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CWIP Determinations

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.

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CWIP Determinations

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  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 4th day following quarter end by noon (i.e., January 4th, April 4th, July 4th, and October 4th) • 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

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