Chapter 12 - Personal Property Management
Part 5 - Management Services
| Exhibit | Description |
|---|---|
| Manual Exhibit 5-12-A | HHS 22 Request for Property Action |
| Manual Exhibit 5-12-B | SF 122 Transfer Order Excess Personal Property |
| Manual Exhibit 5-12-C | HHS 679 Property Pass |
| Manual Exhibit 5-12-D | HHS 439 Personal Custody Property Record/Hand Receipt |
| Manual Exhibit 5-12-E | Property Voucher Register |
| Manual Exhibit 5-12-F | Cost Recognition Process |
| Manual Exhibit 5-12-G | HHS 557 Personal Property - Loan Record |
| Manual Exhibit 5-12-H | HHS 365 Inventory Adjustment |
| Manual Exhibit 5-12-I | HHS 342 Report of Survey |
| Manual Exhibit 5-12-J | SF 120 Report of Excess Personal Property |
| Manual Exhibit 5-12-K | SF 123 Transfer Order Surplus Personal Property |
| Manual Exhibit 5-12-L | SF 126 Report of Personal Property for Sale |
| Manual Exhibit 5-12-M | DD Form 1348-1A Issue Release/Receipt Document |
| Manual Exhibit 5-12-N | Abandonment and Destruction Certification |
| Manual Exhibit 5-12-O | F06-11d IT Certification of Removal of Device, Media and/or data |
| Manual Exhibit 5-12-P | F07-02b Incident Reporting Form |
| Manual Exhibit 5-12-Q | Report of Survey Register |
| Manual Exhibit 5-12-R | Lost, Stolen, Damaged, or Destroyed Property Questionnaire |
| Manual Exhibit 5-12-S | HHS Sensitive Items Policy |
| Manual Exhibit 5-12-T | Hand Receipt Procedures Using PMIS (Reserved for future use) |
- Purpose. This chapter establishes policies, procedures, and responsibilities for the efficient, effective management and control of personal property in support of the Indian Health Service (IHS) Personal Property Management program.
- Scope. The policies, procedures, and responsibilities contained in this chapter are applicable to all IHS personal property management programs, including Headquarters (HQ), Area Offices, and Service Units.
- Policy. It is IHS policy that:
- Sufficient accountable personal property is available to meet the needs of IHS operations; personal property is used for official purposes only; and to provide for maximum utilization, proper storage, maintenance, and preservation of personal property.
- The Property Management Information System (PMIS) is used IHS-wide to ensure uniformity of preparation and utilization of property management reports.
- When an item designated as accountable property is issued to an employee, the employee will acknowledge receipt of the property by signing a Department of Health and Human Services (HHS) 439 Personal Custody Property Record/Hand Receipt (Manual Exhibit 5-12-A). A list of equipment assigned to the employee (designated user) will be generated from PMIS and included as an attachment to the HHS 439. Refer to Section 5-12.8J for further information regarding hand receipts.
- Authorities. All procedures outlined in this chapter are in accordance with the Federal Management Regulation (FMR), Federal Property Management Regulation (FPMR), the HHS Logistics Management Manual (LMM), and other IHS property management guidelines, in addition to the following:
- 41 Code of Federal Regulations (CFR) 101, 102
- 41 CFR Subchapter H: Utilization and Disposal
- 48 CFR 45, 52, 307, 313, 316, 945
- 25 CFR 900
- 45 CFR 30, 74, 92
- Federal Managers' Financial Integrity Act of 1982, Public Law (P.L.) 97-255
- Budget and Accounting Procedures Act of 1950 (P.L. 81-784)
- Disaster Relief Act of 1974 (P.L. 98-288)
- Public Money, Property, or Records [Section 641 of Title 18, United States Code (U.S.C.)]
- Statement of Federal Accounting Standards No. 3 and No. 6
- Federal Acquisition Regulation
- Federal Personnel Manual
- General Services Administration (GSA) FMR Bulletin B-8 Utilization and Disposal
- GSA FMR Bulletin B-25 Property Obtained through the Use of Charge Cards
- GSA Loan Policy Guide
- GSA Property Act
- HHS Accounting Treatment Manual
- HHS Grants Policy Statement
- HHS Acquisition Regulations
- HHS Purchase Card Program Guide
- HHS Personnel Instructions
- Unified Financial Management System (UFMS)
- UFMS/PMIS Interface Functional Design Guide
- UFMS/PMIS Interface Technical Design Guide
- Indian Self-Determination and Education Assistance Act, P.L. 93-638, as amended
- Part 6, Chapter 1, "Interal Agency Procedures," Indian Health Manual (IHM)
- Part 8, "Information Resources Management," IHM
- IHS Special General Memorandum No. 2008-03, "Responsibility for Government Property"
- IHS Circular No. 2002-06, "Clearance of IHS Personnel for Separation or Transfer"
- Definitions.
- ACCOUNTABILITY. The obligation imposed by law, administrative order, or regulation, upon an official of the IHS to render an accounting to another official for funds or property entrusted to him or her, whether IHS owned, leased, or acquired by loan from any source.
- ACCOUNTABLE AREA. An area specifically defined by organization or geographic limits throughout which accountability is assigned to a designated Property Management Officer (PMO). Generally, the accountable area is equivalent to the financial accounting point.
- ACCOUNTABLE OFFICER. An officer or employee designated by proper authority to have accountability for the property charged to his or her accountable area.
- ACCOUNTABLE PROPERTY. Accountable property is personal property with an acquisition value of $5,000 or more, sensitive items, and leased property without regard to value.
- ACQUIRE (ACQUISITION). The means to obtain ownership of personal property in any manner, including purchase, transfer, donation, manufacture or production at Government-owned or operated plants or facilities. An item will be considered acquired when title to the item passes to the IHS irrespective of the point of origin. Usually the title will pass upon delivery of property.
- AREA OFFICE. A defined geographical region comprised of a number of Service Units surrounding a central office which provide administrative support to all Service Units operating within its region.
- ASSET CENTER REPRESENTATIVE. An officer or employee designated by proper authority to be responsible for the proper use, maintenance, and protection of property entrusted to their possession or charged to the custodial location.
- BOARD OF SURVEY. A Board of Survey (BOS) is a panel of three or more employees appointed to serve as a fact finding body to determine the circumstances and conditions surrounding the loss, damage or destruction to IHS controlled personal property, to make recommendations on liability, and to make recommendations on relief from accountability.
- CAPITALIZED PROPERTY. Capitalized property is accountable property which has a unit acquisition cost of $25,000 or more, including accessories; is complete in it and does not lose its identity when in use. Capitalized property will be identified as such in all property accounting records.
- DEPARTMENT. The HHS, including all of its activities wherever located.
- DEPRECIATED VALUE. Depreciated value will be calculated using a straight line method beginning from the date of acquisition of an asset.
- DETERMINING AUTHORITY. The official responsible for making final determinations with respect to the recommendations made by a BOS.
- DISPOSAL. The removal of personal property by sale, donation, transfer, abandonment, destruction, trade-in, or other means, in a prescribed manner.
- EQUIPMENT. An article of personal property that is complete in itself, is of durable nature with an expected service life of one year or more, and does not ordinarily lose its identity or become a component part of another article when put to use.
- EXCESS PROPERTY. Property not required by activities of HHS and is available for transfer to other Federal departments and agencies. See also Surplus Property and Unrequired Property.
- EXCHANGE or SALE. The exchange or sale of personal property for replacement purposes where the proceeds are to be applied against the purchase of similar items. The property replaced in this instance is not considered to be excess.
- EXPENDABLE PROPERTY. Property which does not meet the definition for equipment, is of relatively low dollar value, or is property which is consumed in the performance of program mission. Sometimes is called a consumable item.
- GENERAL LEDGER. A ledger that contains all the financial accounts and are posted in UFMS.
- GENERAL SERVICES ADMINISTRATION. The agency that establishes policies and provides the Government with the following: an economical and efficient system for the management of its property and records, including construction and operation of buildings, procurement and distribution of supplies, utilization and disposal of property, transportation, traffic, communications management, stockpiling of strategic materials, and the management of the Government-wide automatic data processing resources program.
- HEADQUARTERS. The principal administrative center of the IHS. The HQ Office provides overall control and direction of the IHS Area Offices and of all their respective operating components.
- HOLDING AGENCY. A holding agency is an executive agency which has accountability for excess and unrequired personal property.
- INSTALLATION COSTS. Costs incurred in affixing equipment in place or condition for use such as wiring, plumbing, testing, alterations, construction, and similar acts.
- LIFE EXPECTANCY. The average useful life of equipment items expressed in years.
- MAINTENANCE. Any work required to keep property in substantially original condition. It may include replacement of minor constituent parts, materials, or equipment.
- MATERIALS. Refers to all items necessary for the equipping, maintenance, operation and support of Governmental activities, without distinction as to use for administrative or operational purpose.
- MOTOR VEHICLE. A conveyance, self-propelled or drawn by mechanical power, designed to be principally operated on the streets and highways in the transportation of property or passengers.
- NO COMMERCIAL VALUE. Property that is not useable and cannot be rehabilitated economically for its originally intended purposes. This property can reasonably be expected to have no market value for use as an entity for any other purpose, although the article may have scrap or other residual value.
- NON-EXPENDABLE PROPERTY. Equipment that must be controlled from acceptance until release from responsibility in accordance with prescribed procedures.
- PERSONAL CUSTODY PROPERTY. Items that are sensitive to appropriation for private use, or are used in situations beyond normal supervisory notice, and good management practice dictates that such property should be accounted for by the person to whom use and trust of the items a reassigned.
- PERSONAL PROPERTY. Personal property or property will be defined as all property that is not real property or affixed to real property, is owned by or under the stewardship of the U.S. Government and is used in support of IHS mission-driven work.
- PROPERTY MANAGEMENT. When used as a general term, property management broadly refers to the management, coordination, and regulation of activities concerned with the functions of: planning property needs; the acquisition of property; the receipt, storage, and distribution of property; the proper utilization and care of property; property accounting control; and the disposition of property.
- PROPERTY MANAGEMENT OFFICER. When used as a general term, the individual is responsible for the broad function of the management, coordination, and regulation of activities related to the functions of planning property needs; the acquisition of property; the receipt, storage, and distribution of property; the proper utilization and care of property; property accounting control; and the disposition of property for their assigned accountable area.
- PROPERTY RECORDS. Official records reflecting the state of acquisition or disposal of property; a cross-reference to the acquisition or disposal voucher; the cost of affixed valuation of property; quantity affected by each transaction; the total quantity for which an installation or office is accountable; and the gross dollar value. Property records may also include electronic inventory records.
- PROPERTY RESPONSIBILITY. The obligation of each employee for the proper use, care, and protection of all Government property under his or her custody and control.
- PROPERTY VOUCHERS. Issue slips, receiving reports, turn-in slips, or other forms or media from which information is obtained to make entries on property records. Vouchers literally, are those documents which vouch for or support an entry on another record.
- REASSUMPTION. The termination or rescission, in whole or in part, of a contract and assuming or resuming control or operation of the contracted program by the IHS without consent of the Tribe/Tribal Organization (T/TO).
- RECEIVING AGENT. An employee or employees designated by proper authority to inspect/receive Government property items that are delivered, and to maintain appropriate personal property information in the system of record.
- RECONCILIATION. The procedure by which records in one system are compared to those in another system. The objective of a reconciliation (whether it is done between the property accountability system and the general ledger or between a physical inventory and the property accountability system) is to compare information between two sources and to determine if it coincides and, if the information does not coincide, to make the appropriate adjustments.
- REPLACEMENT YEAR. Year in which equipment is scheduled to be replaced. This is determined by adding the life expectancy years to the acquisition fiscal year (FY). The replacement year in no way implies that equipment scheduled for replacement in a given year has to be replaced; a physical review of the equipment would be required to make this decision.
- REPORTABLE PROPERTY. Personal property that meets the reporting criteria set forth in FPMR 101-43.311; is required to be formally reported to GSA; and is available locally for transfer.
- REPORT OF SURVEY. A report (Form HHS-342 ) used to record and present findings and recommendations concerning a shortage, loss, theft, damage, or destruction of Government property, to approve corrective actions, including financial recovery efforts, and to approve the resulting adjustments to property accountability records.
- REQUIREMENT. An established need which justifies an allocation of resources to accomplish an objective or task.
- RETROCESSION. The voluntary return to the IHS of a contracted program, in whole or in part, for any reason, on or before the expiration of the term of the contract.
- (RE)UTILIZATION. (Re)utilization is the identification, reporting, and transfer of unrequired or excess personal property among Federal agencies to fill current or future authorized requirements in lieu of new procurement.
- SALVAGE. Personal property that has some value in excess of its basic material content, and is in such condition that it has no reasonable prospect, of use for any purpose as a unit and its repair or rehabilitation for use as a unit is clearly impracticable, except precious metals.
- SCRAP. Scrap material that has no value except for its basic material content, except precious metals.
- SCREENING. The examination of excess property by Government employees to determine its usefulness.
- SENSITIVE ASSETS. Sensitive assets are defined in 41 CFR 102-35.20 as personal property and equipment that "includes all items, regardless of value, that require special control and accountability due to unusual rates of loss, theft or misuse, or due to national security or export control considerations." Such property includes weapons, ammunition, explosives, IT equipment with memory capability, cameras, and communications equipment. Also, refer to the HHS Sensitive Items Policy for a list of examples of property to be classified as sensitive assets, with some having minimum dollar thresholds (Manual Exhibit 5-12-S).
- SERVICE UNIT. The local administrative unit of an IHS Area. A Service Unit is the basic health organization for a specific section within an IHS Area. The Service Unit is a geographically defined area usually centered on a single Federal reservation or a population concentration of American Indians or Alaska Natives.
- STATE AGENCY FOR SURPLUS PROPERTY. An agency in each State designated under State law as responsible for the fair and equitable distribution within the State of all donations of surplus personal property to public agencies and eligible nonprofit, tax-exempt activities for authorized purposes.
- SUBSIDIARY LEDGERS. These ledgers contain certain types of financial information that must be incorporated into the General Ledger. The PMIS is the subsidiary ledger to the General Ledger.
- SURPLUS PROPERTY. Property not required for the needs and the discharge of the responsibilities of all Federal agencies as determined by the Administrator of GSA. See also Excess Property and Unrequired Property.
- SURVEY OFFICER. An employee appointed by the Determining Authority to administer BOS procedures. The Survey Officer may act in lieu of a board only in cases of lost or damaged property that has a line item value under $2500 provided the loss or damage appears to have occurred under circumstances other than a suspicion of theft or misappropriation.
- TRADE-IN. The exchange or sale of property. [From the Webster-dictionary : An item of merchandise (as an automobile or refrigerator) taken as payment or part payment for a purchase.]
- UNREQUIRED PROPERTY. Any government owned property under the control of any office or installation which is not required for its needs or the discharge of its responsibilities, as determined by the head thereof. (Unrequired property does not become excess property until it is determined that no need exists for such property within the entire Department.) See also Excess Property and Surplus Property.
- USE STANDARDS. The criteria whereby a determination may be made as to when, and in what quantity, certain types of equipment are authorized for use within the Department. These are tools of management for obtaining, at all levels of operation, the best balance between equipment assets and equipment needs.
- VALIDATION. The process of establishing or proving that authority exists to obtain the property and that a true need exists.
- VOUCHER REGISTER. A register for recording all actions that will affect the status of the property ledger.
- Acronyms.
- ACR - Asset Center Representative
- BOS - Board of Survey
- CFR - Code of Federal Regulations
- DAS - Division of Administrative Services
- DDMO - Deputy Director for Management Operations
- DOI - Department of Interior
- DRMO - Defense Reutilization Marketing Office
- FAR - Federal Acquisition Regulation
- FMR - Federal Management Regulation
- FPMR - Federal Property Management Regulation
- FPS - Federal Protective Service
- FY - Fiscal Year
- GSA - General Services Administration
- HHS - Department of Health and Human Services
- HQ - Headquarters
- IHM - Indian Health Manual
- IHS - Indian Health Service
- ISDEAA - Indian Self-Determination and Education Assistance Act
- IT - Information Technology
- JC - Joint Commission
- LMM - Logistics Management Manual
- NRC - Nuclear Regulatory Commission
- OF - Optional Form
- OMS - Office of Management Services
- PSMB - Property and Supply Management Branch
- PM - Preventive Maintenance
- PMIS - Property Management Information System
- PRISM - Purchase Request Information System
- PMO - Property Management Officer
- PSC - Program Support Center
- SF - Standard Form
- UFMS - Unified Financial Management System
- VA - Veterans Affairs
- Personal Property. Personal property ("property") is defined as all property that is not real property or affixed to real property, is owned by or under the stewardship of the United States Government and is used in support of IHS mission-driven work. Property includes, but is not limited to biomedical equipment, information technology (IT) equipment, office equipment, and furniture.
- Categories. The following categories of personal property will be accounted for in the system of record and will be tagged with an IHS barcode tag number. The establishment of these categories does not however relieve employees from their responsibility to appropriately utilize, manage, and safeguard all Government property regardless of cost or description.
- Accountable Property. Accountable assets are personal property with an acquisition value of $5,000 or more, sensitive items, and leased property without regard to value.
- Capitalized Property. Capitalized property is personal property which has a unit acquisition cost of $25,000 [refer to the HHS LMM for latest dollar threshold] or more, including all accessories and supporting costs to put asset in service; is complete in itself and does not lose its identity when in use.
- Sensitive Assets. Sensitive assets are defined in 41 CFR 102-35.20, as personal property and equipment that "include all items, regardless of value, that require special control and accountability due to unusual rates of loss, theft or misuse, or due to national security or export control considerations. Such property includes weapons, ammunition, explosives, IT equipment with memory capability, cameras, and communications equipment. Refer to the HHS Sensitive Items Policy for a list of examples of property to be classified as sensitive assets, with some having minimum dollar thresholds (Manual Exhibit 5-12-S). Artwork and Artifacts will also be classified as sensitive assets and tracked in PMIS where the cost is valued at $300 or greater.
Where there is a doubt as to whether a particular item should be tracked as a sensitive asset, clarification from the PMO should be obtained, in accordance with the guidance stated in this section.
- Director, IHS. The Director, IHS, is administratively responsible for providing overall guidance and direction to the IHS property management program and evaluating the program's effectiveness on a continuing basis.
- Director, Office of Management Services. The Director, Office of Management Services (OMS), provides IHS-wide leadership, guidance, and support for the administration of the personal property program as well as ensuring the accountability and integrity of personal property utilization and disposition of IHS resources.
- Director, Division of Administrative Services. The Director, Division of Administrative Services (DAS) provides IHS-wide direction and leadership in the planning, development, coordination, and implementation of a comprehensive and effective personal property program for the IHS. This includes personal property requirements determination, accountability, management, utilization, and disposal. The Director, DAS is also responsible for developing and maintaining this chapter.
- Chief, Property and Supply Management Branch. The Chief, Property and Supply Management Branch (PSMB) will conduct an effective program IHS-wide that will:
- Prevent loss, waste, unauthorized or improper use, and unwarranted accumulation of equipment.
- Plan, develop, and administer an integrated IHS property management program, including automation, requirements determination, acquisition, accountability, inventory control, utilization, storage, and disposal.
- Conduct periodic property management and control oversight as prescribed in Section 5-12.13, Monitoring and Oversight Functions.
- Area Director. The Area Director is responsible for ensuring compliance by Area management officials at all levels and by Area personnel concerned with the management of personal property within the IHS. The Area Director may issue supplements to this chapter for their Areas as appropriate. Copies of Area supplements are to be provided to the Director, OMS. Approval of changes to this chapter is subject to the normal approval processes for IHS directives.
- Chief Executive Officer. The Chief Executive Officer (CEO) is responsible at the Service Unit level for ensuring compliance with this Chapter, property management policies and procedures relating to accountability and custodianship of accountable property throughout its use.
- Property Management Officer. The PMO is responsible for the effective control of acquisition, the use and disposal of personal property for their assigned accountable area. The PMO will:
- Ensure compliance with the Use Standards and Replacement Standards for personal property in accordance with the LMM.
- Ensure that proposed acquisitions are reviewed for satisfying requirements through potential reutilization or required source methods.
- Designate an Assets Center Representative (ACR) for each custodial location within their accountable area.
- Designate Receiving Agents for the proper receiving of personal property and ensure that accountable property is recorded and vouchered upon receipt.
- Plan and schedule annual physical inventories and conduct reconciliation procedures.
- Ensure that excess personal property is disposed of and disposal documentation forwarded to the Program Support Center (PSC) in accordance with the procedures outlined in this chapter.
- Asset Center Representative. The ACR is designated by proper authority to be responsible for the proper use, maintenance, and protection of property entrusted to their possession or charged to the custodial location. The ACR will:
- Maintain current inventory records for all in-use accountable property within their assigned custodial location.
- Assist the PMO in planning and scheduling of annual physical inventories.
- Conduct periodic utilization surveys to ensure compliance with prescribed use standards and screen for excess property.
- Identify and report to the PMO any property which is not required for use in the custodial location.
- Conduct the annual physical inventory to include reconciliation and preparation of forms for inventory adjustments.
- Indian Health Service Employee Responsibility. Any IHS employee who has use of, supervises the use of, or exercises control over Government property, is responsible for such property. [Also refer to Section 5-12.8J(1) Hand Receipts.] This responsibility will take either or both of the following:
- Supervisory Responsibility. Supervisory responsibility, in which an officer-in-charge, an administrative officer, or supervisor is obligated to establish and enforce the necessary administrative and security measures to ensure proper preservation and use of all Government property under his or her jurisdiction. This responsibility does not denote, however, that personnel in such positions will be held financially responsible for the loss, damage, or destruction of property under their supervisory jurisdiction, unless there is evidence of neglect or misconduct indicating dereliction of duty on their part.
- Personal Responsibility. Personal responsibility is the responsibility on which each employee of the IHS is obligated to properly care for, use, and protect all Government property that is issued, assigned or loaned to the employee, for the employee's use at or away from the office or station the use of Government property at or away from the office or station requires the same exercise of judgment and prudence for the care and protection of the property as a reasonable person would apply to their personal belongings. Employees will immediately notify their authorized property manager (ACR, PMO or their designee) when property is lost, stolen, damaged, or destroyed. Failure on the part of an employee to exercise responsibility for the care and protection of Government property could result in financial liability, whereby the employee is required to make restitution to the Government when such determination has been made under the Report of Survey process.
- Purpose. The purpose of this section is to ensure that all IHS property management programs have a property plan that reflects replacement requirements as well as additional property needs in accordance with HHS LMM 2.2, Determination of Personal Property Requirements. In addition, it establishes guidelines for all IHS personnel involved with property management programs to use when determining requirements and acquiring personal property.
- Equipping Existing Facilities.
- Headquarters Office/Area Directors. Each HQ Office Director and Area Director will:
- Maintain a plan for replacement of equipment based upon equipment life expectancies. The information contained in the plan may be utilized in the formulation of the IHS budget to the Congress.
- Develop and annually revise a property plan for meeting IHS property needs, as prescribed by HHS LMM 2.2, Determination of Personal Property Requirements. The plan will include the review and evaluation of those items of equipment that are due for replacement in the next FY.
- Plan for additional equipment requirements that will be concurrent with program operations planning, either immediate or long range, to meet the needs of their respective HQ Office/Area.
- Requirements Determination. Each HQ Office Director and Area Director will:
- Determine and document the HQ Office/Area personal property needs and the current and projected requirements to satisfy those needs to support the IHS mission.
- Develop a requirements analysis document that describes and analyzes the current personal property program and defines the functions that the planned property program must perform. This document will allow HQ Office/Area management officials to obtain agreement that all property requirements have been identified.
- Coordinate with all programs/activities within the respective HQ Office/Area property management program.
- Assess its need from two perspectives: strategic planning and requirements identification. This assessment will ensure that all proposed requirements are examined in accordance with the IHS mission. A requirements determination plan provides the detail upon which long term decisions can be made.
- Use Standards. The PMO will ensure compliance with HHS LMM 2.4, Use Standards. The PMO will evaluate, in coordination with the requiring activity, the specific needs of the activity as they relate to the mission of the IHS, the existing resources, and availability of funds for acquisition of the validated requirement(s). Each PMO will plan and schedule:
- The input of new personal property with the identified requirements for the replacement of existing property.
- The conducting of periodic reviews to identify underutilized or excess property which can be acquired through reassignment prior to expenditure of funds.
- A periodic analysis of new items of personal property, the acquisition of which could result in lower total costs through greater productivity, reduced maintenance costs, or longer service life.
- Periodic maintenance programs to extend the useful service life of existing property. Records of repair and maintenance costs will be maintained to justify replacement of such items when further expenditure of funds for maintenance is not economical. (See Section 5-12.8K, Maintaining Property, for requirements.)
- Replacement Standards. All PMOs will comply with HHS LMM 2.12, Replacement Standards, to ensure effective and economical replacement of personal property within the IHS. Exceptions to established replacement standards will be administered in accordance with HHS LMM 2.12.2, Exceptions to Replacement Standards. Each PMO will develop and implement an operating plan for replacement of equipment. At a minimum, each PMO will review property records on an annual basis to select items due for replacement during the next FY based on life expectancy, and evaluate useful life of items to continue use beyond the established replacement date.
- Validation of Requirements. Headquarters Office Directors and Area Directors will ensure that personal property requirements are acquired in the most economical and efficient manner, as outlined in HHS LMM 2.2, Determination of Personal Property Requirements.
- Headquarters Office/Area Directors. Each HQ Office Director and Area Director will:
- Equipping New Facilities. Headquarters Office Directors and Area Directors are responsible for managing the acquisition of equipment for new or replacement facilities.
- Plan. The HQ Office Director and Area Director may delegate the coordination responsibility for the clearance or approval process to the most appropriate individual within their organization.
- Technical Assistance. The PMO must still provide the necessary technical assistance to ensure that responsibilities are met in accordance with the appropriate regulatory authorities.
- Procedure. A needs assessment and requirements validation will be performed prior to the acquisition of equipment for a new facility. These reviews may require the input of property management, biomedical, IT and acquisition departments. In addition, a review of existing equipment (for a replacement facility) and determination of items to be relocated for continued use must be developed.
- In cases where new equipment is purchased as part of a larger construction contract, an effort will be made to obtain the purchasing documentation for the equipment to maintain accurate and complete property records.
- Items will be received in a manner consistent with prompt payment, special vendor setup requirements, and standard method of receiving equipment. (See Section 5-12.6, Receiving.)
- Purpose. The purpose of this section is to establish guidelines for the IHS personnel to utilize when acquiring personal property.
- Acquisition. Once the PMO has validated the need for personal property, careful consideration will be given to method and sources of supply as stated in HHS LMM 2.1.3, Criteria for Determining Method of Supply and HHS LMM 2.2.8, Priorities for use of Government Supply Sources.
- Acquiring Property through Procurement. The preferred method for purchases of personal property will be through the iProcurement system (refer to Section 5-12.7D, Information Management Systems). Prior to the release of a Purchase Order, the PMO or their designee (Category approver) will confirm the object class code (i.e., 31XXX), review the justification for adequacy, and determine that no excess property is available to satisfy the requirement when reviewing requisitions for equipment.
- Acquiring Property Using a Purchase Card. Personal property may be acquired through the use of a Government-issued Purchase Card (PCard). Headquarters management or the Area Director can determine if equipment may be purchased using a PCard, and if so, establish appropriate controls. As is the case for all property acquisitions, the PMO or their designee (Category approver) will confirm the object class code (i.e., 31XXX), review the justification for adequacy, and determine that no excess property is available to satisfy the requirement when reviewing requisitions for equipment. All purchases made with the PCard are subject to the guidelines listed in the HHS Purchase Card Program Guide and GSA Bulletin FMR B-25, Property Obtained through the Use of Charge Cards. In addition to these guidelines, the following requirements will be met:
- All PCard purchases of equipment will be shipped to a designated receiving area.
- All PCard purchases of accountable property will be recorded in PMIS upon receipt.
- Leasing. Guidelines for evaluating lease agreements for personal property in lieu of purchases are provided in FAR 7.4. These guidelines include considerations such as how long the personal property will be needed, its value to other Federal agencies, cost of the lease versus the cost of purchase and installation, and the prospect that the item will become obsolete due to rapidly changing technology. Property may also be acquired through a Capital Lease or Lease-Purchase contract. For further discussion regarding the acquisition of property through leasing, refer to the Property, Plant, and Equipment Policy, Sections 7.21-8 and 7.34 (HHS LMM -Appendix F).
- Exchange/Sale or Trade-In. Property Management Officers will review property for eligibility for exchange or sale (trade-in or reimbursable sale), when replacing existing property as a means to reduce general expenditures. However, the use of exchange or sale authority is limited to certain categories of property. Specific guidance on the use of the exchange or sale authority can be found in the following sources:
- HHS LMM Part 12;
- FMR 102-39; and
- 41 CFR 102-36.150 through 102-36.470.
- Trade-in. In the event of a trade-in: Notation will be made on the purchase order if a trade-in is allowed. The amount of the trade-in allowance will also be listed as a line item on the purchase order. The line item will include asset description, make, model, serial number, and IHS barcode tag number of the item being traded-in. When the newly acquired equipment is delivered, the trade-in equipment is to be released by having the disposition document (HHS 22 Request for Property Action form) signed by the ACR, receiving official vendor's representative), and PMO (Manual Exhibit 5-12-A).
- Acquiring Property by Transfer. Property may be acquired through transfer within IHS activities or from another Agency. All such property must be accounted for at the time of transfer in the inventory records. In the event that original acquisition information is not available, the cost recognition procedures in Section 5-12.8G, will be followed.
- Transfer within IHS. The following procedures will be completed when property is identified for transfer between any custodial location:
- An HHS 22 (Manual Exhibit 5-12-A), will be initiated and signed by both the losing and gaining parties and the PMO;
- the asset record will be adjusted as necessary in PMIS to reflect the transfer; and
- in the event of a transfer between accountable areas, the asset will be retagged accordingly.
- Transfer from another Agency. The following procedures will be completed when property is transferred from another agency:
- An HHS 22 (Manual Exhibit 5-12-A) or Standard Form (SF)-122 Transfer Order Excess Personal Property (Manual Exhibit 5-12.B) will be initiated and signed by both the losing and gaining parties and the PMO;
- the asset record will be initiated or adjusted as necessary in PMIS to reflect the transfer; and
- the asset will be (re)tagged accordingly.
- Transfer within IHS. The following procedures will be completed when property is identified for transfer between any custodial location:
- Equipment Pooling. To further reduce acquisition expenditures and to increase property utilization, each activity within the IHS will examine their property inventory and, where feasible, establish equipment sharing pools. The PMO, ACR, or their designee will maintain the accountability of all items in the pool.
- Eligibility. Pools may be established using new or unrequired property not utilized on a full-time basis. Efforts will also be made to identify equipment for pooling at the time of the annual inventory.
- Procedure. Prior to the relocation of equipment, the following steps will be completed:
- The location of the current using activity will be updated in PMIS.
- The HHS 679 Property Pass (Manual Exhibit 5-12-C), will be completed. Refer to Section 5-12.8J, Accountability, for the use of Property Passes. A hand receipt holder will be permitted to issue Property Passes for assets that are listed on their hand receipt.
- Equipment will not be loaned from a pool longer than 30 days; however, the loan can be renewed up to one year. If the item of equipment is needed for more than one year, the item should be considered for transfer to the using activity.
- Reviews. Once the equipment pool has been established, the PMO, ACR or their designee will conduct an annual review of the records to determine the need for adding or deleting items of equipment from the pool.
- Purpose. The purpose of this section is to establish guidelines for IHS personnel to utilize when receiving personal property. This section will describe the roles for physically receiving personal property by the Receiving Agent and for automated receiving in UFMS by the iProcurement Receiver.
- Receiving Agent (Physical).
- Property Management Officer. Each PMO will designate a Receiving Agent(s), who will responsible for physically receiving personal property for their custodial location. A copy of the designation will be provided to the ACR, Contracting Officer, and Financial Management Officer. The ACR can be the designated Receiving Agent.
- Receiving Agent. The designated Receiving Agent(s) will be the only individuals to physically receive Government property and will obtain a copy of the purchase document to ensure that the number of items received versus the number of items shipped corresponds to the purchase order. If quantities do not agree, annotate the freight bill accordingly as to the total number over or short.
- Hazmat Training. The receiving of sensitive or hazardous materials will require special handling and safety precautions. All designated Receiving Agents will receive hazardous material (Hazmat) training to identify and manage such materials in a safe manner. For further discussion regarding hazardous property, refer to Section 5-12.8O(4), Safety.
- Receiving Area. All property acquired by an IHS activity will be received at a designated receiving area. Access to this receiving area will be limited to designated receiving personnel. Adequate protection of personal property will be made against hazards of fire, theft, vandalism, and natural elements.
- Inspection. When a shipment is received, the designated Receiving Agent(s) will make an inspection of the shipment as to the condition of the containers to ensure no apparent physical damage exists. Also, once the container is opened, the Receiving Agent will look for concealed damage. In the event there is damage to a container, a notation on the shipping document or freight bill must be made.
- Discrepancies or Damages. In the event there are discrepancies or damages discovered, the following will apply:
- If the shipment is from a Government agency [Veterans Affairs (VA), GSA, etc.], the procedures outlined in their catalogs should be followed on reporting discrepancies and damages.
- If the shipment is from a non-Government entity, the vendor is to be contacted for their corrective action.
- Specialized Equipment. In the event the property received consists of "specialized" equipment, the following will apply:
- If the property consists of IT equipment, the Receiving Agent will contact the IT department for set up.
- If the property consists of biomedical equipment, the Receiving Agent will contact the Biomedical Department for inspection and set up.
- Identification and Tagging. After inspection and acceptance of accountable property, the Receiving Agent or ACR will affix an IHS barcode tag number to all accountable property. An effort will be made to place all tags on an accessible location for the particular piece of equipment. The IHS barcode tag number will be annotated on the receiving report and forwarded to the PMO for necessary action.
- In cases where an IHS barcode tag number is not easily affixed to a piece of artwork or artifact, a tag will still be assigned to the asset in a documented log book.
- A photograph will be taken (and be maintained in a catalog) of all artwork and artifacts to aid in their identification.
- When adding artwork or artifacts to PMIS, the nomenclature field = Artwork; Mfr = Artist name; Model = description (sculpture, painting, rug, pottery, etc.); and Serial Number = IHS barcode tag number. The photograph can be uploaded to the asset record in PMIS.
- Notification of User. Upon receiving personal property, the designated Receiving Agent will notify the ordering office that the shipment has arrived and is ready for pick-up. Before the ordering office can take possession of any accountable property, they must sign an HHS 439, Personal Custody Property Record/Hand Receipt (Manual Exhibit 5-12-D). For further discussion regarding the use of hand receipts, refer to Section 5-12.8J, Accountability.
- iProcurement Receiver. Upon notification from the designated Receiving Agent, the iProcurement Receiver for the ordering office, has the responsibility for automated receiving of the personal property in iProcurement. They can find expected receipts, find returns, find summary and detail information for receiving transactions, and enter receipts. The IHS iProcurement Receiver has the ability to create one-click receipts for their requisitions directly from the Receiving home page in UFMS. Receiving is a process that signals that the goods or services ordered on a purchase order have arrived. Receiving allows you to record receipt of items the user ordered or received on behalf of others. A receipt confirmation message including a receipt number is automatically generated by UFMS iProcurement. A transaction entered in iProcurement that acknowledges the actual receipt of goods or services from the vendor against a Purchase Order's shipment line. The IHS requires receipts must be entered in UFMS immediately upon the receipts of goods or services in order to remain compliant with the Prompt Pay Act.
- Receiving Report. A receiving report will be completed which at the minimum, will include the following information:
- Signature of the accepting official.
- Date of receipt.
- Complete description of the accountable property item(s), including:
- The manufacturer's make and model;
- serial number(s);
- IHS barcode tag number; and
- final location of the item.
- User of the item.
- Partial or complete delivery notation.
- Defects or damage notation.
- Cost of the item.
- Purpose. The purpose of this section is to establish guidelines for IHS personnel to utilize when recording personal property.
- Asset Record Management. The process of accounting for personal property and establishing accountable, auditable, and supporting document files. Asset records are used to:
- Maintain and track asset information including cost/value, user, location, and condition;
- generate lists of accountable property for inventory purposes; and
- compile and provide reports for IHS management purposes.
- Property Management Officer. Property Management Officers will ensure that all accountable property is accurately recorded upon receipt, and adjusted if necessary in the system of record to maintain accountability and control. Accountable property records will at a minimum contain the following data elements: refer to the list in the HHS LMM 3.16.2, Data Elements.
- Information Management Systems.
- Unified Financial Management System. Unified Financial Management System is an integrated, Department-wide financial management solution that aligns business and technology to enhance the Department's ability to fulfill its mission.
- iProcurement - UFMS module which processes and records requisitions and receipts.
- Purchase Request Information System (PRISM) is a UFMS module which processes and records contracts and purchasing.
- Property Management Information System. The PMIS may also be referred to as "Sunflower." It is the system of record utilized by the Department for the management of personal property. The PSC is responsible for the control and maintenance of PMIS. The PMIS provides for tracking of accountable property, financial management of capital personal property throughout an asset's useful life, asset reporting, periodic depreciation calculations, asset additions and asset removal.
- Legacy Systems. All legacy systems used for tracking accountable property will be decommissioned and will not be used to track accountable property. Examples of such systems include FoxPro, M-Systems, NECOP, etc.
- Interface. The UFMS/PMIS Interface is a two-way information interface that exists between PMIS and UFMS for personal property within the 31XXX object class series. For further information regarding the UFMS/PMIS interface, refer to the UFMS/PMIS Interface Functional Design Guide and UFMS/PMIS Interface Technical Design Guide.
- The PMIS interface extracts the purchase order and receiving information from UFMS Purchasing and the invoice payment information from UFMS Payables as a skeletal record.
- Adjustments to the skeletal record will be made in PMIS as necessary by the appropriate property personnel.
- Asset journal entries including depreciation are sent back to UFMS from PMIS.
- Unified Financial Management System. Unified Financial Management System is an integrated, Department-wide financial management solution that aligns business and technology to enhance the Department's ability to fulfill its mission.
- Property Vouchering. Property Management Officers will ensure that a manual property vouchering process is used in conjunction with the automated system of record described above.
- A property voucher is a document that records and substantiates any addition to or subtraction from the physical inventory. Every voucher represents a single transaction and may contain more than one item. Each voucher will be numbered separately and will identify the FY, month, and the sequencing of vouchers processed during that specific month (i.e., 10-04-0002). This action makes it easier to identify timing of an action that substantiates additions to or subtractions from the inventory during reconciliation.
- A Property Voucher Register providing the minimum data will be maintained. This data will include: The FY, month, location code, accounting point, voucher number assigned, date, reference data to include purchase order number and description of items vouchered, type of voucher (Purchase, Transfer, Excess, Report of Survey, Adjustment Voucher, etc.), number of items, and total value (Manual Exhibit 5-12-E).
5-12.8 UTILIZATION AND MANAGEMENT
- Purpose. The purpose of this section is to establish guidelines for the utilization and management of personal property.
- Accounting. Complete and accurate property records are necessary to provide the supporting data for financial accounting and reporting.
- Valuation. The total value of capitalized property reflected in the accountable records will be reconciled with the General Ledger Accounts (excluding the Central Libraries account) on a monthly basis. To ensure that both property and fiscal records reflect equal value in the correct ledger account, it is essential that:
- Each unit of personal property received is given an acquisition value, whether the asset was purchased, agency fabricated, or received by donation or transfer.
- Changes in the status of property, such as when the property changes from capitalized to non-capitalized, are recorded in a timely manner.
- Reconciliation. Reconciliation between the subsidiary capitalized accounts and the fiscal general ledger accounts must be accomplished monthly. The PMIS will facilitate reconciliation, however, the PMO should remain aware of the reconciliation results by working with their finance office and PSC.
- Asset Value Determination. The determination and allocation of an asset's cost will be in accordance with the HHS LMM Appendix F - Property, Plant & Equipment Policy.
- Componentization. Componentization or establishment of parent-child relationships will be used in maintaining accurate asset records in PMIS. An example of when componentization may be necessary is a complex asset with multiple, high value components that might each be treated as an asset in its own right, such as an X-ray machine.
- Cost Recognition. There are instances where original cost documentation may not be available for the establishment of an asset's cost/value in PMIS. In these cases, an estimated value will be established through a systematic cost recognition process (Manual Exhibit 5-12-F).
- Depreciation. The PMIS will be used to calculate depreciation on capitalized personal property and send it back to UFMS in accordance with the HHS Accounting Treatment Manual Section 1-30-20.
- Reconciliation with Financial Records. The Budget and Accounting Procedures Act of 1950, P.L. 81-784, as amended, places responsibility with the Director, IHS, for:
- Full disclosure of the financial results of the Agency's activities; and
- effective control over and accountability for all funds, property, and other assets.
- Accountability.
- Hand Receipts. When an item designated as accountable property is issued, the employee to whom the property is issued will acknowledge receipt of the property by signing an HHS 439 Personal Custody Property Record/Hand Receipt. A list of equipment assigned to a designated user will be generated from PMIS and included as an attachment to the HHS 439 (Manual Exhibit 5-12-D). Hand receipt procedures using PMIS are currently under development and will be available as Manual Exhibit 5-12-T.
- Employees will account for personal property assets issued to them at the time of transfer, separation, change in duties, physical inventory, or on demand by the proper authority. This will require the updating or reissuing of a hand receipt to document a change in accountability.
- The original hand receipt form will be retained by the authorized property manager (ACR, PMO or their designee) and a copy provided to the employee.
- The designated user for any shared use items within an office will be assigned to the supervisor or manager of that office. This includes items in vacant offices under a supervisor's control.
- Property Passes. In the event that there is a need for IHS-owned personal property to be removed from an IHS building or temporarily relocated, an HHS 679 Property Pass will be executed once proper authority is obtained from an authorized property manager (ACR, PMO, or their designee) (Manual Exhibit 5-12-C).
- The original property pass will be retained by the authorized property manager (ACR, PMO, or their designee) and a copy provided to the employee.
- Employees will present the property pass when requested by authorized security personnel upon removal of personal property from IHS facilities.
- A property pass may be used to remove or relocate property for a period of 30 days. If there is a justified need beyond this period, a hand receipt will be issued.
- A hand receipt holder will be permitted to issue Property Passes for assets that are listed on their hand receipt.
- Location Reassignment.
- When an item of personal property is relocated (i.e., between buildings, departments, etc.), the authorized property manager (ACR, PMO, or their designee) will update the location record in PMIS to reflect the change and maintain accountability over the asset.
- In the event the designated user changes as a result of the location reassignment, the ACR, PMO, or their designee will issue a new hand receipt to reflect the change.
- Internal Transfers. When an item of personal property is transferred within the IHS, the transferring PMO will document the transfer with a properly executed HHS 22 (Manual Exhibit 5-12-A), and the location record will be updated in PMIS to reflect the change and maintain accountability over the asset. In the event the designated user changes as a result of the internal transfer, a new hand receipt will be issued to reflect the change.
- Loaning Personal Property. Personal property may be loaned on a temporary basis to a non-federal institution, an organization or an individual when it is determined to be in the best interest of the government by an authorized IHS official and in accordance with the guidance provided in HHS LMM 3.25, Loan of Personal Property.
- The form HHS 557 Personal Property - Loan Record, will be signed and dated by the borrower indicating receipt of property (Manual Exhibit 5-12-G).
- The asset record will be adjusted in PMIS to reflect the temporary location of all accountable property during the loan period.
- Separation or Transfer. It is the policy of the IHS to ensure that the proper documentation and financial matters have been considered and resolved before an IHS employee separates or transfers from any office within the IHS.
- The employee shall return all personal property listed on their HHS 439 Hand Receipt to his or her supervisor.
- The supervisor must review the Hand Receipts or property pass and other pertinent documentation to ensure that all personal property listed on the employee's Hand Receipt is returned.
- In addition, before a supervisor certifies the employee's final timecard or other final pay authorization, the supervisor will ensure that the "Indian Health Service Clearance Checklist" is completed and a copy sent to the employee's Servicing Personnel Office. Refer to the IHS Circular 2002-06 for a copy of this checklist.
- Hand Receipts. When an item designated as accountable property is issued, the employee to whom the property is issued will acknowledge receipt of the property by signing an HHS 439 Personal Custody Property Record/Hand Receipt. A list of equipment assigned to a designated user will be generated from PMIS and included as an attachment to the HHS 439 (Manual Exhibit 5-12-D). Hand receipt procedures using PMIS are currently under development and will be available as Manual Exhibit 5-12-T.
- Maintaining Property. This section establishes procedures to be followed by all IHS activities in the maintenance and repair of Government property to achieve optimum operating effectiveness and efficiency for all assigned property on a continuous basis. To achieve this objective, a maintenance program will be established to provide for operator maintenance, in-house support maintenance, and as necessary, contractor support maintenance.
- Maintenance System. A maintenance system will be developed and used for maintenance management of equipment. A record will be maintained for each serial numbered item of equipment of a mechanical, technical, medical, electronic, scientific, or sensitive nature, where maintenance and repair costs are involved. This system will be used as a service record for each individual item of equipment and enables evaluations to be made as to whether such costs are excessive and when equipment should be replaced. It also provides valuable data for planning and budgeting purposes.
- Maintenance Types. The various types of maintenance of personal property are defined as follows:
- Repair Work. Work performed on a piece of equipment to restore it to its proper working condition. Each Area should have an established mechanism for repair services. The work is usually furnished on an unscheduled basis, following a work request from the equipment operator or user. The most economical resource for the repair of equipment located at IHS activities is as follows:
- In-house support maintenance
- Contractor support maintenance
- Scheduled Maintenance. Work performed on a schedule rather than on a user-demand basis. The purpose of the procedure may be a combination of one or more of the following:
- Preventive Maintenance. Preventive Maintenance (PM) means to clean, lubricate, adjust, check for wear, and replace components that might cause total breakdown or serious functional impairment, of the equipment before the next scheduled check.
- Functional Testing, Performance Assurance, and Calibration. To verify that equipment is fully operational and performing within manufacturer specified limits, depending on the device, it may be appropriate to specify several different levels of functional testing and performance assurance. The term "calibration" implies that the device is compared against a reliable standard.
- Safety Checking. To verify that the equipment is in compliance with one or more specified safety requirements.
- Maintenance and Repair Records. Maintenance and repair records will provide the life history of the item and will reflect the total cost incurred in maintaining the item. Each time a maintenance action is performed on the equipment (other than that which can be performed by the operator) it will be recorded and maintained. The recorded information will include the:
- Description of maintenance;
- date of repair;
- cost incurred; and
- in-house repair or name of vendor
- Repair Work. Work performed on a piece of equipment to restore it to its proper working condition. Each Area should have an established mechanism for repair services. The work is usually furnished on an unscheduled basis, following a work request from the equipment operator or user. The most economical resource for the repair of equipment located at IHS activities is as follows:
- Accountability during Maintenance. The signing of an HHS 679 Property Pass (Manual Exhibit 5-12-C), by in-house maintenance personnel will be required to maintain accountability for all accountable property during periods of maintenance. Refer to Section 5-12.8J, Accountability, for the use of Property Passes. The asset record will be adjusted in PMIS to reflect the temporary location of all accountable property during periods of maintenance.
- Storage and Warehousing. There may be a need for property to be stored in a warehouse or other storage location while it is not in use. In such cases the following will apply:
- Control. All storage and warehousing locations will maintain the following controls:
- Appropriate climate and light control;
- preservation, when appropriate, to prevent deterioration;
- protection from theft, infestation, fire, and destruction; and
- restricted access to storage areas to authorized personnel only.
- Accountability. All stored property will require the same level of accountability as property in use.
- An HHS 22 (Manual Exhibit 5-12-A) will be used to document the relocation of property to storage facilities.
- The asset record will be adjusted in PMIS to reflect the status and temporary location of all accountable property during periods of storage.
- Hazardous Storage.
- Hazardous property or property containing hazardous materials will be segregated from other property in storage locations.
- Signs in English (and the predominant language of the local area) will be used to identify hazardous storage areas.
- Safety. It is the responsibility of the IHS to protect the safety of its personnel, the public, and the environment; therefore, it must ensure that all laws and regulations concerning hazardous property are followed. Hazardous property includes materials or equipment containing certain materials that have one or more dangerous characteristics as established by the Environmental Protection Agency, Department of Transportation, Occupational Safety and Health Administration, Nuclear Regulatory Commission (NRC), etc. All IHS activities will comply with the HHS LMM Part 8, Utilization and Disposal of Hazardous Materials and Certain Categories of Property.
- Security. Security and investigative support will be provided by the in-house Security component and/or the Federal Protective Service (FPS).
- All IHS controlled facilities, including warehouses and equipment yards will be fenced or otherwise protected to ensure that materials are safeguarded against theft, pilferage, or unauthorized withdrawals.
- All areas designated for the receiving and storage of personal property will have their access limited to authorized personnel only.
- All IHS controlled facilities will maintain physical access control in accordance with the Homeland Security Presidential Directive 12 (HSPD-12), Policy for a Common Identification Standard for Federal Employees and Contractors and the Federal Information Processing Standards 201 (FIPS-201), Personal Identity Verification (PIV) of Federal Employees and Contractors.
- All excess sensitive property will be locked in a cage, cabinet, or other secure location.
- Information Technology Security. When there is a justified need, with the appropriate supervisory approval and with the execution of a Property Pass, employees may take equipment such as computers and telecommunications equipment, etc., to their homes while retaining ownership and control of hardware, software, and data. Refer to Section 5-12.8J, Accountability, for the use of Property Passes. All Government provided equipment is for official business and employees are prohibited from using such equipment for private purposes. Additional detail and guidance can be referenced in Part 8, IHM.
- Control. All storage and warehousing locations will maintain the following controls:
- Purpose. The purpose of this section is to establish guidelines for Area personnel to account for property held under contracts or grants.
- Government-Owned Contractor-Held Property. Government-owned contractor-held property is defined as property that is required for the performance of work and acquired or provided by the contractor while under contract to the IHS. Alternately, the property may be government furnished equipment, property is acquired by the IHS and subsequently made available for use by the contractor.
The PMO must maintain effective controls and accountability for all personal property furnished by the IHS or acquired with IHS funds in accordance with FAR Part 45. For further guidance regarding Contractor-Held Property, refer to the HHS LMM Appendix Q, HHS Contracting Guide.
- Public Law 93-638 Property. Under P.L. 93-638, Indian Self-Determination and Education Assistance Act (ISDEAA), Tribes/Tribal Organizations may take title to personal property under Self-Determination Contracts (Title I) or Self-Governance Compacts (Title V). If the T/TO elects not to take title of the personal property assets, then the government must maintain accountability as described in section 5-12.9B above. Transferring title for various types of property are found in Part 6, Chapter 1, IHM, which incorporates by reference the DOI/HHS Internal Agency Procedures Handbook.
- Title Transfer. Tribes or Tribal Organizations may acquire title to the following types of personal property:
- Government-Furnished Personal Property--Pre-October 25, 1994.
- Government-Furnished Personal Property--Post-October 25, 1994.
- Contractor-Purchased Personal Property to Which the Agency Takes Title.
- Donation of Excess Personal Property of the IHS to a T/TO.
- Acquisition and Donation of Excess and Surplus Personal Property of Other Agencies of the Federal Government [other than Department of Interior (DOI) and HHS]. The procedures for transferring title for the various types of property listed above are found in Part 6, Chapter 1, IHM, which incorporates by reference Chapter 9, Section III, DOI/HHS Internal Agency Procedures Handbook. All transfer documentation will be completed and forwarded to the PSC per the established Final Events Procedure, to remove the asset record from PMIS in a timely manner.
- Property Management. The property management procedures set forth in 25 CFR 900.51-60 will be followed to ensure the efficient acquisition, utilization, accountability and disposal of T/TO contractor property.
- Retrocession/Resumption/Contract Expiration. The DOI/HHS Internal Agency Procedures Handbook Chapter 14 provides the procedures by which the IHS may reacquire responsibility for operation of a contracted program, function, service, or activity through:
- Retrocession by the T/TO to the IHS;
- resumption by the Agency without the T/TO's consent; and
- expiration of a contract without renewal or replacement with another form of Tribal operation.
- Title Transfer. Tribes or Tribal Organizations may acquire title to the following types of personal property:
- Grants. Recipients of IHS grants will observe the requirements for acquisition, management and disposal of personal property as stated in 45 CFR 74.34 or 45 CFR 92.32, as applicable. For further information regarding grants refer to the HHS Grants Policy Statement.
- Purpose. The purpose of this section is to establish inventory management policies and procedures, which require a regularly scheduled physical inventory and procedures for inventory adjustments.
- Responsibilities. The PMO will have the responsibility of preparing a plan and scheduling the physical inventory. The PMO will work with the ACR to develop the plan and schedule.
- The plan will include, but not be limited to, a list of personnel assigned to conduct the physical inventory, procedures and guidelines to conduct the inventory, and forms or other documentation that may be useful in conducting the inventory.
- The schedule will include the intended start and completion date of the physical inventory as well as any required scheduling that may be necessary to perform the inventory in areas with limited access (i.e., clinical areas).
- It is the responsibility of the PMO to ensure that the inventory is conducted and completed annually no later than June 30th. All reconciliation procedures including Reports of Survey following an inventory will be completed no later than September 30th. Reports of Survey following an inventory will comply with the requirements contained in Section 5-12.12, Report of Survey. A completed inventory file with signed copies of Hand Receipts by the Department Heads/Users and a copy of the final inventory results will be maintained.
- Physical Inventory.
- Frequency of Inventory. All accountable property will be inventoried annually, on a fiscal year basis.
- Objectives of Inventory.
- Perform comprehensive physical inventories of accountable property.
- Record the results of the inventory in the property management system of record.
- Determine the physical condition of each item of accountable property to assist in the screening and utilization of "unrequired" property.
- Address all shortages, overages, and other adjustments to inventory records discovered during the physical inventory in a timely manner.
- Inventory Adjustment Procedures. The purpose of the inventory is to verify the accuracy of the records that reflect equipment on hand. Each IHS activity will prepare inventory adjustments for processing in accordance with the following:
- Change of description, acquisition cost, serial number, custodial location changes, department code, and IHS barcode tag numbers will be made by utilizing HHS 22 Request for Property Action , or appropriate document (Manual Exhibit 5-12-A).
- Addition of equipment to property management records. An example of this is overages, which occurs as a result of the inventory. The form HHS 365 Inventory Adjustment , with supporting documentation, will be used (See Exhibit No. 5-12-H). The ACR is the Preparing Official and the PMO is the Approving Official for adding overages.
- Removal of equipment from property management records. An example is shortages, which occurs as a result of an inventory. Those items considered as shortage will be processed using the HHS 342, Report of Survey (Manual Exhibit No. 5-12-I). Refer to Section 5-12.12G, Initiation of Report of Survey, for further guidance.
5-12.11 SCREENING/EXCESSING/DISPOSAL
- Purpose. This section prescribes standard procedures for IHS programs regarding the screening of property for reuse or disposal by sale, donation, transfer, condemnation and destruction, trade-in, or by other means.
- Screening. In accordance with HHS LMM 9.4.4, Agency Utilization Reviews, all IHS activities will survey personal property under their control to assure maximum use of all property or promptly identify excess property. At a minimum, these inspections or utilization surveys will occur during the annual physical inventory. Inspections can be conducted more frequently if local conditions dictate such action.
- Reutilization. All IHS programs will attempt to utilize or reutilize personal property to the greatest extent possible. (For a list of Reutilization priorities refer to FAR 45.602-2.) However, when personal property is deemed unrequired, the following objectives must be met:
- Safe, efficient, economical, and timely disposition of unrequired property;
- removal of IHS barcode tag number; and
- removal of asset record from PMIS in a timely manner.
- Unrequired. The form HHS 22 Request for Property Action (Manual Exhibit 5-12-A), is to be submitted to the PMO, when personal property is determined unrequired. A statement reflecting the type of necessary action requested will be annotated on the form HHS 22 .
- Action will be taken to determine if such items can be utilized within the IHS. This includes the advertisement of such items to Service Units within an Area or between accountable areas.
- If there are no requirements within the IHS, the personal property will be disposed of in compliance with HHS LMM Parts 8 through 14.
- The PMIS will be updated to reflect the "Unrequired" status of such items.
- Excess/Surplus. Per 25 CFR 900.96, personal property that cannot be reutilized within the IHS will be provided to all T/TO for consideration before reporting such property as excess to the GSA or other authorized Federal agency. Part 6, Chapter 1, IHM, which incorporates (by reference) the DOI/HHS Internal Agency Procedures Handbook, Chapter 9, Section V, provides detailed instructions regarding notification of a T/TO. If such property is not claimed by a T/TO, the following requirements will apply:
- Reporting.
- Reportingwill be made in accordance with 41 CFR 102-36, Disposition of Excess Personal Property.
- The report will be made on an SF-120 Report of Excess Personal Property (Manual Exhibit 5-12-J). The preferred method of reporting is the use of GSAXcess, which is a web-enabled platform that authorized customers use to report, search, and select property.
- The operating manual, parts list, maintenance record, etc., if available, will be provided to the recipient of the excess property.
- Storage.
- Adequate protection of unrequired/excess/surplus property is to be made against all hazards such as fire, theft, vandalism, infestation, and weather.
- Excess sensitive equipment will be placed in a locked storage cabinet until such time of its disposal.
- Unrequired/excess/surplus property will be tagged and identified with the disposal report number received from GSA or other related disposition actions.
- Custodial Retention.
- The authorized Federal agency may order partial or total transfer to other agencies.
- The authorized Federal agency may return property to the reporting and holding agency control, if the pending transfer or donation cannot be completed or if no bids are received at the end of the bidding period.
- Withdrawal and Corrections. Requests for withdrawal or corrections on a report will be submitted to the GSA regional office to which the original report was forwarded. Other actions or disposition by reporting or holding activity will not be made until receipt of approval from GSA.
- Reportable Property. Excess personal property reported to GSA, but not transferred to other Federal agencies, will become surplus on the surplus release date.
- Transfer of Excess Personal Property. The GSA will offer excess property to other Federal Agencies. The SF 122 Transfer Order Excess Personal Property will be provided by GSA for any property that is to be transferred to another Federal agency (Manual Exhibit 5-12-B). An HHS 22 is used when transferring excess property through PSC.
- Donation of Surplus Property.
- Donation of surplus property will be in compliance with FMR 102-37. GSA will offer surplus property to State agencies.
- An SF 123 Transfer Order Surplus Personal Property (Manual Exhibit 5-12-K) will be provided by GSA for any property that is approved for donation.
- The IHS may also donate surplus property to any public agency, educational or public institution, or organization after donation action is authorized by GSA. A Tribe is considered a public agency. In the event of a donation, the following stipulations will be met:
- The holding agencies are responsible for performing and bearing the cost for the care and handling.
- Direct cost (including transportation cost) incidental to donation will be borne by the designated donee.
- Donation will be properly executed with an HHS 22 or other appropriate documentation.
- The IHS will also assist in major disaster relief, in accordance with the Disaster Relief Act of 1974, P.L. 98-288, which authorizes Federal assistance to States, local governments, and relief organizations.
- Sale of Surplus Property.
- Surplus property that does not have any donation requirement may be offered for sale by GSA after a screening period.
- The SF 126 Report of Personal Property for Sale (Manual Exhibit 5-12-L), is used to report property directly to the GSA Sales Branch.
- Based on GSA Form 27, Notice of Award, a disposal document is to be prepared.
- Small Lot Sales. When authorized by GSA, conducting small lot sales is to be in accordance with FMR 102-38, Sale of Personal Property. The FMR 102-38.40 restricts the sale of personal property to Executive agencies designated as a sales center. Currently, the HHS and its components do not have that authority and must use a designated Executive Agency sales center.
- Defense Reutilization Marketing Office. The Defense Reutilization Marketing Office (DRMO) is used for turn-in for those IHS Areas that participate in the Defense Reutilization and Marketing Service agreement to dispose of property. A Department of Defense (DD) Form 1348-1A Issue Release/Receipt Document (Manual Exhibit 5-12-M), will be used for turn-in to the DRMO. Further use by the DRMO will ensure maximum utilization of personnel, storage facilities, equipment, and provide disposal support. The DRMO will accept and process property for which it has disposal responsibility. The following will not be accepted:
- Live animals;
- explosives and ammunition;
- incendiary and irritant products;
- drugs, biologicals, and controlled substances;
- nitrate base film;
- psycho diagnostic test set;
- hazardous property;
- material which cannot be disposed of in its present form because of regulations, e.g., consecrated religious items and cryptographic material etc.;
- radioactive commodities which require a NRC license;
- unsalable material, material for which sale or other disposal is prohibited by U.S. Laws which includes, but is not limited to classified material, inspection stamps and devices etc.;
- unsalable material (other than refuse and trash), material that has no utilization or sales value as determined by the DRMO, e.g., tires, etc., but is not otherwise restricted from disposal by U.S. law or military regulations; and
- precious metals (See Section 5-12.15) can be turned in provided they are not hazardous property or in violation of the law, however, a separate agreement with the DRMS is required.
- Other Disposal Options. Areas may also dispose of excess property through authorized recyclers such as UNICOR. Contact the local PMO for a list of authorized recyclers. The procedures delineated above for reporting and storage will be followed when disposing through these means.
- Abandonment and Destruction. In instances where no other means for disposition are available and where it is not feasible to continue managing such property, the IHS will dispose of such property through abandonment and/or destruction. For further information regarding the guidelines around abandonment or destruction, refer to 41 CFR 102-36.305-330. The following requirements must be met prior to the abandonment or destruction of any personal property:
- An authorized IHS official makes a written finding that must be approved by a reviewing official who is not directly accountable for the property.
- Public notice of intent to abandon or destroy such personal property must be given (such as publishing a notice in a local newspaper, posting of signs in common use facilities available to the public, or similar means of advertisement). You must also include in the notice an offer to sell.
- Public notice is not required when:
- The value of the property is so little or the cost of its care and handling, pending abandonment/destruction, is so great that its retention for advertising for sale, even as scrap, is clearly not economical;
- abandonment or destruction is required because of health, safety, or security reasons; or
- when the original acquisition cost of the item (estimated if unknown) is less than $500.
- Abandonment or Destruction will be properly documented with an HHS 22 (Manual Exhibit 5-12-A) and an Abandonment and Destruction Certification (Manual Exhibit 5-12-N).
- Refer to Section 5-12.11G for disposal of equipment containing hazardous materials and Section 5-12.11F for equipment containing sensitive information.
- Removal of Government Identification. All IHS barcode tag numbers and other Government identifiers will be removed prior to the disposition of the property.
- Reporting.
- Special Disposal Requirements. An F06-11d IT Certification of Removal of Device, Media, and/or Data form (Manual Exhibit 5-12-O) will be completed by the using officer and supervisor of the program turning in the equipment and attached to the equipment prior to disposal. Certain assets will require additional action by IHS personnel prior to disposal. These assets include:
- Information technology equipment (and similar sensitive assets)
- Personal computer fixed hard disk drives, Personal computer disks, disc storage packs and all other devices which may contain sensitive information. These items will be degaussed (erased/demagnetized) prior to disposal.
- Equipment Containing Hazardous Materials. Disposal of such equipment will comply with the guidelines established in the HHS LMM Part 8, Utilization and Disposal of Hazardous Materials and Certain Categories of Property, and FPMR 101-42.
- Retirement. Per the Statement of Federal Accounting Standards No. 6, "In the period of disposal, retirement, or removal from service, general PP&E will be removed from the asset accounts along with associated accumulated depreciation/amortization." The PMO, or other Accountable Officer, will ensure that all disposal documentation is completed and forwarded to PSC per the established Final Events Procedure, to remove the asset record from PMIS in a timely manner.
- Purpose. The purpose of this section is to establish policies and procedures to investigate instances of loss (including theft and inventory shortages), damage, destruction, and deterioration (beyond normal wear and tear) of Government personal property; determine responsibility and establish the extent of liability of employees; or to provide relief from responsibility, liability and/or accountability for such property. Refer to HHS LMM 1.2.13, Boards of Survey and Survey Officers, and HHS LMM Appendix A: Report of Survey Process for further discussion and guidelines on Reports of Survey.
- Property Subject to Report of Survey Action. All personal property on loan to the Government, held in trust, rented, or owned by the Government, is subject to Report of Survey procedures. Information systems that are possibly lost or stolen require an F07-02B, Incident Reporting Form be completed within 30 minutes of initial discovery (Manual Exhibit 5-12-P). For further information regarding incident reporting, please refer to the Indian Health Service, Division of Information Security, Standard Operating Procedure for Incident Reporting, SOP-DIS-09-02 which can be found at the following link: http://home.ihs.gov/ITSC-CIO/oit_tfs/documents/sops/SOP09-02_Incident_Reporting.pdf
- Timing. A 90 day total lapse time between preparation of the Report of Survey and completion of the report will not be exceeded. Reports of Survey that cannot be finalized within 90 days will be submitted to the IHS HQ for review and appropriate action.
- Financial Liability of Employee. Failure on the part of an employee to exercise responsibility for the care and protection of Government property could result in financial liability. An employee may be held financially liable and be required to make restitution to the Government when such determination has been made under the Report of Survey procedures or upon a review of the case by the prescribed authority or his or her designee. When the determination has been appealed by the employee and the appeal is upheld, the employee may be excused from liability by the same authority. The extract from Section 641 of Title 18, U.S. Code, quoted below is for information and guidance:
"Whoever embezzles, steals, purloins, or knowingly converts to his use or the use of another, or without authority, sells, conveys, or disposes of any record, voucher, money or thing of value of the United States or of any property made or being made under contract for the U.S., or any department or agency thereof; or Whoever receives, conceals, or retains the same with intent to convert it to his use or gain, knowing it to have been embezzled, stolen, purloined, or converted - will be fined under this title or imprisoned not more than ten years, or both; but if the value of such property in the aggregate, combining amounts from all the counts for which the defendant is convicted in a single case, does not exceed the sum of $1,000, he or she will be fined under this title or imprisoned not more than one year, or both; the word "value" means face, par, or market value or cost price, either wholesale or retail whichever is greater."
- Determining Authority.
- The Determining Authority for Reports of Survey within an IHS Area is the Area Director. In the event that the Area Director may be the subject of the report of survey action, the Determining Authority will be the IHS Deputy Director for Field Operations.
- The Determining Authority for HQ is the DDMO. In the event that the DDMO may be the subject of the report of survey action, the Determining Authority will be the Deputy Director, IHS.
- The Determining Authority is responsible for making final determinations with respect to the recommendations made by a BOS.
- Board of Survey. The Determining Authority will appoint a BOS consisting of a Chairperson and three or more employees to serve as a fact finding body with respect to the circumstances and conditions connected with a case. The Chairperson is also designated as the Survey Officer. In cases where the acquisition value of any single Report of Survey does not exceed $2,499 and there is no suspected theft or misappropriation, the Survey Officer is permitted to investigate and provide their facts, conditions, findings, and recommendations to the Determining Authority. A permanent BOS should be appointed (by job title) at offices and installations where from experience there is a need for the services of a permanent BOS. An individual is not eligible for appointment to a BOS when serving as:
- Immediate supervisor of an individual involved in a survey action.
- Employees who were accountable for or managed the property, used the property, were connected with the lost, damaged or destroyed property.
- The Determining Authority.
- Initiation of Report of Survey. The Report of Survey is prepared using Form HHS 342 (Manual Exhibit 5-12-I).
- Lost, Stolen, Damaged, or Destroyed Property. The employee charged with the responsibility for the custody or use of the property at the time, will forward immediately to his or her supervisor a memorandum of certification showing:
- The description of the property.
- The facts and circumstances surrounding the loss, theft, damage, or destruction.
- The action taken to recover same if property was stolen.
- A copy of a police report or other similar incident report.
- The supervisor will make a preliminary investigation, if feasible, and report any additional facts or circumstances along with the employee's report to the PMO.
- The supervisor (or person with the most knowledge regarding the circumstances) is responsible for initiating form HHS 342, and completing blocks 1-4, and sending it to the PMO along with any related data. On missing property, the supervisor should, prior to submitting the report, ascertain that the item(s) have not been reassigned, transferred, loaned, traded in, or sent out for repairs. When theft is known or suspected, FPS and local law enforcement authorities will be informed and their assistance enlisted toward recovery of the property.
- Lost, Stolen, Damaged, or Destroyed Property. The employee charged with the responsibility for the custody or use of the property at the time, will forward immediately to his or her supervisor a memorandum of certification showing:
- Property Management Officer. The PMO will:
- Establish and maintain on a FY basis, a Report of Survey Register and file (Manual Exhibit 5-12-Q). The register will be maintained so that each form HHS 342 (Manual Exhibit 5-12-I) will be assigned a Report of Survey number in numerical sequence, entered in the register, and a copy filed in the Report of Survey file.
- Check the property records on missing property to ensure that the property has not been transferred, loaned, or traded-in.
- Ensure that the extent of damage, cost of repairs, and the estimated depreciated value of the property is determined for all damaged property.
- In the case of destroyed property, develop as much information as possible as to its value, age, etc.
- Forward the Report of Survey to the Chairman, BOS or Survey Officer for action.
- Forward the Report of Survey to the Determining Authority once received from the BOS or Survey Officer.
- Inventory Shortages
- Adjustments to property and fiscal records will be approved and made only after BOS action when:
- In the judgment of the PMO, the value of the shortage of an item in stock is significant in relation to the average quantity and value of the item maintained in inventory.
- The item or items short or missing are sensitive items. There is no exception as to the quantity or value.
- The PMO suspects theft or misuse of property missing.
- The Determining Authority may approve an HHS 365 Inventory Adjustment (Manual Exhibit 5-12-H) without BOS action except under circumstances listed above.
- The PMO will prepare the form HHS 342 for any adjustments that require BOS action.
- Adjustments to property and fiscal records will be approved and made only after BOS action when:
- Admission of Responsibility. If during preliminary investigation of a case an employee admits responsibility for loss or damage and volunteers payment, the following actions are to be taken:
- Acknowledgment. The officer or employee will be requested to acknowledge this responsibility in writing to the supervisor, as well as provide any facts and circumstances appropriate to the incident.
- Supervisor's comments. The supervisor will add any comments he or she may deem advisable and provide data establishing the condition of the property, prior to the incident, or estimated cost of repairs. The supervisor will forward all information to the PMO.
- Property Management Officer. The PMO will add any comments they may deem advisable and data establishing the dollar value to the Government based on the depreciated value and condition of the property prior to the incident or estimated cost of repairs. He will forward the information to the Determining Authority.
- Determining Authority Review. The Determining Authority, after a review of the information will:
- Request a BOS to act on the case if he/she believes such action is warranted prior to taking collection action against the employee; or
- Initiate collection action based on the information and data, and the employee's admission and offer of payment.
- Board of Survey. Upon receipt of the Report of Survey, the BOS will be convened by a Chairman, and after review of the preliminary information furnished will:
- Develop a plan of action in relation to the extent and nature of the investigation;
- develop all facts and circumstances surrounding the incident, and if necessary and feasible, conduct an investigation;
- obtain a signed statement from the employee(s) involved by having the Lost, Stolen, Damaged, or Destroyed Property Questionnaire completed (Manual Exhibit 5-12-R) or similar document;
- interview witnesses and obtain signed statements;
- arrive at the extent and type of loss to the Government;
- identify all persons or employees involved, and extent thereof;
- notify the Determining Authority immediately if it becomes evident that theft or violation of statutory regulations is involved for referral to proper authorities and procedures with survey action; and
- record all facts and circumstances resulting from the investigation and questioning of witnesses.
- Prepare a Finding. The BOS prepares the finding that must be a concise statement summarizing the essential facts and circumstances. The Determining Authority will use the finding to determine whether or not the individual(s) cited were responsible for the loss, damage, or destruction of Government property. The finding must state clearly what evidence, if any, the BOS has found that will indicate to the Determining Authority whether the loss, damage, or destruction took place as the result of any of the following circumstances:
- The employee(s) were negligent, guilty of misconduct or of any other, wrongful act that contributed to the damage, destruction, or loss of Government property or knowingly failed to initiate or take corrective or preventive action;
- The employee(s) failed to apply normal security measures to meet the minimum requirements that judgment, experience, or regulations would dictate as necessary to safeguard property; or
- The employee(s) performance or failure to perform was the result of a reasonable error of judgment or a physical limitation. The finding is to be clear as to whether or not performance or failure to perform resulted from the imposition of responsibilities that are outside the scope of responsibilities of the individual's assigned position.
- Make recommendations as to relief from accountability for property and/or the disposition thereof when appropriate.
- Sign the Report of Survey and forward it including all pertinent documents, statements, etc., to the PMO When there is a difference of opinion as to the findings and/or recommendations on the disposition of property, the majority opinion will govern. Each member in the minority will state his reasons for taking exception to the majority opinion in an attachment to the Report of Survey.
- Determining Authority Action. The Determining Authority, upon receipt of the completed Report of Survey and after an evaluation of the findings, will make a decision or determination. He or she will:
- Where the findings and a review of facts and circumstances clearly indicate the absence of responsibility on the part of an individual or group for the damage, loss, etc., take appropriate action to provide relief from responsibility for the incident of loss/or accountability for the property.
- Initiate or recommend, as appropriate, new procedures, regulations, etc., if such action would prevent recurrence of a similar situation.
- When the facts and findings of the BOS indicate the existence of any of the following conditions:
- The employee(s) were negligent, guilty of misconduct or of any other wrongful act which contributed to the damage, destruction or loss of Government property or knowingly failed to initiate or take corrective or preventive action; and/or
- The employee(s) failed to apply normal security measures to meet the minimum requirements that judgment, experience, or regulations would dictate as necessary to safeguard property.
- The Determining Authority may conclude, when it is evident that a condition such as, "The employee's performance or failure to perform was the result of a reasonable error of judgment or a physical limitation and performance or failure to perform resulted from the imposition of responsibilities, which are outside the scope of responsibilities of the individual's assigned position," existed, that responsibility should be placed on another or others not identified as the principal(s) in the Report of Survey. Such a condition may have resulted from faulty supervision.
- The Determining Authority will advise the employee(s) involved that the findings indicate the employee or group is responsible for the damage, etc., and based on these findings he/she would have to make such a determination. At the same time the Determining Authority will advise the employee(s) of the right to appeal the decision by presenting any data, facts or other information, which in the employee's opinion are not represented in the facts and findings stated in the Report of Survey, and which the employee believes should be considered by the Determining Authority. The employee will be advised that such information must be in the form of a written statement and forwarded to the Determining Authority within ten working days of the date of the notice of determination of responsibility.
- The Determining Authority may require a re-examination of the case if in his or her opinion the information received from the employee(s) concerned warrants such, or if for other reasons he/she deems such action advisable. In either instance, the Determining Authority will state his or her reasons in writing to the BOS.
- Final Action.
- If additional data is submitted by the employee, as provided for, and the Determining Authority finds no cause to have the case re-examined or if the Determining Authority has concluded that an employee is responsible and no information is received from the employee as provided for, the Determining Authority will consult with the personnel or administrative office or establish pecuniary liability. Disciplinary action may be coupled with a charge of pecuniary liability. The Determining Authority's decision will be final.
- If it is concluded that an employee or group is to be held financially liable for the loss, damage, etc., the employee(s) indebtedness to the Government will be established in the appropriate fiscal record.
- The amount to be collected will be the greater of the depreciated value at the time at which the employee or group is found liable or a minimum penalty value of five percent of the acquisition cost or the cost of repairs taking into consideration the condition of the item prior to the incident.
- If the Determining Authority decides that a person or a group not employed by the Government is financially liable, he or she will forward a completed copy of the report to the proper official for collection of funds due to the Government.
- When disciplinary action is an adverse personnel action, the Determining Authority will contact the personnel office to ensure that the requirements of Federal Personnel Manual, Part 752, and HHS Personnel Instructions 771-1 and 752-1 are complied with.
5-12.13 MONITORING AND OVERSIGHT FUNCTIONS
- Management Control Activities. Part 5, Chapter 16, "Management Control Systems," IHM, states that Personal Property Management meets the criteria to be considered a high risk area to ensure that adequate visibility and attention is given to corrective actions needed in this area. Personal Property will be placed on the IHS Management Control Plan, and appropriate review activities will be determined each year, that address the areas of greatest need for improvement, or follow up attention by senior management. Metrics identified in Section B (below) will be assessed periodically by the IHS HQ and problems, trends or other focus area will determine where resources will be directed for further monitoring and/or technical assistance. At a minimum, management control activities will include the following:
- Performance Element. A performance element in all SES performance plans that addresses timeliness and accountability of all property management functions. These functions include, but are not limited to annual inventories, investigation of missing property, and determination of financial responsibility for employees found to be negligent.
- Senior Management Certification Statements. Self-assessments will be required each year from Area Directors and HQ Office Directors with property management responsibility, providing assurance that key areas of responsibility are being managed properly.
- On-site Reviews. On-site reviews will be conducted periodically as resources permit.
- Testing for Compliance and Accuracy. On a sample basis, Area Offices and HQ will be responsible for testing the accuracy of hand receipts, and PMIS entries. This activity may be accomplished in accordance with OMB Circular A-123 or on an independent basis.
- Metrics. The Director, OMS, IHS HQ will establish Performance Accountability Metrics by which to gauge the effectiveness of the IHS property management program. The goals of the Performance Accountability Metrics are as follows:
- to help management identify characteristics of success in the property management program;
- to document success factors: and
- to enable management to measure, monitor, and report on the success of the project in the future.
5-12.14 REPORTING REQUIREMENTS
- HHS Reporting. Refer to LMM 7.41, Reporting, for minimum reporting requirements that have been established by HHS.
- IHS Reporting. The IHS HQ will develop reporting requirements as needed and in conjunction with the information required to obtain Performance Accountability Metrics. Metrics will be established separately from this chapter.
5-12.15 PRECIOUS METAL RECOVERY PROGRAM. (Reserved for future use)
