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

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

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

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

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

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

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

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

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

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

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

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

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

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

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 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

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