Title: Data Integrity Breakouts (Navy) MEPRS - Depreciation Requirement

1. 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

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.

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.

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.

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 • 1st levels A, B, D and E are allocated to EAA and EAB • 1st level C is allocated to EAC • 1st level F is allocated to EAD • 1st level G is allocated to EAE

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

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

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

10. Depreciation Tracking Centrally provided Depreciation amount Monthly STARS/FL Depreciation Expense 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.

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

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. Q&A Questions?