# Presentation: 053484

## PERSONAL PROPERTY

- Status Meeting
- April 06, 2006

## AGENDA

- Audit Calendar
- Unresolved Audit Issues
- Matrix of Missing Documentation
- Anticipated Projects by Line/Staff Office
- Unreconciled Payments Report (UPR)
- Headquarters Contacts
- Property Managers

- Inventory
- Inventory Memos
- Training
- Reports
- Assets Taken Out of Service
- Donated Property and Gifts
- Destroyed Property
- Accounting for Upgrades

## AUDIT CALENDARhttp://www.pps.noaa.gov/audit_calendar.html

| Date | Task | Whom Responsible | To 
Whom |
| --- | --- | --- | --- |
| April 6 | Documentation due to the Property Office for any adds, deletes or changes  | Line/Staff Property
Managers | Property 
Office |
| April 14 | Run depreciation reports for December | Personal Property | n/a |
| April 19 | Financial reports due | Personal Property | Finance |
| May 5 | Documentation due to the Property Office for any adds, deletes or changes  | Line/Staff Property
Managers | Property 
Office |

## UNRESOLVEDAUDIT ISSUESPlease verify the following projects’ projected date of acceptance (PDA).

- NMAO
- A-Frame for Nancy Foster
- Project Manager: Bob Wilmot
- PDA: February 2006

## UNRESOLVEDAUDIT ISSUES

- OAR - Undocumented vessels (2)

**Notes:**
CDN000015416 is the barcode on the boat pictured.  Still waiting to hear from Dennis Donahue, OAR, on whether the the Laurentian, or the Huron Explorer is in our records.

## MATRIX OF MISSING DOCUMENTATION

- The following Line/Staff Offices have documentation due to the Property Office:
- NMFS
- CD0001276439: Missing receiving report (Debi Pierson, Property Custodian)
- NWS
- CD0001440818: Missing signed CD-509 from William Bunting
- NWR-S007: Missing revised CD-509; communicated to Peter Georgiou
- CD0001440846: Missing email confirmation from William Duval for electronic CD-509

## NESDIS PROJECTSPlease verify the following projects’ projected date of acceptance (PDA).

- GOES Program Management
- Project Manager: Steve Kirkner
- PDA: Unknown
- CLASS Software version 4.0 – next milestone
- Project Manager: Rick Vizbulis
- PDA: April 2006
- Search and Rescue Satellite (SARSAT) Upgrade
- Project Manager: Thomas Button
- PDA: June 30, 2006

## NESDIS (cont.)Please verify the following projects’ projected date of acceptance (PDA).

- NSOF (NOAA Satellite Operations Facilities) Network Core (Data Communications Network for the move to the new Suitland building)
- Project Manager: Paul Pegnato
- PDA: August 2006
- DCS Auto Process System
- Project Manager: Unknown
- PDA: FY 2006 (in litigation)
**What else is there?**

## NMAO PROJECTSPlease verify the following projects’ projected date of acceptance (PDA).

- Two Shallow Multi-beam Sonars for Thomas Jefferson
- Project Manager:  Frank Colohan/Neil Lamartin
- PDA: April 2006
- Bow Thruster- Upgrade to Thomas Jefferson
- Project Manager: Bob Wilmot/Neil Lamartin
- PDA: May/June 2006
- P-3 Aircraft
- Project Manager: Julie Robertson
- PDA: August 2006

## NMAO (cont.)Please verify the following projects’ projected date of acceptance (PDA).

- Twin Otter Aircraft
- Project Manager: Michelle Fynn/Julie Robertson
- PDA: August/September 2006
- Henry Bigelow
- Project Manager: Joe Bohr
- PDA: September 10, 2006 (Commissioning Ceremony)
- Sonar for Long Range Fishery Vessel
- Project Manager: Frank Colohan
- PDA: September 2006

## NMAO (cont.)Please verify the following projects’ projected date of acceptance (PDA).

- MacArthur Transfer
- Project Manager: CDR Michelle Bullock
- PDA: FY 2006 (Waiting on Congress)
**What else is there?**

## NMFS PROJECTSPlease verify the following projects’ projected date of acceptance (PDA).

- Law Enforcement Records Mgmt Software
- Project Manager: Mark Spurrier
- PDA: May 2006
**What else is there?**

## NOS PROJECTSPlease verify the following projects’ projected date of acceptance (PDA).

- ADCAT Software
- Project Manager: Dennis Hoar
- PDA: June 2006
- Catamaran (50 feet)
- Project Manager: Dave Lott
- PDA: July 2006
- Catamaran (67 feet)
- Project Manager: Dave Lott
- PDA: August 2006
**What else is there?**

## NWS PROJECTSPlease verify the following projects’ projected date of acceptance (PDA).

- ORDA (Open-systems Radar Data Acquisition) Software
- Project Manager: CeCe Hennigh
- PDA: May 2006
- Uninterruptible Power Supply (UPS) for NWS Telecommunication Gateway (NWSTG)
- Project Manager: William Johnson
- PDA: April 2006
- Air Handling Replacement NWSTG
- Project Manager: William Johnson
- PDA: May/June 2006

## NWS (cont.)Please verify the following projects’ projected date of acceptance (PDA).

- IBM Computer Lease
- Project Manager: Unknown
- PDA: September 2006
**What else is there?**

## UPR SUCCESS STORY

## UPR TRENDS

|  | FY 2005 |  | FY 2006 |  | Combined |  |
| --- | --- | --- | --- | --- | --- | --- |
|  | Feb 28 | April 3 | Feb 28 | April 3 | Feb 28 | April 3 |
| TOTAL | 785 | 391 | 4,265 | 2,306 | 5,050 | 2,697 |
| AGO | 0 | 0 | 19 | 4 | 19 | 4 |
| CAO | 0 | 0 | 501 | 508 | 501 | 508 |
| CFO | 0 | 0 | 5 | 0 | 5 | 0 |
| CIO | 0 | 0 | 297 | 51 | 297 | 51 |
| GC | 5 | 3 | 10 | 10 | 15 | 13 |
| NESDIS | 0 | 0 | 22 | 100 | 22 | 100 |

- In thousands (000s)

## UPR TRENDS (cont.) 

|  | FY 2005 |  | FY 2006 |  | Combined |  |
| --- | --- | --- | --- | --- | --- | --- |
|  | Feb 28 | April 3 | Feb 28 | April 3 | Feb 28 | April 3 |
| NMAO | 0 | 0 | 314 | 196 | 314 | 196 |
| NMFS | 176 | 87 | 924 | 604 | 1,100 | 691 |
| NOS | 365 | 259 | 515 | 348 | 880 | 607 |
| NWS | 157 | 18 | 220 | 140 | 377 | 158 |
| OAR | 80 | 22 | 1,434 | 342 | 1,514 | 364 |
| USAO | 2 | 2 | 4 | 3 | 6 | 5 |
| WFM | 0 | 0 | 0 | 0 | 0 | 0 |

- In thousands (000s)

## AGED UPR(90 DAYS & OLDER)

|  | FY 2005 | FY 2006 | Total 90 Days & Older UPR |
| --- | --- | --- | --- |
| TOTAL | 391 | 770 | 1,161 |
| AGO | 0 | 0 | 0 |
| CAO | 0 | 0 | 0 |
| CFO | 0 | 0 | 0 |
| CIO | 0 | 0 | 0 |
| GC | 3 | 7 | 10 |
| NESDIS | 0 | 0 | 0 |

- In thousands (000s)

## AGED UPR (cont.)(90 DAYS & OLDER)

|  | FY 2005 | FY 2006 | Total 90 Days & Older UPR |
| --- | --- | --- | --- |
| NMAO | 0 | 55 | 55 |
| NMFS | 87 | 265 | 352 |
| NOS | 259 | 119 | 378 |
| NWS | 18 | 69 | 87 |
| OAR | 22 | 252 | 274 |
| USAO | 2 | 3 | 5 |
| WFM | 0 | 0 | 0 |

- In thousands (000s)

## HEADQUARTERS CONTACTS

- NOAA Research (OAR)
- Ryland Pine
- NESDIS
- Holly E. Turri
- Ryland Pine
- NOAA Weather & Climate (NWS)
- Doreen A. Kaduri
- NOAA Fisheries (NMFS)
- Dominic Blakey

- NOAA Marine & Aviation Operations (NMAO)
- Jennifer Foster
- NOAA Ocean Service (NOS)
- Melissa Nelson
- NOAA Staff Offices (AGO, CAO, CIO, CFO, USAO, WFM)
- Jennifer Foster

## HEADQUARTERS CONTACTS (cont.)

- Branch Chief
- Jon Pinner
- Audit Leads
- Brian Mason
- Tom Deckard
- Support
- Paul Myers
- Derek Jones
- Heritage Assets
- Lynette Joynes
- Inventory
- Larry Oates
- Ryland Pine

- Norfolk
- Anita Holley, Acting Branch Chief (RPM)
- Robin MacMillan (RPAM)
- Boulder
- Ron Jakaitis, Branch Chief
- Rudy Nunez (RPM)
- Sheila Hensley (RPAM)
- Kansas City
- Anthony Harrison, Branch Chief
- Gilly Elsea (RPM)
- Seattle
- David Petre, Branch Chief
- Elizabeth Valezona (RPM)
- Kim Hutchinson (RPAM)

## PROPERTY MANAGERS

- The following people have been identified:
- Carol Christian, AGO
- Judy Mickens, CAO
- Kathy Stowe, CIO
- Barbara Beasley, CFO
- Regina Jackson, GC
- Bernadette Foreman, NESDIS

- Jeanette McDonald, NMAO
- Robert Ziobro, NMFS
- Sloane Strother, NOS
- Jan Evans, NWS
- Deborah Martin, OAR
- George White, USAO
- Janice Long, WFM

## PROPERTY MANAGERS (cont.)

**ALTERNATES**
- Denise Tyler-Littleford, AGO
- Cynthia Burley, CAO
- Gail Perry, CFO
- Randy Hill, CIO
- Thornette Johnson, GC
- Brian Brown,  NESDIS
- Sheila Foster, NWS

- Millie Ingels, NMAO
- Rhonda Perry, NMFS
- George Ann Stansbury, NOS
- Mary Manoogian, OAR
- Kathy Lewis, USAO
- Michelle Masias, WFM

## FY 2006 INVENTORYSCHEDULE

- Annual Physical Inventory

| Quarter | Norfolk | Kansas City | Boulder | Seattle | Natl. Capital Region |
| --- | --- | --- | --- | --- | --- |
| First | WMO  OCFO
AGO   OAR
OCAO NMFS
OCIO | WMO  OCFO
AGO   OAR
OCAO NMFS
OCIO  NLSC | WMO  OCFO
AGO   OIG
OCAO
OCIO | WMO  OCFO
AGO   OAR
OCAO NMFS
OCIO  OIG | WMO  OCFO
AGO   OAR
OCAO
OCIO |
| Second | NESDIS
NOS | NESDIS
NOS | NESDIS
OAR | NESDIS
NOS | NESDIS
NOS |
| Third | NWS
NMAO | NWS
NMAO
NRC (NWS) | NWS | NWS
NMAO
OGC | NWS    NMFS
NMAO  OGC
USEC |
| Fourth | BIS | BIS | BIS | BIS |  |

## FY 2006 INVENTORY OVERDUE

- 2nd Quarter Inventories are _due_!
- Larry Oates will be out for the next two weeks
- Ryland Pine will be filling in for Larry

## INVENTORY MEMOS

- To be sent out in May

| Memo | Sent to | Coordination |
| --- | --- | --- |
| Capitalized inventory | Property Custodians | Property Managers |
| Contractor held property | Contracting Officers Representatives | Ryland Pine |
| Heritage Assets | Heritage Asset Stewards | Lynette Joynes |
| Depreciation Accounting | Line Office Budget Offices | Brian Mason |
| Deferred Maintenance | Line Office Program Managers | Brian Mason |

## PROPERTY ACCOUNTABILITY OFFICERS (PAO) REQUIRING TRAINING

- NMFS
- Herbert Kaufman
- Garry Mayer
- Roy Crabtree
- Harold Robbins
- Scott Nichols

- NOS
- Daniel Basta
- Rolin Meyer

-   Churchill Grimes
-   James Herkelrath
-   Willis Hobart
-   Norman Mendes

-    NWS
-   Les Taylor

## PAO TRAINING (cont.)

## PROPERTY CUSTODIAN (PC) TRAINING

- Training is available to Property Contacts and Board of Review members
- 18 classes conducted from October through       April 5th
- Upcoming classes –April 12 (Eastern), April 26 (Eastern)
**TIME IS RUNNING OUT!! **
**ONLY 2 CLASSES REMAIN!!**

## PC TRAINING (cont.)

## MARCH REPORTS

- Financial Reports
- Submitted March 17th
- Operational Reports
- New format for Heritage Assets reports
- Date trained added to PAO/PC listing
- Documentation checklist included in book
- 2nd Quarter Heritage Assets Reports
- Submitted April 3rd

## ASSETS TAKEN OUT OF SERVICE

- Provide documentation for capitalized assets taken out of service to PPB _**timely**_
- Per FASAB SFFAS No. 6 –
- “General PP&E shall be removed from general PP&E accounts along with associated accumulated depreciation/amortization, **if prior to disposal, retirement or removal from service, it no longer provides service in the operations of the entity**.”
- “**No additional depreciation/amortization shall be taken once such assets **are removed from general PP&E in anticipation of disposal, retirement, or removal from service.”

**Notes:**
Capitalized property must be reported when taken out of service BEFORE it Is disposed of.

## DONATED PROPERTYAND GIFTS

- Donated property and gifts should be evaluated to determine if they need to be capitalized
- Evaluation criteria is the same as purchased property
- $200k or greater
- Useful life greater than 2 years
- Don’t forget – bulk purchase criteria
- Over $1 million in total and individual items costing $25k or more

## DESTROYEDPROPERTY

- Property destroyed by Hurricanes Katrina, Rita, and Wilma need to be reported
- Please report this information to RPMs and PPAMs
- _[http://www.corporateservices.noaa.gov/~nfo/caologhome.html](http://www.corporateservices.noaa.gov/~nfo/caologhome.html)_

## ACCOUNTING FOR UPGRADES

- Additions to or replacement of parts within an original piece of equipment
- Increases the asset's capacity (quantity of outputs),
- Efficiency (quality of outputs), or
- Economic useful life.
- The purchased item will not function by itself without being installed with the original main unit.

- _[http://](http://www.pps.noaa.gov/New_menu/upgradeproc.htm)__[www.pps.noaa.gov/New_menu/upgradeproc.htm](http://www.pps.noaa.gov/New_menu/upgradeproc.htm)_

## ACCOUNTING FOR UPGRADES (cont.)

_**Additions**_ - additional part(s) or asset(s) added to the original asset without removing any part of the original asset.
_**Improvements**_ -- the substitution a better part for a part of the original asset.
_**Replacements**_** **-- the substitution a similar part for a part of the original asset.
_**Capitalized upgrade**_ -- A capitalized upgrade is defined as an upgrade that _costs $200,000 or more._
_**Downgrade**_ -- The removal of parts from within an original piece of equipment, which decreases the asset's capacity, efficiency, or economic useful life.

**Notes:**
The same criteria for capitalization applies to upgrades as for new equipment.  That is, the bulk purchase policy also applies.

## ACCOUNTING FOR UPGRADES (cont.)

**Repairs and Maintenance are **_**not**_** CWIP!**
_**Repairs and Maintenance Expense**_ -- Repairs and maintenance expense is defined as any costs incurred to an asset that maintain the existing level of service and do not significantly increase the capacity, efficiency, or economic useful life of the original asset.
- These costs, regardless of dollar amount, should be recognized as repairs and maintenance expense (i.e. not added to the depreciable basis of an original capitalized asset, nor capitalized separately).

## ACCOUNTING FOR UPGRADES (cont.)

**Accountability** - An upgrade must be tracked in the property system if that upgrade costs $200,000 or more. Any upgrade to a non-capitalized item that costs $200,000 or more is treated as an addition. If the upgrade costs less than $200,000, then it must be accounted for only if it costs more than 50% of the cost of the original item being upgraded.

**Notes:**
When dealing with an upgrade, there are two factors that must be taken into consideration: accountability for the property and the financial accounting for the property.

## ACCOUNTING FOR UPGRADES (cont.)

**Financial accounting** - If an upgrade costs $200,000 or more, it will be capitalized unless justification is presented for expensing the upgrade. If it costs less than $200,000 it will be capitalized only if it is accountable and is an upgrade to an asset that is capitalized. Otherwise, it will be expensed.
- Extending the useful life of a non-capitalized asset is not an option since the asset was expensed in the first place.

**Notes:**
When dealing with an upgrade, there are two factors that must be taken into consideration: accountability for the property and the financial accounting for the property.

## What are your questions or comments?

## What are your agenda items for our next meeting?

Date, time and location for next meeting
May 4 @ 11:00 a.m.
	  SSMC4 - Rm 8150

- Date, time and location for next meeting
- May 4 @ 11:00 a.m.
- 	  SSMC4 - Rm 8150