Transcript Capital Expenditures Course

Ordinary Capital
Expenditures
Approvers’ Course
Course runtime approximately:
XX Minutes
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Software Demonstrations
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• When the demos are finished, click the “X”
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Reference Documents and
Attachments
• Click on the Attachments tab to access the
following Ordinary Capital reference
documents:
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Introduction–Overview Ordinary Capital Spending Plan
Capital Improvement Process
Planned Request Process Map
Unplanned Request Process Map
Objectives
At the completion of this course you will be able to . . .
• Define Ordinary Capital and GGP’s Ordinary Capital policies
• List the purpose of the Ordinary Capital System
• Describe the Ordinary Capital System and its relationship to
the Capital Expenditure Requests
• List the roles and routing sequence in the Approval Process
• Login to the Forms Library and use the features and views
• Review requests according to your role and make necessary
comments and/or adjustments
• Reject and Accept Capital Expenditure Requests
• Use the Capital Expenditure System to track projects and
plan spending
What is Ordinary Capital?
• Current improvements and upgrades to
maintain a “like new” condition
• Compliance with building codes or ADA
• Compliance with the recommendations of Risk
Management or other internal or external
review programs
• Improvements in operating efficiency
• In certain situations, financing or refinancing a
center
What is NOT Ordinary Capital?
• Landlord construction in lieu of tenant
allowance
– Lease and REA capital expenses are tracked by
DealMaker and the Lease Committee
• Holiday décor
• Redevelopment projects in excess of $2 million
Purpose of Ordinary Capital System
• In accordance with GGP’s Capital Improvement
Policy, the automated Ordinary Capital System
provides documentation of compliance with
the Sarbanes-Oxley Act with regard to the
bidding and approval process for ordinary
capital work.
• Each year, a budget approval process will
generate endorsed Capital Plans. Throughout
the year, the Ordinary Capital System will move
Capital Plans through the steps of documented
approval.
Process Roles
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Originator
General Manager
Group Director
Accounting VP
National Operations Director
Group Director (final if < $100,000)
VP of Partner Relations (if a partner mall)
Ordinary Capital Committee (if > $100,000)
Approval Process
Accessing the
Ordinary Capital System
Accessing the
Ordinary Capital System
Accessing the
Ordinary Capital System, demo
Demonstration
Click the Play button to continue.
InfoPath Security Warning
Reviewing Requests
• As Capital Expenditure Requests route
through the system, e-mails are automatically
sent to the next approver notifying them of
requested approval action.
Email Notifications
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Normal Submittal
Form Approved
Form Rejected
Post Notification
Variance (change order)
Submitted
• Variance (change order)
Approval
• Administrator
Modification
The Capital Expenditures Request
Forms Library
Accessing the Forms Library , demo
Demonstration
Click the Play button to continue.
Demonstrating the Approval
Process
• Let’s take a look at a sample Capital
Expenditure Request as it’s routed through the
various approvers.
• Please keep in mind that each Approver can
approve or reject a request upon review.
• Rejecting a request will trigger post
notification e-mails.
• Originators will have the opportunity to make
corrections for resubmittal.
• Approvers are asked to process requests
promptly, the same day, if possible, to expedite
the approval process.
Reviewing Requests Demo:
General Manager
• General Manager completes first review.
• First opportunity to review that request is
complete, contains applicable documentation,
and follows Capital Plans for location.
• Approve, if appropriate, and request routes to
Group Director for review.
Reviewing Requests Demo:
General Manager
Demonstration
Click the Play button to continue.
Reviewing Requests Demo:
Group Director
• Group Director also reviews that request is
complete, contains applicable documentation,
and follows Capital Plans for location.
• If request is unplanned, ensure there is
sufficient explanation why spending was not
planned during Capital Plan process.
• Approve, if appropriate, and request routes to
Accounting Director/VP for review.
• Group Directors should address the capital
spending impact to the property, NOI, and CVA
using the QPR information on the request.
Reviewing Requests Demo:
Group Director
Demonstration
Click the Play button to continue.
Reviewing Requests Demo:
Accounting VP
• Accounting VP reviews in particular, that the
coding and amortization treatment is
appropriately defined for this project, as well
as the project’s eligibility for a capitalized
accounting treatment.
• Approve, if appropriate, and request routes to
National Operations Director for review.
Reviewing Requests Demo:
Accounting VP
Demonstration
Click the Play button to continue.
Reviewing Requests Demo:
National Operations Director
• National Operations Director also reviews that
request is complete, contains applicable
documentation, and follows Capital Plans for
location.
• Check for involvement of GGP approved
consultants.
• Review the proposed warranty coverage and
consultation with National Purchasing where
pertinent.
• Approve, if appropriate, and request routes to
Group Director for their final review.
Reviewing Requests Demo:
National Operations Director
Demonstration
Click the Play button to continue.
Reviewing Requests Demo:
Group Director (final if < $100,000)
• Group Directors can indicate final approval for
requests under $100,000.
• If the request is for $100,000 or more, it will
proceed to the Ordinary Capital Committee, or
VP of Partner relations, if it is a partner mall.
Reviewing Requests Demo:
Group Director (final if < $100,000)
Demonstration
Click the Play button to continue.
Reviewing Requests Demo:
VP of Partner Relations
• On the way to Ordinary Capital Committee,
requests of $100,000 or more for Partner Malls
will route to the VP of Partner Relations for
approval.
• If appropriate, the VP of Partner Relations
should Approve the form and an e-mail will be
sent to the Ordinary Capital Committee admin,
who will place the request on the Committee’s
next scheduled meeting agenda.
Reviewing Requests Demo:
VP of Partner Relations
Demonstration
Click the Play button to continue.
Reviewing Requests Demo:
Ordinary Capital Committee
• The Ordinary Capital Committee will review
requests in order to balance allocation of
capital among all GGP centers, factoring in
timing of expenditures based upon quickly
changing business conditions and appropriate
scheduling of projects.
• Decisions of the Ordinary Capital Committee
will be entered following each committee
meeting, indicating approval status.
• E-mails will be sent to all members of the
“Post-Notification” list with this information.
Reviewing Requests Demo:
Ordinary Capital Committee
Demonstration
Click the Play button to continue.
Reviewing Requests Demo:
Change Order
• In the event that a Capital Request has already
been approved, and a Project Variance of +/$10,000 needs to be documented, the system
will facilitate appropriate documentation.
• Decisions of the Ordinary Capital Committee
Initiating the Project Variance will generate an
e-mail notification to the Ordinary Capital
admin denoting activity with regard to the
specific request.
Reviewing Requests Demo:
Change Order
Demonstration
Click the Play button to continue.
Reviewing Requests Demo:
Post Notification
• Post Notification is the term used to describe
e-mails sent to the full Approval Routing group
for each request.
• Post Notifications will inform those named of
the approval (or rejection) status of the
request.
Reviewing Requests Demo:
Post Notification
Demonstration
Click the Play button to continue.
We Hope This Course Has
Helped You:
• Define Ordinary Capital
• Understand how to use the automated
Ordinary Capital System
• Understand your role in the Approval Process
and how to check the status of Ordinary
Capital Expenditure Requests via the Forms
Library
• One final reminder: All approvers are asked to
promptly take action on capital requests to
facilitate timely processing.
Thank you for
attending!
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