Challenge

University was evaluating a 10-year capital plan associated with a 30% growth in the undergraduate population.

Complexity

Not all projects would be funded.  Sequence of projects mattered.  This was a highly political situation.

Solution

Our model allowed the client to analyze financial and non-financial aspects of the problem.  The interactive model was used during the board meeting to communicate a recommendation and perform what-if analysis.

Figure 1: The above screen shot allows the analyst to select a variety of projects and to select the proposed start and end date as well as the source of financing (debt, gifts, operational budget, reserves or a hybrid). Based on the selected sequencing and financing, the system calculates the quarterly capital projects cash flows, impact on the annual operating expenses, cumulative project costs, construction disruptions and others. The system allowed for real-time adjustments to the scheduling and financing to provide the Board with the ability to create and adjust the plan in real-time based on the Board’s discussion. Numbers have been changed and the photo of the campus blurred out to protect client confidentiality.

Figure 2: This screen shot shows whether the planned space meets the enrolment needs over a ten-year period.