R23-24-4. Policy

The following policy will apply to all projects funded in whole or in part by non-appropriated funds.

(1) Before initiating the project, an executive having the authority to bind the agency or institution shall provide DFCM with a letter stating the funding to be provided by the agency or institution and committing to reimburse DFCM in accordance with this policy. In the case of a joint project with a non-state entity, a formal agreement shall be entered into.

(2) Prior to bidding the construction of the project, the agency or institution must provide DFCM with the following:

(a) A breakdown of the funding for the project showing the amount of cash available, the amount outstanding on legally enforceable contracts and commitments payable to the agency or institution and dedicated to the project, and the remaining difference.

(b) An explanation will be provided regarding how and when the remaining difference will be obtained. This difference may not exceed 25% of the project funding. DFCM reserves the right to require that a higher percentage of the funding be available if it determines that this is necessary to protect the state's interests.

(c) The agency or institution may commit that it will cover the remaining difference from other funds available to it until the full funding is obtained as long as this commitment is within the legal and financial capability of the agency or institution.

(d) Any exception to this policy must be approved by the Utah State Building Board and the state Director of Finance.

(3) The agency or institution will be responsible for providing its proportionate share of the funding. If the funding sources anticipated by the agency or institution do not meet its share of costs, the agency or institution must either provide alternate sources of funding or reduce the cost of the project to bring it back within the level of available funding.

(4) Any non-monetary assets donated as a funding source must be liquidated by the institution prior to the bidding of construction. Exceptions may be granted by the Utah State Building Board and the state Director of Finance when alternate funding can be assured.

(5) It is the responsibility of the agency or institution to inform DFCM immediately of any restrictions on the funding provided, including federal grants or donor restrictions.

(6) Agencies and institutions will be required to reimburse DFCM for their share of expenditures ratably throughout the project. An exception may be made if the agency or institution is providing funding for a specific element of the project such as equipment, furnishings, or fountains. This exception will not be granted if the funding is for items which are a basic and necessary element of the construction of the project.

(7) DFCM will submit monthly billings to agencies and institutions for their share of the expenditures made. Payment will be due back to DFCM within 16 working days of the billing date or the mailing date whichever is later. DFCM will notify the state Division of Finance of any billings not paid within seven days of the due date. The Division of Finance may deduct any delinquent invoices for DFCM from the next appropriation allotment to the institutions or transfer the funds to DFCM as may be appropriate. Before taking any action, the Division of Finance will consult with the governing body or head of the agency or institution as appropriate.