Capital Renewal Fee
What is the capital renewal fee?
The capital renewal fee (crf) is a four percent assessment on the project budgets of all capital projects over $100,000, which took effect in FY2011-12. Resources generated by the capital renewal fee are used to support the ongoing investment in the campus’s built environment.
Which projects are subject to the capital renewal fee?
All projects over $100,000 are subject to the capital renewal fee, except for projects in the campus’s Capital Renewal Program, which is overseen by the Capital Renewal Committee, and projects at Field Stations. Richmond Bay Campus projects are subject to the crf.
How is the capital renewal fee assessed and transacted?
The capital renewal fee is assessed as a percentage of the total project budget; it is not based on project actuals. While the crf is not considered part of a project’s construction budget, it should be taken into account when estimating a project’s overall financial liability.
The capital renewal fee is normally transferred along with project funding at the outset of the project. Crf funds are held in a separate account for capital reinvestment purposes only.
Study and design-phase-only projects are not assessed the crf; if and when these result in a capital project, the crf is transferred with the project’s construction or “C” phase funding. The crf assessment will apply to any project funding that was previously allocated, including funds used for study and design.
Auxiliary departments are also assessed the four percent capital renewal feel. Two percent of this assessment is transferred to the central campus crf account; the other two percent is held by the auxiliary to fund their capital renewal programs. Auxiliaries must report on their collection and use of crf funds on an annual basis.