Facility Asset Management, Finance, and Budgeting

Welcome students! We start our understanding of Facility Asset Management, Finance, and Budgeting with an overview of why finance, budgeting, and accounting are critically important skills for all Facility Managers (FM) to comprehend. This class will expose you the tools and concepts you will use virtually every day of your facility management career. For example, you will learn how to create capital and operating budgets as well as how to interpret financial statements among many other topics and issues.

Initially we will lay the groundwork on how the FM fits into the corporate organization, keeping up to date on rapidly changing business decisions to include technology, and finally how the FM needs to align with decision makers. Next we will launch into a broad conversation of accounting methodologies used in all facets of organizational financial management. From this point, our emphasis will transition to the “meat and potatoes” of this course: operating costs of a facility, budgeting, understanding financial statements, and depreciation.

Topics include: types of leases and relevance of BOMA (Building Office & Managers Association) standards, total annual facility costs, facility financial statements and reports, facility capital and operating budgets, illustrating GAAP (Generally Accepted Accounting Principles) rules related to asset capitalization, and applying financial terminology when speaking to the Chief Financial Officer.