2. Project Funding

Funds utilized for capital improvements may be from many sources including state appropriations, revenue bond issues, capital improvement funds from Arkansas Development Finance Authority, institutional reserves, and gifts and grants.

A Method of Finance shall be prepared in accordance with Arkansas Code Annotated 19-4-1407 (Appendix 4).

The request for approval of the Method of Finance (Appendix 5) shall be prepared by the institution using estimates normally furnished by the design professional. Pertinent information on appropriations and fund codes, along with a concise description of the project must be accurately presented on the Method of Finance before submission. Upon completion, the MOF is forwarded to the Office of the Vice President for Finance and Administration for review . It is then forwarded to the Arkansas Department of Higher Education and then to the Office of Accounting, Department of Finance and Administration. When required, the Department of Finance and Administration will forward the MOF to the Legislative Council for review and approval.

Changes in project costs or changes in funding sources may require a revision to the Method of Finance. Contractor contracts, change orders, and amendments to professional services contracts cannot be approved, if sufficient funds are not available on the Method of Finance. Revised MOF’s shall be submitted, approved and distributed in the same manner as the initial Method of Finance and shall reflect the same number as the original with a capital alpha suffix.