Caomparison Data 2006 Financial Result

Invitation to Bid for 2016 Capital Expenditure Budget

Introduction

We are currently looking at Business as usual projects, for any new strategic projects we are not seeking new bid requests as yet – this will be co-ordinated by the Strategic Planning Group once the strategy has been finalised.

The asset categories are;

Sheet 1 - Major Equipment Sheet 2 - Minor Equipment Sheet 3 - Research Sheet 4 - Property Services Sheet 5 – ITS Lifecycle Projects Sheet 6 – Existing Strategic Projects (Inflight Projects)

The closing date for submission is the 30/09/2015. Please submit to Emer Cleary Senior Finance Manager – Budgeting & Reporting ([email protected])

The Capital Bidding Process

Attached to this request is an Excel template for each College/Portfolio to fill out and submit. There is to be one submission per College/Portfolio. The Senior College Finance Manager will collate the bids in preparation for the initial in-College prioritization. Input to the prioritization of College level bids for all categories of Research equipment (capital and minor) will be provided by DVC(R&I) or delegate prior to the due date for submission. The Senior College Finance Manager will then submit by the due date.

PRC will prioritise the bids and submit a recommendation to the Vice-Chancellors Executive and then final approval will be provided at Council’s Budget Meeting.

PRC typically reviews each submission in consideration of the following criteria;

- Relevance to the Strategic and Operational Plans including ITS and Research Plans - Occupational Health and Safety concerns - Maintenance and replacement of existing/worn out stock - Justification/Business Case and demonstration of value - Quantum of bid

The attached template has drop down boxes to guide the user as well as other supporting information to accompany the bid. However the most important component of the bid is in the justification/Business benefit section. It is important to provide a brief statement (2-3 sentences) on the reasons for acquiring the assets.

Please note that there are many bids for PRC to consider so please make bids as succinct as possible.

Instructions for completion of the Excel Template Sheet 1 – Major Equipment

To be used for equipment > $25k by all Colleges and Portfolios .

Items that are greater than $25k require a more detailed request. The bid must provide the following;

Headings Requirements SCHOOL Select for dropdown list BID NUMBER A bid number which represents the Portfolio and the Portfolios priority e.g. SEH – 01, SEH – 02 etc EQUIPMENT ITEM a brief description of the bid PROJECT LEADER Project Leader/Owner - name JUSTIFICATION Business Benefit EQUIPMENT COST Purchase cost of asset INSTALLATION COST Installation costs of asset. Note: any asset installation that requires building works must be cleared by Property Services prior to submission TOTAL PROJECT Total of the Sum being requested for approval COST

STRATEGIC PURPOSE Select from the following: Learning & Teaching Research Student Experience Services and Infrastructure LOCATION Location TENDER WAIVER Will a tender waiver be required? (as per current quotation and tender policy) ITS Does it involve Information Technology Services. All such bids will be reviewed by ITS IMPACT ON SPACE Each bid is to identify the impact on space and infrastructure including the associated costs APPROVED BUILD Yes / No WORKS BID PROJECT REQUEST This will be provided to you by property services upon approval APPLICATION # EQUIPMENT COST Purchase cost of asset INSTALLATION COST Installation costs of asset. Note: any asset installation that requires building works must be cleared by Property Services prior to submission TOTAL COST - 2016 Total of the Sum being requested for approval for 2016 TOTAL COST - 2017 Where the cost of the asset/project will fall over more than one year, please include the cost in 2017 here. TOTAL COST - 2018 Where the cost of the asset/project will fall over more than two years, please include the cost in 2018 here.

Please note that any capital item which requires installation by Property Services must be cleared by Property Services prior to submission. Otherwise bids will be ignored. The bid must include the cost of installation.

Sheet 2 - Minor Equipment College/Portfolio Minor Equipment category provides the College/Portfolio with the operational flexibility to choose how it wishes to invest its capital and eliminate the need for subsequent approval.

The discretionary bid amount is proposed by the area and is to cover for small equipment purchases. For example, Financial Services might require $40k pa for miscellaneous office equipment, whereas the SEH portfolio might require $2.3M for small tools, lab equipment etc.

Capital expenditure on items less than $25k will be a guide for determining appropriate levels of Minor Equipment capital expenditure for each College/Portfolio. Any increases from the previous year will require a brief justification.

Where there are a number of small items greater than $2k attached to a single project which in aggregate total greater than $25k, a separate specific bid will be required.

Please note that any capital item which requires installation by Property Services must be cleared by Property Services prior to submission. Otherwise bids will be ignored. The bid must include the cost of installation.

Sheet 3 – Research

To be used for Capital Funded from External Research Grants (including RIBG & JRE)

Any planned capital expenditure from research block, such as JRE and RIBG, must be separately listed in this section.

Any planned capital expenditure from external research grants is at the discretion of the individual researcher and is therefore automatically approved as part of the consolidated capital expenditure budget. It is important that Academic Colleges endeavour to provide a best estimate of what the amount will be, and that their budgeted operating surplus figure incorporates the “profit effect” of the capital purchases from research grants.

The capital expenditure to support research infrastructure must be channelled through either the Property Services process for building related capital, or through the equipment bid process for items greater than $25k unless its funded from JRE, RIBG etc. Items less than $25k to support research infrastructure can be met from the minor equipment capital budget.

Sheet 4 – Property Services

Property Services to complete the details as per the excel worksheet detailing the Major works > $1m and Annual works program.

Sheet 5 – ITS Lifecycle Projects

ITS has a pipeline of projects that should be submitted via Sheet 5, for prioritisation into the Budget 2015 - these projects should include any projects to facilitate the lifecycle of our current IT infrastructure – see Sheet 6 notes regarding strategic projects.

Sheet 6 – Strategic Projects – Inflight

Please update August forecast and submit year 2 requirements for 2015 agreed Strategic projects as per the listing. Please note : For any new Strategic Projects we are not seeking bids yet, this will be co-ordinated by the strategic Planning group once the strategy has been finalised.

Policy on what constitutes capital expenditure

Expenditure to qualify as capital expenditure must meet the following criteria: - expenditure on an item(s) is greater than $2k - has a useful life longer the one year

A link to the Capital Policy is attached for your reference.

Property Plant and Equipment (PPE) Policy

Financial Services has the responsibility to assess whether the item is of a capital or expense nature. Please consult Financial Accounting if you require an opinion.

Vocational Education Equipment.

Vocational Education Schools are to submit requests for capital equipment in the same manner as all other Schools within RMIT. Please use “Sheet 1 - Equipment” and select the VE option from the school dropdown list.

Submission details

Each College/Portfolio accountant/business manager must submit a consolidated bid template for the College/Portfolio by the due date. The PVC/DVC of the College/Portfolio must have approved the submission, prior to it being sent to Finance – Emer Cleary.

Reporting Requirements

Colleges/Portfolios will be responsible for the phasing of the approved capital expenditure budget for 2016, and will at the end of each month, provide a brief narrative on the status of each approved bid and approved Minor Equipment capital budget.

Variations to capital expenditure budget

Once a capital project has been approved and incorporated in the 2016 budget any variation to a capital expenditure budget of 5% or greater than $10k must be approved by PRC before purchases orders can be raised. In addition any substantial change to the nature or scope of the item budgeted must also be approved by PRC before purchase orders can be raised. Any request for capital expenditure throughout the year, which does not have an approved budget, must be presented to PRC for approval.

If you have any further questions in relation to the Capital Bid process for Budget 2016, please do not hesitate to contact your local member of Finance, or alternatively Sam Bakas on x50628, Emer Cleary on x52863 or Sharron Jackson on x50608

Regards

Sharron Jackson