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What the heck is C-W-I-P and Why should I care?. So what is CWIP, anyway?. C W I P = Construction Work in Progress. More About CWIP. Accounting process Holding account for property costs not yet ready to be placed in service Completion Asset placed in service

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What the heck is



Why should I care?

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So what is CWIP, anyway?

C W I P =

Construction Work in Progress

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More About CWIP

  • Accounting process

    • Holding account for property costs not yet ready to be placed in service

    • Completion

      • Asset placed in service

      • Transferred from CWIP account to an Asset account

      • Inventory procedures are applied

        • Tagging, depreciation, annual inventory, loans, borrows, transfers, etc.

  • Larger context

    • Proper use of fund types for activities of creating or enhancing assets

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And Why Should I Care?

  • Timely closeout matters!

    • Compliance with DOE accounting procedures

    • Visible to regulatory and auditing agencies

    • Can impact life cycle/funding of projects

    • Appropriate use of funds (“color of money”)

  • Responsibility

    • Belongs to research program/Principal Investigator

    • Financial management community supports research program

    • Policy and processes are Lab checks & balances for accountability

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CWIP Policy


  • Formalized and published August 2005

  • CFO website URL:


  • Describes roles and responsibilities

    • Divisions

    • Property Accounting

    • Budget Office

    • Property Management

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CWIP Policy (cont.)

  • Flow chart of project accounting procedures

  • Table - Plant and Capital Equipment (PACE) criteria, guidelines and procedures

  • PACE Project Life Cycle Form

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What’s New?

  • PACE Life Cycle Form (electronic)

    • Improve work flow

    • Track progress

  • Role of Property Accounting

    • One clear process “owner”

    • Uses PACE form for processing

    • Reviews proper use of funds (aka “color of money”)

    • Dedicated staff to process CWIP

    • Property Management

  • Additional Processes

    • CWIP Project Log on website

    • Follow up on status of closed project IDs

    • Follow up on project IDs with no recent activity

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PACE ProjectLife Cycle Form (cont.)

  • Submission through project life cycle

    • New project opening

    • Partial completion or capitalization

    • Completion or closeout

  • Critical information

    • Description of asset (including location)

      • Sufficiently detailed for assessing proper use of funds

    • Estimated useful life

    • Estimated completion date

    • Who to contact for additional information

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What is the “Color of Money”?

  • The proper use of funds

    • Impacts

      • Project opening

      • Requisitions

      • Final processing by Property Accounting

  • Approval processes addressing “color of money” for requisitions are currently being implemented

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Resource Analysts’ Tasks

  • Confirm availability of funds, including “color of money” issues

  • Obtain and document descriptive information from PI

  • Complete and submit Pace Life Cycle form at appropriate times in project life cycle

    • Open

    • Partial capitalization

    • Abandonment

    • Updated cost or completion date estimates

    • Completion

  • Document “color of money” considerations

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Resource Analysts’Tasks (cont.)

  • Work with property accounting to review exception or issues reports

    • Closed project IDs

    • VWIP

    • Inactive project IDs

    • Requisition exceptions

  • Review and approve purchase requisitions over $50,000

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  • Phrase coined by CWIP working group

  • VALID work in progress

  • Identify when work is still in progress (probably at higher project ID hierarchy level) examples:

    • Work orders

    • Complex Work Breakdown Structure (WBS)

  • Provide comment for CWIP log, identify parent project, estimated completion date

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Your Input Matters

  • We need your help to make this work in support of the scientific programs

  • How can we effectively propagate this policy to the Principal Investigators?

  • Suggestions (venues, exercises, examples)

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Contact Us…

  • Lesta Nadel x 4670

  • Tim Young x 4832

  • Michele Mock x 2415

  • Anil More x 5254