Auxiliary Funds and Sponsored Programs – Sponsored Work in Progress

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Sponsored Projects Work in Progress accounts (SPWIP – 88) allow for the accumulation of costs for the fabrication of equipment or models. A fabrication takes place when the university makes or builds something inhouse and the resulting product meets the definition of capital equipment. See FPI 4-7 for information on costs that are allowable in a WIP account.

If equipment or model fabrication is anticipated on an award, the PI should submit a completed Work-in-Progress (WIP) Account Request form to the Office of Sponsored Programs (OSP) to establish the 88 account. OSP adds budget to the account and ensures that costs accumulated in the 88 post monthly to the 53 account.

WIP accounts are project-to-date, meaning revenues and expenses can be tracked across multiple years. Fabrication of the equipment or model should be completed prior to the completion of the project so that the equipment or model can be used to complete the sponsor-approved scope of work, with the fabrication being capitalized at the time it is completed. If additional work is done on a subsequent award, it should be an add-on to the equipment.

Once equipment or model fabrication is complete, OSP post-award will provide the accumulated amount to the department or unit so that a Kuali Distribution of Income and Expenses document can be created. This document allows the final cost to be moved from 53xxxxx-6xxx to 53xxxxx8xxx and a capital asset is created. Fabrications are exempt from F&A charges providing the equipment or model fabricated meets capital criteria and is not considered a deliverable. If the asset does not meet capitalization criteria or is considered a deliverable, the costs will be moved to an appropriate expense object code and subject to F&A costs.

Bottom line: SWIP accounts are for accumulating allowable costs (e.g. materials, technician services, etc.) related to equipment or model fabrication. Fabrication should be during the award period and should be converted to equipment during the award. F&A is not allowable.

INFORMATION DIRECTLY SOURCED FROM:

CSU Financial Procedure Instructions FPI 1-3: http://busfin.colostate.edu/Forms/FRP/Accounting/FPI_1-3_Funds_Subfunds.pdf

CSU Financial Procedure Instructions FPI 2-7: http://busfin.colostate.edu/Forms/FRP/Expense_Revenues/FPI_2-7_Federal_Unreimbursable_Costs.pdf

CSU Financial Procedure Instructions FPI 4-7: http://busfin.colostate.edu/Forms/FRP/Capital_CP/FPI_4-7_Work_In_Process_Equipment_Fab.pdf#zoom=100

Blog post by Tricia Callahan, David Schmidt, Bill Moseley, and Kim Melville-Smith, Office of Sponsored Programs