Fayetteville Policies and Procedures  712.0 

Method of Financing Form – Processing Procedure

I. Overview

This policy governs preparation, routing, approval, and revision of the Method of Financing Form (MOF) for University of Arkansas construction, renovation, and land purchase projects. It aligns campus practices with the University of Arkansas System’s Construction Project Approval Process, applicable Board of Trustees Policies and UA Systemwide Polices and Procedures, and Arkansas law.

II. Purpose

To ensure compliance with Ark. Code Ann. § 19‑4‑1406 (Method of Financing), adherence to UA System procedures for project approval, and that no affirmative steps toward construction occur until MOF review/approval is complete.

III. Scope
  1. Applies to major repairs, renovations, new construction, construction projects requiring the use of an architect or engineer, and land purchases when an MOF is required.
  2. Applies to all campus units initiating capital projects subject to UA System project approval process and Board and Systemwide policies.
IV. Definitions
  1. Method of Financing (MOF): Summary statement of project funding, scope, estimated costs, and schedule required under Ark. Code Ann. § 19‑4‑1406.
  2. Major Capital Project: Construction project in which the total anticipated project cost exceeds $5,000,000, excluding the cost of land, as defined in Board Policy 730.2.
  3. Alternative Delivery Method: UA System process for project approval and the selection and approval of contractors, design professionals, and/or contract managers, which may be used for Major Capital Projects, as governed by Board Policy 730.2 and Ark. Code Ann. § 19‑4‑1413.
  4. System Office: UA System Administration officials who review, sign and transmit the MOF to ADHE and Arkansas Department of Finance and Administration (DFA).
V. Policy

Includes requirements for MOF preparation, campus approval, System submission, state agency review, legislative review, and revised MOFs when changes occur.

VI. Reporting & Enforcement

Violations must be reported to VCFA and Financial Affairs’ Capital & Financial Planning Office. Non-compliance may result in project delays and corrective actions.

VII. References

UA System Construction Project Approval Process; Board Policies 730.1, 730.2, 730.3, 740.1, and 740.2; UA System Policies and Procedures 730.1; Ark. Code Ann. §§ 19‑4‑1406, 19‑4‑1413, 19‑61-116, and 22-9-104.

MOF Processing Steps
  • Project Initiation: Identify project scope, estimated cost, and funding sources; consult System CFO if bonds are involved.
  • Budget Development: Facilities Management, architect/engineer, and Associate Vice Chancellor for Facilities develop the budget.
  • MOF Preparation: Financial Affairs’ Capital & Financial Planning Office provides financial details and completes the MOF form and transmits the MOF to the VCFA for campus approval.
  • Campus Approval: VCFA reviews and approves the MOF.
  • System Submission: Campus transmits the MOF to UA System Office for review.
  • State Agency Review: System Office reviews, signs and transmits MOF to ADHE, which then transmits the MOF to DFA.
  • Legislative Council Review: DFA transmits MOF to Legislative Council if project cost exceeds $250,000.
  • Approval Notification: DFA notifies Financial Affairs’ Capital & Financial Planning Office and provides MOF number; scanned copies are retained both in Workday as well as by the Capital & Financial Planning Office
  • No Architect and/or Construction Steps Until Approval: No contracting or construction may begin until MOF is fully approved.
  • Revised MOF: Prepare and process revised MOF if funding or cost changes, using same MOF number with alpha suffix.

Revised March 16, 2026
Reformatted for Web May 6, 2014
Revised September 2, 2009
Revised March, 2002
October 1, 1994