1. OFFICE OF THE CHIEF FINANCIAL OFFICER CFO What the heck is C-W-I-P and Why should I care?

2. OFFICE OF THE CHIEF FINANCIAL OFFICER CFO So what is CWIP, anyway? C W I P = Construction Work in Progress

3. OFFICE OF THE CHIEF FINANCIAL OFFICER CFO More About CWIP Accounting process Holding account for property costs not yet ready to be placed in service Completion Asset placed in service Transferred from CWIP account to an Asset account Inventory procedures are applied Tagging, depreciation, annual inventory, loans, borrows, transfers, etc. Larger context Proper use of fund types for activities of creating or enhancing assets

4. OFFICE OF THE CHIEF FINANCIAL OFFICER CFO And Why Should I Care? Timely closeout matters! Compliance with DOE accounting procedures Visible to regulatory and auditing agencies Can impact life cycle/funding of projects Appropriate use of funds (“color of money”) Responsibility Belongs to research program/Principal Investigator Financial management community supports research program Policy and processes are Lab checks & balances for accountability

5. OFFICE OF THE CHIEF FINANCIAL OFFICER CFO CWIP Policy Formalized and published August 2005 CFO website URL: http://www.lbl.gov/Workplace/CFO/co/ga/pa/cwip.html Describes roles and responsibilities Divisions Property Accounting Budget Office Property Management CWIP

6. OFFICE OF THE CHIEF FINANCIAL OFFICER CFO CWIP Policy (cont.) Flow chart of project accounting procedures Table - Plant and Capital Equipment (PACE) criteria, guidelines and procedures PACE Project Life Cycle Form

7. OFFICE OF THE CHIEF FINANCIAL OFFICER CFO What’s New? PACE Life Cycle Form (electronic) Improve work flow Track progress Role of Property Accounting One clear process “owner” Uses PACE form for processing Reviews proper use of funds (aka “color of money”) Dedicated staff to process CWIP Property Management Additional Processes CWIP Project Log on website Follow up on status of closed project IDs Follow up on project IDs with no recent activity

8. OFFICE OF THE CHIEF FINANCIAL OFFICER CFO PACE Project Life Cycle Form

9. OFFICE OF THE CHIEF FINANCIAL OFFICER CFO PACE Project Life Cycle Form (cont.) Submission through project life cycle New project opening Partial completion or capitalization Completion or closeout Critical information Description of asset (including location) Sufficiently detailed for assessing proper use of funds Estimated useful life Estimated completion date Who to contact for additional information PACE PROJECT LIFE CYCLE FORM

10. OFFICE OF THE CHIEF FINANCIAL OFFICER CFO What is the “Color of Money”? The proper use of funds Impacts Project opening Requisitions Final processing by Property Accounting Approval processes addressing “color of money” for requisitions are currently being implemented

11. OFFICE OF THE CHIEF FINANCIAL OFFICER CFO “Color of Money” Flow Chart Funding Options Construction (Real Property) Repair Maintenance Alteration Experimental & Demo Operating Divisional Exp & Pilot Institutional Non-Cap Alterations New Construction GPPLine Item Addition Betterment Conversion Equipment (Personal Property) <$50K < 2 year service life Operating >$50K >2 year service life Divisional Capital Equipment (CE) Institutional GPE

12. OFFICE OF THE CHIEF FINANCIAL OFFICER CFO Resource Analysts’ Tasks Confirm availability of funds, including “color of money” issues Obtain and document descriptive information from PI Complete and submit Pace Life Cycle form at appropriate times in project life cycle Open Partial capitalization Abandonment Updated cost or completion date estimates Completion Document “color of money” considerations

13. OFFICE OF THE CHIEF FINANCIAL OFFICER CFO Resource Analysts’ Tasks (cont.) Work with property accounting to review exception or issues reports Closed project IDs VWIP Inactive project IDs Requisition exceptions Review and approve purchase requisitions over $50,000

14. OFFICE OF THE CHIEF FINANCIAL OFFICER CFO VWIP Phrase coined by CWIP working group Phrase coined by CWIP working group VALID work in progress VALID work in progress Identify when work is still in progress (probably at higher project ID hierarchy level) examples: Identify when work is still in progress (probably at higher project ID hierarchy level) examples: Work orders Work orders Complex Work Breakdown Structure (WBS) Complex Work Breakdown Structure (WBS) Provide comment for CWIP log, identify parent project, estimated completion date Provide comment for CWIP log, identify parent project, estimated completion date

15. OFFICE OF THE CHIEF FINANCIAL OFFICER CFO Your Input Matters We need your help to make this work in support of the scientific programs How can we effectively propagate this policy to the Principal Investigators? Suggestions (venues, exercises, examples)

16. OFFICE OF THE CHIEF FINANCIAL OFFICER CFO Questions/Discussion

17. OFFICE OF THE CHIEF FINANCIAL OFFICER CFO Contact Us… Lesta Nadelx 4670 Tim Youngx 4832 Michele Mockx 2415 Anil Morex 5254