1. 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

2. 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

3. Overall Process  Initial set-up  Monitoring  Reconciliation  Capitalization  Audits

4. 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

5. 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

6. Monitoring : Resource Databases  OLAP Create queries Financial Statements Affected Reference Number Query  CAMS CA500D Accounts Payable Report Budget Reports

7. 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

8. Monitoring: Correcting Actions in Prior Fiscal Years  This is worst case scenario  Be sure to move costs within one program code

9. 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

10. 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

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

12. 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

13. 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

14. 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

15. 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

16. Contacts  NWS CWIP Coordinator Stephen Wills  NOAA Finance Office Nick Bayer  NOAA Personal Property Brian Mason  NOAA Real Property Gina Ziegenbein