The answer to the key Capital Program Management questions of (1) How much funding resources are required? (2) What is the timing of the project expenditures? (3) When is funding needed, will change on the perspective of who is asking the question, whether its the Finance Director, the Director of Planning, or the Director Engineering or Public Works. Each of these roles view funding over different horizons and at different levels of detail.
The Fund Management modules of CIPAce™ facilitates answers to these questions from multiple perspectives. The module manages the allocation of funding to projects by individual fund and it tightly integrates with cost estimating functions contained in Project Scoping, Project Management and Fund Allocation functions for the Director of Finance. The module creates a fund utilization forecast across the entire planning horizon within a program portfolio for the Director of Planning. Fund balances, interests, revenues, allocated amounts, and operating budgets are dynamically display on a real-time basis for the Engineering Department in charge with day to day project management. In addition, funding forecasts for all existing and historical planning cycles and actual funding revenues for all the funding sources are tracked within this module. The feature allows everyone to do the inevitable look back to answer the question of why a decision was made.
The CIPAce™ Funding Allocation module links funding sources to projects and to allocate funding by:
- Fund group
- Object code
- Any other allocation break down structure utilized by your organization.
The module dynamically manages the link between the available funding and the proposed projects so that at any point in the planning process your agency will know exactly what is available and what has been allocated. Funding made to projects with multiple fund sources can be allocated by dollar amounts or percentage of the total project cost. This feature is especially useful for the organization that has a policy of allocating a percentage of pay as you go funds to a specific class of capital projects. The module updates, synchronizes and displays all balances on a real time basis as changes are made to:
- Project funding sources,
- Fund revenues,
- Allocated amounts,
- Project costs, and
- Fund beginning balances.
The Funding Allocation function features dynamic pop up dashboards utilizing colors codes to differentiate between different funding status for projects and funds. For example, over-funded projects and funds are marked in red on funding allocation screens.
Fund Group Management
Some large organizations may utilize fund groups within their Capital Program Management process. The CIPAce™ Fund Management module allows a two-layer management of funding sources and allocation under a hierarchical group structure. Similar funds or funding sources may be grouped into a fund group. At the early stage of planning, revenue estimates and funding allocations may be conducted at the fund group level. As time goes by and more details become available, funding estimates and fund allocation can then be conducted at the individual fund or funding source level. This feature is useful to understand the use of internal and external funding sources like state and federal grants or impact fees which may be composed of project level individual grants or developer fees that would be less meaningful for analysis is tracked separately.