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Meeting Date:
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11/30/2017 - 7:00 PM
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Category:
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New Business and Reports to the Board
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Type:
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Info
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Subject:
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CIP Reserve
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ACPS 2025 Strategic Plan Goal:
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Objective 4.3 Sustainable Facilities ACPS will model sustainable environmental practices.
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Funding Source or Fiscal Impact (where applicable)
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File Attachment:
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Agenda Item Summary:
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Use of the CIP Reserve Account
With the creation of the CIP Reserve Account, a new two-step process is established to move budgeted funds between capital accounts:
1. The School Board approves budget transfers from specific project account lines to the CIP Reserve Account.
2. The School Board approves budget transfers from the CIP Reserve Account back to other specific project account lines.
In most cases, funding moving to the CIP Reserve Account will become available because a project was completed with a small amount of unencumbered funding remaining. There may also be infrequent instances where funding becomes available because (1) a revised estimate indicates that the project can be completed for substantially less money, or (2) newly-available information renders a project unnecessary.
ACPS staff will report to the Board on the CIP Reserve Account and provide recommendations to move budgeted funding to specific project account lines on a quarterly basis. This will typically occur alongside the CIP quarterly reporting process. Additional staff recommendations may be made between quarterly reports if there is a pressing need for funding to move a critical project forward.
Funds Recommended to Establish CIP Reserve Account
The funds identified to establish the CIP Reserve Account are primarily from projects that have been completed, have small amounts of funding remaining after portions of work have been performed, are no longer required, or have surplus funds identified above the current scope of work requirements.
Attachment #1 provides the detailed project account adjustments.
Recommended Funding Sources:
ACPS staff has reviewed potential funding sources for the reserve budget transfer.
1. The School Board approves budget transfers from specific project account lines to the CIP Reserve Account.
2. The School Board approves budget transfers from the CIP Reserve Account back to other specific project account lines.
In most cases, funding moving to the CIP Reserve Account will become available because a project was completed with a small amount of unencumbered funding remaining. There may also be infrequent instances where funding becomes available because (1) a revised estimate indicates that the project can be completed for substantially less money, or (2) newly-available information renders a project unnecessary.
ACPS staff will report to the Board on the CIP Reserve Account and provide recommendations to move budgeted funding to specific project account lines on a quarterly basis. This will typically occur alongside the CIP quarterly reporting process. Additional staff recommendations may be made between quarterly reports if there is a pressing need for funding to move a critical project forward.
Funds Recommended to Establish CIP Reserve Account
The funds identified to establish the CIP Reserve Account are primarily from projects that have been completed, have small amounts of funding remaining after portions of work have been performed, are no longer required, or have surplus funds identified above the current scope of work requirements.
Attachment #1 provides the detailed project account adjustments.
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Background:
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In the past, as Capital Improvement Program (CIP) projects have been completed, the remaining funding at close-out has been transferred directly to other CIP project accounts. To increase transparency and tracking of funds, a CIP Reserve Account will be established to temporarily hold funds in contingency until a specified existing project is identified as needing additional funds.
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Recommendation:
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The Superintendent recommends that the School Board review this memo for initiation of a new CIP Reserve Account and the attached budget transfer request in the amount of $257,992 to fund the establishment of this account.
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Approvals:
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Recommended By:
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Signed By:
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Richard Jackson - Interim Director of Educational Facilities
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Signed By:
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Mike Herbstman - Chief Financial Officer
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Signed By:
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Lois Berlin -
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