HomeMy Public PortalAbout2130.2 - Business and Financial Services - Management & Budget - Closing of Capital ProjectsOffice of Business and Financial Services
Management and Budget Section 2130.2
Policies and Procedures Manual Page 1
2130.2 SUBJECT: CLOSING OF CAPITAL PROJECTS
:1 OBJECTIVE:
To require an annual review of the status of capital projects and to establish a
process to close completed and inactive projects.
:2 AUTHORITY:
This policy adopted by City Council April 11, 2011.
:3 DIRECTION:
The Chief Financial Officer, as an appointed official, serves at the pleasure of, and
receives direction from the Mayor.
:4 FUNCTIONS:
A. Introduction
City government, as an institution, has multiple partners including
citizens, taxpayers, businesses, visitors, employees, and other
governments. As a major institutional, economic, and service force in the
region, it is important that the City strengthen relationships with its
partners by adopting a clear and comprehensive set of policies and
procedures.
Furthermore the integrity of the City of Orlando is of utmost importance,
and adopting a set of policies is a key element to maintain this integrity.
The purpose of this policy is to establish a regular review of the status of
capital projects and describe the process by which completed and
inactive are to be closed.
B. Annual Review and Closing of Capital Projects
1. As part of the year-end close, the Chief Financial Officer (or
his/her designee) shall prepare a list of capital projects that are
essentially complete and/or inactive. Projects shall be considered
essentially complete and/or inactive when at least one of the
following conditions is met:
a. The asset the project was funded to create, build, or
acquire has been capitalized.
b. The project has less than 10% of its budget unspent.
c. There has not been any financial activity in the project (i.e.
expenses charged or revenue received) during the previous
24 months.
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Policies and Procedures Manual Page 2
d. Funds originally appropriated to the project have been
transferred to another project during the current fiscal year.
e. Any other condition which the Chief Financial Officer has
determined to be an indication that the project is complete
or is no longer a viable capital project.
2. The Chief Financial Officer (or his/her designee) shall distribute
this list to all department directors with a copy to Public
Works/Engineering. Recipients shall review this list and provide a
written response to the Office of Business and Financial Services
on the status of their projects. This response, at a minimum, must
contain the following information:
a. Overall description of the project’s status.
b. Any required or anticipated expenditure of funds in a
future fiscal year.
c. If applicable, status of grant, contribution from
participating governments, or other reimbursement
revenue used to finance the project.
d. If no revenue or expenditures have been recorded in the
project for the current and previous fiscal year,
justification for keeping the project open and active.
3. For administration of this policy, “departments responsible for
project” shall mean the City department responsible for the
operation of the completed project (i.e. FPR facility, fire station,
etc.) and/or providing approval authority for the expenditure of
project funds.
4. Based on the information provided by department directors and
Public Works/Engineering, the Chief Financial Officer (or his/her
designee) shall prepare a list of capital projects that are proposed to
be closed as part of the fiscal year-end closing. Departments
responsible for projects proposed to be closed shall be notified of
such and shall be given at least 10 working days to submit a written
appeal of that decision.
5. The Chief Administrative Officer, Chief of Staff, and the Chief
Financial Officer shall finalize a list of capital projects that will be
closed as part of the fiscal year-end closing.
C. Exceptions and Restrictions
1. Nothing in this policy shall prevent the closure of a capital project
at other times in the fiscal year when there is agreement between
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the department responsible for the project, the Chief Financial
Officer, and the Chief Administrative Officer that the project is no
longer needed or essentially complete.
2. Any funds remaining in a project that is closed shall revert to the
appropriate fund and can only be used to fund other capital projects
based on the City’s overall priorities. Departments responsible for
projects cannot make any commitments for future capital projects
based on anticipated savings in currently approved projects.
3. Departments responsible for projects are required to use every
effort to scope and implement capital projects in the most cost
effective manner. The Chief Financial Officer (or his/her designee)
shall use due diligence in the review of project expenditures. If the
Chief Financial Officer (or his/her designee) believe an expenditure
of capital projects funds is excessive or inappropriate given the
purpose of the project, such expenditure shall be reported to the
appropriate department director and Chief Administrative Officer
for review and resolution.
:5 FORMS:
None.
:6 COMMITTEE RESPONSIBILITIES:
None.
:7 REFERENCE:
This policy adopted by City Council effective October 29, 2007 – Item A-3;
amended April 11, 2011.
:8 EFFECTIVE DATE:
This procedure effective April 11, 2011.