{"id":22049,"date":"2016-11-03T10:39:00","date_gmt":"2016-11-03T17:39:00","guid":{"rendered":"http:\/\/policies.wsu.edu\/prf\/?page_id=22049"},"modified":"2026-01-30T08:40:12","modified_gmt":"2026-01-30T16:40:12","slug":"bppm-30-74","status":"publish","type":"page","link":"https:\/\/policies.wsu.edu\/prf\/index\/manuals\/business-policies-and-procedures-manual\/bppm-30-74\/","title":{"rendered":"30.74 Gift-Funded Capital Projects"},"content":{"rendered":"\n<h1 class=\"wp-block-heading wsu-font-size--xxmedium\">University Policies and Procedures Manual<\/h1>\n\n\n\n<h2 class=\"wp-block-heading\">Gift-Funded Capital Projects<\/h2>\n\n\n<div class=\"wsu-row wsu-row--single\" >\r\n    \n<div class=\"wsu-column\"  style=\"\">\r\n\t\n\n<p><strong>UPPM 30.74<\/strong><\/p>\n<p><strong>For more information contact:<\/strong><br>\n&nbsp; &nbsp;WSU Foundation<br>\n&nbsp; &nbsp;509-335-3564<br>\n&nbsp; &nbsp;Facilities Services<br>\n&nbsp; &nbsp;509-335-5571<\/p>\n<hr>\n<div id=\"toc_container\">\n<h3>Contents<\/h3>\n<ul class=\"toc_list\">\n<li><a href=\"#One_0\">1.0 &nbsp; &nbsp;  Overview<\/a><\/li>\n<ul class=\"toc_list\">\n<li><a href=\"#One_1\">1.1&nbsp; &nbsp;   Feasibility Study<\/a><\/li>\n<li><a href=\"#One_2\">1.2 &nbsp; &nbsp;  Project Proposal<\/a><\/li>\n<li><a href=\"#One_3\">1.3 &nbsp; &nbsp;  Project Budget<\/a><\/li>\n<li><a href=\"#One_4\">1.4  &nbsp; &nbsp; Funding Model<\/a><\/li>\n<li><a href=\"#One_5\">1.5  &nbsp; &nbsp; Beginning Construction Prior to Receipt of In-Hand Funding<\/a><\/li>\n<li><a href=\"#One_6\">1.6  &nbsp; &nbsp; Proposal Approval<\/a><\/li>\n<\/ul>\n<\/ul>\n\n<\/div>\n<h3 id=\"One_0\">1.0 &nbsp; &nbsp;  Overview<\/h3>\n<p>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.<\/p>\n<h4 id=\"One_1\">1.1  &nbsp; &nbsp; Feasibility Study<\/h4>\n<p>The unit (college or department) sponsoring the project works with Facilities Services\u2014Capital to undertake a feasibility study for the following purposes:<\/p>\n<ul>\n<li>Determining the program<\/li>\n<li>Recommending project siting<\/li>\n<li>Establishing the project schedule and budget<\/li>\n<\/ul>\n<p>Donor renderings may be included in the study.<\/p>\n<p>The conclusions of the feasibility study form the basis of a capital project proposal.<\/p>\n<h4 id=\"One_2\">1.2  &nbsp; &nbsp; Project Proposal<\/h4>\n<p>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&#8211;Capital and WSU Foundation or the Office of Finance and Operations to prepare the proposal.<\/p>\n<h4 id=\"One_3\">1.3  &nbsp; &nbsp; Project Budget<\/h4>\n<p>Facilities Services\u2014Capital prepares a project budget for inclusion in the capital project proposal. The budget includes all the following applicable capital costs:<\/p>\n<ul>\n<li>Construction<\/li>\n<li>Contingencies<\/li>\n<li>Sales tax<\/li>\n<li>Design fees<\/li>\n<li>Furniture and equipment<\/li>\n<li>WSU project management fees<\/li>\n<li>Other related project costs<\/li>\n<\/ul>\n<h5 id=\"One_3_a\">1.3.a  &nbsp; &nbsp; &#8220;Cost of Money&#8221;<\/h5>\n<p>Facilities Services\u2014Capital includes any &#8220;cost of money&#8221; in the budget proposal when financing, whether from internal sources, or from bonds, is required. (&#8220;Cost of money&#8221; is also referred to as the interest expense.)<\/p>\n<h4 id=\"One_4\">1.4 &nbsp; &nbsp;  Funding Model<\/h4>\n<p>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 Operations confirms the feasibility of the fund sources.<\/p>\n<h5 id=\"One_4_a\">1.4.a  &nbsp; &nbsp; Funding Thresholds<\/h5>\n<p>The funding model also proposes the funding thresholds (i.e., pledged funding vs. in-hand funding) required for various project decisions, including:<\/p>\n<ul>\n<li>Seeking Regents&#8217; approval<\/li>\n<li>Starting design<\/li>\n<li>Starting construction<\/li>\n<\/ul>\n<h5 id=\"One_4_b\">1.4.b  &nbsp; &nbsp; Annual Operating Costs<\/h5>\n<p>The funding model must include fund sources for annual operating costs.<\/p>\n<h4 id=\"One_5\">1.5  &nbsp; &nbsp; Beginning Construction Prior to Receipt of In-Hand Funding<\/h4>\n<p>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 &#8220;cost of money,&#8221; at a rate to be agreed upon.<\/p>\n<h4 id=\"One_6\">1.6  &nbsp; &nbsp; Proposal Approval<\/h4>\n<p>The President approves the capital project proposal and funding model.<\/p>\n<p style=\"font-size: .8rem\">_______________________<br><strong>Revisions:<\/strong>&nbsp; June 2016 &#8211; new policy (Rev. <a href=\"https:\/\/policies.wsu.edu\/prf\/bppm-manual-revisions\/bppm-revision-472\/\">472<\/a>)<\/p>\n\n<\/div>\r\n\n<\/div>","protected":false},"excerpt":{"rendered":"<p>University Policies and Procedures Manual Gift-Funded Capital Projects<\/p>\n","protected":false},"author":1061,"featured_media":0,"parent":50633,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":[],"wsuwp_university_location":[],"wsuwp_university_org":[],"_links":{"self":[{"href":"https:\/\/policies.wsu.edu\/prf\/wp-json\/wp\/v2\/pages\/22049"}],"collection":[{"href":"https:\/\/policies.wsu.edu\/prf\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/policies.wsu.edu\/prf\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/policies.wsu.edu\/prf\/wp-json\/wp\/v2\/users\/1061"}],"replies":[{"embeddable":true,"href":"https:\/\/policies.wsu.edu\/prf\/wp-json\/wp\/v2\/comments?post=22049"}],"version-history":[{"count":22,"href":"https:\/\/policies.wsu.edu\/prf\/wp-json\/wp\/v2\/pages\/22049\/revisions"}],"predecessor-version":[{"id":69726,"href":"https:\/\/policies.wsu.edu\/prf\/wp-json\/wp\/v2\/pages\/22049\/revisions\/69726"}],"up":[{"embeddable":true,"href":"https:\/\/policies.wsu.edu\/prf\/wp-json\/wp\/v2\/pages\/50633"}],"wp:attachment":[{"href":"https:\/\/policies.wsu.edu\/prf\/wp-json\/wp\/v2\/media?parent=22049"}],"wp:term":[{"taxonomy":"wsuwp_university_location","embeddable":true,"href":"https:\/\/policies.wsu.edu\/prf\/wp-json\/wp\/v2\/wsuwp_university_location?post=22049"},{"taxonomy":"wsuwp_university_org","embeddable":true,"href":"https:\/\/policies.wsu.edu\/prf\/wp-json\/wp\/v2\/wsuwp_university_org?post=22049"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}