CAPITAL UTLAY PROCESS OVERVIEW Outlay/2017 Nonstate Capital Outlay Training...CAPITAL OUTLAY PROCESS...
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CAPITAL OUTLAY PROCESS O VERVIEW For Non-State Entities September 2017
Transcript of CAPITAL UTLAY PROCESS OVERVIEW Outlay/2017 Nonstate Capital Outlay Training...CAPITAL OUTLAY PROCESS...
CAPITAL OUTLAYPROCESS OVERVIEW
For Non-State EntitiesSeptember 2017
Understand the definition of Capital Outlay
OBJECTIVES
Understand the steps oftheCapitalOutlay process
OBJECTIVES
Understand generalobligation bond priorities
OBJECTIVES
Understand the difference between an appropriation and
funding
OBJECTIVES
Understand how to readan appropriation
OBJECTIVES
Understand the limits ofan appropriation
OBJECTIVES
Understand the informationrequired in a capital outlay
request
OBJECTIVES
Knowwhere to go for help
OBJECTIVES
WHAT IS CAPITAL OUTLAY?Understand the definition of Capital Outlay
expenditures for acquiring lands, buildings, equipment, or other permanentproperties,
or for their preservation or development or permanent improvement.
CAPITAL OUTLAYS ARE…
Permanent – useful life ofat least 10 years
Major – complex, requiringcoordination of two or moretrades
CAPITAL OUTLAY PROJECTS
are entered into eCORTS
require a letter of support
are due November 1st
CAPITAL OUTLAY REQUESTS
appropriationfundingmeans of financegeneral obligation bonds line of creditnoncashrescissionreappropriation
THE LANGUAGE OF CAPITALOUTLAY
CAPITAL OUTLAY PROCESSUnderstand the Steps of the Capital Outlay
Process
STATE OF LOUISIANA
THERE IS NO QUICK CHECK!
CapitalOutlay is not designedto be a quick fix.
PLAN AHEAD
SubmitCapitalOutlay Request
Receive anAppropriation in theCapitalOutlayAct
Receive Funding of theAppropriation
Execute the CooperativeEndeavorAgreement
Proceed with Project
Receive Disbursement
THE CAPITAL OUTLAYPROCESS
Funds Requested
FundsAppropriated
Project Funded
FundsAvailable
Cooperative EndeavorAgreement Executed
July 2018
Sep 2018
Oct 2018
Nov 2018
BES
TCA
SESC
ENARIO Nov 2017
WHEN DO FUNDS BECOMEAVAILABLE?
CAPITAL BUDGETDEVELOPMENT
Original House Bill 2
BUDGET DEVELOPMENT
RequestsCapacity
Priorities
$200 million, adjusted for inflation putthe limit at $385 million for FY 17‐18.
Includes noncash to cash (P5 to P1) and new (P2) lines of credit. Does not includeP1.
R.S. 39:112 F
G.O. BOND CAPACITY
26
StateAgencies Requests Received:$1.66BTotal Requests: 771
Nonstate EntitiesRequests received:$1.23BTotal Requests: 1128
FY 17-18 CAPITAL OUTLAY REQUESTSFOR DISCRETIONARY FUNDING
GovernorHouse of
Representatives
HouseWays and Means
Committee
HouseAppropriationsCommittee
Floor of theHouse of
Representatives
On to theSenate
SenateSenate Revenueand FiscalAffairs
Committee
Senate Finance Committee
Floor of theSenate
House of RepresentativesforConcurrence
Governor
GENERAL OBLIGATIONBONDS
Understand general obligation bond priorities
PRIORITY 1Always a reauthorization of appropriations
with PRIOR lines of credit
Priority1
Priority 1
Priority2
Priority 3 Priority
4
Priority 5
Newauthorization forCASH
To be spent in the fiscal year of theAct
PRIORITY 2
Newauthorization forCASH
NOTto be spent in thefiscal year of theAct
PRIORITIES 3 AND 4
New or reauthorized“BudgetAuthority”
Can only be granted aNONCASHline of credit
PRIORITY 5
APPROPRIATIONSUnderstand the difference between an appropriation
and fundingUnderstand how to read an appropriationUnderstand the limits of an appropriation
Being “in theAct” is NOT the same as “receiving
funding.”
APPROPRIATED VS FUNDED
Represents budgetauthority
(legislative approval for you to receive funding
IF GRANTED)
APPROPRIATIONS
Allocation of funds
“Funding” can be aCash Line ofCredit or aNoncash Line ofCredit
FUNDING
Appropriations Memos are distributed
GeneralObligation Bond appropriations areconsidered for funding
Lines ofCredit are granted by theState Bond Commission
Notification of Line ofCredit Status Memosare distributed
AFTER THE LEGISLATIVE SESSION
B
DE
UNDERSTANDING APPROPRIATIONS
F
C
A
21
22
50/MZZ
(345)
MARAIS
Fire Station Expansion,Acquisition,
23 Planning andConstruction
24 (Evangeline)
25 Payable fromGeneralObligation Bonds
26 Priority 1 $ 900,000
EXAMPLE APPROPRIATION
…to a specific entity, for a specific purpose
APPROPRIATIONS ARE MADE…
21 50/MZZ MARAIS
22 (123) Fire Station Expansion,Acquisition,
23 Planning andConstruction
24 (Evangeline)
25 Payable fromGeneralObligation Bonds
26 Priority 1 $ 900,000
How is the intent of an appropriation determined?By reading the Capital Outlay
Request!
SCOPE INTERPRETATION
CAPITAL OUTLAYREQUESTS
Understand the information required in a capital outlay request
CAPITAL OUTLAY REQUESTS
Shall include a detailed project description andjustification including an
analysis of needR.S. 39:102
REQUIRED INFORMATION
A Letter of Support [R.S. 39:101 ]
A 25% local match [R.S. 39:112 E(2)]
REQUIREMENTS
RESOURCESKnow where to go to get help
https://wwwcfprd.doa.louisiana.gov/ecorts/default.cfm
ECORTS INSTRUCTIONS
http://www.doa.la.gov/Pages/ofpc/Index.aspx
NON-STATE ENTITY TRAINING MANUAL
http://www.doa.louisiana.gov/fpc/fpc.htm Email: [email protected] Phone: 225.342.0823
CONTACT CAPITAL OUTLAY STAFF
Lanetta Barthelemy, AnalystJoyce Jenne, AnalystMarc Parenti, AnalystClaire Vermaelen, AnalystBrian Criss, Capital Outlay ManagerSimonne Whitmore, Capital Outlay Administrator
Edwin Lee,Senior Manager
Rene Becnel, Project Manager
Gus Cretini, Project Manager
Bill Eskew, Project Manager
Jim Lee, Project Manager
John Richard, Project Manager
LyleSavant, Project Manager
PROJECT MANAGEMENT TEAM
CONCLUSIONImportant points to take away from this seminar
SubmitCapital Outlay Request
Receive an Appropriation in theCapital OutlayAct
Receive Funding of the Appropriation
Execute the Cooperative Endeavor Agreement
Proceed with Project
THE CAPITAL OUTLAY PROCESS
�Detailed Description of theProject
�Justification of the Projectincluding an Analysis of Need
STATUTORILY REQUIRED INFORMATION
Priority1
Priority1
Priority 2
Priority3 Priority
4
Priority5
GENERAL OBLIGATION BONDSPRIORITIES 1-5
AppropriationsAuthority to
Receive Funding
FundingCommitment
of funds
APPROPRIATIONS VS FUNDING
B
DE
UNDERSTANDING APPROPRIATIONS
F
C
A
…to a specific entity, for a specific purpose
APPROPRIATIONS ARE MADE…
�Capital Outlay Webpage
�eCORTS Instructions
�Nonstate Training Manual
�Capital Outlay Staff
RESOURCES
