1 / 17

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

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

Download Presentation

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

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


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

  2. So what is CWIP, anyway? C W I P = Construction Work in Progress

  3. 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

  4. 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

  5. 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

  6. CWIP Policy (cont.) • Flow chart of project accounting procedures • Table - Plant and Capital Equipment (PACE) criteria, guidelines and procedures • PACE Project Life Cycle Form

  7. 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

  8. PACE Project Life Cycle Form

  9. 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

  10. 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

  11. “Color of Money”Flow Chart

  12. 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

  13. 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

  14. 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

  15. 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)

  16. Questions/Discussion

  17. Contact Us… • Lesta Nadel x 4670 • Tim Young x 4832 • Michele Mock x 2415 • Anil More x 5254

More Related