UFC 1 -300-08
30 JUNE 2004
Service hand receipt form, i.e., DA Form 3161. Examples of EIP personal property fixed
and their Army category codes are:
Conveyor system
Closed circuit television system
Watch reporting system (88020
Air raid alarm system (88030)
Intrusion alarm system (88040)
Lightning protection system (89280)
4-5
MAINTAIN THE CONSTRUCTION -IN-PROGRESS ACCOUNT
4-5.1
Definition. CIP is a material component of the DoD PP&E. Costs incurred
during construction of PP&E assets should be recorded as CIP until the assets are placed
in service. CIP records are based on financial transactions that record receipt of services
in the general ledger and CIP is increased to match each receipt at the paying activity. The
recording of CIP costs brings construction costs under financial control during the
construction period (which may take years) and segregates capital costs from expenses.
4-5.2
Calculation of CIP costs. CIP captures as a "debit balance" all construction
costs accrued during the life of all DoD MILCON projects and O&M projects over
0,000. For projects, which proceed to normal construction, CIP includes all costs for
planning and design (P&D) including project management costs (pre-award), construction
contract supervision and administration (S&A) including post-award project management
costs, construction costs (including site preparation and demolition of footprint facilities),
and project-funded equipment costs. Construction costs include the actual cost of direct
labor, direct materials, overhead, and contractor costs, incurred in the construction of real
property. Contractor costs are valued at requests for progress payments and other
invoices. Construction agents keep an accounting on a general ledger basis for CIP costs
separately from other costs that are "construction expensed," i.e., not considered
investments to be capitalized, but rather are expenses, e.g., repairs.
4-5.3
Role of the DD Form 1354. CFOA requires that the total costs of a
construction project be accounted for and recorded in the real property records of the
accountable installation, at the completion of a project. The construction agent
accumulates CIP amounts for emplaced costs for projects during construction. The DD
Form 1354 is used to transfer both real property accountability and the cost associated
with that transfer and acceptance, indicated by the signatures in blocks 24 and 25, with an
effective date as shown in block 9D, Effective Date.
Once the project is physically complete, available for use or beneficial
occupancy obtained, the construction agent project manager uses the costs in the CIP
account for a given project to establish the DD Form 1354 capitalization costs which
establish the asset value to be added to the installation's real property account. The
construction agent project manager should also use the interim DD Form 1354 costs to
credit those costs in CIP (i.e., take a credit to the CIP account) within 10 days after RPAO
4-4
Previous Page
