# Presentation: 295853

## CWIP Determinations

- Is the estimated project value greater than $200K?
- Does the project has a useful life of 2 years or more?
- Is the project for NOAA use only?
- If the answer is YES to all of the above, the project is most likely CWIP

## General Information

- Project can be either new or an upgrade
- Project funds can be ORF or PAC
- Final determination of whether a project is CWIP or not is made by the Personal or Real Property staffs

## Overall Process

- Initial set-up
- Monitoring
- Reconciliation
- Capitalization
- Audits

## Initial Set-up

- NOAA Budget Office CWIP Activity Request & Data Form establishes CWIP Activity Code and project codes
- Project codes can be ORF or PAC
- ORF project codes will have “4” in the second position
- PAC project codes will have “F” in the fourth position
- Non-CWIP codes should be established for each project

## Monitoring

- CWIP v. non-CWIP
- Monitor as you do all other projects
- Review obligations
- Ensure paper trail
- Make appropriate corrections in a timely manner via modifications to the contract/ purchase order or via document or summary level transfers

## Monitoring : Resource Databases	

- OLAP
- Create queries
- Financial Statements
- Affected Reference Number Query
- CAMS
- CA500D
- Accounts Payable Report
- Budget Reports

## Monitoring : Correcting Actions in the Current Fiscal Year

- Contracts and purchase orders require modifications to the contract
- Whenever possible and practical, a detailed document level adjustment should be used
- Labor
- O.C. 31
- Otherwise, a summary level transfer at the 4-digit object class level can be used

## Monitoring:  Correcting Actions in Prior Fiscal Years

- This is worst case scenario
- Be sure to move costs within one program code

## Monitoring : Incidental & Administrative Costs

- Incidental & Administrative Costs are certain expenses that should not be included in CWIP such as
- Labor for procurement, finance, supervisory and clerical support
- Other non-labor such as travel, printing (final design drawings are CWIP), and ordinary supplies
- These costs are represented by the 3% and 5% calculation
- 3% for projects > $1 million
- 5% for projects < $1 million

## Monitoring : Incidental & Administrative Costs (continued)

- The cost adjustment for Incidental & Administrative costs is done annually
- The percentage is applied as follows
- For real property, it is applied to the estimated construction contract only
- For personal property, it is applied to the estimated total project cost
- The calculated cost is divided by the estimated number of months to determine a monthly amount
- Example and spreadsheet are available on the CWIP website

## Reconciliation	

- Completed quarterly
- _Generally_ due to the CFO designate on the 4th day following quarter end by noon (i.e., January 4th, April 4th, July 4th, and October 4th)
- Requires the signature of your SES
- If monitoring the associated project and task codes regularly, the reconciliation itself is an easy process

## Reconciliation: Form Explanation

- Task Manager’s Uncapitalized Costs v. CA500D Uncapitalized Costs
- In a perfect scenario, these are equal
- If they are not equal, an entry in the reconciling adjustment columns and an explanation is required on the reconciliation
- Reasons for differences include
- Obligation not processed or processed incorrectly
- 37-6 not processed in time
- Focus is on accrued, capitalized and uncapitalized costs

## Capitalizing

- A project must be capitalized within 10 days of the completion date
- May necessitate accruals
- The completion date is established in numerous ways including
- Final acceptance testing
- Beneficial Occupancy Date
- Placement into service or available for service

## Capitalizing : Recommendations

- Recommend communicating with appropriate servicing  or property office PRIOR to completion to ensure compliance with deadlines, required documentation and policies
- Recommend “closing” associated project codes (if solely owned) upon capitalization

## Audits

- Two types of audits
- Audit of on-going CWIP project for current fiscal year
- Audit of capitalized CWIP projects
- Helpful Hints
- Do not be intimidated, take your time and understand what they are asking for (and make sure they understand what they are asking for!)
- Return auditors e-mail or call immediately even if it is to say that more research or coordination is required
- The official record is NOAA Finance; it is acceptable to say that a copy has to be obtained

## Contacts

- NWS CWIP Coordinator
- Stephen Wills
- NOAA Finance Office
- Nick Bayer
- NOAA Personal Property
- Brian Mason
- NOAA Real Property
- Gina Ziegenbein