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Gift-Funded Capital Projects
Relevant programmatic, strategic, and financial factors must be considered as part of the approval process of a gift-funded capital project. The following procedure includes the steps required to ensure that all necessary factors are considered.
The unit (college or department) sponsoring the project works with Facilities Services—Capital to undertake a feasibility study for the following purposes:
- Determining the program
- Recommending project siting
- Establishing the project schedule and budget
Donor renderings may be included in the study.
The conclusions of the feasibility study form the basis of a capital project proposal.
The applicable dean or vice president submits the capital project proposal and funding model to the President. The dean or vice president works with Facilities Services–Capital and WSU Foundation or the Office of Finance and Administration to prepare the proposal.
Facilities Services—Capital prepares a project budget for inclusion in the capital project proposal. The budget includes all the following applicable capital costs:
- Sales tax
- Design fees
- Furniture and equipment
- WSU project management fees
- Other related project costs
“Cost of Money”
Facilities Services—Capital includes any “cost of money” in the budget proposal when financing, whether from internal sources, or from bonds, is required. (“Cost of money” is also referred to as the interest expense.)
The capital project proposal includes a funding model identifying fund sources (e.g., donor, bond, local revenues). WSU Foundation or the Office of Finance and Administration confirms the feasibility of the fund sources.
The funding model also proposes the funding thresholds (i.e., pledged funding vs. in-hand funding) required for various project decisions, including:
- Seeking Regents’ approval
- Starting design
- Starting construction
Annual Operating Costs
The funding model must include fund sources for annual operating costs.
Beginning Construction Prior to Receipt of In-Hand Funding
The sponsoring unit may request to begin construction prior to the receipt of all in-hand funding if central or other funding is available. The unit must repay such funding on an approved schedule. The repayment amount includes the “cost of money,” at a rate to be agreed upon.
The President approves the capital project proposal and funding model.