1. 2010 UBO/UBU Conference Title: Data Integrity Breakouts (Navy) MEPRS - Depreciation Requirement Session: R-4-1440-1700

2. Objectives Provide the guidance related to Depreciation Explain how the calculations are accomplished Provide suggestions for successful implementation 2

3. Depreciation Depreciation is an interest item at TMA – Depreciation is reported on all equipment with a procurement cost of over $100K TMA monitors monthly depreciation and expects to see equal monthly amounts in the depreciation MEPRS codes for each activity Standardization of depreciation calculation started in FY 10. – Prior to FY 10, activities were calculating their depreciation amounts. There were differences in equipment thresholds and calculation methods. – Different sources for equipment and queries were being used. 3

4. Depreciation In FY 10, BUMED MEPRS and DQ Program Office began providing the monthly depreciation amounts by depreciation MEPRS code for each MEPRS reporting site. – Provided to region POCs – Based on prior FY end DMLSS equipment list obtained from DMLSS program office MTFs/DTFs must enter the monthly amounts provided in STARS/FL – Monthly amounts should be equal and must be entered prior to the month’s close in STARS/FL, not in EAS Do not adjust prior months after the month closes – Activities must use the centrally-provided amounts and not enter a locally calculated amount – It is not acceptable to enter depreciation in a lump sum, annually or quarterly. It must be entered monthly. 4

5. Depreciation In FY 10, BUMED MEPRS and DQ Program Office began providing the monthly depreciation amounts by depreciation MEPRS code for each MEPRS reporting site. – Provided to region POCs – Based on prior FY end DMLSS equipment list obtained from DMLSS program office MTFs/DTFs must enter the monthly amounts provided in STARS/FL – Monthly amounts should be equal and must be entered prior to the month’s close in STARS/FL, not in EAS Do not adjust prior months after the month closes – Activities must use the centrally-provided amounts and not enter a locally calculated amount – It is not acceptable to enter depreciation in a lump sum, annually or quarterly. It must be entered monthly. 5

6. Depreciation Methodology for central calculation of MEPRS/EAS depreciation – Equipment on hand at the end of the last fiscal year, in DMLSS Equipment acquisition value of $100K Procured during the last five years Annual depreciation is calculated on equipment ON HAND as of 30 SEPT of the previous fiscal year – FY 11 depreciation is based on equipment on hand as of 30 Sept 2010; i.e. procured in FY 06, 07, 08, 09 and 10. The DMLSS Equipment List is organized by first level MEPRS code by Core and Branches and subtotaled – 1 st levels A, B, D and E are allocated to EAA and EAB – 1 st level C is allocated to EAC – 1 st level F is allocated to EAD – 1 st level G is allocated to EAE 6

7. Depreciation – Sample Equipment List Organized by 1 st level MEPRS Subtotaled by 1 st level categories EAA/ EAB Core EAC EAA/ EAB Branch 7 Source: DMLSS Capital Equipment List

8. Depreciation Calculation Equipment list subtotaled as appropriate Divided by 5 to obtain annual depreciation – EAA/EAB subtotal is allocated (new TMA guideline for FY 11) Average Daily Patient Load under 100 – 80% to outpatient (EAB); 20% to inpatient (EAA) Average Daily Patient Load over 100 – 60% to outpatient (EAB); 40% to inpatient (EAA) Activities with no Inpatients – 100% to outpatient (EAB) Annual amounts are then divided by 12 to obtain the monthly STARS/FL entries by depreciation MEPRS code Depreciation spreadsheets are organized by region, with tabs for each activity that has depreciation amounts Sites are to enter the monthly amounts provided to STARS/FL prior to the STARS/FL close of each month 8

9. Depreciation Calculation B A C D All you have to do is Enter these amounts In STARS/FL each month 9

10. Depreciation Tracking Depreciation tracking is provided by BUMED MEPRS and DQ Program Office to the regions twice monthly. Daily depreciation data from STARS/FL is on the BFGD, Download directory. Centrally provided Depreciation amount Monthly STARS/FL Depreciation Expense 10

11. Depreciation Success Ensure that your equipment is recorded in DMLSS in the correct work center/MEPRS code Ensure the monthly depreciation amounts are entered in STARS/FL by mid-month, then review the depreciation data on the BFGD to ensure it is correct. Corrections can be made through the end of each month – Ensure depreciation BJONs are built early (mid- October at the latest) It is not desired that corrections are made after the end of each month. Depreciation amounts are to be equal monthly amounts 11

12. 12 Summary Depreciation is closely evaluated at the TMA level BUMED provides the information for the commands The commands need to enter the same value in STARS every month

13. 13 Q&A Questions?