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Any new capital project that is to be funded with debt must be approved by the Board of Regents (BOR) and be added to the CIP. After the project receives final approval by the BOR, the institution’s next step is to seek approval (with the assistance of OFPC) from the Texas Higher Education Coordinating Board (THECB) unless the project falls below the THECB approval thresholds. THECB approval typically occurs one to three months after BOR approval. Finally, in the case of bond issuances, the Texas Bond Review Board and Texas Attorney General must approve the bond issuance.
As part of the agenda item requesting final approval by the BOR, the Office of Finance must provide a “Finding of Fact” for any Revenue Financing System (RFS) funded projects. A “Finding of Fact” is a determination that the BOR will have sufficient “Pledged Revenues” to meet all financial obligations relating to the Revenue Financing System and that the institutions on whose behalf the debt is issued possess the financial capacity to satisfy their direct obligations. In order to make this judgment, the Office of Finance obtains and analyzes revenue and expense projections from the institution (pro forma). Institutions must provide the project pro forma to the Office of Finance sufficiently in advance of the Board agenda deadlines to allow the Office of Finance to complete its analysis and prepare Finding of Fact language to be included in the Board agenda item.
We have attached pro forma templates below to assist institutions in providing financial projections. For more information on the Capital Project Approval Process please refer to questions 10 through 17 of our FAQ or to the documents and charts below that have been provided by the Office of Facilities Planning and Construction (OFPC).
Office of Facility Planning and Construction (OFPC) Documents
Capital Improvement Program (CIP) Approval Process Slideshow
Process Maps
CIP Approval
Design/Development (DD) Approval - New and Architecturally Significant
Design/Development (DD) Approval - Repair and Renovation
Texas Higher Education Coordinating Board (THECB) Approval
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