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Project Proposal

Update (September 2012) All forms are completed by, or under guidance from, a Project Manager, please refer to the Capital Project Initation Page for further information.

1. Prepare project proposal

The departmental representative (supported by the Project Manager, the division etc) should prepare a full Project Proposal to seek University approval for the project to go ahead, including the estates strategy, academic (or service) strategy and finance/funding details (see 2. below).

The proposal will cover similar ground to the feasibility study report but will present the case in more detail for full review by the relevant committees:

• Options Analysis – comparing the ‘do nothing’ option with other feasible options; usually carried out by the Estates Services-appointed quantity surveyor with input from the project departmental representative
• Capital cost assessment – usually carried out by a Estates Services-appointed quantity surveyor
• Revenue cost impact – involving the Divisional Financial Controller (DFC)
• VAT & other tax issues - involving the Tax Team
• Funding (capital & revenue) – involving the Development Office and Capital Project Accountant
• Legal issues – involving Legal Services
• Accounting treatment (capitalization) – involving Financial Reporting Team

While the proposal should cover the entire project, it is possible to seek approval for a defined stage of the project e.g. planning application rather than the full project. Approval for further stages may be conditional upon e.g. fundraising success or planning approval.

2. Complete funding/financial case

The financial/funding elements of the Project Proposal comprise various elements:

• Finance Case (Finance Report) – to be approved by the Divisional Financial Controller, detailing the ongoing budgetary implications and recurrent finances, e.g. ongoing maintenance costs.
• Funding evidence, such as letters of funding confirmation from external contributors.
• The Project Expenditure Approval Form (PEA) documentwhich must be completed by the departmental representative, and signed off by the Head of Department, Head of Division, Estates Services and any other parties contributing funding.
• The Project VAT Review Form (PVR )(part of the PEA), completed by the departmental representative, which is used by the VAT team to provide VAT advice, informing the decision that also needs to be taken about whether to use Oxford University Fixed Asset Limited (OUFAL) to manage the project. (Note: OUFAL is the University’s own building company).
• The final part of the PEA, completed by the departmental representative, is the Capitalisation Sign Off Formwhich details the way in which the funding is to be accounted.

If fundraising is to be undertaken for any project >£1m in value, preliminary approval must be sought from PRAC and Council (the project proposal also has a signoff for the Director of Development to confirm the Development Office is aware of and supports any fundraising requirement).

3. Submit PID for approval

When the PSG is happy with the project proposal it must be submitted for approval, along with the authorised PEA, to the CSG via the CSG Secretary.

The CSG may recommend the proposal to the Planning & Resource Allocation Committee (PRAC) or amendments may be required in which case the document will be returned to the department.

Approval may be given by PRAC or as above, the document will be returned to the department for amendment.

Projects over £1m must be reported to Council, whilst projects over £4m must be submitted to and approved by Council.

Projects not approved will be rejected and the department informed with reasons for the rejection.

4. Finance set-up

As with feasibility studies, subject to the necessary approvals, and before activity and spend can occur on the project, the project and award (funding) must be setup in Oracle Financials.

The authorised PEA is sent to the Estates Services Finance Team who set up a new project and any BESC (Building & Estates Sub-Committee) funding in Oracle Financials (Projects). The PEA is then forwarded to the Capital Accounts Team in the Finance Division who set up all other funding and arrange any external funding claims and internal departmental and other funding contributions.

 

Note: BESC is a PRAC Sub-Committee that oversees central University budgets for repairs and maintenance, the rolling programme and minor works.

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