FIN 209: Construction Projects from Bond Financing or Private Fundraising
To describe the policy for committing and spending construction funds on projects financed from bonds or private fundraising sources
No funds may be committed or spent for construction on bond financed projects until ASU has received:
Construction contracts may be awarded on partial or fully gift-funded projects only under the following conditions:
For any construction projects funded in part or fully from gifts, where all of the gifts have not been received by the start of construction, Financial Services is to be notified in writing (e-mail is acceptable) before construction starts as to the person at ASU, the ASU Foundation, or other ASU-related entity who has overall coordinating responsibility for the fundraising.
The person who has the coordinating fundraising responsibility is to include in the notice to Financial Services the fundraising budget for the project.
Each quarter (e.g., July 1 through September 30), the fundraising coordinator is to submit to Financial Services a Gift Funded Capital Project report.
This quarterly report must include the following project information:
This quarterly Gift Funded Capital Project report is to be submitted to the Plant Funding Accounting Area in Financial Services by the 25th day of the month following the end of the quarter.
Gifts received by the ASU Foundation or other ASU-related entity restricted for an ASU gift-funded capital project need to be timely transferred to ASU. Even though the gifts do not need to be transferred daily, they must be, depending upon the cash amount, transferred at least monthly or quarterly. These gift transfers may be initiated and authorized by (1) an authorized signer on the ASU-related entity account, (2) the related entity itself, or (3) the ASU Financial Services office.
Funds may be spent on bond financed construction projects for architectural/engineering fees, bid advertising, and other preconstruction costs, before receiving the above approvals.
Awarding of construction contracts for gift-funded projects when the conditions mentioned above have not been met may commence only when approved by the president. Exceptions must include, at a minimum, a financing alternative acceptable to the university that keeps the project’s construction on schedule and does not expose the university to undue financial risk.
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