Asset Inventory & Financial Reconciliation Project

Kick-off Meeting

May 2, 2005

Boulder City, NV

Asset Inventory & Financial Reconciliation Project

• First, let’s not panic.

Project Drivers• Statement of Federal Financial Accounting Standards

#6, Accounting for Property, Plant and Equipment - Minimum general PP&E disclosure requirements– cost, associated accumulated depreciation, and

book value by major class; – estimated useful lives for each major class; – the method(s) of depreciation for each major class; – capitalization threshold(s) including any changes in

threshold(s) during the period; – restrictions on the use or convertability of general

PP&E.

Project Drivers

• Statement of Federal Financial Accounting Standards #8, Supplementary Stewardship Reporting – Section 11 of FFAS #8 states, “Stewardship PP&E would include stewardship land (that is, land not acquired for or in connection with general property, plant, and equipment); heritage assets (for example, Federal monuments and memorials and historically or culturally significant property); and Federal mission property, plant, and equipment (for example, space exploration and military weapons systems).

Project Drivers

• Real Property Financial Management Policy dated April 30, 2003 – Section V. Policy requires “Real property owned or leased by the DOI must be properly accounted for in real property accountability records.” Section IX. B. Physical Inventories of Real Property requires “Bureaus must physically verify the presence and condition of all real property assets on a regular basis. All real property (i.e., 100%) must be inventoried over a five-year period.” “The following basic information must be gathered in the course of an inventory: (a) location of items/assets; (b) assessment of utilization of the real property items/assets; and (c) confirmation of accuracy of subsidiary records.

Project Drivers

• Executive Order (EO) 13327, Federal Real Property Asset Management, dated February 4, 2004 – “In developing this (asset management) plan, the Senior Real Property Officer shall: (i) identify and categorize all real property owned, leased, or otherwise managed by the agency . . . .”

Project Drivers

DOI’s Asset Management Plan

• Development of standard policy and procedures that focuses on life-cycle costs and the portfolio covering planning, acquisition, operation, maintenance and the disposal of assets;

• Bureau AMPs and internal scorecards, and site-specific plans; • A strengthened capital planning and investment control

process and governance of portfolio and individual projects and assets;

• Property inventory data elements and performance metrics that will be supported by the Financial and Business Management System (FBMS) and the Facility Maintenance Management System (FMMS); and

• Identification of actions to implement the AMP.

Scope of Project

• Validation of a comprehensive inventory of Reclamation non-land real property assets

• Additions or deletions to inventory, as appropriate• Utilize existing inventory data gathered from multiple

data sources• Required dollar-value threshold to current level in

Reclamation’s 730 Report• Create Access database and populate with inventory

data and cost data from 730 report. Migrate to FBMS in the future.

• Populate database with 23 asset attributes

Scope of Project (Inventory)

• Utilize inventory list compiled by D-5700 (Hirai)

• Verify assets against that list and populate or notate any missing data fields

• Add or delete assets• Verify backup documentation (support the

audit trail)

Everything from dams . . .

. . . to chicken coops.

Scope of Project (Reconciliation)

• Reconciliation to the Construction/Plant Account level in D&S FIN 07-20 Appendix A (730 report)

• For example . . .130 Structures and Improvements

10 Buildings

20 Other structures and improvements

160 Pumps and Prime Movers

180 Installed Communications Equipment

10 Radio

20 Microwave, etc.

Scope of Project

• Includes both reserved and transferred works

• For district structures and buildings on Reclamation land (transferred works), needs to be added to inventory and needs documentation on Reclamation authorization to construct

• Recreation facilities in inventory

Project Schedule

• Inventory requirement began April 30, 2003, with approval of DOI’s Real Property Financial Management Policy

• Requires agency inventory be accomplished every 5 years

• Due date will be April 30, 2008

Project Schedule

• Suggested Milestones– Resend all inventory data to regions to begin validation

process• D-5700 distribute CD-ROMs by May 13, 2005

– Send inventory data matched to 730 report data to regions• D-5700 distribute all CD-ROMs by September 30, 2005

– Regions complete 50% of inventory verification and reconciliation work by September 30, 2006

– Regions complete 75% of inventory verification and reconciliation work by September 30, 2007

– Regions complete 100% of inventory verification and reconciliation work by April 30, 2008

Project Reporting

• Progress reporting to D-5700 done on a quarterly basis (15 days after close of each FY quarter)

• Number of assets, by project, physically inventoried and verified, and for which all appropriate data attributes have been recorded.

• Number of assets and total value, by project, for which financial reconciliation has been accomplished.

Leverage Existing Processes

• Power O&M Reviews

• Water O&M Reviews

• Dam Safety Reviews

• Associated Facilities (Transferred Works) Reviews

• Property Compliance Reviews

• Remember, Denver staff

is always available to assist you with this project!

Denver Points of Contact

• Project Manager – Ken Maxey – 303-445-2727 kmaxey@do.usbr.gov

• Structures and Database – Stu Hirai – 303-445-2932 shirai@do.usbr.gov

• Property (Buildings/Quarters) – Deb Lange – 303-445-2030 dlange@do.usbr.gov

• Finance (Policy) – Ed Abero– 303-445-3423 eabero@do.usbr.gov

• Finance (Operations) Rudy Avila – 303-445-3501 ravila@do.usbr.gov