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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

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

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  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

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