Capital Project Management / Capital Budgeting

Generating a Capital Budget from Project Data

After adding capital programs, you can create a capital budget that is based on project funding allocation data. When generating the budget, the application summarizes the Funds Allocated (Capital) and Funds Allocated (Expense) that you entered for each project when allocating funds. Funds Allocated (Capital) are for the acquisition or improvement of capital assets; Fund Allocated (Expense) are for day-to-day disposable expenses. These values are rolled up to programs by fiscal year. The records used to generate the budget are from the Project Funds (PROJFUNDS) table. See Allocating Funds.

Benefits

When you generate a capital budget from project data, the project funding allocation data is rolled up into the capital programs, based on which Program ID was assigned to the project. This capital budget enables your capital planning committee to quickly summarize the budget required for each of its programs by year. This can be very helpful when you have a large number of projects. Typically, the allocation of funds to those projects will be assigned to a group of sub-committees who will be responsible for finishing the task before the final budget is approved by the planners.

Note: Keep in mind that the final budgeting is a financial function that occurs outside of project estimates. Ultimately, the estimates will be used to determine how much funding is allocated, but the allocation depends on your finance team's available funds, and a variety of other calculations that are made in a financial system.

Alternate method

If you prefer, you can create a capital budget based solely on programs, which does not include any project data. You would do this when you have not yet allocated funds to projects, or when you want to create a basic program budget as a preliminary step, to get a snapshot view of your budget before you integrate your project data. For information on creating a capital budget based solely on programs, see the Creating a Basic Program Capital Budget topic. For information on the workflow options that are available to you, see the Capital Budgeting Application (Overview) topic.

Process overview

To create a budget from project funding allocation data, you work through the following procedures:

1. Request the project and approve it. See Requesting a Project and Approving Project Requests.
2. Associate the project with a program.
3. Add your funding sources for capital projects. See Adding Funding Sources.
4. Allocated funds, entering the Funds Allocated (Capital) and Funds Allocated (Expense) values for the projects. See Allocating Funding.
5. Create a budget code. See the Creating Capital Budget Codes topic for more information.
6. Generate a capital budget for the budget code you created. See the procedure below.
7. If needed, edit the data in the capital budget. At this point, you can enter data or edit existing data. See Editing Budgeting Data Manually.

Generating a capital budget based on projects

When you generate a capital budget, values will be filled in for Programs and Years provided that:

• The Update Budget Items from Projects? option is selected on the Generate Capital Budget screen.
• There are projects for the Programs you select.
• The project's status is one of the following:‘Approved’,’Approved-In Design’,’Issued-In Process’, or ’Issued-On Hold’.
• Funding has been allocated to that project for that year. See Allocating Funding.

Because you are generating a budget that is based on project data, the values that appear in the budget are based on project data that has been rolled up for each program. To generate the capital budget, the application summarizes the values for the Funded Amount (Capital) and Funded Amount (Expense) for each project for the program.

If you want to edit the data that appears, you can enter data for each value. See the Editing Budget Data Manually section below for more details.

To generate a capital budget:

1. Select the Budget / Generate Capital Budget task.
   The Generate Capital Budget page appears.
2. In the Filter console at the top of the page:
   • Select the budget code in the Budget field.
   • Select 'Yes' for the Update Budget Items from Projects? option.
   • Select one or more Program Sites or Program Types that you want to include in the budget from the select values list for these fields.
   • Specify the range of years for the budget by selecting values for the From Year field and the To Year field. For cost data to be copied from the project, the project must have funding allocated to it for the specified years.
3. Click the Generate Capital Budget button.
   Your capital budget appears. Because you have selected the Update Budget Items from Projects option, the budget depicts the values that have been calculated by rolling up Allocated Funding values for all projects for the specified sites and program types.

Note 1: If you regenerate a budget later, the sites, program types, and years criteria that you selected the last time you generated the budget will appear when you choose the budget code.

Note 2: If you regenerate a budget and you change the sites, program types, and years criteria, all of the data from the previous budget that does not match the new criteria will be deleted in the new budget. Only the data that matches the new criteria will be displayed.

Editing budget data manually

After generating a capital budget, you have the option to edit the budget data that appears. Once you have edited a data field in a capital budget, the data field is marked as Manual, which signifies that from now on it must be edited manually.

Note: If you later regenerate a budget and choose the Update Budget Items from Projects option, any fields that have been edited manually will not be updated because they can only be edited manually. Any fields that have not been edited manually will be automatically updated based on updated project data.

To edit budget data manually:

1. Select the Budget/Edit Budget Details task.
   The Edit Budget Details page appears.
2. Select the Budget Code for the budget you want to edit in the Select Budget console, and click Show.
3. Click the cell for the Capital Total or Expense Total for the program and fiscal year you want to edit.

   The Edit Budget Item Costs form appears.

4. Enter or change the Cost-Budgeted (Capital) or Cost-Budgeted (Expense) values for the selected fiscal year.
5. Click Save.
   The new values you entered appear in the capital budget.