CHFM FINANCE AND ADMINISTRATION QUESTIONS
What does the acronym FTE stand for? - Answers :Full Time Equivalent
What are the number of hours that make up an FTE? - Answers :40 hours per week;
2080 hours per year
40 hours per week x 52 weeks = 2,080 hours
What are budgeted hours? - Answers :Budgeted hours are estimated hours that an
employee works per pay period in a particular assignment restricted by the planned
expenditure for a fiscal year.
How is overtime defined? - Answers :Overtime is defined as greater than 40 hours per
week or greater than 2,080 hours per year.
Who is eligible for overtime under the Fair Labor Standards Act (FLSA)? - Answers
:Non-exempt Employee
Exempt employee (salaried, not eligible for overtime) Non-exempt employee (eligible for
overtime) eligibility, recordkeeping and child labor standards affecting full-time and part-
time workers The Fair Labor Standards Act (FLSA) is a federal law which establishes
minimum wage, overtime pay sector and in federal, state and local governments.
What is the formula for Facility Condition Index (FCI) that is used to demonstrate the
financial efficiency of a building repair or renovation? - Answers :FCI = Sum of
Deficiencies or Necessary Repairs
Current Replacement Value ($)
How do you calculate Facility Condition Index (FCI) if your needed repairs are $4 million
and the current replacement value is $20 million? - Answers :$4,000,000 in needed
repairs = FCI .20 or 20%
$20,000,000 in current replacement value
FCI= Sum of Deficiencies or Necessary Repairs ($)
Current Replacement Value ($)
Identify all components of the following formula:
LCC = C+ M + E+R-S - Answers :LCC - Life-Cycle Cost
C- Capital cost
M - Sum of all yearly scheduled operation and maintenance costs
E- Energy cost
R- Sum of all repair and equipment replacement cost over the life of the system
S- Salvage or trade in value
, THE LEGEND OF CAPTAIN COST
Captan Cost had a Mop and was full of Energy to Repair his boat but not much could be
Salvaged after the last storm
Capital Cost + Maintenance + Energy Repair - Salvage = Life-Cycle Cost
What is the formula for simple payback period? - Answers :Simple
Payback = Investment Cost Period Periodic Cash Flow
(savings per year)
Simple payback period of time required to recoup the funds expended in the investment
What are the consumption measurements for benchmarking total energy? - Answers
:BTU Gross Square Footage (GSF)
What is the conversion of kWh to BTUS? - Answers :1 kWh = 3,412 BTUS
Convert 1000 kWh to BTUS. - Answers :1,000 kWh X 3,412 BTUS = 3,412,000 BTUS
Convert 50 therms of natural gas to BTUS. (One natural gas therm = 100,000 BTUS) -
Answers :50 therms x 100,000 BTUS = 5,000,000 BTUS
Identify the following component (LCC) from the formula below: LCC = C+M+E+R-S -
Answers :LCC - Life-Cycle Cost
Identify the following component (C) from the formula below: LCC = C+M+E+R-S -
Answers :C- Capital cost
Identify the following component (M) from the formula below: LCC C+M+E+R-S -
Answers :M - Sum of the yearly scheduled operations and maintenance costs THE
LEGEND OF CAPTAIN COST
Identify the following component (E) from the formula below: LCC = C+M+E+R-S -
Answers :E - Energy cost THE LEGEND OF CAPTAIN COST
Identify the following component (R) from the formula below: LCC = C+M+E+R-S -
Answers :R- Sum of all repair and equipment replacement costs over the life of the
system tHE LEGND or CAPTAN COST
Identify the following component (S) from the formula below: LCC = C+M+E+R-S -
Answers :S- Salvage or trade-in value of a system in the final year of the life- cycle
period THE LEDEND or CAPTAN aY
A new BAS will save $25,000 in energy costs per year. If the system costs $100,000 to
purchase and maintain, what is the simple payback? - Answers :$100,000 = 4 years
What does the acronym FTE stand for? - Answers :Full Time Equivalent
What are the number of hours that make up an FTE? - Answers :40 hours per week;
2080 hours per year
40 hours per week x 52 weeks = 2,080 hours
What are budgeted hours? - Answers :Budgeted hours are estimated hours that an
employee works per pay period in a particular assignment restricted by the planned
expenditure for a fiscal year.
How is overtime defined? - Answers :Overtime is defined as greater than 40 hours per
week or greater than 2,080 hours per year.
Who is eligible for overtime under the Fair Labor Standards Act (FLSA)? - Answers
:Non-exempt Employee
Exempt employee (salaried, not eligible for overtime) Non-exempt employee (eligible for
overtime) eligibility, recordkeeping and child labor standards affecting full-time and part-
time workers The Fair Labor Standards Act (FLSA) is a federal law which establishes
minimum wage, overtime pay sector and in federal, state and local governments.
What is the formula for Facility Condition Index (FCI) that is used to demonstrate the
financial efficiency of a building repair or renovation? - Answers :FCI = Sum of
Deficiencies or Necessary Repairs
Current Replacement Value ($)
How do you calculate Facility Condition Index (FCI) if your needed repairs are $4 million
and the current replacement value is $20 million? - Answers :$4,000,000 in needed
repairs = FCI .20 or 20%
$20,000,000 in current replacement value
FCI= Sum of Deficiencies or Necessary Repairs ($)
Current Replacement Value ($)
Identify all components of the following formula:
LCC = C+ M + E+R-S - Answers :LCC - Life-Cycle Cost
C- Capital cost
M - Sum of all yearly scheduled operation and maintenance costs
E- Energy cost
R- Sum of all repair and equipment replacement cost over the life of the system
S- Salvage or trade in value
, THE LEGEND OF CAPTAIN COST
Captan Cost had a Mop and was full of Energy to Repair his boat but not much could be
Salvaged after the last storm
Capital Cost + Maintenance + Energy Repair - Salvage = Life-Cycle Cost
What is the formula for simple payback period? - Answers :Simple
Payback = Investment Cost Period Periodic Cash Flow
(savings per year)
Simple payback period of time required to recoup the funds expended in the investment
What are the consumption measurements for benchmarking total energy? - Answers
:BTU Gross Square Footage (GSF)
What is the conversion of kWh to BTUS? - Answers :1 kWh = 3,412 BTUS
Convert 1000 kWh to BTUS. - Answers :1,000 kWh X 3,412 BTUS = 3,412,000 BTUS
Convert 50 therms of natural gas to BTUS. (One natural gas therm = 100,000 BTUS) -
Answers :50 therms x 100,000 BTUS = 5,000,000 BTUS
Identify the following component (LCC) from the formula below: LCC = C+M+E+R-S -
Answers :LCC - Life-Cycle Cost
Identify the following component (C) from the formula below: LCC = C+M+E+R-S -
Answers :C- Capital cost
Identify the following component (M) from the formula below: LCC C+M+E+R-S -
Answers :M - Sum of the yearly scheduled operations and maintenance costs THE
LEGEND OF CAPTAIN COST
Identify the following component (E) from the formula below: LCC = C+M+E+R-S -
Answers :E - Energy cost THE LEGEND OF CAPTAIN COST
Identify the following component (R) from the formula below: LCC = C+M+E+R-S -
Answers :R- Sum of all repair and equipment replacement costs over the life of the
system tHE LEGND or CAPTAN COST
Identify the following component (S) from the formula below: LCC = C+M+E+R-S -
Answers :S- Salvage or trade-in value of a system in the final year of the life- cycle
period THE LEDEND or CAPTAN aY
A new BAS will save $25,000 in energy costs per year. If the system costs $100,000 to
purchase and maintain, what is the simple payback? - Answers :$100,000 = 4 years
