40.07 – Facility Maintenance Endowment

Created September 26, 2008

A. General. Campus general education facilities are eligible for state funded occupancy costs (hereinafter “occupancy funding or fund”). Occupancy funding is intended to assist in funding routine facility operations and maintenance costs such as utilities, custodial support, routine building maintenance, landscape maintenance, etc. Occupancy funding is provided in accordance with State of Idaho Administrative Rules describing a funding formula dependent upon the size and value of the facility. The occupancy cost formula and occupancy funding were established in the mid-1990’s and can only be requested for spaces constructed after that date.

A majority of University facilities are not eligible for occupancy funding. Based on the date restriction, the University’s older buildings are excluded from occupancy funding and instead are considered for funding from limited historical maintenance allocations. In addition, non-general education buildings are not eligible for occupancy funding.

Once occupancy funding is provided, it becomes part of the University of Idaho (“University”) base Facilities budget. This Facilities budget is used to support the needs of general education facilities across campus. Due to fiscal pressures, State of Idaho (“State”) actual funding does not always match the full amount of the funding request. This results in the occupancy fund request being unmet or partially met.

Due in part to the limited occupancy funding and ineligibility of certain buildings for such funding, maintenance needs for both Auxiliaries and General Education University facilities often are unfunded and deferred to a later date. The resulting backlog of deferred building maintenance often leads to costly repair and replacement needs—needs often met only on an emergency basis as conditions deteriorate over time.

For these reasons, it is imperative the University develop other sources of funding to arrest the growth of deferred maintenance. In the case of capital projects to be funded through private donations, it is incumbent upon the University to ensure it has the capacity to properly maintain the new or renovated facility. Accordingly, this policy is established to address the establishment of a Facility Maintenance Endowment (the facility endowment) and use of endowment funds.

B. Procedures.

B-1. Facility Maintenance Endowment. This endowment shall consist of two separate endowments, one for Auxiliaries facilities and one for General Education facilities.

B-2. Earnings and Distribution. Earnings from the Facilities Maintenance Endowment will be distributed annually in one lump sum at the beginning of the University fiscal year to the University Unit responsible for facility maintenance and operations as determined by the Facilities Department of the University. The earnings to be distributed shall be in accordance with the Endowment distribution policy of the Foundation in effect at the time of the distribution.

B-3. Use of Funds. University units that receive distributions from the Facilities Maintenance Endowment may use such funds only in support of the general maintenance and operational needs of the facilities under the unit’s management. Said distributions shall not be considered when requesting State occupancy funding, as the Facilities Maintenance Endowment Fund is intended to supplement, not supplant, state funding.

B-4. Source of Funds. Contributions may be made to the Facilities Maintenance Endowment Fund, through private gifts. In some instances University Departments may place university funds into the Endowment, however prior to any such transfer of university funds, the transfer must be approved by the Controller and by General Counsel.