The Capital Expenditure Authorization process begins when a department or school identifies the need for a specific project or capital equipment purchase. Capital Expenditure Authorizations are managed in a database that enables electronic authorizations.
The approvals required for CEA's depend on the type and the cost. The following flow chart outlines the approval process for all capital expenditures requiring a CEA form:
Once all of the required approvals are obtained, Finance & Planning assigns the capital project a Project/Grant number in the CEA system and sets up the Project and its authorized budget in the PeopleSoft financial system. The capitalized expenses are then managed and tracked in PeopleSoft.
Capital Equipment Acquisition Procedures
The CEA system must also be used for a purchase under $50,000 if:
- funding includes sources other than departmental budgets or grants
- the acquisition is a vehicle
Capital acquisitions by lease must also be processed through the CEA system. For the more information on leasing capital equipment, please visit http://finance.tufts.edu/treasury/?pid=3
The CEA process for equipment flows through the BFO and the Purchasing Department. This process flow summarizes the procedures. Details on each step are below the diagram.
- When a department identifies the need for a capital equipment purchase they provide the Purchasing Department specific, written details of what the CEA will constitute. This will also allow Purchasing the opportunity to begin obtaining competitive written quotations.
The project details must be sent in an email to Betsy Rakocy (Betsy.Rakocy@tufts.edu) in the Purchasing Department. A justification should be attached in a Word document, on the need for the specific capital equipment. The justification must include the following information:- Requester's name
- Department
- Brief description of request
- Project location (campus, school, building/room)
- Project title
- Cost of request
- Funding source
In addition to the purchase justification, the CEA originator should provide Purchasing with the following documentation:
- Any quotations from vendors that may have been received, or a "sole source" letter stating why a particular vendor must be used
- Technical specifications for the acquisition
- Purchasing records the Capital Expenditure Authorization in the Tufts CEA system.
- The BFO designates the funding source for the project and approves the request.
- The appropriate approvals are provided, depending on the size and nature of the project. (See CEA Process for details.)
- Finance & Planning assigns the project a number and sets the project up in PeopleSoft. The CEA system generates automatic email notifications informing requestors that the approval process is complete and that the project has been activated in the accounting system.
- Once notified of the Project number, the department purchasing the equipment can send a requisition to the BFO for signature.
- The BFO sends the requisition and any relevant paperwork to the Purchasing Department. (The Purchasing Department may have already obtained quotes, but a purchase cannot be processed without a requisition and then a purchase order.)
- Upon receipt of the requisition, the Purchasing Department will process the order with the vendor(s), following all rules pertaining to bidding requirements. If you have any questions about how Purchasing processes capital equipment requests, please contact Betsy Rakocy at (617) 627-5660 or visit http://finance.tufts.edu/purchasing/?pid=44.
Capital Construction and Renovation Acquisition Procedures
A construction/renovation/property acquisition project must be processed through the CEA system if the project is for $25,000 or more.
The CEA system must also be used for projects under $25,000 if funding includes any source other than a Dept ID.
The CEA process for capital construction and renovation is coordinated through the Operations Division.
