# Presentation: 819689

## Corporate Property Automated Information System (CPAIS)

## INTERFACES

- CPAIS interfaces with:
- 	□  GSA’s Federal Real Property Profile (FRPP), and
- 	□  the Foundation Financial Information System (FFIS).

**Notes:**
FRPP is used for the annual 1166 real property reporting requirements.  Section 2 of E.O. 13327 defines Federal real property as including real property owned, leased, or otherwise managed by the Federal Government, both within and outside the United States, and improvements on Federal land.

The FFIS interface permits the transmission of accounting records to CPAIS including procurement transactions, depreciation and write-off for capitalized property.  This link also maintains an up-to-date financial statement and is in compliance with the Office of the Inspector General audit requirements.

## CPAIS FUNCTIONS

- CPAIS is multi-functional:
- 	□  tracks and manages real property assets for owned, leased, otherwise managed and General Services Administration (GSA)-assigned property and
- 	□  addresses Executive Order 13327, *Federal Real Property Asset Management* requirements.

**Notes:**
Serves as the official property record

Assists in the management of real property. This year actual, Operation & Maintenance (O&M) or “Annual Operating Costs” (field name in CPAIS) will be entered into CPAIS.  In 2006, Deferred Maintenance and Plant Replacement Values were entered into CPAIS.  In 2005 occupancy information was entered to address the Utilization Performance Measure  pursuant to E.O. 13327.  

The Federal Real Property Council, 2007 Guidance for Real Property Inventory Reporting dated June 8,2007 is the most current reference for the required data elements.  

## RPA AND RPM ACCESS

- RPA

- RPM

**Notes:**
There are two sides to CPAIS, Real Property Accounting (RPA) and Real Property Management (RPM).

This presentation is meant to give you an overview of both sides; however, the training exercises that are available for you to use within the CPAIS Training Database will cover RPM functions only.

## CPAIS ACCESS

- Access is obtained through the submission of an AD-1143.
- Users may only have access to properties within their assigned area of responsibility.

**Notes:**
The AD-1143 must be prepared, signed by the user and his/her supervisor, the Area Office for review, and finally  Headquarters.  At Headquarters the form is reviewed and signed by the RPA or RPM Approver and then hand carried to the CPAIS Security Administrator. 

The CPAIS Security Administrator will review and sign the form before issuing a User ID and forwarding the form to the National Finance Center for the User’s account and level of access to be established.

Should a users leave the Government or require modified access, a subsequent form will be required.

##                    SYSTEM REQUIREMENTS

- Visit the National Finance Center website _[http://www.nfc.usda.gov/](http://www.nfc.usda.gov/)__ and the Corporate Systems link to:_
- Obtain desktop setup procedures,
- Download the appropriate J-Initiator for CPAIS; and
- Link to the CPAIS application.

**Notes:**
Your Area IT Specialist may need to assist you with system installation.  

Vicki either has or will forward screen captures to walk you through establishing CPAIS as a trusted site.

##        WORKFLOW         OVERVIEW

- Project begins – transfer in, purchase, or design/construction.
- Capitalize or expense decision is made.
- Shell record is created.
- Unique Asset Identifier (UAI) created and established if capitalized.
- All costs are captured in the subledger if capitalized or acquisition cost tallied if not capitalized.
- Project completion.
- Asset is placed in service.
- Depreciation begins.

## CAPITALIZE VS. EXPENSE Decision Tree

- Real Property
-  Asset

- Useful life
-  2 or more
-  years?

**Capitalize**

- Cost
- at least
- $25,000 ?

- Yes

- Yes

- Expense

- No

- No

**Notes:**
Owned real property must be capitalized under the following circumstances:
1.  All land and interest on land, regardless of value.  The cost or purchase price is capitalized.  Note:  Land is not a depreciable asset, retaining its value
     until disposed.
2.  Real Property Assets are capitalized we the useful live is two or more years and the acquisition cost or established value is $25,000 or greater.
Major improvements or betterments of an existing capitalized asset, provided the useful life is 2 or more years, the cost is at least $25,000 and the asset value is increased and the useful life of the asset is extended.

     ARS does track all assets for inventory purposes; therefore, a RPM record is created for every building, land, and structure or other feature.  However, if an asset does not meet capitalization criteria, a UAI is not created and costs associated with the project are expensed.  However, an acquisition cost must be entered within the RPM Module.

     The costs that are associated with design, design review, construction, construction management and force account labor are all considered when making a capitalization determination.  Pre-design is not captured.

     If the project will meet or exceed capitalization criteria, costs will need to be captured in FFIS and transferred to CPAIS.  “R” accounting code will need to be used.

## Capitalized Improvements

**Improvements:**  Alterations or improvements made to existing building or structures shall be capitalized when the following criteria are met:
-  The property's useful life is extended and the cost is 	$25,000 or more; and
-  The property's capacity is enlarged and the cost is 	$25,000 or more; and
-  The property's capacity is improved by upgrading the 	property to serve needs different from, or significantly 	greater than, those originally intended; and the total 	project cost is $25,000 or more.

**Notes:**
If you have questions regarding the decision to capitalize capitalized improvements, please contact your Area Real Estate Warrant Officer.

## CREATING A SHELL RECORD

- Prior to the UAI being able to be established on the UAIT Table, a shell record within the RPM side of CPAIS must be created.  This will store basic asset information until the asset placed in service and updated.

## UNIQUE ASSET IDENTIFIERS

- If the project will be capitalized, a UAI must be created and established on the UAI Table (UAIT).
- To avoid duplication, before submitting the UAI Request Form, the proposed UAI should also be queried on the RPA  and the Asset ID queried on the RPM side.

**Notes:**
A UAI is a control  number that is created when a subledger is established for an asset.  This control number is linked to the subledger for the entire life of the asset.  A UAI can never be changed once created – not even if the managing organization, location code, or  asset type at the time of establishing the UAI changes.  

There may only be one UAI per Job Number, but there may be multiple Job Numbers pointing to one UAI.

Once the UAI is established and the UAI Table has been populated, then value streams are created in CPAIS as the transactions interface from FFIS to CPAIS.

## CREATING A UAI:03 05 1907 190700B001

**Notes:**
A UAI Request Form is prepared and submitted through your REWO to the Real Property Management Branch (RPMB).  In order to prepare the form, coordination may be necessary with the Area Engineer, Contracting Officer, and Area Budget and Fiscal Officer (ABFO).  

The UAI is comprised of the following:
o  2-digit Agency Code  (03)
o  2-digit Project Group (see Project Group handout)
o  4-digit Org Code; and
o  Asset ID

The UAI Request Form is available through your REWO.

## CPAIS           FFIS INTERFACE

- Once the shell record and UAI are created a screen capture of the shell record along with the UAI Request Form is sent to the Real Property Management Branch (RPMB) for processing.
- As the interface from FFIS to CPAIS runs, value streams are created within CPAIS RPA.

**Notes:**
After RPMB reviews the form and forwards both the UAI Request Form and a screen capture of the shell record to the CPAIS Financial Analyst (FA).  

The CPAIS FA will then populate the UAI and Project Group in the PROJ table.  This is required prior to the ABFO setting up accounting tables in FFIS. 

Then Work-in-progress (WIP) transactions will be posted to the WIP account against the established project.  These transactions are automatically passed and summarized from FFIS to CPAIS on a monthly basis.

##              SUBLEDGER CREATION

- UAI

- Property Type

- Asset ID

- Project Group

**Notes:**
A subledger is only established for a capitalized asset.  

To capture costs in FFIS and transfer these costs to CPAIS, a subledger must be created. 

Notification of established UAI’s is currently sent to ABFOs and REWOs.  So that ABFOs will know they may proceed with setting up the associated accounting tables in FFIS.  

At this time RPMB doesn’t have a distribution list set up for all CPAIS Users, so the “UAIs Established Spreadsheet” will continue to come to REWOs and ABFO who may further distribute this information.  

## PLACING AN ASSET IN SERVICE WITHIN RPM

- Before an asset is placed in service, the status within the RPM record must be updated;

- Options:
- Disposed
- Existing –Abandoned
- Existing-Excess
- Existing-Excess to Department
- Existing-Excess to GSA
- Planned
- Under Construction
- Unknown

**Notes:**
Prior to placing an asset in service, the following questions should be asked:

1.  Has the facility been completed and accepted?  (A copy of the letter of final inspection/acceptance should be maintained in the RPM file which should be kept at the Area and by the CPAIS FA.)
2.  Have all billings come through and been paid in FFIS?  (A copy of the final contract invoice or record of payments should be compared to the subledger.  This should also be filed in the Area’s asset record with a copy to the CPAIS Financial Analyst.)

The shell record needs to be updated to complete all mandatory fields, including status.  

## PLACING AN ASSET IN SERVICE WITHIN RPA

- The subledger within the RPA Module must agree with the Record of Payments; and
- The CPAIS Financial Analyst must ‘throw’ the toggle to close Work In Progress (WIP) postings and begin depreciation.

**Notes:**
For a new asset, an AD-107 is also prepared and a verified “Record of Payments” with the true related acquisition cost is attached.  These documents should be compared to the subledger totals; if both equal, the request to place the asset in service should go through the REWO.

The REWO will review the acquisition package and initial before sending to the Headquarters Realty Specialist to place the asset IN SERVICE.  

Headquarters provides a cursory review and prepares a cover memo to the Financial Management Division to throw the “toggle” to close the WIP.  The package is then filed in the appropriate inventory file at Headquarters as back up.

Depreciation jobs will run and be reflected within the subledger side.

## DEPRECIATION

- CPAIS utilizes straight-line depreciation.
- Depreciation runs monthly.
- Depreciation accumulates until the book value is zero.

**Notes:**
Once an asset has been placed in service, depreciation will be reflected within the RPA side.  Typically will begin to show the month following being placed in service.

## WRITING OFF AN ASSET

- An asset may need to be written off due to:
- Demolition
- Sale
- Transfer

**Notes:**
You will want to coordinate with the Area REWO to ensure the proper paperwork is prepared to document asset write off.

A copy of the disposal paperwork should be maintained in the official asset file.