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What the heck is C-W-I-P and Why should I care?

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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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Presentation Transcript
slide1
What the heck is

C-W-I-P

and

Why should I care?

so what is cwip anyway
So what is CWIP, anyway?

C W I P =

Construction Work in Progress

more about cwip
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
and why should i care
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
cwip policy
CWIP Policy

CWIP

  • Formalized and published August 2005
  • CFO website URL:

http://www.lbl.gov/Workplace/CFO/co/ga/pa/cwip.html

  • Describes roles and responsibilities
    • Divisions
    • Property Accounting
    • Budget Office
    • Property Management
cwip policy cont
CWIP Policy (cont.)
  • Flow chart of project accounting procedures
  • Table - Plant and Capital Equipment (PACE) criteria, guidelines and procedures
  • PACE Project Life Cycle Form
what s new
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
pace project life cycle form cont
PACE PROJECT

LIFE CYCLE

FORM

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
what is the color of money
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
resource analysts tasks
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
resource analysts tasks cont
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
slide14
VWIP
  • 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
your input matters
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)
contact us
Contact Us…
  • Lesta Nadel x 4670
  • Tim Young x 4832
  • Michele Mock x 2415
  • Anil More x 5254