2BDoD 7000.14-R Financial Management Regulation Volume 4, Chapter 25
* May 2019
25-21
2.4.7.7. The DoD entity constructing the item must continue to report CIP on
their financial statements until the constructed item is accepted by the accountable
DoD Component or its agent. The minimum information associated with the CIP amount reported
for financial statement preparation purposes must include the DoD Component’s project number,
project fund code(s), project detail cost, project detail organization code(s), and programmed
amount. For a specified project and for the purpose of an audit trail of the CIP account, the
Government’s project construction agent and the DoD constructing entity must retain the
supporting documentation for their respective portion(s) of the project to which they have fiscal
accountability. For additional information regarding representative documentation for a
construction project, refer to paragraph 250302. Upon acceptance of constructed items, the
Government’s project construction agent and the DoD constructing entity must provide the
accountable property officer with the legible copies of auditable supporting documentation that
must be provided, along with their location. The accountable property officer, in turn, must ensure
the documentation is retained in accordance with applicable laws, regulations, and instructions.
2.4.7.8. When constructed items are accepted, the costs accumulated in the CIP
account must be relieved (i.e., transferred to the appropriate general PP&E account). To ensure
constructed items are recorded at full cost, the recorded cost of the item(s) accepted must equal the
sum of all the costs incurred to bring the item(s) to a form and condition suitable for their intended
use. These include costs incurred after project design authorization for actual construction such
as labor, materials, and overhead costs (see Annex 1 for a list and description of the costs to be
accumulated for constructed 090385items). In addition, the funding entity of a construction project
must ensure that all costs incurred by the funding entity are provided to its construction agent on
a formal document for inclusion in the full cost of the item(s).
2.4.7.9. If a construction project is cancelled, each cost accumulated in the
associated CIP account must be expensed. When a portion of a project is cancelled or decreased
in scope, the cost directly associated to that portion of the project, and an allocated portion of the
common cost in the CIP, must be expensed. All projects deferred for more than two years must
be reviewed for continuance or cancellation during the review cycle.
2.4.8. Accounting for General Equipment Outside of the United States. As used in this
chapter, “United States” means the 50 States of the United States, the District of Columbia, and
the commonwealths, territories, and possessions of the United States. In carrying out their mission,
operations and objectives, there are circumstances in which DoD Components use general
equipment outside of the United States. DoD's rights to general equipment outside of the
United States may be different from those within the United States. For financial reporting
purposes, a DoD Component that uses general equipment outside of the United States must adhere
to the following guidance:
2.4.8.1. A DoD Component will recognize a general equipment asset on its
financial statements in accordance with the guidance provided throughout the other provisions of
this chapter if the DoD Component purchases the general equipment asset outside of the host
nation/foreign country to which it is bringing the general equipment.