UFC 1 -300-08
30 JUNE 2004
acceptance. Any USACE/NAVFAC delay in closing out the CIP account after customer
acceptance on a DD Form 1354 may cause double accounting in the general ledger
PP&E because the gaining RPAO should enter this same asset value into the real property
database within 10 days of facility acceptance.
4-5.4
Reporting of CIP . CIP costs are accumulated by the construction agent project
manager at USACE, NAVFAC, DPW or State/ARNG depending on who is managing and
responsible for the construction project. The USACE, NAVFAC, DPW or State/ARNG shall
provide such CIP balances annually to the appropriate reporting DoD component along
with supporting documentation to reconcile CIP balances by project and funding source.
The DoD customer that is to receive the constructed property shall report a CIP amount on
their financial statement, regardless of what type of funds were used to fund the
construction.
4-5.5
Closeout of CIP . The construction agent project manager is also responsible
for the closeout of the capitalized property costs from the CIP account. When construction
is complete or when an asset is placed in service, capitalize the cost of the property as a
credit to the CIP account and document this cost as the acquisition cost of the real property
asset.
4-5.5.1 The construction agent project manager closes out the project in the CIP account
based on the costs in the final DD Form 1354 after all contractor costs, litigation, and
warranty work have been completed. However it is not always necessary to complete all
warranty work before doing a final 1354. USACE and NAVFAC goals for financial
closeout and final DD Form 1354 transfer are 180 days for CONUS projects and 360 days
for OCONUS projects from receipt of the RPAO acceptance (evidenced by his/her
signature in block 25) to transfer the capitalized project costs out of the CIP account.
4-5.5.2 To credit the CIP, the construction agent project manager forwards a copy of the
signed and accepted interim or final DD Form 1354 to his/her Finance and Accounting
Office for processing the credit to the CIP account. For projects turned over in phases, the
construction agent project manager should credit the CIP account based on the
acceptance of each phase, as documented in the interim DD Form 1354 for the phase.
The final project 1354 can adjust costs, including construction, P&D, S&A or equipment, for
any of the phases turned over previously.
4-5.6
Work in progress. Installation DPW/FacMgr/BCE/DIS Construction Office
project managers are likewise responsible for accounting and reporting work-in-progress
expenses on non-MILCON projects that are to be capitalized. These costs are accounted
for as work-in-progress general ledger accounts at the installation similar to the CIP
process. These costs must be promptly credited once a project is substantially completed,
available for use or beneficial occupancy, and turned over to the installation for use and to
the RPAO for recording in the real property database. To closeout work-in-progress, the
installation DPW/FacMgr/BCE/DIS project manager forwards a copy of the signed and
accepted interim or final DD Form 1354 to the Installation Finance and Accounting Office
to document credit for the installation work-in-progress account.
4-5
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