1 FACILITIES MANAGEMENT PROJECT ACCOUNTING PRESENTED BY: ALMA AVILA SUPERVISING ACCOUNTANT October 19, 2006

2 Agenda and Objectives Agenda Agenda Overview of Facilities Management (FM) ProjectsOverview of Facilities Management (FM) Projects Project Accounting BackgroundProject Accounting Background Project Costing ImplementationProject Costing Implementation Objectives Objectives Improve AwarenessImprove Awareness Provide an Understanding of the Criteria Used in FM Project AccountingProvide an Understanding of the Criteria Used in FM Project Accounting Establish On-Going CommunicationEstablish On-Going Communication

3 Overview of FM Projects General Maintenance General Maintenance Demand Work Orders – Funded by GFDemand Work Orders – Funded by GF Facilities Project Group (FPG) Facilities Project Group (FPG) Projects $0 - $24,999 – Funded by GFProjects $0 - $24,999 – Funded by GF Projects $25,000 - $249,999 – Funded by a Capital Project FundProjects $25,000 - $249,999 – Funded by a Capital Project Fund However, the type of service can change the Fund Type used by FM.However, the type of service can change the Fund Type used by FM. Design and Construction (D&C) Projects Design and Construction (D&C) Projects Capital Projects $250,000 – Funded by a Capital Project FundCapital Projects $250,000 – Funded by a Capital Project Fund

4 Project Accounting Background Initial Process Initial Process Department submits a request to FM via telephone or Form V.Department submits a request to FM via telephone or Form V. FM Secretary will enter the information into the system and assign a project number.FM Secretary will enter the information into the system and assign a project number. The request is forwarded to a Senior Project Manager for review and assignment.The request is forwarded to a Senior Project Manager for review and assignment. The request is forwarded to the appropriate division and an Estimator is assigned.The request is forwarded to the appropriate division and an Estimator is assigned.

5 Project Accounting Background (continued…) Initial Process (continued…) Initial Process (continued…) The FM Secretary will send an to the department with confirmation and details, including a contact name and phone number.The FM Secretary will send an to the department with confirmation and details, including a contact name and phone number. An estimate is completed and submitted to the Senior Project Manager for review and approval.An estimate is completed and submitted to the Senior Project Manager for review and approval. The department is contacted by the FM Secretary with estimate information.The department is contacted by the FM Secretary with estimate information. The department approves the estimate and provides a chargeable accounting string. Please consider the interfund/intrafund accounting rules.The department approves the estimate and provides a chargeable accounting string. Please consider the interfund/intrafund accounting rules.

6 Project Accounting Background (continued…) Expenditures vs. Revenue Expenditures vs. Revenue Expenditures are incurred by FM in either GF or a Capital Project Fund.Expenditures are incurred by FM in either GF or a Capital Project Fund. FM will bill the department, as follows:FM will bill the department, as follows: Maintenance Projects – Monthly (Closed only) Maintenance Projects – Monthly (Closed only) FPG Projects FPG Projects $0 – 24,999 – Monthly (Closed only)$0 – 24,999 – Monthly (Closed only) $25,000 – 249,999 – Quarterly$25,000 – 249,999 – Quarterly D&C Projects - Quarterly D&C Projects - Quarterly Interfund vs. Intrafund accounting must be determined.Interfund vs. Intrafund accounting must be determined. Revenue is recorded by FM in GF or a Capital Project Fund.Revenue is recorded by FM in GF or a Capital Project Fund.

7 Project Accounting Background (continued…) Journal Processing Journal Processing The project/grant field on the journal line must be completed for all FM accounting lines using the following format:The project/grant field on the journal line must be completed for all FM accounting lines using the following format: FM FM Communication and Correspondence Communication and Correspondence Please reference the project number on correspondence or when communicating with FM about a project.Please reference the project number on correspondence or when communicating with FM about a project.

8 Project Accounting Background (continued…) FM Cash Flow FM Cash Flow Timely reimbursement is critical.Timely reimbursement is critical. An expenditure may be recorded and cash transferred to FM, if budgeted in the current year and FM has not yet completed the service. This applies to both Governmental and Proprietary funds. FM will defer the revenue until they have earned it.An expenditure may be recorded and cash transferred to FM, if budgeted in the current year and FM has not yet completed the service. This applies to both Governmental and Proprietary funds. FM will defer the revenue until they have earned it.

9 Project Costing Implementation FM Project Tracking System FM Project Tracking System TRIRIGATRIRIGA Implemented September Implemented September Departments will be able to create and track their own service requests via any PC using a web browser. Departments will be able to create and track their own service requests via any PC using a web browser. FM will be able to accurately track costs and bill more timely. FM will be able to accurately track costs and bill more timely.

10 Project Costing Implementation (continued…) TRIRIGA (continued…)TRIRIGA (continued…) The pilot program will include the EO, CHA, and the Law Library. The pilot program will include the EO, CHA, and the Law Library. PeopleSoft 8.8 Project CostingPeopleSoft 8.8 Project Costing Implement in July Implement in July Full Project Cost Accounting. Full Project Cost Accounting.

11 Questions?

12 THANK YOU! FM CONTACTS: Sheila Andrews, Principal Accountant – X54849 Alma Avila, Supervising Accountant – X50164 Dave Menell, Supv. Accounting Tech – X54899