Reconciling FIMS and STARS

1. Reconciling FIMS and STARS Ivan Graff, P.E., CFM, PMP, CCE, LEED AP Office of Property Management Office of Acquisition and Project Management May 22, 2013

2. Agenda • Why do I need to reconcile these systems? • What resources will help me? • When do I exceed the capitalization threshold? • When do I add assets to FIMS or STARS? • How could FIMS make this easier? • How could STARS make this easier? Property Management Workshop

3. Why reconcile? • DOE Order 534.1B, “Accounting” incorporates the DOE Accounting Handbook, renamed the Financial Management Handbook • The Financial Management Handbook, Chapter 10, Section 2(l) “DOE organizations and integrated contractors should annually reconcile their real and related property records with summary financial control records.” (FHM10.2(l)) Property Management Workshop

4. Which reflects which? • FIMS is the real property system of record. • STARS is a secondary financial system. • STARS depends on its subsidiary systems. • STARS must reflect FIMS. • Records in STARS are a subset of records in FIMS. Property Management Workshop

5. Reconciling Resources • FIMS • User Guide, Appendix D, STARS Asset Types • User Guide, Appendix G, Section D • Standard Reports • 060 Owned STARS Information Report • 074 Capital Adjustment Detail Report • 076 STARS Capitalization Information Report • STARS • Financial Management Handbook, Chapter 10, Section 2(l) • PPE Best Practices Guide Property Management Workshop

6. Capitalization Threshold • Does it apply to the asset? • Yes • Does it apply to expenditures in support of the asset? • Yes, specifically acquisition and improvement costs • Does it apply to maintenance and repair? • No, as these are “minor” and “periodic costs” • Are all real property assets capitalized? • No Property Management Workshop

7. Timing FIMS / STARS Entries • When do I add assets to FIMS? • Answer: Beneficial occupancy • When do I add assets to STARS? • Answer: Beneficial occupancy • To which system do I first add the record? • Answer: FIMS, that’s the system of record “The acquisition cost of construction work in progress should be closed to the completed PP&E categories when the equipment and facilities are placed in service (that is, beneficial occupancy) even if the entire project is not financially completed.” Property Management Workshop

8. Helpful FIMS Changes • Require an asset type for each adjustment / improvement. • Have standard reports 074 and 076 tally by asset type. • Disallow entry of negative values in Initial Acquisition Cost and Adjustment Cost. • System populate the Capitalized Indicator for each asset: • Y - When the sum of an asset’s costs equals or exceeds the threshold in effect at the time of acquisition. • N – When the asset does not pass the above test. Property Management Workshop

9. STARS Changes Needed • Are expenditures or assets capitalized? • Answer: In the fixed asset module, assets • Then . . . why reconcile on the asset type level? • STARS needs to track value on the asset level • . . . and practice needs to reflect guidance Property Management Workshop

10. email: ivan.graff@hq.doe.gov Ivan Graff  202-586-8120 Property Management Workshop