Funding Sources
1. Handling Projects with Different Funding Sources
Projects vary in many ways, including their source(s) of funding. For informational details on the project’s deal and its funding sources, review the documents in the project’s Acquisition folder. Described below are different types of projects and how they are processed when they are funded:
A. Administered by Corporate Accounting. Bouwfonds projects are an example of projects administered by Corporate. On this type of project, draw funding journal entries are prepared and recorded by Corporate, not Redevelopment. Redevelopment’s responsibility on this type of project is to inform Corporate of its requirements through a capital call request for the amount of the draw. To make a Bouwfonds capital call request, update the Sharepoint Fund Reporting site when the draw has been posted. How:
1) Enter the Fairfield main portal.
2) Under Western Division, Accounting/Finance, click the “Fund Reporting” link.
3) Click the “Bouwfonds” link in the Fund Sites menu.
4) Click the “Fairfield Documents” link in the Documents menu.
5) Double-click the “Current” folder in the Equity Funding Requests menu.
6) Click the down arrow key to the right of the “Bouwfonds Capital Call Request” Excel spreadsheet.
7) Select “Edit in Microsoft Office Excel.”
8) A message box pops up indicating that you must check out the item before making changes. Click OK and OK again.
9) Locate the project and enter the total draw amount in the Redevelopment Accounting Request column.
10) When updating is complete, save the file and check the item back in.
11) Bouwfonds capital call requests must be submitted to Operations by the 15th of each month. Corporate generates a new spreadsheet around the 10th of each month and sends an e-mail when the new spreadsheet is available. It is important to remember to update the spreadsheet, particularly with draws that were posted after the prior month’s capital call submission date.
B. Pre-funded through quarterly capital calls. This type of project is similar to the above type. It differs from the above in that a quarterly capital call request will amount to enough to fund a full quarter of draw activity before another request is submitted. Coordinate with the Asset Manager, who determines the amount of the quarterly capital call.
Only the quarterly capital call amount is recorded and administered by Corporate as above. However, Redevelopment prepares monthly informational draws. The totals of these draws, which occur subsequent to the capital call, are not recorded as their source is the quarterly capital call request. To track individual draws on this type of project, the draw is classified as “Pre-funded” on the Sharepoint Redevelopment Accounting site. How:
1) Enter the Fairfield main portal.
2) Under Western Division, Accounting/Finance, click the “Redev Acct” link.
3) Click the “Draws” link in the Lists menu. It takes a moment to load.
4) Locate the project under the appropriate Draw Status subdirectory. At this point, it should be located under “5 Controller Approved.”
5) Click the drop-down arrow next to the draw number and select “Edit Item.”
6) The Administrative Assistant is responsible for updating the draw fundings after the confirmation e-mail has been received and will add a note to the file such as “fully funded.”
7) The Project Accountant is responsible to update the rest of the information regarding the draw funding.
a) Next to “Funding Received,” Fill in the funding amount.
b) Next to “Funding Date - Complete,” Enter the funding date.
c) Next to “CA Status,” click the drop-down arrow and select “NA – Pre-funded” or select another item appropriate for the status of the project.
d) When the project requires journal entries, also update the “JE Status” by clicking the drop-down arrow and making the appropriate selection.
8) Click “OK” to complete the status update.
C. Subscription financing. CalSTRS projects are an example of subscription financing. A subscription is a low-interest loan obtained for a limited period such as 10 months. Note that construction may not necessarily be completed within the subscription period. After the subscription period is complete, the percentage rate on the loan increases. Refer to the escrow closing document in the project’s Acquisition folder for the project’s specific interest rates.
The funding source on subscription-financed projects is the financing facility at 100 percent, including retention. Therefore, when the project approaches the end of the subscription period, retention should be carefully reviewed to be sure it has all been drawn before the last (10th) draw within the subscription period. Draw fundings for subscription projects are handled thorough the typical journal entry process.
1. Handling Projects with Different Funding Sources
Projects vary in many ways, including their source(s) of funding. For informational details on the project’s deal and its funding sources, review the documents in the project’s Acquisition folder. Described below are different types of projects and how they are processed when they are funded:
A. Administered by Corporate Accounting. Bouwfonds projects are an example of projects administered by Corporate. On this type of project, draw funding journal entries are prepared and recorded by Corporate, not Redevelopment. Redevelopment’s responsibility on this type of project is to inform Corporate of its requirements through a capital call request for the amount of the draw. To make a Bouwfonds capital call request, update the Sharepoint Fund Reporting site when the draw has been posted. How:
1) Enter the Fairfield main portal.
2) Under Western Division, Accounting/Finance, click the “Fund Reporting” link.
3) Click the “Bouwfonds” link in the Fund Sites menu.
4) Click the “Fairfield Documents” link in the Documents menu.
5) Double-click the “Current” folder in the Equity Funding Requests menu.
6) Click the down arrow key to the right of the “Bouwfonds Capital Call Request
7) Select “Edit in Microsoft Office Excel.”
8) A message box pops up indicating that you must check out the item before making changes. Click OK and OK again.
9) Locate the project and enter the total draw amount in the Redevelopment Accounting Request column.
10) When updating is complete, save the file and check the item back in.
11) Bouwfonds capital call requests must be submitted to Operations by the 15th of each month. Corporate generates a new spreadsheet around the 10th of each month and sends an e-mail when the new spreadsheet is available. It is important to remember to update the spreadsheet, particularly with draws that were posted after the prior month’s capital call submission date.
B. Pre-funded through quarterly capital calls. This type of project is similar to the above type. It differs from the above in that a quarterly capital call request will amount to enough to fund a full quarter of draw activity before another request is submitted. Coordinate with the Asset Manager, who determines the amount of the quarterly capital call.
Only the quarterly capital call amount is recorded and administered by Corporate as above. However, Redevelopment prepares monthly informational draws. The totals of these draws, which occur subsequent to the capital call, are not recorded as their source is the quarterly capital call request. To track individual draws on this type of project, the draw is classified as “Pre-funded” on the Sharepoint Redevelopment Accounting site. How:
1) Enter the Fairfield main portal.
2) Under Western Division, Accounting/Finance, click the “Redev Acct” link.
3) Click the “Draws” link in the Lists menu. It takes a moment to load.
4) Locate the project under the appropriate Draw Status subdirectory. At this point, it should be located under “5 Controller Approved.”
5) Click the drop-down arrow next to the draw number and select “Edit Item.”
6) The Administrative Assistant is responsible for updating the draw fundings after the confirmation e-mail has been received and will add a note to the file such as “fully funded.”
7) The Project Accountant is responsible to update the rest of the information regarding the draw funding.
a) Next to “Funding Received,” Fill in the funding amount.
b) Next to “Funding Date - Complete,” Enter the funding date.
c) Next to “CA Status,” click the drop-down arrow and select “NA – Pre-funded” or select another item appropriate for the status of the project.
d) When the project requires journal entries, also update the “JE Status” by clicking the drop-down arrow and making the appropriate selection.
8) Click “OK” to complete the status update.
C. Subscription financing. CalSTRS projects are an example of subscription financing. A subscription is a low-interest loan obtained for a limited period such as 10 months. Note that construction may not necessarily be completed within the subscription period. After the subscription period is complete, the percentage rate on the loan increases. Refer to the escrow closing document in the project’s Acquisition folder for the project’s specific interest rates.
The funding source on subscription-financed projects is the financing facility at 100 percent, including retention. Therefore, when the project approaches the end of the subscription period, retention should be carefully reviewed to be sure it has all been drawn before the last (10th) draw within the subscription period. Draw fundings for subscription projects are handled thorough the typical journal entry process.
