6/14/11 - Slide 1 FIMS/STARS RECONCILIATION June 14, 2011

6/14/11 - Slide 2 What is the objective of FIMS/STARS Reconciliation? Overall objective is financial integrity: –To ensure Property, Plant, and Equipment (PP&E) Financial Statement balances are correct –To meet annual audit conducted by KPMG Compliance with DOE Accounting and FIMS Handbooks

6/14/11 - Slide 3 What compels us to do this? To avoid audit findings that could affect the Department’s audit opinion. Governmental requirements – Governmental Reform Act of 1994 (GMRA)

6/14/11 - Slide 4 What Changes to real property asset data could occur each year that impact value totals? Acquisitions Improvements (Betterments) Adjustments Dispositions Transfers

6/14/11 - Slide 5 What values does the comparison consider? Acquisition cost (initial, improvements, adjustments) How often do reconciliations occur? Annually, as stated in DOE Accounting and FIMS handbooks

6/14/11 - Slide 6 Where is the data stored? How often is the data updated? Electronic, in FIMS and STARS database Supporting documentation should be stored in hardcopy format until asset is disposed of. There is not a time limit for retention of the source documentation. It must be available to support electronic data. Data is updated continuously/as changes occur

6/14/11 - Slide 7 Which data source is right? How close must the values be? Data in both systems should be based on source documentation. Values should be exact, if based on source documentation.

6/14/11 - Slide 8 How do sites address significant variances? Base your reconciliation on the source documentation. The source documentation is always the fall back position.

6/14/11 - Slide 9 How do sites document reconciliations and corrective actions ? Copies of documentation used in the reconciliation, such as final cost reports, invoices, IPACs, and transfer vouchers, should be kept on file for review by auditors. Balances will then be reflected in; –STARS reports from Fixed Assets and General Ledger Modules –FIMS 076 report, STARS Capitalized Reporting Information –FIMS 074 report, Capital Adjustment Detail Report