes Golf Course, the John W. and Margaret Jones Langdale Forest, the D.A.T.A. Farm and the #2 Beef Unit.

            It does not apply to investment properties owned by the Foundation or its subsidiaries.

·         Purchase of equipment.  All equipment purchases amounting to $5,000, or more require approval, regardless of source of funds (details below).

Process

·         Alteration of real estate.  Proposals to alter real estate, including construction, renovation, modification, demolition, new construction, land clearing, etc. shall originate in writing with ABAC’s Director of Facilities and Land Resources.  The requestor shall work with the Director of Facilities and Land Resources to develop a conceptual plan that describes scope, schedule, and tentative budget.  The requestor shall also consider if permits will be required for alterations to land or man-made additions. When completed the Director of Facilities and Land Resources will present the conceptual plan to the Cabinet for action.  This process applies to USG-owned and Foundation-owned properties.  Furthermore, when the alteration involves Foundation-owned property, the Director of Facilities and Land Resources will communicate the plan to the Foundation subsequent to Cabinet approval. 

·         Equipment purchases with college funds.  Purchases of equipment with college funds costing $5,000, or more, shall be subject to the College’s procurement process, regardless of funds source. 

·         Gift of equipment by the Foundation.  Because the Foundation does not routinely purchase or carry equipment on their balance sheet, equipment donated to or purchased by the Foundation is typically transferred to the College.  Alternatively, the Foundation can make a monetary grant to the College for the purchase of equipment, after which the College’s procurement process shall be followed.

·         Equipment purchases with Foundation funds.  Purchases of equipment with Foundation funds costing $5,000, or more, shall be subject to approval in accordance with Foundation guidelines and approval by the Vice President for Finance and Operations because of the College’s need to subsequently capitalize said equipment.