The University of Georgia Foundation will from time to time purchase or lease properties and facilities on behalf of the University of Georgia to support academic programs and other unit goals. The following is the process and due diligence which should be considered by the academic unit. For international properties, additional issues need to be considered.
1. A written proposal should be forwarded from the requesting unit to its respective Dean, Vice President or Director. If approved the request should be forwarded to the respective Senior Administrator of the University. The proposal should provide a rationale for the purchase, including a program plan and business plan for use of the property or facility. The proposal should also indicate the source and amount of available funding for a feasibility study. Please contact the Foundation for additional considerations for international properties.
2. The Senior Administratorshould indicate his/her concurrence by written approval of the proposal. Approval at this step indicates only that research may continue to determine the feasibility of the proposal.
3. If the property is outside the United States, the proposal should be routed through the Office of Global Engagementfor approval and then forwarded to the Senior Vice President for Academic Affairs/Provost for approval.
4. The approved proposal should be forwarded to the Executive Director and the Chief Financial Officer of the Foundation. The Chief Financial Officer will forward the proposal to the Executive Committee of the Foundation for its approval and authorization to appropriate funds for a feasibility study and other due diligence costs that are not funded by the requesting unit.
Feasibility Study Requirement
The study should include:
due diligence for a purchase of real property:
- A current appraisal
- A current survey/plat of property
- Current photos of property
- Location map of property
- Environmental impact analysis (when appropriate)
- Physical site visit of the property (when appropriate)
- Identify encumbrances attached to the property
- Retention of legal advisors
- Securing a firm purchase price (in conjunction with the requesting unit)
Business Plan Procedure
1. The requesting unit needs to prepare a business plan that includes:2.An assessment of the potential revenue to be generated by the academic program or other activities of the requesting unit;
3.Expenditures required to run the program, including all academic costs associated with the program including faculty support not paid with state funding;
4.Expenditures required to operate the facility, including,
- Utilities (electric,
- Phone and Cable Connections
- Janitorial Service
- Lawn Maintenance
- Association Fees
- Reserve for Routine Maintenance
- Miscellaneous (please identify)
5. Any gifts to support the property should be identified, including the donor name, amount, and payment schedule.
6. Certain data from the feasibility study should be included with the business plan:
a) Proposed acquisition cost, and
b) Photos and location map of property.
7. The business plan should be reviewed by the unit’s business office, and, for international property, with the Office of International Programs. The University Business Office should be contacted for its review of the program plan.
8. The Business Plan should be forwarded to the Office of Financial Services.
The Foundation will recommend to the Senior Administration the most appropriate and cost-effective method to finance the acquisition. Included with the plan will be the required rental payment (if any) from the University to support the acquisition.
Note: If property is purchased, feasibility costs may be returned to the requesting unit to the extent they were provided.
Approval and Purchasing of Property
1. Recommendations of approval from the Senior Administration will be forwarded to the Foundation Chief Financial Officer for presentation, at the appropriate time, to the Foundation Executive Committee.
2. Purchases approved by the Executive Committee will be coordinated with the appropriate Senior Vice President Office and administered by the Foundation Chief Financial Officer with appropriate assistance from legal counsel.
3. After the purchase is completed, the programs will be administered by the appropriate academic unit with approval of the Provost.
4. The annual financial reports and budget for the property will be prepared by Foundation staff for review and approval by the Foundation Finance Committee.
Last Updated on September 17, 2019