14 FAM 400
asset management
14 FAM 410
PERSONAL PROPERTY MANAGEMENT
(CT:LOG-374; 05-15-2023)
(Office of Origin: A/LM)
14 FAM 411 SCOPE AND AUTHORITY for Personal Property Management
14 FAM 411.1 Scope and Applicability
(CT:LOG-354; 07-21-2022)
(State/USAID/Commerce/Agriculture/USAGM)
a. This manual outlines the applicable policy required for the effective lifecycle management of State personal property worldwide. It provides a framework for the procedures in the Department's Personal Property Management Handbook 14 FAH-1.
b. U.S. Government personal property accountability is required by laws and U.S. Government-wide regulations. U.S. Government personal property includes, but is not limited to, program property, motor vehicles, aircraft, watercraft, information technology (IT), hazardous property, heritage assets, U.S. Munitions List (USML) items, contractor-held property, grantee-held property, material and supplies. Some property has additional or different requirements for effective lifecycle management. For further policy guidance in this area, contact the Logistics Policy Unit A/LM/POL at LogisticsPolicyQuery@state.gov.
c. The "State/USAID" heading applies to USAID personal property physically located at foreign locations only, and all Department of State personal property located worldwide. The "State only" heading applies to State personal property worldwide (not USAID). The "Domestic State only" heading applies only to Department of State personal property located in the U.S., the U.S. Virgin Islands, American Samoa, Guam, Puerto Rico, the Federated States of Micronesia, the Marshall Islands, Palau, and the Northern Mariana Islands and not at foreign locations. Each of the other foreign affairs agencies (USAID, Commerce, USAGM or Agriculture) has separate policies and procedures for their domestic personal property.
d. The objective of personal property management within the Department is to protect the interests of the public through effective and efficient management of property assets. Property managers must effectively maintain accountability and control systems that:
(1) Record all accountable personal property, including its acquisition cost; and
(2) Assign responsibility for safeguarding property.
e. State only: All Department organizations must use the Integrated Logistics Management System (ILMS) to account for personal property.
f. U.S. Government motor vehicles located worldwide are personal property and subject to the policies prescribed in this manual:
(1) See 14 FAM 430 for more specific details and additional requirements regarding the management and control of motor vehicles at foreign locations; and
(2) Domestic State: Specific guidance on local transportation and motor vehicle operators for the Department's domestic fleet is found in 6 FAM 1930 and 6 FAM 1940, respectively.
g. State only: Aircraft are personal property and subject to the policies prescribed in this manual. See 2 FAM 800, Managing Aircraft, for more specific details and additional requirements for the management and control of State owned or leased aircraft, including unmanned aircraft systems (UAS) (i.e., drones).
h. State only: U.S. Government personal property in the custody of contractors, including government furnished property (GFP) and contractor acquired property (CAP), is controlled by the contracting officer and contracting officer representative (COR) according to the Code of Federal Regulations (CFR) and Department guidance as follows:
(1) 41 CFR 102-36.150 through 102-36.175 provides authority and guidance on furnishing excess State personal property to contractors;
(2) Federal Acquisition Regulation (FAR) 48 CFR 45 covers policies and procedures for GFP and CAP, including requirements for the contracting officer, contracting officer representative, property administrator, and the plant clearance officer;
(3) State only: The following Department-level policies and procedures apply for contractor-held property:
(a) 48 CFR 645, Government Property;
(b) 48 CFR 652.245-70, Status of Property Management Systems;
(c) 48 CFR 652.245-71, Special Reports of Government Property;
(d) 14 FAH-2, Contracting Officer's Representative Handbook;
(e) Relevant Senior Procurement Executive Memorandums and Procurement Information Bulletins issued by A/OPE.
i. State only: Grants officers (GO) and grants officers’ representatives (GOR) control State-provided GFP to grantees when the U.S. Government holds title. The following policies apply:
(1) The annual Department of State Federal Assistance Policy Directive, published by the Foreign Assistance Division (A/OPE/FA);
(2) Office of Management and Budget (OMB) U.S. Government-wide uniform grant-specific regulations governing property furnished to grantees:
(a) 2 CFR 200.312, Federally owned and exempt property;
(b) 2 CFR 200.313, Equipment;
(c) 2 CFR 200.314, Supplies;
(d) 2 CFR 200.315, Intangible property; and
(e) 2 CFR 600.101, the Department of State supplement; and
(3) Authority and requirements when providing excess State personal property to grantees is available in the Federal Management Regulation, 41 CFR 102-36.185 through 41 CFR 102-36.205.
j. Requests for interpretation or policy exceptions should be directed to the parent agency office below:
(1) State: Director, Property Management Division (A/LM/PMP/PM);
(2) USAID: Bureau for Management, Management Services Office, Overseas Management Division (USAID/W - M/MS/OMD);
(3) Commerce: International Trade Administration, U.S. and Foreign Commercial Services, Office of International Operations, Overseas Property Manager;
(4) Agriculture: Foreign Agricultural Service, Office of Foreign Service Operations, International Services Division; and
(5) U.S. Agency for Global Media (USAGM): Network Support Branch (T/EOS/N), Office of Technology, Services and Innovation (TSI).
14 FAM 411.2 Roles and Responsibilities
(CT:LOG-354; 07-21-2022)
(State/USAID/Commerce/Agriculture/USAGM)
a. Department of State Property Management Officer: The Managing Director, Office of Program Management and Policy (A/LM/PMP), is the designated agency property management officer (PMO) for State worldwide. The agency PMO establishes policy for the management and control of State's personal property; oversees the Department’s property management program operations; implements property management regulations and procedures; provides authoritative guidance in areas of receipt, storage, property accountability, inventory management, utilization, and disposal.
b. USAID Property Management Officer: The Director, Office of Management Services, Bureau for Management (M/MS/OMD), is the designated agency property management officer (PMO) for USAID property abroad. M/MS/OMD provides oversight of the management of USAID’s personal property program abroad, establishes policy for the management and control of USAID’s personal property, reviews property management operations, and implements property management regulations and procedures. (Excludes programs carried out by DCHA/OFDA, OIG, and M/OAA as applicable to contracts).
c. Separation of duties: If separation of duties is not possible, the accountable property officer (APO), PMO, or authorized designee, must conduct a management review at least twice a year. The APO should notify the management officer (PMO) or USAID executive officer when deficiencies are identified.
14 FAM 411.2-1 Property Management Officer (PMO)
(CT:LOG-354; 07-21-2022)
(State/USAID/Commerce/Agriculture/USAGM)
a. The property management officer (PMO) must be a U.S. citizen, direct-hire employee. The PMO provides oversight for all personal property management functions and is accountable for maintaining an effective framework of property management controls within a bureau, office or post. PMO responsibilities are inherent in the positions of the management counselor or officer, and the USAID executive officer. At posts without these positions, the principal officer serves as the PMO. The COM designates in writing the PMO. The PMO designates, in writing, the accountable property officer (APO), property disposal officer (PDO), and receiving officials. These designations cannot be subdelegated.
b. The PMO has broad accountability in creating an effective system of internal property management controls, primarily designating responsible individuals or offices for the following day-to-day activities:
(1) Procurement tracking;
(2) Receiving;
(3) Storage;
(4) Accountability;
(5) Maintenance and repair of personal property, including motor vehicles;
(6) Conducting the annual physical inventory;
(7) Utilization;
(8) Disposal; and
(9) Settling disputes about property control.
d. The PMO ensures that the annual physical inventory of accountable personal property is completed and reconciled, all necessary property survey board actions are completed, and all required reports are submitted to A/LM/PMP/PM for certification no later than March 15 each year using the ILMS Certification Submission Center (CSC).
e. To maintain clear accountability, the PMO is not authorized to delegate signature authority for the annual physical inventory, including in cases of short-term absence from post at the time of inventory submission. In exceptional circumstances resulting in prolonged absence, full PMO authority should be transferred to another authorized direct-hire employee in consultation with A/LM/PMP/PM.
f. USAID only: The USAID executive officer or director at post always retains PMO responsibility for all USAID property.
g. Domestic State: The bureau executive director or office director (for those organizations not classified as bureaus) is the PMO and is responsible for personal property management. If the organization does not have an executive director or office director, a senior administrative official who reports directly to the assistant secretary or equivalent must be the PMO. The head of each establishment (Assistant Secretary or equivalent position) must designate, in writing, the incumbent to serve as the PMO.
14 FAM 411.2-2 Accountable Property Officer (APO)
(CT:LOG-354; 07-21-2022)
(State/USAID/Commerce/Agriculture)
a. The accountable property officer (APO) is customarily the general services officer (GSO) for personal property, and the information management officer (IMO) for IT program property. The APO must be a U.S. citizen direct-hire employee designated in writing by the PMO. At a post without a GSO or IMO, the PMO retains APO operational responsibilities, or may designate an APO who is a U.S. citizen hired under a post-issued personal services agreement (PSA). Locally Employed (LE) staff are not authorized to serve as an APO.
b. The APO is responsible for direct oversight of property management procedures and key functions, including:
(1) Ensuring the custody, care, and safekeeping of all personal property under control of the bureau, office, or post;
(2) Maintaining all required property records in the Integrated Logistics Management System-Asset Management (ILMS-AM), Final Receipt, Loanable Property (LP), and Expendables modules;
(3) Completing and reconciling the physical inventory of all personal property, ensuring necessary property survey board actions are completed, and submitting required reports to A/LM/PMP/PM for certification no later than March 15 each year using the ILMS-CSC;
(4) Disposing of personal property, including documenting all required security inspections as outlined in 12 FAM 561 of Form DS-586, to prevent accumulation in offices, warehouses, or other locations. See 14 FAH-1 H-700 for more detailed instructions on disposal procedures;
(5) Ensuring sales and transfers of property overseas are conducted properly and documented under appropriate authorities;
(6) Ensuring each State employee reports foreign gifts and decorations received from a foreign government. Contact post's Gift Officer or write the Office of Chief of Protocol's Gift Unit at protocolgiftofficer@state.gov;
(7) Ensuring all personnel assigned property management duties receive necessary training;
(8) Conducting quarterly, unannounced spot check inventories of personal property to verify the accuracy of property records in ILMS and reconciling appropriate discrepancies afterwards;
(9) Reviewing and approving requisitions for procurement of personal property (see 14 FAM Exhibit 221.3, Clearance Requirements for Supplies and Services);
(10) For property overseas, ensuring proper and timely preparation of reports for U.S. Government agencies that subscribe to ICASS;
(11) Ensuring that any domestic transfer of State personal property to other U.S. Government agencies is approved by the U.S. General Services Administration, and is approved by the property disposal officer (PDO), using Form SF-122, Transfer Order;
(12) Reviewing available ILMS-Analytics reports to effectively manage bureau, office, or post property management operations; reviewing available ILMS-Analytics reports and risk models to identify potential theft, fraud, or misuse of personal property; and reporting potential theft or fraud to OIG Investigations.
c. The APO is not authorized to delegate signature authority for the annual physical inventory. If the APO is physically absent from the bureau, office, or post, the PMO must delegate full APO authority to another authorized direct-hire employee. The Property Management Desk Officer must be notified.
d. Agriculture only: The APO is the Foreign Agriculture Service (FAS) principal officer at post. The APO is responsible for ensuring a physical inventory of FAS-owned property in offices and residences is conducted annually (see Overseas Administrative Handbook, Section 5.2).
14 FAM 411.2-3 Custodial Officer
(CT:LOG-354; 07-21-2022)
(State/USAID/Commerce)
a. Custodial officers must be U.S. Government direct-hire employees designated in writing by the PMO as responsible for the physical control and recordkeeping of U.S. Government personal property. Smaller organizations may have a single custodial officer with total responsibility for controlling and tracking property.
b. A custodial officer can be one of several within a larger bureau, office, or post who has responsibility for the care and proper utilization of personal property, within a specific area, or for a specific type of commodity, such as information technology (IT) equipment.
c. The APO directs and coordinates the duties of the custodial officer and has the authority to tailor custodial officer responsibilities based on the organizational structure and needs of the organization. Recommended custodial officer responsibilities include:
(1) Maintaining custody, care, and safekeeping of all personal property assigned to the custodial area under control of the bureau, office, or post;
(2) Assisting the APO in planning and completing the annual physical inventory;
(3) Ensuring the appropriate documentation and correct information is recorded in the ILMS-AM, LP, and Expendables modules for applicable property;
(4) Authorizing removal of personal property from a building and issuing Form DS-1952, Authorization for Removal of Property;
(5) Preparing Form DS-132, Property Disposal Authorization and Survey Report, for unneeded or idle, missing, or damaged property; and
(6) Coordinating the nomination for disposal and removal of excess property from the bureau or office locations using the ILMS-AM Excess Property Tool (see 14 FAH-720).
d. Custodial officers are not authorized to delegate or transfer their assigned duties and responsibilities. Contractors are not authorized to serve as custodial officers.
14 FAM 411.2-4 Property Disposal Officer (PDO)
(CT:LOG-354; 07-21-2022)
(State/USAID/Commerce/Agriculture)
a. The property management officer (PMO) must assign the property disposal officer (PDO) duties to a U.S. citizen direct-hire officer in writing. The PDO should be a U.S. Government employee other than the APO. Where a PDO cannot be designated, the PDO responsibilities must remain with the PMO.
b. Domestic State Only: The APO is the PDO for bureau and office personal property disposition (14 FAH-1 H-700 for disposition procedures concerning domestically located personal property). PDO duties and responsibilities must be outlined in the APO’s written designation.
c. The PDO is responsible for:
(1) Selecting the most advantageous method for disposing of personal property as authorized by U.S. Government regulations. Disposition of State property must be reported via an ILMS generated Form DS-132, Property Disposal Authorization and Survey Report, or Form AID-534-1, Personal Property Disposal Authorization and Report, for USAID property;
(2) Preparation, maintaining, and distributing all required forms, and coordinating disposal actions with all required sections, including finance and property management;
(3) Adhering to local laws including all environmental and tax regulations;
(4) Securing property during screening by other U.S. Government agencies, U.S. State Agencies for Surplus Property (SASP), or during the sale process;
(5) Ensuring the new owner promptly removes property once transferred or sold;
(6) Training and supervising personnel responsible for the physical disposal of property;
(7) Making a determination when an exchange (i.e., trade-in) to a vendor will provide greater return to the U.S. Government over a sale action;
(8) Making a determination when abandonment or destruction is appropriate for property that has no commercial value, or the estimated cost of care and handling would exceed the estimated proceeds from a sale;
(9) Making a determination whether processing by recycler is appropriate versus destruction in a landfill or donation in lieu of abandonment or destruction.
(10) Foreign locations only:
(a) When the PDO cannot generally manage routine administrative detail (e.g., preparation of disposal documents (i.e., SF-122 Transfer Order), making arrangements for sales, etc.), the PMO may delegate responsibility for these actions to the APO, except when the APO is neither a GSO or IMO. For management control purposes, the PDO must witness key disposal activities such as those on sale day (e.g., cash payments and issuing bills of sale), and ensure proper disposal-related entries are made on the ILMS generated Form DS-132, Property Disposal Authorization and Survey Report, for State property, or on Form AID-534-1, Personal Property Disposal Authorization and Report, for USAID property;
(b) The PDO determines disposal sale terms and conditions, lot makeup to ensure federal supply groups (FSG) are not combined. The PDO must reference prior sales results and local market conditions, handle sales disputes, and execute bills of sale or other documents necessary to transfer property title;
(c) The PDO coordinates with the RSO for the disposal of diplomatic security equipment, including DS armored vehicles (which may not be sold); and
(d) The PDO ensures the cashier is provided sales receipts and correct deposit of sales proceeds.
14 FAM 411.2-5 National Utilization Officer (NUO)
(CT:LOG-354; 07-21-2022)
(State/USAID/Commerce/Agriculture)
a. State: The Director, Property Management Division (A/LM/PMP/PM) is the national utilization officer (NUO) for State. The NUO is authorized to designate, in writing, alternate NUOs, who must be U.S. citizen direct-hires, and to delegate day-to-day responsibilities.
b. The NUO is charged with promoting the use of excess personal property as the first source of supply, reviewing and approving the acquisition and disposal of excess personal property, and ensuring Department procedures comply with the Federal Acquisition Regulation (FAR) 48 CFR 8.1 and Federal Management Regulation (FMR) 41 CFR 101-26.101 and 41 CFR 102-36.45). Additionally, the NUO approves access to, and appropriate permissions within, the GSAxcess website for Department of State.
c. A complete listing of all government wide NUOs can be found on GSA’s webpage, National Utilization Officer Contacts.
14 FAM 411.2-6 USAID Controller
(CT:LOG-354; 07-21-2022)
(USAID Only)
The USAID controller is responsible for the establishment of procedures required to provide U.S. dollar and Trust Fund monetary accounting control for nonexpendable USAID-owned property pursuant to USAID financial management regulations (see USAID Automated Directives System (ADS) chapter 620).
14 FAM 411.2-7 USAID Regional Inspector General
(CT:LOG-354; 07-21-2022)
(USAID Only)
a. USAID inspector general personal property will be funded from Regional Inspector General audit funds (RIG/A), for audit personnel.
b. The USAID executive officer or embassy general services officer, where there is no USAID executive officer (but ICASS or other agreement is in place), conducts the annual physical inventory and forwards it to M/MS/OMD for entry into the overseas property accounts.
c. Inventory records submitted by posts must reflect ownership of "RIG/A."
14 FAM 411.2-8 Office of U.S. Foreign Disaster Assistance (OFDA)
(CT:LOG-354; 07-21-2022)
(USAID Only)
Property acquired with disaster assistance funds is USAID personal property and must be used only for disaster-related programs. The Office of U.S. Foreign Disaster Assistance is responsible for its procurement, storage, management, accountability, and release from stockpiles. Policies and procedures governing disaster assistance property are contained in the USAID ADS Chapter 251, International Disaster Assistance; BHR/OFDA’s annual worldwide guidance cable; and financial management regulations.
14 FAM 411.2-9 Officers Separately Funded from USAID
(CT:LOG-354; 07-21-2022)
(USAID Only)
Senior officers of entities (excluding RIG) at post separately funded from USAID may authorize commingling, common-issue, and single account records of household or office furnishings with those of the USAID mission at post. This requires a written agreement signed by the USAID PMO and the senior officer of the separately funded agency or office at post. RIG property is not funded through USAID; therefore, all USAID RIG property must be identified, marked, and recorded separately from USAID OE-funded property.
14 FAM 411.2-10 Employee responsibility for U.S. Government Property
(CT:LOG-354; 07-21-2022)
(State/USAID/Commerce/Agriculture)
a. Each employee is responsible for the proper care, custody, and appropriate use of Federal government property issued to them and may be financially liable for property missing, stolen, damaged, lost, or destroyed as a result of negligence, improper use, or willful action on the employee's part. If a contractor is involved, refer to FAR 48 CFR 52.245-1(h).
b. Employees must obtain accountable property officer (APO) or custodial officer authorization to remove U.S. Government personal property from a U.S. Government leased or owned building via Form DS-1953, Authorization for the Removal of Property. NOTE 5 FAM 723 (6) and (7) prohibitions on certain uses of U.S. Government equipment and networks.
14 FAM 411.2-11 Categories of Program Property
(CT:LOG-354; 07-21-2022)
(State)
Certain categories of program property are managed for State by various entities including:
(1) Information Technology (IT) program property including but not limited to LAN/WAN Services, Remote Expeditionary Area Communications Hub (REACH), and Global Information Technology Modernization (GITM) is managed by Information Technology Infrastructure (IRM/FO/ITI), Bureau of Information Resource Management;
(2) Armored vehicles and special protective and security technology equipment program property is managed by the Office of Counterterrorism, Bureau of Diplomatic Security (DS/C);
(3) Property in the overseas motor vehicle program, excluding armored vehicles and ICASS vehicles, is managed by the Overseas Fleet Division (A/LM/PMP/OF);
(4) Special Program for Embassy Augmentation and Response (SPEAR) property is managed by the Office of Antiterrorism (DS/T/ATA) in conjunction with the High Threat Programs Director (DS/HTP). The post regional security officer (RSO) is designated as the accountable property officer (APO) for all SPEAR program property located at post or on loan to a partner nation;
(5) The Operational Support Division (IRM/CSO/OPS/OSS) is responsible for the domestic consolidation of all network-connected information technology (IT) personal property from those bureaus under a signed consolidation agreement;
(6) Aircraft (including unmanned aircraft systems (UAS) – i.e., drones) are managed by the International Narcotics and Law Enforcement – Air Wing Division (INL-A); and
(7) The APO for the Diplomatic Security Office of Security Technology (DS/C/ST/STO/OSB) oversees security technology program property operations and provides guidance worldwide.
14 FAM 411.3 Compliance With Property Management Requirements
14 FAM 411.3-1 Compliance Monitoring
(CT:LOG-354; 07-21-2022)
(State/USAID)
a. Compliance is monitored according to the following.
(1) The property management officer (PMO) and accountable property officer(s) (APO) must electronically sign all required annual inventory reports in the ILMS-CSC and submit to A/LM/PMP/PM for certification by March 15 each year;
(2) Property Management Division (A/LM/PMP/PM) staff conduct regional training and periodic assistance visits, business process reviews, and data reviews at the request of bureau, office, or post officials, or as required;
(3) A/LM/PMP/PM staff will routinely verify bureau, office, or post compliance with property management policies utilizing available ILMS Analytics reports and activity in the ILMS Asset Management (AM), ILMS Expendables, and ILMS Loanable Property (LP) modules;
(4) A/LM/PMP/PM staff may verify with the Bureau of the Comptroller and Global Financial Services (CGFS) staff the accuracy of assertions, findings, and deficiencies relating to property management requirements in annual Statements of Assurance and findings or deficiencies;
(5) Bureau, office, or post management must conduct risk assessments as required by the Office of Management Control (CGFS/MC);
(6) The property management officer (PMO) or service provider should make available a copy of the Ambassador’s Annual Statement of Assurance to customer agencies’ PMOs. Before preparing the Ambassador’s Annual Statement of Assurance, the APO should present to the ICASS council an overview of post’s property management internal controls and the results of the annual inventory reconciliation for customer agencies; and
(7) Property survey boards (PSB) must independently review and adjudicate issues of missing, damaged or destroyed property.
b. APOs must report to their PMO any case in which monitoring activities reveal deficiencies or weaknesses in property management procedures or controls. Posts should use their A/LM/PMP/PM Property Management Desk Officers as a resource for addressing such issues.
c. If monitoring reveals problems sufficient to warrant a designation of “significant deficiency” or “material weakness” on the COM Statement of Assurance, or if fraud, waste or abuse is uncovered, the PMO must provide a memorandum of noncompliance and a corrective action plan (CAP) to the attention of the Director, Property Management Division (A/LM/PMP/PM) and/or Director, M/MS for USAID. This can be done through the annual inventory process or independently if identified outside of the annual inventory exercise.
d. All evidence of noncompliance with the property policies of customer agencies will be shared by A/LM/PMP/PM with the parent agency office.
e. All evidence of noncompliance related to suspected fraud, waste, and misuse of personal property will be sent to the Office of the Inspector General (OIG/INV).
14 FAM 411.3-2 Compliance Enforcement
(CT:LOG-354; 07-21-2022)
(State/USAID)
a. In notification of noncompliance to bureau, office or post: The Director, Property Management Division (A/LM/PMP/PM) notifies the PMO, of any serious cases of noncompliance detected through the monitoring processes. Upon receipt of this notice, the PMO must identify and initiate corrective actions within 30 calendar days and report corrective actions taken to A/LM/PMP/PM. If the report is not received by A/LM/PMP/PM within 30 calendar days, the responsible officer may be subject to personnel actions described in 3 FAM 4370 or 3 FAM 4540 (civil service) as appropriate. Examples of serious noncompliance include, but are not limited to:
(1) Failure to submit the required annual physical inventory reports to A/LM/PMP/PM using the ILMS certification submission center (CSC) by March 15 (see 14 FAM 416 for additional requirements related to the annual physical inventory);
(2) Failure to take timely corrective action on identified deficiencies; or
(3) Failure to provide accurate and timely U.S. Government agency specific reports including, but not limited to, the annual fiscal year exchange/sale report, negotiated sales report or non-federal recipient report.
b. The Agency PMO must refer repeated or serious instances of noncompliance to the applicable bureau Assistant Secretary with a letter recommending personnel action in accordance with 3 FAM 4300 or 3 FAM 4500 (domestic) as appropriate.
c. The Agency PMO and any other employee must promptly report to the Office of Inspector General/Office of Investigations (OIG/INV) knowledge of or reasonable suspicion of anyone making a false certification of the following:
(1) Form DS-582, Personal Property Management Report or Program Property Management Report Part A or Part B;
(2) Property management reports including those provided to customer agencies; or
(3) Identified or suspected cases involving fraud, theft, or misuse of personal property.
d. See 1 FAM 053.2-5 concerning employee cooperation with OIG, and 18 U.S.C. 1001 for potential penalties, including fines or imprisonment.
14 FAM 411.4 Definitions
(CT:LOG-354; 07-21-2022)
(State/USAID/Commerce/Agriculture)
Accountability: The ability to account for personal property by providing a complete audit trail for property transactions from receipt to final disposition (reference 41 CFR 102-35.20).
Accountable personal property: Nonexpendable personal property whose expected useful life is two years or longer with an acquisition value of $5,000 or more, including capitalized and sensitive personal property. All accountable personal property must be tracked in ILMS Asset Management or Loanable Property (41 CFR 102-35.20):
(1) Regardless of cost:
(a) Government accountable property on loan;
(b) Motor vehicles;
(c) Aircraft;
(d) Boats;
(e) Heritage assets;
(f) Leased personal property;
(g) Firearms (as defined under 18 U.S.C. 921);
(i) Law enforcement equipment (LEE): aiming, night-vision optics, tracking/locating devices, body armor, ballistic vests/helmets;
(j) Classified or unclassified CPUs, and laptop computers;
(k) All personal property located in warehouse or storeroom;
(l) Two-way mobile radio systems with programmed frequencies such as emergency and evacuation or local guard force channels;
(m) Fuel;
(n) Furniture and equipment in residence; and
(o) Munitions list items;
(2) Serialized property having an acquisition cost of $500 or greater per item; and
(3) U.S. General Services Administration (GSA) approved safes (security containers).
Acquisition cost: The original purchase price of an item which includes the amount paid to vendors plus any transportation charges, installation/assembly, handling charges and storage costs, labor and other direct or indirect production costs (for goods produced or constructed), and outside services for designs, plans, or specifications, billed from sources other than the vendor, except fees for training and warranties. The fair-market value of an item may be used as a substitute for the acquisition cost if the acquisition cost is unknown.
Agency Property Management Officer: An individual designated to serve as a focal point for personal property management with responsibility and authority to account for the effective acquisition, control, use, and disposal of personal property for the Department.
Barcode label: A machine-readable optical label that uniquely identifies the property to which it is affixed. Each label corresponds to a unique property identification number (PIN) used for inventory and accountability.
Capitalized personal property: Nonexpendable personal property with a useful life of two or more years and acquisition cost exceeds $25,000 per item that is entered on the Department’s general ledger as a major investment or asset. State Department capitalized property is also:
(1) Complete within itself;
(2) Not subject to lose its identity or become a component part of another item when used;
(3) Of a durable nature with an anticipated useful life of over two years;
(4) Recorded on Department financial statements (4 FAM 734.2); and
(5) Additionally, the following property is capitalized:
(1) State-owned motor vehicles, regardless of cost;
(2) Software capitalization thresholds: Most internal-use software, as defined in 4 FAM 735, must be capitalized if its total cost is equal to or exceeds $3,000,000. This means that the procurement options for commercial off-the-shelf (COTS), Government off-the-shelf (GOTS), or mixed-use software, as described in 4 FAM 735.3, paragraph e, must be capitalized if its total cost (e.g., purchase, configure, test, etc.) is equal to or exceeds $3,000,000. Individual COTS/GOTS software packages or site licenses acquired as part of a deployment initiative must be capitalized if the collective cost of bulk purchase or asset recognized as result of lease consistent with the leasing criteria under 4 FAM 734.2, paragraph b, is equal to or exceeds $3,000,000. Software that is a component of another piece of personal property is subject to the special rules. (4 FAM 733.1-2); and
(3) All aircraft (fixed-wing aircraft, rotary-wing aircraft, and unmanned aviation systems) must be capitalized regardless of value, type, and mission configuration with the exception of unmanned aviation systems (drones) with cost basis equal to or less than the $25,000 personal property acquisition cost threshold (4 FAM 734.1, subparagraph a(5)).
Commerce Control List Items (CCLIs): Dual-use (commercial/military) items that are subject to export control by the Bureau of Export Administration, Department of Commerce. These items have been identified in the U.S. Export Administration Regulations (15 CFR 774) as export-controlled for reasons of national security, crime control, technology transfer, and scarcity of materials.
Condition: The physical state of an asset, its ability to perform as planned, and its continued usefulness, based on an evaluation. See 41 CFR 102-36.240 or 14 FAH-1 H-723.2 for disposal condition codes: 1- new, 4- used, 7- repairable, X- salvage and S- scrap.
Contractor-acquired property: Personal property acquired, fabricated, or otherwise provided by a contractor performing a contract and to which the U.S. Government has title (48 CFR 45.101).
Control: The ongoing function of maintaining physical oversight and surveillance of personal property throughout its complete life cycle using various property management tools and techniques taking into account the environment in which the property is located and its vulnerability to theft, waste, fraud, or abuse (41 CFR 102-35.20).
Demilitarization: The rendering of a product unusable for, and not restorable to, the purpose for which it was designed or is customarily used (48 CFR 45.101).
Depreciation: The allocation of the cost of an asset over time for accounting and tax purposes, and a decline in the value of property due to general wear and tear or obsolescence. The accounting system (e.g., GFMS, RFMS) will recognize and record depreciation on all capitalized Department-owned property (Note: ILMS does not calculate depreciated property values). Depreciation rates based on useful life will be reviewed every three years to determine the reasonableness of the rates. Appropriate useful lives for purposes of depreciation will be established by A/LM in consultation with CGFS/DCFO (4 FAM 033.8-9).
Disposal: The authorized processes that results in the removal of personal property from the Department official records. Generally, this includes the transfer to other U.S. Government agencies (form SF-122), donation through the U.S. State Agencies for Surplus Property (form SF-123), or competitive public sale. Other methods may include abandonment or destruction. Under exchange/sale authority, it may include exchange (i.e., trade in) of old property for similar new property with the same vendor. No other disposition methods are permitted unless sanctioned by law or regulation.
Excess personal property: Personal property no longer needed within the U.S. Government agency to carry out the functions of official duties or programs (41 CFR 102-36.40).
Exchange/sale authority: Exchange or sell non-excess, non-surplus personal property and apply the exchange allowance or proceeds of sale in whole or in part payment for the acquisition of similar property (41 CFR 102-39.20).
Expendables: Items that are consumed by normal use, lose their identity, or become an integral part of another item of property, including those items of low value not controlled except when in storage (i.e., warehouse or storeroom). Normally, the control of such property (through ILMS Expendables) ceases at the time of issuance from a warehouse or storeroom to the user. No formal accountability is maintained after issuance. Adequate safeguards and controls should be established to assure that issues of expendable supplies or materials are made for official U.S. Government business use only (41 CFR 101-25.107). Examples include office supplies (toner, paper, pens); tires; filters; replacement parts (for motor vehicles or aircraft); facility equipment (i.e., HVAC, plumbing); drill bits; fasteners; or installed computer parts (regardless of cost).
Fair-market value: The best estimate of the gross proceeds if the property were to be sold in a public sale (41 CFR 102.36.40).
Federal supply class (FSC) codes: The federal supply class is a U.S. Government-wide commodity classification designed to permit the grouping, classification and naming of all items of personal property. The FSC codes are required in the acquisition, receipt, and disposal phases in the personal property life cycle.
Firearm: Any weapon (including a starter gun) which will or is designed to or may readily be converted to expel a projectile by the action of an explosive; frame or receiver of any such weapon; any firearm muffler or firearm silencer. Such term does not include an antique firearm.
Foreign excess personal property: Any U. S. Government-owned excess personal property located outside the United States, the U.S. Virgin Islands, American Samoa, Guam, Puerto Rico, and the Commonwealth of the Northern Mariana Islands (41 CFR 102.36.40).
Foreign gift and decoration: A monetary or non-monetary present offered to or received by a U.S. Government agency or employee from a foreign government (see 41 CFR 102-42 Utilization, Donation, and Disposal of Foreign Gifts and Decorations). Decoration includes an order, device, metal, badge, insignia, emblem, or award offered or received from a foreign government.
Government aircraft: Manned or unmanned aircraft operated for the exclusive use of an executive agency (41 CFR 102-33.20).
Government furnished property: Property in the possession of, or directly acquired by, the U.S. Government and subsequently furnished to the contractor for performance of a contract. Government furnished property includes, but is not limited to, spares and property furnished for repair, maintenance, overhaul, or modification. Government-furnished property also includes contractor-acquired property if the contractor-acquired property is a deliverable under a cost contract when accepted by the U.S. Government for continued use under the contract (48 CFR 45.101).
Hazardous personal property: Property that is deemed a hazardous material, chemical substance or mixture, or hazardous waste under the Hazardous Materials Transportation Act (HMTA) (49 U.S.C. 5101), the Resource Conservation and Recovery Act (RCRA) (42 U.S.C. 6901 through 42 U.S.C. 6981), or the Toxic Substances Control Act (TSCA) (15 U.S.C. 2601 through 15 U.S.C. 2609) (41 CFR 102-36.40) Material consisting of explosives, flammables, corrosives, combustibles, oxidizers, poisons, toxins, sources of ionizing radiation or radiant energy, biological, radiological, or magnetic substances, or compressed gases, which, because of their nature are dangerous to store or handle and present real or potential hazards to life and/or property.
Heritage asset: Property that is unique for one or more of the following reasons: historical or natural significance; cultural, educational, or artistic (e.g., aesthetic) importance; or significant architectural characteristics (SFFAS 29 and 4 FAM 733.2). Department antiques, works of art, and other cultural objects with historic importance, antiquity, rare quality, or intrinsic value. This includes decorative arts such as textiles, antique furniture, clocks, sterling silver hollowware, porcelain and ceramics, and attachments such as wooden panels, hand-painted wallpapers, chandeliers, and fireplace mantels. It includes fine arts such as paintings, sculpture, and unique or limited-edition prints. It also includes other cultural property such as musical instruments and rare books. The acquisition cost for heritage property is not capitalized unless the property is a multi-use heritage asset (4 FAM 733.2-2).
Information technology (IT): Any equipment or interconnected system(s) or subsystem(s) of equipment that is used in the automatic acquisition, storage, manipulation, management, movement, control, display, switching, interchange, transmission, or reception of data or information by the agency. For purposes of this definition, equipment may be used by the agency directly or used by a contractor under a contract with the agency that requires its use or, to a significant extent, its use in the performance of a service or the furnishing of a product. The term “information technology” includes computers, ancillary equipment, software, firmware and similar procedures, services (including support services), and related services. But does not include any equipment that is acquired by a contractor incidental to a contract; or contains imbedded information technology that is used as an integral part of the product, but the principal function of which is not the acquisition, storage, manipulation, management, movement, control, display, switching, interchange, transmission or reception of data or information. For example, HVAC (heating, ventilation, and air conditioning) equipment, such as thermostats or temperature control devices, and medical equipment where information technology is integral to its operation, is not information technology (5 FAM 913).
Inspection: Examining and testing property or services (including when appropriate, raw materials, components, and intermediate assemblies) to determine whether they conform to contract requirements (48 CFR 2.101).
Integrated Logistics Management System (ILMS): ILMS is a unified web-based information system designed to integrate the Department’s supply chain by improving processing in such areas as purchasing, procurement, warehousing, transportation, receiving, property management, personal effects, and diplomatic pouch and mail. ILMS is the only State approved system for property management accountability and consists of several modules.
ILMS-INL end use monitoring (EUM) module: The ILMS-INL EUM module is used only by Bureau of International Narcotics and Law Enforcement (INL) to track foreign assistance property transferred (i.e., title passed) to foreign governments under law authority 22 U.S.C. 2291 International Narcotics Control. The ILMS-INL EUM module assists INL tracking of the property transferred to foreign governments to meet the annual congressional reporting requirements required by 22 U.S.C. 2291h.
International Cooperative Administrative Support Services (ICASS): ICASS is a customer-driven, voluntary interagency system for managing and funding administrative support services abroad. It gives posts the authority to determine how services are delivered, at what cost and by whom; has customer service standards established by the post, with the service provider formally accountable to the customer; and incorporates a full-cost recovery system through a no-year working capital fund (22 U.S.C. 2684, 22 U.S.C. 2695 and 6 FAM 911.4). ICASS requires reimbursement of the fair market value of ICASS personal property to other Department of State organizations or other ICASS locations under exchange/sale authority to offset the cost of acquiring similar new property needed to continue ICASS operations worldwide.
Inventory: A formal listing of all accountable property items assigned to a U.S. Government agency, along with a formal process to verify the condition, location, and quantity of such items. This term may also be used as a verb to indicate the actions leading to the development of a listing. In this sense, an inventory must be conducted using an actual physical count, electronic means, and/or statistical methods (41 CFR 102-35.20). Additional information is found in the Statements of Federal Financial Accounting Standards (SFFAS) 3 which refers to "inventory" (i.e., items held for sale) that would apply to Department domestic facilities and facilities abroad under the working capital fund, including ICASS operations. Also, operating materials and supplies to be consumed in normal operations are accounted for using SFFAS 3 requirements (4 FAM 732), Inventory and Operating Materials).
Invoice cost: The total of the amount paid to the vendor, including related costs such as transportation or installation, if included on the vendor's initial invoice.
Issue of U.S. Government property: The permanent provision of U.S. Government personal property to an organization or for an individual’s length of tour to perform U.S. Government business.
Law Enforcement Equipment (LEE): Tactical items including ballistic resistant body armor (i.e. tactical helmets, ballistic vests), which is a material or system designed to mitigate damage from bullets, fragmentation, blast effects, blunt force trauma, and protection from knifes or stabbing devices. Including property used within U.S. Government law enforcement organizations including riot shields and other similar protective equipment may have different disposition processes including tactical training, fit testing or other similar nonhazardous use.
Loan of U.S. Government property: The temporary provision (generally 90 calendar days or less) of U.S. Government personal property to an organization or individual to perform U.S. Government business.
Loss to U.S. Government property: Unintended, unforeseen or accidental loss, damage, or destruction of U.S. Government property that reduces the U.S. Government's expected economic benefits of the property. Loss of U.S. Government property does not include occurrences such as purposeful destructive testing, obsolescence, normal wear and tear, or manufacturing defect. Loss of U.S. Government property includes, but is not limited to:
(1) Items that cannot be found after a reasonable search;
(2) Theft;
(3) Damage resulting in unexpected harm to property requiring repair to restore to usable condition; or
(4) Destruction resulting from incidents that render the item useless for its intended purpose or beyond economical repair (48 CFR 45.101).
Motor vehicle: Any vehicle, self-propelled or drawn by mechanical power, designed and operated principally for highway transportation of property or passengers (41 CFR 102-34.35). For additional requirements on U.S. Government motor vehicles (14 FAM 430).
Munitions List Items (MLIs): Commodities (usually defense articles or defense services) listed in the International Traffic in Arms Regulation (22 CFR 120 through 130) published by the U.S. Department of State.
Nonexpendable personal property: Tangible assets not intended for sale in the ordinary course of operations; and have been acquired or constructed with the intention of being used or being available for use by the entity. May also include assets owned by the U.S. Government in the hands of others (e.g., contractors, state or local government). Property such as furniture, information technology (IT) equipment, motor vehicles, aircraft, generators, weapons and communications equipment, which is:
(1) Complete in itself;
(2) Does not lose its identity or become a component part of another item when used; and
(3) Is of a durable nature with anticipated useful life of over 2 years.
Non-Federal recipient report: Annual report that captures transactions property furnished that includes, but is not limited to transfer, donation, loan, lease, license agreement, and sale transaction, abandonment, or destruction of property, providing to certified recyclers, etc. This includes reporting property furnished as a loan to a non-federal recipient when reporting for the fiscal year that the loan was initiated (41 CFR 102-36.300).
Personal property: Tangible property of any kind or interest, except real property (41 CFR 102-36.40). The term excludes records of the U.S. Government. It includes such items as motor vehicles, aircraft, boats, furniture, equipment, supplies, materials, appliances, parts, and machinery. It Also includes program property, which is specialized property associated with a unique program where the overall management and technical expertise are controlled by a single bureau, office or agency. Program property is generally funded by that bureau, office, or U.S. Government agency (e.g., motor vehicle, global IT modernization (GITM), LAN/WAN Services digital, wireless radio telephone, tempest personal computer, armored vehicle, security equipment, generators, etc.).
Personal protective equipment and clothing: PPE&C are nontactical items such as respirators, gloves, safety shoes, eye and head gear, etc., that are part of the Department's safety and health strategy and in accordance with Occupational Safety and Health Administration (OSHA) (29 CFR 1910 and 29 CFR 1926 standards and regulations) essential for effective protection of workers potentially exposed to hazardous conditions in the work environment.
Physical inventory: A physical count performed to determine the actual on hand quantity of an item or group of items.
Privately owned property: Any item (primarily portable equipment) belonging to employees or visitors, hand carried in or out of U.S. Government premises.
Program funded property (USAID only): Property, distinct from OE-funded property, which is procured for the achievement of a strategic objective with funds of a USAID activity or project. When title for this property is vested in USAID, and it is in USAID custody, USAID inventory records must indicate the funding source.
Program property: Specialized property associated with a unique program where the overall management and technical expertise are controlled by a single bureau or agency and which is generally funded by that bureau or agency (e.g., motor vehicles, secure telephones, radios, tempest PCs, etc.).
Property management: The system of acquiring, maintaining, using and appropriate disposition of personal property (41 CFR 102-35.20).
Property Survey Board: Three or more U.S Government direct hire members who are appointed to adjudicate cases involving loss to U.S. Government property, including determining financial responsibility.
Purchase price: The cost paid to a vendor in exchange for an item of property, exclusive of shipping, packing, and storage costs.
Real property: Any interest in land together with improvements, structures, and fixtures located thereon. See 41 CFR 102-71.20 for full definition and exceptions including when disposing of improvements of any kind, structures without the underlying land are processed as personal property at the time of disposition.
Receiving report: Written evidence that indicates U.S. Government acceptance of personal property delivered or services performed (48 CFR 2.101). Receiving reports must meet the requirements of 48 CFR 32.905(c), Authorization to Pay. The Department of State uses Form DS-127, Receiving and Inspection Report. Receiving report must be in English and indicate the item cost in U.S. currency, the relevant obligation, contract, DOSAR number, the serial number if applicable, and note any damage or discrepancies.
Reconciliation: Action taken to rectify discrepancies between the physical inventory count and accountable ILMS-AM property records.
Replacement property: The process of acquiring property to be used in place of older property that is still needed but (1) no longer adequately performs the tasks for which it is used, or (2) does not meet the U.S. Government agency’s need as well as the personal property to be acquired. The net proceeds of sale of replacement property or exchange allowance (i.e., trade in) received are used to purchase similar property (41 CFR 102-39.20). Replacement property is not declared excess by the owning U.S. Government agency except as noted in 14 FAM 417.1-3.
Reutilization of U.S. Government property: The process that identifies idle or no longer needed personal property that may be better utilized by another organization (or person) within that U.S. Government agency. This could include reutilization to another person in the same bureau, office or post; or to another person in a different organization (different bureau, office or post) within the same U.S. Government agency.
Salvage: Personal property that has value greater than its basic material content, but for which repair, or rehabilitation is clearly impractical or uneconomical.
Salvage value: The estimated value of an asset at the end of its useful life. A standard 10-percent salvage value is used for most Department owned personal property that may be sold (4 FAM 734.3). However, some property including DS armored vehicles which may not be sold have a salvage value of zero (4 FAM 733.1-3). Contractor held property in high-risk areas have a salvage value of zero (4 FAM 736.3).
Scrap: Property that has no value except for its basic material content.
Sensitive personal property: Items, regardless of value, that require a high-level of control and accountability due to unusual rates of loss, theft or misuse, or due to security considerations.
Shelf-life: Timeframe for property to be stored without becoming unfit for use or consumption. Specific storage requirements may also apply. Conditions such as temperature range, exposure to ultraviolet light, or humidity avoidance can override the established shelf-life.
Similar personal property: In the exchange/sale property processes, when the acquired new item(s) and replaced old item(s) (1) are identical; (2) fall within a single Federal Supply Classification (FSC) group of property (includes any and all forms of property within a single FSC group); (3) are parts or containers for similar end items; or (4) are designed or constructed for the same purpose (includes any and all forms of property regardless of the FSC group to which they are assigned) (41 CFR 102-39.20).
Standardization: The selection of a specific brand(s) or type(s) of technical equipment to the exclusion of other brands or types when it can be established that such action is necessary and in the public interest. The Department’s standardization procedures are outlined in DOSAR 48 CFR 606.370.
USAID trust-funded property: Property purchased with USAID Trust Funds, to be used only for USAID activities, and accounted in inventory records in the same manner as, but separately from, USAID OE-funded personal property. Trust-funded property reverts to the host country upon disposal.
Unclaimed personal property: Abandoned personal property found on premises owned or leased by the Government. Sometimes called lost and found property, though it includes property intentionally left on land or in buildings. The U.S. Government may hold the property for 30 calendar days. If the former owner has not filed a claim, title vests in the U.S. Government on the 31st calendar day. See 41 CFR 102-41.120 through 41 CFR 102-41.185 and 14 FAH-1 H-727.2.
Uniform: A specified article or articles of clothing that may include, but is not limited to, shoes, hats, shirts, or outerwear mandated by an agency for employee use to provide a distinctive and easily identifiable appearance in performing job. A “uniform” does not include protective equipment required for the employee’s safety under 5 U.S.C. 7903 or normal business or work attire purchased at the discretion of the employee (see 5 CFR 591.102).
Useful life: An estimate of how long an item of property can be expected to be usable in trade or business or to produce income.
Voluntarily abandoned property: Personal property is voluntarily abandoned when the owner of the property intentionally and voluntarily gives up title to such property and title vests in the U.S. Government. The receiving agency documents receipt of the property to evidence voluntary relinquishment. Evidence of the voluntary abandonment may be circumstantial (see 41 CFR-41.80 and 14 FAH-1 H-727.3).
Working capital fund: A form of intragovernmental revolving fund that generally finances the centralized provision of common services within an agency. A working capital fund may also provide goods or services to other U.S. Government agencies on a reimbursable basis as authorized by law. Specific statutory authority is necessary to create a working capital fund (i.e., 22 U.S.C. 2684 Department of State working capital fund). The rule that working capital funds (revolving funds) are appropriated funds follows from the Miscellaneous Receipts Act, 31 U.S.C. 302(b) and the Appropriations Clause, U.S. Constitution, article I, section 9 clause 7 (see GAO Principles of Federal Appropriations Law, third edition, page 12-100, 12-101, 12-106, 12-107). See 4 FAH-3 H-113.4-3 for the various 15 Department of State working capital fund operations, including ICASS.
14 FAM 411.5 Personal Property Authorities
(CT:LOG-354; 07-21-2022)
(State/USAID/Commerce/Agriculture)
a. Laws:
(1) 40 U.S.C.: Public Buildings, Property, and Works; Federal Property and Administrative Services, Chapter 5 – Property Management, includes:
(a) 40 U.S.C. 501 through 40 U.S.C. 506 authority for procurement of personal property and warehousing;
(b) 40 U.S.C. 521 to 40 U.S.C. 529 use of property, including 40 U.S.C. 524(a)(1) requirement that each executive U.S. Government agency must maintain inventory controls and accountability systems for property under its control;
(c) 40 U.S.C. 541 to 40 U.S.C. 559 disposing of property; and
(d) 40 U.S.C. 571 to 40 U.S.C. 574 proceeds from sale or transfer;
(2) Federal Personal Property Management Act of 2018 amended 40 U.S.C. Chapter 5, and includes:
(a) 40 U.S.C. 506 provides authority for the U.S. General Services Administration (GSA) to establish capitalization and accountability thresholds for the personal property of executive U.S. Government agencies;
(b) 40 U.S.C. 524 requires each executive U.S. Government agency:
(i) On an annual basis, conduct an inventory and assessment of capitalized personal property, including evaluating its age and condition, the extent of its utilization, and the extent to which the mission is dependent on it; and
(ii) On a regular basis, conduct an inventory and assessment of accountable personal property, including evaluating its age and condition, the extent of its utilization, and the extent to which the mission is dependent on it;
(3) Foreign Excess Property Act, as amended, 40 U.S.C. 701 to 40 U.S.C. 705, provides authorities for disposition of excess property located in foreign areas;
(4) 22 U.S.C. 2684 provides authority for the Department of State working capital fund (WCF), including International Cooperative Administrative Support Services (ICASS) without fiscal year limitation. The WCF must be credited with receipts from the sale or exchange of property or in payment for loss or damage to property held by the fund;
(5) 22 U.S.C. 4082 provides the authority to loan basic household furnishing and equipment to members of the Foreign Service as a means of eliminating transportation costs;
(6) 15 U.S.C. 3710, Utilization of Federal Technology, specifically subsection (i), Research Equipment, provides authority to transfer excess research equipment to a nonprofit educational institution (U.S. school) for the conduct of technical and scientific education;
(7) 18 U.S.C. 641 provides for fines or imprisonment for whoever embezzles, steals, purloins, or knowingly converts to their use or the use of another, U.S. Government personal property;
(8) 31 U.S.C. 1344 provides that funds may be expended for the maintenance, operation, or repair of any passenger carrier (motor vehicle, aircraft, boat) only to the extent used to provide transportation for official purposes; and
(9) 31 U.S.C. 1349 requires the suspension of any employee who willfully uses, or authorizes the use of, a U.S. Government motor vehicle or aircraft for other than official purposes for at least one month without pay or, and when circumstances warrant, a longer period or summarily removed from office.
b. U.S. Government regulations:
(1) 41 CFR 102-35, Disposition of Personal Property, provides the U.S. Government-wide policy and mandatory requirements to improve the identification and reporting of excess personal property. 41 CFR 102-35.30, Title to U.S. Government owned personal property cannot be transferred to a non-Federal entity unless through official procedures specifically authorized by law;
(2) 41 CFR 102-36, Disposition of Excess Personal Property, provides regulations that ensure that personal property not needed by one activity within the Department is offered for use elsewhere within the Department. To the maximum extent practicable, the Department must fill requirements for personal property by using existing agency property or by obtaining excess property from other Federal agencies in lieu of new procurement;
(3) 41 CFR 102-37, Donation of Surplus Personal Property, covers “the donation of surplus Federal personal property located within a State, including foreign excess personal property returned to a State for handling as surplus property”;
(4) 41 CFR 102-38, Sale of Personal Property, provides regulations covering U.S. Government sales;
(5) 41 CFR 102-39, Replacement of Personal Property Pursuant to Exchange/Sale Authority, provides the regulations that implement 40 U.S.C. 503. When acquiring personal property, the Department may exchange or sell similar used items and may apply the exchange allowance (i.e., trade-in) or sale proceeds in whole or partial payment for the new similar property. Transfers with reimbursement of fair market value of the property to U.S. Government agencies are effected via form SF-122. This applies to all personal property owned by the Department worldwide. For the exchange/sale of aircraft parts and hazardous materials, the Department must also follow 41 CFR 102-33 and 41 CFR 102-40;
(6) 41 CFR 102-40, Utilization and Disposition of Personal Property with Special Handling Requirements, provides the regulations covering the identification of hazardous materials, along with the special policies and procedures governing the utilization, donation, sale, exchange, or other disposition of hazardous materials, dangerous property, and other categories of property with special utilization and disposal requirements;
(7) 41 CFR 102-41, Disposition of Seized, Forfeited, Voluntarily Abandoned, or Unclaimed Personal Property, provides the regulations covering disposition of personal property covered by 40 U.S.C. 552, Abandoned or Unclaimed Property on Government Premises; 40 U.S.C. 1306, Disposition of Abandoned or Forfeited Property; 26 U.S.C. 5688, Disposition and Release of Seized Property (distilled spirits, wines and beer); 26 U.S.C. 5872, Forfeitures of firearms; and 21 U.S.C. 863, Drug Paraphernalia;
(8) 41 CFR 102-42, Utilization, Donation, and Disposal of Foreign Gifts and Decorations, provides the regulations for the acceptance and disposition of gifts of more than minimal value and decorations from foreign governments under 5 U.S.C. 7342;
(9) 41 CFR 101-25 provides the regulations introducing the general area of supply management, which is designed to support logistical programs;
(10) The Joint Financial Management Improvement Program (JFMIP), Property Management Systems Requirements (JFMIP-SR-00-4), and Inventory, Supplies and Materials Systems Requirements (JFMIP-SR-03-02) contain the Government-wide mandatory and value-added statutory and regulatory requirements that are to be addressed whenever developing and maintaining any U.S. Government inventory, supplies, and materials system and any personal property management system;
(11) The Statement of Federal Financial Accounting Standards (SFFAS) 3, “Accounting for Inventory and Related Property,” and SFFAS 6, “Accounting for Property, Plant, and Equipment (PP&E)”; and
(12) 5 CFR 2635, Standards of Ethical Conduct for Employees of the Executive Branch, provides for Government employees to protect and use U.S. Government personal property only for official business.
c. Executive Orders/Executive Office of the President documents:
(1) Executive Order 12999 of April 17, 1996, “Educational Technology: Ensuring Opportunity for All Children in the Next Century,” provides guidance for the transfer of excess computer equipment to U.S. nonprofit schools; and
(2) Executive Order 13589 of November 9, 2011, "Promoting Efficient Spending," provides guidance on limiting the number of IT devices (e.g., mobile phones, smartphones, and desktop/laptop/tablet computers issued to employees.
14 FAM 412 REQUIREMENTS PLANNING AND USE
(CT:LOG-374; 05-15-2023)
(State/USAID/Commerce/Agriculture)
a. It is the policy of the U.S. Government that personal property acquisitions be limited to the quantity and quality necessary for cost-effective and efficient U.S. Government business (41 CFR 101-26.103, Establishing essentiality of requirements).
b. A bona fide need must exist to acquire personal property. The accountable property officer (APO) must ensure personal property is utilized to the fullest extent practical. Property utilization surveys must be completed to determine if new purchases are required or if existing Department property will meet requirements (41 CFR 101-26.103-1).
c. Additionally, to the maximum extent practicable, the APO must determine if currently available excess property from all U.S. Government agencies may be suitable to meet the need prior to initiating a request for new procurement action (41 CFR 102-36.65, 48 CFR 8.102, 41 CFR 102-36.45(a)).
d. When planning, Government funds may be used to purchase, or replace pictures, objects of art, plants, or flowers (both artificial and real), or any other similar items when such are included for the decoration of federal buildings approved by the Bureau of Overseas Building Operations. Except as authorized by specific law, however, U.S. Government funds must not be used when solely intended for personal choice, preference, or to satisfy the personal desire of an official or employee (41 CFR 101-26.103-2, Restriction on personal convenience items).
14 FAM 412.1 Property Analysis and Management
(CT:LOG-374; 05-15-2023)
(State/USAID/Commerce/Agriculture)
a. Utilize available ILMS Analytics reports to outline immediate and long-range planning which must include the requirements for new or replacement property. The APO must keep the property management officer (PMO) informed of proposed program and staffing needs. In turn, the PMO is responsible for verifying the analysis of needs directly with the responsible operating officers.
b. Reference 14 FAH-1 H-200 for implementing procedures on requirements planning and use.
c. Personal property which has a shelf life or unstable characteristics requiring storage in a specific temperature range or for a limited time must be monitored closely to ensure the property is appropriately stored and used in a timely manner to provide satisfactory and safe performance (41 CFR 101-27.2). Shelf-life property management should identify property that cannot be used three to six months prior to expiration for disposition so that it may be useful to the new owners (U.S. Government agency, U.S. State Agency for Surplus Property, outside vendor via exchange for new similar property), or sold via competitive public sale prior to expiration.
14 FAM 412.2 Office Furniture Use Standard
(CT:LOG-374; 05-15-2023)
(State/USAID/Commerce/Agriculture)
a. The purchase, lease, or reutilization of office furniture must be limited to the least expensive furniture that meets essential requirements for cost-effective and efficient U.S. Government business for the planned life cycle of the property. The acquisition of additional furniture items must meet the requirement and must not include upgrading only for the purpose of improving appearance, office decor, or status, nor to satisfy the desire for the latest design model (41 CFR 101-25.104).
b. The PMO, or designee, assigns office furniture obtained from any source, including excess, as follows:
(1) Executive furniture - for staff in a position of grade FS-01/GS-15 and above;
(2) Middle management furniture - for staff in a position of grades FS-02/GS-14 and FS-03/GS-13; and
(3) General office furniture – for all other employees.
c. The office requesting new or additional furniture when the existing furniture has not reached its service life, must provide justification. Higher initial costs per workstation for modular furniture are acceptable when use of the modular furniture reduces office space and results in lower costs over the life cycle of the property.
d. Domestic State: The assignment of draperies is limited to the Deputy Assistant Secretary level and higher. Only noncombustible or flame-resistant fabric may be used for authorized draperies, curtains, or other hanging materials (41 CFR 102-74.360(e); 41 CFR 101-25.302-7).
14 FAM 412.3 Replacement Standards
(CT:LOG-374; 05-15-2023)
(State/USAID/Commerce/Agriculture)
a. All executive agencies must use U.S. Government-wide minimum replacement standards for materials handling equipment (41 CFR 101-25.405), furniture (41 CFR 101-25.404), and motor vehicles (41 CFR 102-34.270). Executive agencies must retain items that are in usable condition even though the standard permits replacement, provided the item can continue to be used or operated without excessive maintenance cost or substantial reduction in exchange/sale value.
b. Additionally, the Department has established minimum replacement standards for various types of personal property listed at 14 FAH-1 H-213, paragraph d, based on the concept of pooled resources, evaluation of industry standards of longer life cycles, and reduced management costs from U.S. taxpayer monies spent for U.S. Government operations (see 14 FAH-1 H-213, paragraph d).
c. A written request for deviation, approved by the accountable property officer (APO) or authorized designee, allows replacement of property under the following conditions, provided a written justification supporting such replacement is retained in the procurement and property management office files:
(1) Where there is a continuous history of breakdowns with a corresponding loss of productivity through downtime;
(2) When the cumulative repair costs on an item appear excessive;
(3) When repair parts are not available, causing excessive downtime; or
(4) When personal property lacks essential features required in the performance of a particular task that that is continuing in nature; or
(5) When continued use of the item is a safety or occupational health issue, which cannot be economically corrected.
14 FAM 412.4 Use of U.S. Government Personal Property
(CT:LOG-374; 05-15-2023)
(State/USAID/Commerce/Agriculture)
All employees have a standard of duty to protect and conserve U.S. Government property. Personal property must only be used for official U.S. Government business purposes in a cost-effective manner and in adherence to all safety requirements (see 5 CFR 2635.704).
14 FAM 412.4-1 Preventive Maintenance and Repair
(CT:LOG-374; 05-15-2023)
(State/USAID/Commerce/Agriculture)
a. Preventive maintenance is a program to manage care and scheduled servicing of personal property designed to preserve and restore equipment reliability by replacing worn components before unexpected failure. Effective preventive maintenance results in maximized equipment availability for critical operational needs, reduced or optimized downtime, a reduced number of major repairs, better conservation of assets, and increased life expectancy of assets.
(1) Personal property must be cared for in accordance with the manufacturer's life-cycle maintenance recommendations and any warranty conditions. The manufacturer requirements are often prescribed in owner service manuals provided with the equipment or located within the manufacturer support documents.
(2) Routine inspection of personal property promotes safety and makes U.S. Government property more likely to reach its planned useful life.
(3) Preventive maintenance or calibration may require specific tools, diagnostic equipment, or trained technicians or mechanics. The APO or custodial officer may need to determine if the organization has the knowledge and resources to perform the required maintenance or if it needs other subject matter experts (e.g., for computers, radio communication equipment, armored vehicles, facility components, aircraft, and material handling equipment).
(4) It may be more cost effective to arrange servicing on a per-call basis. Determine whether to service personal property by maintenance contracts or by per-call arrangements after comparing relative costs affecting specific types of equipment based on the following:
(a) Standard of performance required;
(b) Degree of reliability needed;
(c) Daily use; and
(d) Age, condition, and performance of personal property.
b. Repair is the restoration of broken, damaged, or failed personal property (device, equipment, part) to an acceptable safe operating or usable condition. Generally, repair is required after wear, damage, or partial destruction has made the property unsafe or no longer operational at an acceptable level of performance.
(1) The APO or custodial officer must establish oversight to continuously monitor the personal property to assure maximum use, to promptly detect nonuse or improper use, and to prevent unauthorized disposal or destruction of personal property.
(2) The custodial officer must ensure repair estimates are provided and checked against the accountable property records within ILMS. This comparison will demonstrate the more cost-effective option between repairing and replacing specific property given the minimum replacement standards (14 FAM 412.3), past repair history, and current estimated full acquisition cost to acquire replacement property.
(3) Information on the actual repair cost and type of repairs performed must be entered on the asset record in ILMS Asset Management for accountable personal property and may be required for subcomponents of certain types of personal property or life-limited components, including flight-critical aircraft parts, armored motor vehicles, material handling equipment, etc.
c. The custodial officer must ensure all equipment is calibrated according to the manufacturer’s specifications and maintenance requirements. Property that does not meet calibration standards and/or deemed inoperable must be removed from operations to sustain data integrity and employee safety and, if appropriate, be destroyed (e.g., inaccurate or faulty carbon dioxide detector, medical devices, test equipment, fire extinguisher pressure, electrical voltage output, etc.).
14 FAM 412.4-2 Loan of U.S. Government Personal Property
(CT:LOG-374; 05-15-2023)
(State/USAID/Commerce/Agriculture)
a. U.S. Government personal property (e.g., information technology (IT) mobile devices including laptops and tablets for use while on official travel) may only be loaned on a temporary basis for official business to:
(1) U.S. Government employees;
(2) Other U.S. Government agencies;
(3) State Overseas: employee associations (6 FAM 524) and employee operated services and facilities (ADS Chapter 532), commissary, mess services (22 U.S.C. 2703), and recreational facilities. The association must reimburse direct costs of equipment such as computer hardware, office furnishings, air conditioners, refrigerators, and freezers if reasonable and possible under local conditions.; or
(4) State and USAID Overseas: U.S.-sponsored schools abroad for official purposes, to support educational opportunities for dependents of U.S. citizens under chief of mission authority (22 U.S.C. 2701 Educational facilities, 2 FAM 610 and ADS Chapter 539).
b. All personal property loans (regardless of original acquisition cost) must be documented with a definite start and end date on Form DS-584 Property Transaction using the ILMS Loanable Property (LP) module. The lending office must follow up with all loans when the end date has been exceeded.
c. All loans over 90 calendar days must be authorized by the APO. Loan extensions require the same approval process as the original loan request.
d. Interagency property loans (loans to another U.S. Government agency) must be:
(1) Documented in an interagency agreement (IAA) that includes specific language that the federal agency receiving the property agrees to reimburse the lending agency for damage or loss of the property, any inventory and maintenance requirements, or other agency-specific requirements;
(2) Uploaded to the asset record in ILMS Asset Management after obtaining all required signatures;
(3) Authorized by the APO and approved by the PMO on Form DS-584 generated from ILMS-LP for internal tracking of the assets loaned to the other federal agency.
e. For loans involving IT property, the requirements within 12 FAM 620 and 12 FAH-10 H-260, Media Protection, plus the use of U.S. Government enterprise licensed software must be considered.
f. New property must not be purchased to cover similar property that is currently on loan.
g. All loaned accountable U.S. Government personal property must be physically accounted for during the annual inventory process.
h. U.S. Government furnished property (GFP) provided on a contract or grant is not considered a property loan. If the contracting officer, determines the Department’s best interest or the overall benefit outweighs the increased cost, then the GFP may be managed in accordance with the FAR 48 CFR 45 and 48 CFR 52.245-1 government property clause (e.g., the contractor requires Department-issued laptops to perform administrative services).
(1) U.S. Government policy ordinarily requires all contractors to furnish the property necessary to perform U.S. Government contract requirements. See 48 CFR 45.102 for the exceptions and 48 CFR 45.301, “Use and rental,” which states the contracting officer must account for any U.S. Government-furnished property; or
(2) State only: For grantees, the Department must have specific statutory authority to provide property. See 14 FAM 411.1 (i) regarding governing policy and regulations for grantee-held U.S. Government personal property.
i. USAID or USAID/IG property: For loans of USAID property to other U.S. Government agencies:
(1) The USAID PMO must document and approve all loans of less than 90 days;
(2) Property loans of 90 days or more must be authorized by the USAID principal officer for regular USAID property or Regional Inspector General/Audits (RIG/A) for USAID/IG property;
(3) RIG/A must authorize loans of RIG-funded equipment;
(4) The PMO or USAID principal officer, as appropriate, must authorize loans of other USAID property; and
(5) USAID loans to employee-operated facilities must comply with the regulations contained in USAID Automated Directives System (ADS) Chapter 534 Personal Property Management Overseas and ADS Chapter 532 Employee Operated Services and Facilities.
j. See 14 FAH-1 H-424 for additional requirements on the loan of U.S. Government personal property. State-owned personal property physically located in the U.S. and its territories and loaned to a non-federal recipient located in the U.S. and its territories must be reported by A/LM/PMP/PM on the State annual fiscal year non-federal recipient report required by 41 CFR 102.300. Because the current reporting capability in ILMS does not include these transactions, the federal agency responsible for the property must enter the disposition data directly into the U.S. General Services Administration Personal Property Reporting Tool each fiscal year.
14 FAM 412.4-3 Loan of Privately Owned Property
(CT:LOG-374; 05-15-2023)
(State/USAID/Commerce/Agriculture)
a. The loan of private property to the U.S. Government for use is not prohibited but is highly unusual and requires consideration of issues involving supplemental appropriations, U.S. Government ethics restrictions (5 CFR 2635), and procurement regulation, especially if the party has past, current, or potential future business dealings with a U.S. Government agency.
b. When it is determined to be clearly in the interest of the U.S. Government, the loan must be documented, establishing the responsibilities of the U.S. Government and the lender. The U.S. Government's responsibility may not go further than ordinary protection and upkeep. If the owner requires insurance as a condition of the loan, the bureau, office, or post should seek advice from the appropriate parent U.S. Government agency legal office.
c. Privately owned property should not be accounted for in ILMS since the property is not owned by the U.S. Government.
d. Privately owned property should be clearly marked as externally owned so it is not mistaken for U.S. Government property and improperly added to the U.S. Government accountable property records during the annual physical inventory or at other times.
14 FAM 413 PROPERTY RECEIPT
14 FAM 413.1 General
(CT:LOG-124; 05-16-2012)
(Uniform State/USAID/Commerce/Agriculture)
a. The PMO must designate, in writing, an employee to serve as receiving clerk and an employee to serve as an alternate receiving clerk.
b. The receiving clerk must inspect promptly all property delivered to post as to quantity, quality, and condition, and ensure that the property is in accordance with the terms and specifications of the acquisition document.
14 FAM 413.2 Receiving Areas
(CT:LOG-124; 05-16-2012)
(Uniform State/USAID/Commerce/Agriculture)
The receiving activities of each establishment abroad must be centralized. However, the PMO's designation of a central receiving area does not preclude receiving and inspection at other areas. When sub-receiving areas are designated, written standard operating procedures must include a method of informing the central receiving area of all receipts.
14 FAM 413.3 Receiving Responsibility
(CT:LOG-124; 05-16-2012)
(Uniform State/USAID/Commerce/Agriculture)
a. The receiving clerk is responsible for the receipt and inspection of all property and the preparation and distribution of receiving reports. The receiving clerk is the link between the procurement, property, accountability, and certifying functions. When a receiving report is signed stating that the supplies or service have been received, the procurement process is completed, the accountability function begins, and the process for payment is initiated.
b. State only: If receiving at post is performed by a contract employee the employee may perform the inspection and receiving functions but is not authorized to sign the receiving report accepting the property on behalf of the U.S. Government. Acceptance of property on behalf of a Federal agency is an inherently governmental function (see FAR 7.5) that is to be performed only by officers and employees of the U.S. Government, including personnel having a personal services agreement.
c. USAID only: For purposes of receiving, USAID considers personal services contractors to be U.S. Government personnel and, as such, they may perform all receiving duties, including signing receiving reports.
14 FAM 413.4 Receiving Files
(CT:LOG-124; 05-16-2012)
(Uniform State/USAID/Commerce/Agriculture)
The receiving clerk in the central receiving area must provide copies of acquisition documents to the appropriate receiving area to establish a pending order file, when applicable. Completed centralized receiving files must be established at the central receiving area.
14 FAM 413.5 Receiving Action
(CT:LOG-314; 05-12-2021)
(Uniform State/USAID/Commerce/Agriculture)
a. For Department of State activities abroad, it is unnecessary to create Form DS-127, Receiving and Inspection Report, when the total quantity of an order is received in a single delivery and receipt is annotated in the receiving section on Form OF-347, Order for Supplies or Services. In this event, property numbers and serial numbers are recorded on Form OF-347. If a partial delivery is made, Form DS-127 must be prepared. When a sub-receiving area has been established, the individual assigned to perform receiving duties at the sub-receiving area must prepare and sign the receiving section on Form OF-347 or Form DS-127 (as appropriate). The receiving section on Forms OF-347, as well as on Form DS-127 must be prepared in English, and the item cost must be indicated in U.S. currency. Any damage or other discrepancies must be noted in the receiving sections of Form OF-347, as well as on Form DS-127. In ILMS, the DS-127 Receiving and Inspection report can be generated by the system for partial and complete deliveries.
b. State activities abroad using ILMS AM must immediately affix a bar code label to accountable, nonexpendable property upon receipt (except property recorded in a group record file and certain heritage assets).
c. State only: A designated receiving official must perform receiving and acceptance of State owned or leased mobile phones in accordance with 14 FAH-1 H-312 requirements and create the mobile phone asset record in the ILMS loanable property (LP) module. State mobile phones are not required to be barcoded.
14 FAM 413.6 Post-Receiving Actions
(CT:LOG-124; 05-16-2012)
(Uniform State/USAID/Commerce/Agriculture)
Shipment discrepancies must be documented and, as appropriate, a claim Form SF-364, Report of Discrepancy, filed. Action on discrepancies must be prompt.
14 FAM 413.7 Warehousing and Storing Property
(CT:LOG-124; 05-16-2012)
(Uniform State/USAID/Commerce/Agriculture)
a. Where it is necessary to store and warehouse property at the establishment abroad, the PMO must implement an efficient and economical warehousing program with written standard operating procedures for handling and storage of the property. Special consideration must be given to the following:
(1) Secure and/or controlled areas must be provided for storing expensive equipment and supplies subject to theft or deterioration;
(2) In a joint warehousing operation, property from different activities or Agencies may need to be stored separately but should not be segregated by location, to maximize the use of available space. In all cases, commingled property must be appropriately identified to show agency ownership of the property;
(3) Firebreak wall and isolated storage must be provided for highly flammable materials, such as paints and fuels;
(4) Proper shelving and/or racking is used for expendable and nonexpendable property;
(5) Proper materials handling equipment is used;
(6) The building must be properly ventilated;
(7) Proper overall safety and security procedures are established; and
(8) Access to the warehouse must be limited to those persons who have a need to enter and that security locks/codes must be changed in accordance with standard procedures, and when the lock or code is compromised or when a person no longer has a need to enter.
b. Implementing procedures for administrative property can be found in 14 FAH-1 H-318.
14 FAM 414 CONTROL OF PERSONAL PROPERTY
(CT:LOG-124; 05-16-2012)
(Uniform State/USAID/Commerce/Agriculture)
The property management officer (PMO) must establish procedures that reasonably ensure that all personal property is controlled as prescribed in this regulation.
14 FAM 414.1 Accountability
(CT:LOG-124; 05-16-2012)
(Uniform State/USAID/Commerce/Agriculture)
Accountability is that control exercised through record keeping. Accountable property records must be maintained on expendable and nonexpendable stock inventory and on nonexpendable property in use, which meets the accountability criteria prescribed in this regulation.
14 FAM 414.1-1 Accountability Criteria
(CT:LOG-124; 05-16-2012)
(Uniform State/USAID/Commerce/Agriculture)
a. Personal property that must be tracked on property records, including capitalized property, inventoried as required, that meets the criteria listed in 14 FAM 411.4, Definitions.
b. USAID only: Inventory records must be kept on all accountable property `(accountable property definition in 14 FAM 411.4 and all capitalized property (see 14 FAM 415.2 and ADS Chapter 629) whenever such property is titled with or is in the custody of USAID. Records must indicate ownership by funding source (OE, trust fund, program-funded, RIG/A, OFDA, etc.) Report this inventory annually to M/MS/OMD.
14 FAM 414.1-2 Program Property
(CT:LOG-124; 05-16-2012)
(Uniform State/USAID/Commerce/Agriculture)
a. State only: Program property is normally accounted for by the funding organization and must be tracked in ILMS unless accounted for in an authorized automated accountability system.
b. State only: When program property is centrally accounted for and controlled by a headquarters office or bureau, the PMO must delegate custodial responsibility to an officer at post for such property. Custodial responsibility for security and communications equipment is inherent in the role of the security officer and communications officer. The custodial officer must be responsible for conducting the physical inventory at the post and for coordinating reconciliation with the controlling office or bureau. If supplemental property records are maintained at post, these records must be reconciled to agree with the central property records.
c. USAID trust-funded and program-funded property:
(1) Unless otherwise governed by the trust-fund agreement, all nonexpendable property purchased with trust funds must be controlled in the same manner as USAID-owned property. Property that is trust-funded or funded through other program accounts must be marked accordingly, and separate accountability records must be kept; and
(2) U.S. Government property in the custody of a USAID contractor is controlled and maintained in accordance with the provisions of the contract or as specified and approved by the contracting officer. When USAID contracts are completed and USAID assumes title and custody of the program-funded property from a contractor, a receiving report must be made and the items posted to the USAID inventory. See 14 FAM 417.1-7 for USAID contractor property.
d. All nontempest IT and word processing equipment meeting accountability criteria in 14 FAM 414.1-1, regardless of funding source must be considered administrative property and accounted for on post’s property records.
14 FAM 414.1-3 Heritage Assets
(CT:LOG-304; 01-22-2021)
(Uniform State/USAID/Commerce/Agriculture)
a. Antiques, works of art, and other cultural objects must be accounted for in the Department’s property inventory and system of record, ILMS Asset Management). See 4 FAM 733 for financial management considerations regarding heritage assets.
b. Supporting documentation should be consolidated for permanent retention. These include the maker’s names and biographies, acquisition documents, donor letters, appraisal descriptions and values, conservation or restoration treatment reports, and related published material. Specific guidelines for documenting and maintaining heritage assets can be found on the OBO/OPS/CH SharePoint site.
14 FAM 414.1-4 USAID Software Accountability and Disposal
(CT:LOG-60; 05-14-2009)
(USAID Only)
a. Software, as an intangible property, presents some special considerations for property management and accountability. Bar coding of accountable software may be recorded in a binder containing a page for each accountable software license. In no event are missions to abrogate copyright licenses for software items. The following accountable standards apply only to USAID software in the custody of missions:
(1) Pre-loaded software: Operating system and software suites which come preloaded on equipment must be entered on inventory only when they are priced separately from the equipment they reside on, and when that price is over $500. Nonpriced preloaded software and any preloaded software priced at less than $500 must be treated as expendable property;
(2) Standalone packages: Once issued, standalone software packages must be recorded in inventory only if their value exceeds $500;
(3) Site licenses: Site and concurrent user-licenses are purchased by a work unit for permission to use software by a group, e.g., USAID Worldwide or users in a particular mission. Licenses are recorded on inventory either in USAID/W or at post, but not at both. The CIO will record agency-wide licenses in Washington, DC. Missions must record on inventory only those site licenses purchased on the mission's behalf for use in that particular mission, and only when such site license has a cost of $500 or greater;
(4) Upgrades: Standalone packages and site licenses are often upgraded. The superseded version is deleted from inventory by abandonment and the upgrade license is entered in its place with a Form DS-127, Receiving and Inspection Report, whenever such license has a cost of $500 or greater;
(5) Internally developed software: Missions that develop individual noncopyrighted software must enter that property in inventory; and
(6) Capitalized: In the unlikely event that a mission has procured a site license or standalone software valued at the capitalization threshold ($25,000) or higher, it must be reported as capitalized property.
b. As software typically has a short life span, abandonment as a method of disposal (see 14 FAM 417.2-6) will be reached faster with software than with other types of nonexpendable property. When obsolete software is abandoned it must be deleted from hardware; source disks, manuals, and licenses must be destroyed concurrent with the property disposal action conducted in the inventory system.
c. When disposal of software through redistribution, transfer, sale, grant-in-aid, project contribution, or donation seems merited, missions are cautioned to follow the conditions of the licensing agreement in regard to transfer of ownership.
14 FAM 414.2 Ownership and Identification
(CT:LOG-124; 05-16-2012)
(Uniform State/USAID/Commerce/Agriculture)
All nonexpendable property must be marked as soon as possible after receipt to indicate ownership by the agency that funded the purchase.
14 FAM 414.2-1 Approved Property Record Systems
(CT:LOG-322; 06-04-2021)
(State/USAID/Commerce/Agriculture)
a. State only:
(1) For nonexpendable property: Integrated Logistics Management System asset management (AM) is the approved property accountability system for Department of State accountable personal property;
(2) For expendable supplies: The ILMS Expendable Management System is the approved system for operating materials and supplies in storage at a warehouse or storeroom to be consumed in normal operations (see 4 FAM 732 and SFFAS 3; and
(3) For State-owned or -leased mobile phones worldwide: Irrespective of cost thresholds, these must be controlled using the ILMS loanable property (LP) module.
b. USAID only: USAID missions will use the ILMS Asset Management System. The State-approved property management system BarScan can also be used until such time as ILMS is deployed at posts.
c. USDA/FAS only: The Foreign Property Management Inventory System (FPMIS) is the approved property management system for all FAS-owned nonexpendable property.
d. USDA/APHIS only: The Corporate Property Automated Information System (CPAIS) is the approved property management system for all APHIS-owned nonexpendable property.
14 FAM 414.2-2 USAID
(CT:LOG-113; 12-16-2011)
(USAID Only)
a. All property purchased with operating expenses must be marked USAID.
b. Property purchased with trust funds is titled to the host government and must be identified with the lettering TF.
c. Property purchased with IG funds must be marked IG.
d. Property purchased from program appropriations must be marked USAID followed by a project account number (obtain USAID project account numbers from the USAID principal officer, EXO, or controller).
e. Contractors must mark property, which is financed by USAID or host government to distinguish it from their own:
(1) USAID for USAID-owned;
(2) HG or country symbol for host-government-owned; and
(3) IG for USAID Inspector General property.
f. Project property retained in the custody of USAID must be identified appropriately as belonging to the host government with the project number indicated, where feasible to do so. In countries where host-government regulations conflict with this premise, appropriate determination of marking property and accounting for property must be codified in post operating procedures.
14 FAM 414.3 Personal Custody Records
(CT:LOG-357; 08-22-2022)
(Uniform State/USAID/Commerce/Agriculture)
a. When personal property is issued to an employee for the employee's exclusive use in the performance of official duties (such as portable radios, laptops, iPads, tablets, weapons and ammunitions, portable digital assistants, tool kits, etc.), the transaction must be documented on Form DS-584, Nonexpendable Property Transaction, and the property office must maintain a "charge-out file" until the property is returned.
b. State only: The Department’s policy for the centralization, inventory control, encryption, secure transport, labeling, and training requirements for Department-owned laptops (classified and unclassified) is as follows:
(1) The management officer (MO) must approve the distribution and use of Department-owned, IT CCB-approved, wireless IT devices at post. The IMO or ISSO must reduce the number of laptops required to accomplish the mission to an absolute minimum. Minimize the amount of PII (see 5 FAM 600) on laptops to only that which is necessary to accomplish the business objective:
(a) Prior to being provided a laptop and annually thereafter, all laptop users, in coordination with their ISSO, must review the DS Classified or Unclassified/SBU Laptop Cyber Security Awareness Briefing and sign the acknowledgement. The documents are available on the DS/CTS website. The ISSO must maintain a written record and signed user acknowledgement of the briefing;
(b) All posts are required to certify, annually, that all laptop computers have been encrypted according to FIPS 140-2 (notebooks). If post has not already procured an encryption solution, go to the Department’s encryption products site for procurement information. Follow the SafeNet Protect Drive encryption software and installation instructions. Encrypt all classified laptops with National Security Agency (NSA) Type One encryption unless a waiver has been obtained;
(c) Laptop waiver requests: The Office of Information Assurance (IRM/IA) has a procedure for granting a waiver to the laptop encryption requirement. Waivers are granted on a case-by-case basis and require strong justification. For more information or to submit a waiver request online.
(2) The IMO or ISSO in conjunction with the accountable property officer (APO) must record, validate, and reconcile laptop computers regardless of cost or the purchasing office in the Department official inventory system (e.g., ILMS – Asset Management). The IMO, ISSO system managers, or designated employee must participate in the inventory of IT equipment during the annual physical inventory of Department personal property required by 14 FAM 416 starting no earlier than October 1 each year and resulting in the DS-582, Property Management Report submission by March 15 of the same fiscal year. Additionally, it is strongly recommended that IMO or ISSO in conjunction with the APO validate and reconcile all laptops to the approved property record system (ILMS) at least at a 6-month midpoint (e.g., from the official annual physical inventory requirement of 14 FAM 416). It is not necessary to submit the DS-582 to A/LM/PMP/PM for this 6-month midpoint inventory; however, the IMO and APO should determine the cause of discrepancies plus take appropriate action to ensure full control of laptops, including encryption, user laptop training, records retention, and timely disposition;
(3) The IMO or ISSO is accountable for the inventory and responsible for encryption activities and physical security of all laptops (classified, unclassified and SBU; see 14 FAM 414.1-1, subparagraph a(6): IMO or ISSO must implement a centralized laptop control and check out procedure). Use Form DS-7642, Mobile Computing and Data Storage Request Form, which provides a way to manage laptop control and check out as well as track the type of data stored on laptops. The properly completed loan documents must be maintained for at least 12 months by the IMO or ISSO after the return of the laptop to allow for any further review, audit, or investigation if required;
(4) The IMO or ISSO must instruct users to report immediately if they suspect theft/loss, loss of control, loss of media, tampering, or abnormal functionality of the laptop by email, cirt@state.gov, or by phone to (301) 985-8347. IMO and ISSO must report immediately damaged, missing, or destroyed laptops to the accountable property officer by completing Form DS-132, Property Disposal Authorization and Survey Report, in accordance with 14 FAM 416.5. If theft or fraud is suspected as accounting for the shortage of a property at any value, the PMO must report all relevant information to the Office of the Inspector General, Office of Investigations (OIG/INV) for State. See 12 FAH-6 H-542.5-10 (classified) for security requirements of disposal of media (including hard drives); and
(5) Department-owned, -approved, and -issued wireless IT devices must not be allowed in the CAA unless authorized under Department standards. (See 12 FAH-6 and 12 FAH-10 H-170.)
c. State only: The bureau, office, or post must use the ILMS LP module to control mobile phones as follows:
(1) Issue to each employee for office business use for the duration of assignment to position (usually greater than 90 calendar days);
(2) Loan for use usually 90 calendar days or less for official business temporary need (travel, special project);
(3) Document on Form DS-584 Property Transaction via the ILMS LP module; and
(4) Reuse: When a user no longer needs a mobile phone for official business (transferring to another post or position or leaving the Department) the mobile phone must be returned to the APO and the ILMS LP module data records must be updated. The ISSO will wipe or reformat all returned mobile phones prior to assignment to a new user (12 FAH-10 H-164.2(13).
14 FAM 414.4 Managing Property in Stock
(CT:LOG-314; 05-12-2021)
(State/USAID/Commerce/Agriculture)
The property management officer (PMO) must ensure that procedures are in place to:
(1) Maintain control of stock inventory in storage at a warehouse or storeroom;
(2) Establish adequate safeguards and controls to ensure that supplies are issued for official use only;
(3) Require approval of stock replenishment orders;
(4) Require that excess property at post or from other posts in the geographic area is screened to determine whether the items can be supplied from either of these sources;
(5) Require that:
(a) Spare parts, materials, supplies and equipment in storage at a warehouse or storeroom are managed using ILMS expendable management system;
(b) A requisition be used to issue parts for vehicles or other equipment;
(c) Where applicable, used parts be turned in when new parts are issued;
(d) Used parts not salvageable be disposed of by sale as scrap; and
(e) Usable parts be added to property records for reissue.
14 FAM 414.5 Internal Requisitioning Procedures
(CT:LOG-314; 05-12-2021)
(State/USAID/Commerce/Agriculture)
The accountable property officer (APO) must ensure that effective internal requisitioning and issuing procedures are established and enforced. Minimally, these procedures must ensure that:
(1) Requisitions including Form DS-583, Expendable Supply Issue/Turn-In Request, Form DS-584, Property Transaction, or Form DS-585, Nonexpendable Property Repair Work Order, signed by authorized personnel, are used to request services, expendable and nonexpendable property, returns to stock, and to debit or credit stock control and property accountability records;
(2) The accountable property officer (APO) (or designated local employed staff) approves all requests for expendable items issued from stock in storage at a warehouse or storeroom. However, the APO must approve all requests for procurement actions. The facilities maintenance officer may approve requests for maintenance spare parts. However, all issuance of operating materials and supplies from storage in a warehouse or storeroom are issued by the accountable property officer (APO) or designated employed staff;
(3) The residence occupant must sign requests for residential personal property and the occupant or occupant's designee must sign for receipt of such property;
(4) The employee receiving property or the office supervisor in an office receiving property must sign for receipt; and
(5) Copies of completed Forms DS-583, DS-584, and DS-585 must be maintained on file to support stock control and property accountability records.
14 FAM 414.6 Authorization to Remove Property from Buildings
(CT:LOG-124; 05-16-2012)
(Uniform State/USAID/Commerce/Agriculture)
a. The APO or a designated employee must document the name of any individual removing property from a U.S. Government building and the description of the property being removed (property pass) and authorize the removal. Exceptions to the requirement may include privately owned and U.S. Government-issued items such as beepers, portable digital assistants (PDAs) or cellular telephones that are issued to employees and signed for on Form DS-584, and the removal of excess property being returned to the warehouse for disposal, normally documented on Form DS-132, Property Disposal Authorization and Survey Report. However, this requirement may be waived by the PMO when local conditions make it impractical or unnecessary such as at very small posts.
b. Implementing procedures can be found in 14 FAH-1 H-425.
14 FAM 415 acquisition of personal property
14 FAM 415.1 Recording Property Cost
14 FAM 415.1-1 Property Purchased
(CT:LOG-124; 05-16-2012)
(Uniform State/USAID/Commerce/Agriculture)
a. The acquisition cost of nonexpendable property that is acquired by purchase must be recorded on property records in U.S. currency, including all costs to the U.S. Government of putting the property into use when the property is originally acquired. It includes the amount paid to vendors plus any transportation charges, handling and storage costs, labor and other direct or indirect production costs (for goods produced or constructed), and outside services for designs, plans, or specifications, billed from sources other than the vendor. (The requirements are found in 4 FAM 734, Accounting for Cost of Personal Property, and Statement of Federal Financial Accounting Standards 6: Accounting for Property, Plant, and Equipment (PP&E).)
b. USAID only:
(1) Accountable property: USAID must record as property cost the purchase price as defined in 14 FAM 411.4, Acquisition Cost; and
(2) Capitalized property: USAID must record readily identifiable shipping, packing, and handling charges for capitalized items whenever the cost of the capitalized item plus the other charges exceeds $25,000.
c. In an unusual circumstance when the cost of an item cannot be determined, estimate the fair-market value at the time acquired. “Fair-market value” is the price for which an asset could be bought or sold in an arm’s-length transaction between unrelated parties.
14 FAM 415.1-2 Property Transferred By Other U.S. Agencies
(CT:LOG-145; 04-22-2013)
(Uniform State/USAID/Commerce/Agriculture)
a. All executive agencies must, to the maximum extent practicable, fill requirements for personal property by using existing agency property or by obtaining excess property from other Federal agencies in lieu of new procurements (41 CFR 102-36.35(a)). Most transfers of excess U.S. Government property to other Federal agencies are done at no cost for the property itself. The only costs generally involve movement of the property to a different location for use.
b. If the property has depreciated, the property must be recorded at the transferor's accumulated depreciation or amortization, regardless of the depreciation method used by the transferor. NOTE: If a motor vehicle or aircraft is involved, please consult with the Office of Accounting Operations (CGFS/F/AO) for State or the Bureau for Management, Overseas Management Division (M/MS/OMD) for USAID.
c. If the transferor has not recorded depreciation, the property must be recorded at its fair-market value at the time transferred. Please consult with CGFS/F/AO for State or M/MS/OMD for USAID on any questions that may arise.
d. The cost of heritage assets transferred from other Federal entities must be zero unless the item is classified as a multi-use heritage asset. The cost of a multi-use heritage asset is the book value of the asset recorded on the transferring entity’s books. If the receiving entity does not know the book value, the fair-market value must be recorded in the post’s property inventory. If fair-market value is not estimable, information related to the type and quantity of assets transferred must be recorded.
e. At posts that manage consolidated furniture pools under the Department of State's International Cooperative Administrative Support Services (ICASS) working capital fund for the benefit of all customers, agencies may transfer their existing inventory of residential furniture and furnishings to the Department of State ICASS. Ownership is transferred to ICASS under the Department of State’s authority in 22 U.S.C. 2695. The customer agency property must be consistent with the style and models used at the post. Property management officers (PMOs) must complete Form SF-122, Transfer Order Excess Personal Property, as the acquiring Federal agency and then provide a copy to the relinquishing Federal agency responsible property organization. Once transferred, these items become Department of State (ICASS) property and will be governed by the accountability and reporting requirements outlined in 14 FAM 410 and applicable U.S. Government-wide regulations for working capital fund property.
14 FAM 415.1-3 Donation of Property to U.S. Government
(CT:LOG-124; 05-16-2012)
(Uniform State/USAID/Commerce/Agriculture)
Personal property donated from a nonfederal identity to the U.S. Government must be recorded at fair-market value, including transportation charges or other costs connected with placing the property in use. The cost of personal property acquired through donation shall be estimated fair value at the time acquired by the U.S. Government. In the case of gifts of property donated by a foreign government, a formal appraisal is required.
14 FAM 415.1-4 Acquisition Involving Exchange/Sale Property
(CT:LOG-124; 05-16-2012)
(Uniform State/USAID/Commerce/Agriculture)
a. The cost of general property, plant and equipment (PP&E) acquired through exchange (trade-in) is the fair value of the PP&E surrendered at the time of exchange. (Exchanges between Federal entities are accounted for as transfers.) If the fair value of the PP&E acquired is more readily determinable than that of the PP&E surrendered, the cost must be the fair value of PP&E acquired. If neither fair value is determinable, the cost of PP&E acquired must be the cost recorded for the PP&E surrendered net of any accumulated depreciation. Any difference between the net recorded amount of the PP&E surrendered and the cost of the PP&E acquired is recognized as a gain or loss.
b. In the event that cash consideration is included in the exchange, the cost of general PP&E acquired must be increased by the amount of the cash consideration surrendered or decreased by the amount of cash consideration received.
14 FAM 415.2 Capitalization and General Ledger Accounting
14 FAM 415.2-1 Capitalized Personal Property
(CT:LOG-124; 05-16-2012)
(Uniform State/USAID)
a. Personal property having an acquisition cost of $25,000 or more per item, an estimated service life of 2 years or longer, and not losing its identity or becoming a component part of other property when put into use, is considered to be capitalized property. For State and USAID only, motor vehicles and aircraft are capitalized property regardless of cost. The acquisition cost of motor vehicles and aircraft includes all costs associated with putting it in use, including shipping and/or armoring charges (when applicable).
b. State only: Commercial off-the-shelf software configured for Department of State operations with a total cost of $500,000 or more is considered personal property. Similarly, Department software that is developed within the agency by direct-hire or contract employees must be capitalized if the cost of direct-hire or contractual services exceeds $500,000. Software maintenance costs and the cost to convert data are not capitalized and should not be considered in determining the application of the threshold. Accountability for information technology (IT) software developed within the agency will be the responsibility of the organization that developed it. For further guidance regarding software capitalization thresholds, see 4 FAM 734.2, and for the Federal Acquisition Regulation for IT acquisition and planning requirements see 5 FAM 900, 5 FAM 1000, and the Department of State Acquisition Regulation (DOSAR).
c. USAID only: USAID operating expenses (OE) capitalized property and software are reported to USAID/W, M/CFO/CAR, for depreciation in accordance with ADS (Automated Directives System) Chapter 629.3.6, Accounting for USAID-Owned Property and Internal Use Software.
14 FAM 415.2-2 Depreciation of Capitalized Personal Property
(CT:LOG-124; 05-16-2012)
(Uniform State/USAID/Commerce/Agriculture)
While most property acquisitions are accounted for as operating expenses, capitalized personal property is depreciated (see 14 FAH-1 H-512) to account for the cost of ownership over the period of its useful life and to show a decline in the value of property due to general wear and tear or obsolescence.
14 FAM 415.2-3 Coordination of Property and Fiscal Accounting Records
(CT:LOG-124; 05-16-2012)
(State/USAID)
a. ICASS service providers (ISPs) managing USAID-owned property must ensure that USAID missions are supplied timely data, per annual instructions issued by USAID M/MS/OMD, to meet the mandatory reporting requirements as noted in 14 FAM 418, Reporting Requirements.
b. See ADS (Automated Directives System) Chapter 629, Accounting for USAID-Owned Property and Internal Use Software, and ADS Chapter 534, Personal Property Management Overseas, for policy and procedures on accounting and administrative reporting requirements for USAID-owned property.
14 FAM 416 PHYSICAL INVENTORY AND RECONCILIATION
14 FAM 416.1 General
(CT:LOG-348; 05-02-2022)
(State/USAID/Commerce/Agriculture)
a. Physical inventory of residence furniture, furnishings, and equipment in use must be taken at the time of change of occupancy and the inventory must be reconciled immediately with records in the Residential Custodial File. Physical inventory of other accountable personal property must be taken annually and immediately reconciled with the property records and includes:
(1) Program property;
(2) Motor vehicles; and
(3) Expendable and nonexpendable property in storage at warehouse or storeroom, including;
(a) Supplies;
(b) Parts (repair, maintenance, spare);
(c) Tools or equipment from new embassy compound (NEC), new consulate compound (NCC) or major rehabilitation projects; and
(d) Medical supplies and drugs.
b. State only: the physical inventory process must start no earlier than October 1. The annual inventory must be submitted to the Property Management Division (A/LM/PMP/PM) via the Certification Submission Center (CSC) in the Integrated Logistics Management System (ILMS) by March 15 of the same fiscal year to ensure financial integrity. The CSC will create and compile the necessary forms, reports and approvals, including Form DS-582, Property Management Report, that comprise post’s annual inventory submission package.
NOTE: Post must use the ILMS expendable module physical inventory reporting tool to conduct the annual inventory on all expendable property.
c. State only: All overseas posts, regardless of their Overseas Staffing Model (OSM) category must conduct an annual inventory of personal and program property and motor vehicles. More frequent spot checks of sensitive items such as weapons, laptop computers, cellular telephones, tablets, iPads, cameras, and lenses, etc., are recommended as a valuable management practice.
d. Although a "blind" inventory is to be taken (i.e., the count is made without reference to any previous inventory, property records, or other listing of property) when taking the inventory with a scanner, posts using ILMS AM, or other approved automated systems, the employee may take along the Inventory Listing by Location Report. However, the APO must question any manual entry to the scanner. The property management officer (PMO) and accountable property officer (APO) must sign the Comprehensive Visual Report attesting to the manual reconciliation and submit it into CSC in ILMS.
14 FAM 416.2 Annual Physical Inventory
(CT:LOG-314; 05-12-2021)
(State/USAID/Commerce)
a. To minimize the disruptive influence on the office routine, the scheduled dates of the physical inventory should be announced in advance so that offices are expecting the inventory teams.
b. The APO must ensure that an inventory supervisor is assigned to control and coordinate inventory activities.
c. The individual responsible for maintaining the property records must not participate in the physical inventory count, when sufficient resources exists, to maintain adequate separation of duties. The inventory taker(s) is responsible for making an actual physical verification check of each nonexpendable property item and verifying its condition.
d. The IMO, systems manager, or designated employee should participate in the inventory of IT equipment.
e. A physical inventory and reconciliation file must be kept in the property office for 3 years after superseded per NARA general records schedule (GRS) 5.4 Facility, equipment, vehicle, property, and supply records item 010, disposition authority DAA-GRS-2016-0011-0001. The file must contain:
(1) A copy of any Form DS-127, Receiving and Inspection Report, documenting inventory overages;
(2) A copy of any Form DS-132, Property Disposal Authorization and Survey Report (for State), or Form AID-534-1, Personal Property Disposal Authorization and Report (for USAID), documenting inventory shortages; and
(3) Form DS-582, Property Management Report, for program and personal property are reported in the Department system of record ILMS AM via CSC plus:
(a) Form DS-132, Property Disposal Authorization and Survey Report;
(b) Comprehensive visual report;
(c) On hand motor vehicle report;
(d) Nonexpendable shortage assets report; and
(e) Corrective actions plan (if required).
f. A copy of the Annual Accountable Item Inventory, along with the specific accountable certificate must be kept in file for posts using ILMS.
g. A copy of the variance report for all locations inventoried in the expendable management physical inventory reporting tool to track shortages and overages of the expendables inventory reconciliation must be kept in file for posts deployed with Expendable and Medical Expendable modules.
h. Agriculture only:
(1) Inventories are to be submitted to the International Services Division by June 30 of each year; and
(2) FAS is responsible for conducting annual physical inventories.
14 FAM 416.3 Residential Furniture and Equipment
(CT:LOG-333; 11-08-2021)
(Uniform State/USAID/Commerce/Agriculture)
a. A separate inventory file must be created for each residence and the physical inventory of property assigned to the residence must be taken at the time of change of occupancy. See 15 FAM 730 for additional inventorying and reporting requirements pertaining to representational residences necessary for OBO/OPS/RDF purposes. All parties participating in the inventory must sign the inventory. After reconciliation has taken place, the signed original is retained in the residence inventory file and a copy is given to the occupant. Signed documents for all subsequent transactions must be maintained in this file to debit or credit the original inventory.
b. The residence inventory file is maintained until the resident departs. It is then placed in the inactive files along with a copy of any report that may have been prepared to document missing or damaged property (Form DS-132, Property Disposal Authorization and Survey Report, for State or Form AID-534-1, Personal Property Disposal Authorization and Report, for USAID). The file may be disposed of after 3 complete fiscal years providing damaged or missing property issues have been resolved.
c. When ILMS property is issued for use on a hand receipt at a residence, the information resource management officer (or equivalent) must update the ILMS property records to reflect the name of the employee to whom the property is issued and location of the property.
d. USAID principal officer residences: Furnishing limitations and annual certification requirements for USAID directors and representatives are specified in 15 FAM Exhibit 781(A), item (a); and 15 FAM 780.
e. When any residence is inventoried for an outgoing occupant, the APO must sign and date the following statement on the inventory (if possible financial liability exists for damages, the certification must remain unsigned until all problems have been resolved):
“I certify that all items listed in this inventory have been returned in good condition and that any determinations of the PMO or a property survey board have been complied with. The occupant is hereby relieved of responsibility for the property in this residence.”
f. When the residence is inventoried for an incoming occupant, the occupant must sign and date the following statement on the inventory listing:
“I acknowledge receipt of the property listed in this inventory. Except for normal wear and tear and circumstances beyond my control, I accept financial responsibility for damage or loss of property caused by me or members of my household. It is understood that the extent of my financial liability for damaged or lost property will be determined by the PMO or a property survey board.”
g. The inventory must be taken and the above statement signed within 30 days of the arrival of the occupant.
h. Prior to an outgoing occupant's departure, the occupant's residential property inventory must be electronically scanned. If the inventory reveals shortages or damages other than normal wear and tear, such shortages or damages may be payable by the occupant. The APO reports shortages and damages on Form DS-132 for State or Form AID-534-1 for USAID. The occupant is not relieved of responsibility until the results of the pending survey action have been completed and the APO has accepted responsibility for the results of the inventory and reconciliation. Employees at all levels may be held financially liable if it is determined that they are responsible for lost or damaged property (see 14 FAM 416.5-3).
14 FAM 416.4 Reconciling the Annual Inventory
(CT:LOG-124; 05-16-2012)
(Uniform State/USAID/Commerce/Agriculture)
a. When discrepancies are found between the physical inventory and the property records that cannot be resolved by locating copies of completed transaction documents, i.e., Form DS-132 (for State) or Form AID-534-1 (for USAID) verifying disposal actions such as sale, transfer, donation, etc., immediate action must be taken by the APO or authorized designee to resolve the discrepancies.
b. Action to resolve discrepancies apply to residence inventories, annual expendable and nonexpendable inventories, and "spot check" inventories.
c. Inventory overages must be documented and recorded in the property records. Inventory overages do not offset inventory shortages.
d. USAID only:
(1) Distribute one copy each of Form AID-534-1 to the PMO, the USAID Controller, USAID/W (M/MS/OMD), and the Property Disposal file;
(2) Missions are to provide a copy of their nonexpendable property inventories to M/MS/OMD by no later than November 15 of each calendar year. RIG/A and HG property must be identified separately; and
(3) For capitalized property only, the dollar value shown on property records must be reconciled with the dollar value on the USAID controller's general ledger accounts. After reconciliation, the property records are adjusted to reflect any change. The USAID controller makes corresponding adjustments in the general ledger accounts to reflect the value of capitalized property accounts.
e. After all reconciling action has been accomplished and approval received from the PMO, records adjustments are made before Form DS-582, Property Management Report, is signed.
14 FAM 416.5 Reporting Damaged, Missing, or Destroyed Property
14 FAM 416.5-1 Report of Survey
14 FAM 416.5-1(A) APO Action
(CT:LOG-124; 05-16-2012)
(Uniform State/USAID/Commerce/Agriculture)
The APO must immediately report missing, damaged, or destroyed property to the PMO on Form DS-132, Property Disposal Authorization and Survey Report, for State or Form AID-534-1, Personal Property Disposal Authorization and Report, for USAID. The PMO or the Property Survey Board, as appropriate, will act on the report. Findings and decisions serve to relieve the APO of accountability for the property and establish whether employees are personally financially liable for damaged or missing property. If it is determined that the damage resulted from carelessness, negligence, or other fault of an employee, that employee may be required to pay the cost of repairing or replacing the property, including any associated shipping costs.
14 FAM 416.5-1(B) PMO Action
(CT:LOG-314; 05-12-2021)
(State/USAID/Commerce/Agriculture)
a. In cases involving damaged, missing, or destroyed property where the acquisition cost of the property involved is less than $5,000 (acquisition cost) per item, the PMO must investigate, make a determination of financial liability, determine what corrective actions are necessary, and authorize adjustment of inventory records. The PMO must forward a completed copy of the Form DS-132, Property Disposal Authorization and Survey Report, or Form AID-534-1, Personal Property Disposal Authorization and Report, involving missing property to the Director, Property Management Division (A/LM/PMP/PM), for State or to the Director, Overseas Management Staff (M/MS/OMD), for USAID. If the PMO determines that an employee is liable for loss or damage of property, and the employee contests the PMO's decision, the PMO must refer the case to the property survey board. The PMO must refer all reports on property with an acquisition cost of $5,000 (acquisition cost) or more per item, or when theft is suspected, regardless of cost, to the Property Survey Board.
b. When an inventory shortage is found during the annual inventory process and either the dollar value is one percent or less of the total expendable inventory value (acquisition cost), or of the total nonexpendable inventory value (acquisition cost), the PMO must conduct his/her own investigation to verify the facts as reported, determine what corrective actions are necessary, and authorize adjustments to the inventory records. The PMO must forward a completed copy of the Form DS-132 or Form AID-534-1 (Property Disposal Authorization and Survey Report) documenting the adjudication of all cases of missing items/inventory shortages to the Director, Property Management Division (A/LM/PMP/PM), for State or to the Director, Overseas Management Staff (M/MS/OMD), for USAID. If theft or fraud is suspected as accounting for the shortage of property at any value the PMO must report all relevant information to the Office of the Inspector General, Office of Investigations (OIG/INV) for State or to the USAID OIG/Investigations Office (OIG/I).
c. When either the value of the inventory shortage exceeds one percent, or the acquisition cost of an individual missing item is $5,000 or more, the PMO must refer the report to the property survey board. The PMO must also forward a copy of Form DS-132 for State or Form AID-534-1 for USAID, including a list of the missing items to the Office of Inspector General, Office of Investigations (OIG/INV) or to the USAID OIG Investigations Office (OIG/I), at the same time the report is sent to the post's Property Survey Board.
d. Cases involving loss, damage, or destruction of program property valued at $5,000 or more per item must be referred to the Property Survey Board.
e. Cases involving missing Diplomatic Security Program property having an acquisition cost of $5,000 or more per item, reported by the engineering service centers will be sent to the DS Executive Director/Accountable Property Officer for review and action and will be adjudicated by the Domestic Survey Board when warranted.
14 FAM 416.5-2 Post’s Property Survey Board
(CT:LOG-245; 03-28-2018)
(Uniform State/USAID/Commerce/Agriculture)
a. The post’s property survey board acts on reported instances of missing, damaged, or destroyed U.S. Government-owned expendable and nonexpendable personal property referred by the PMO. The board has the authority to determine financial liability, and to determine the extent of liability, for property that is missing, damaged, or destroyed as a result of negligence, improper use, or willful action on the employee's part, and to establish the amount of financial liability.
b. Property survey board composition at post:
(1) State only: The heads of Foreign Service posts must designate in writing a post’s property survey board consisting of at least three members, including a chairperson and a secretary. Board members must not include the PMO, APO, or their staffs. Other individuals who may not participate on the board include the individual involved, or the employee’s supervisor. If any member is thus ineligible, the board chairperson must appoint an alternate replacement for that particular survey action; and
(2) USAID only: At posts where USAID manages its own property and does not participate in ICASS or like agreement, the principal USAID officer will designate a survey board consisting of U.S. direct-hire Foreign Service employees.
c. Closing USAID missions abroad: The Director, Overseas Management Staff (M/MS/OMD), has authority to appoint a survey board to handle matters involving property accountability.
d. State only: When ILMS property is involved, the information resource management officer (or equivalent) must forward a completed copy of the Form DS-132 to A/LM/PMP/PM.
14 FAM 416.5-3 Employee Liability
(CT:LOG-333; 11-08-2021)
(Uniform State/USAID/Commerce/Agriculture)
a. Employees will not be financially liable for loss, damage, or destruction attributable to inadequate training and/or inadequate supervision in the workplace, or inherent defects in the property.
b. The amount of financial liability for damaged property must be the cost of repairs (including shipment to and from the place of repair) or the estimated cost of repair if the property is not repaired. The fair market value of an asset will be used to determine financial liability when the estimated repair cost exceeds the fair market value.
c. The amount of financial liability for missing or destroyed property is based on the depreciated value (using straight line method) of the item. Minimum financial liability level is set at 10 percent of the acquisition cost of the item, except for antiques, works of art, and cultural heritage objects that are not depreciated. If a deliberate or preventable action, such as unauthorized repair, results in diminished or negated value, the employee may be assessed up to the fair market value.
d. If a nonaccountable property item is involved and the acquisition cost cannot be determined, the fair market value (less any salvage value) is used for reimbursement purposes.
e. When action on a property survey report is complete, the PMO must ensure that fully completed copies of Form DS-132 for State or Form AID-534-1 for USAID are forwarded to:
(1) An employee held liable for lost or damaged property, accompanied by a demand for payment. Payment of such a billing does not convey title of the property;
(2) An employee involved in a survey report action but cleared of any financial liability; and
(3) An employee other than the employee responsible for the damage or loss, who has signed Form DS-584, Nonexpendable Property Transaction, covering property on loan.
NOTE: The above 14 FAM 416.5-3, Employee Liability, does not apply to OBO/OPS/CH property and OBO/OPS/RDF-funded FF&E. (See 15 FAM 245, Damage and Personal Liability, regarding OBO property. See 15 FAM 245.2, Pets, regarding damage caused by pets, which is not normal wear and tear and the personal financial responsibility of the employee.)
14 FAM 416.5-4 Distributing Completed Survey Reports
(CT:LOG-299; 11-25-2020)
(State Only)
When survey board action is completed, the property management officer must forward a copy of the completed Form DS-132 to the APO for State or AID-534-1 for USAID, as well as the Department’s Director, Property Management Division (A/LM/PMP/PM), or to USAID’s Director, Overseas Management Staff (M/MS/OMD). A/LM/PMP/PM will post the Form DS-132 on the PM Web site so that State’s Office of Inspector General and domestic property management officials will have access to the reports.
14 FAM 416.5-5 Employee Appeal
(CT:LOG-124; 05-16-2012)
(Uniform State/USAID/Commerce/Agriculture)
a. State only: On those reports where the decision is made by the PMO and the employee contests the decision, the property survey board must review the decision. On those reports where the decision is made by the property survey board and the employee contests the decision, the decision must be reviewed by the chief of mission. On those reports where the decision is made by the chief of mission and the employee contests the decision, the decision must be reviewed by the Agency PMO (Managing Director, Program Management and Policy (A/LM/PMP)), whose determination must be final. If the chief of mission contests a decision rendered by the survey board against him or her, the COM can appeal to the Agency PMO (Managing Director, A/LM/PMP).
b. USAID only: If the employee contests the decision of the PMO or the property survey board, the report is forwarded to the USAID principal officer, whose decision is final. USAID principal officers may appeal the property survey board's decision to USAID/W, M/MS/OMD, whose decision is final. For USAID missions that have been closed, the employee's appeal is directed to the Chief, M/MS/OMD, whose decision is final.
14 FAM 416.5-6 Reimbursement by Employee
(CT:LOG-145; 04-22-2013)
(Uniform State/USAID/Commerce/Agriculture)
a. If an employee is held liable for the loss, damage, or destruction of U.S. Government-owned personal property, reimbursement must be secured before the employee's departure from post. If a contractor is involved, refer to (Federal Acquisition Regulation) FAR 52.245-1(h)(l).
b. Reimbursement must be made to the account of the agency that owned the property:
(1) State: The financial management officer will credit the appropriate account based on the source of the funding for the asset. Reimbursement may be made in cash or by check payable to the U.S. Department of State; and
(2) USAID: The controller must credit the appropriate account.
c. If the employee is held liable and the employee still does not consent to reimburse the U.S. Government or has departed post, the case will be forwarded to the Bureau of the Comptroller and Global Financial Services (CGFS) for State or M/CFO/P for USAID for collection of debt. Implementing procedures can be found in 14 FAH-1 H-623.
d. A copy of the reimbursement receipt must be included in the relevant property file so that closure of the action will be documented and on file.
14 FAM 417 DISPOSAL OF PERSONAL PROPERTY
(CT:LOG-124; 05-16-2012)
(Uniform State/USAID/Commerce/Agriculture)
Implementing procedures can be found in 14 FAH-1 H-700.
14 FAM 417.1 General
14 FAM 417.1-1 Policy
(CT:LOG-124; 05-16-2012)
(Uniform State/USAID/Commerce/Agriculture)
a. Personal property scheduled for disposal by Foreign Service posts must be disposed of in such a manner as to be:
(1) In accordance with U.S. foreign policy;
(2) Consistent with applicable local laws and customs;
(3) In conformity with existing treaties or host-nation agreements; and
(4) When property is returned to State from a grantee for disposition and State has title, the disposal must be accomplished in accordance with policy in this section.
b. Because of the inherent risks associated with hazardous chemical materials, it is important that any group or person receiving these items be adequately informed of the associated hazards and how to use the material(s) safely. Further information on hazardous wastes is contained in Section 1.13 of the Safety, Occupational Health and Environmental Management Resource Guide.
c. State only: All nonvolatile IT media must be sanitized in accordance with 12 FAM 600 requirements. All hard drives (i.e., unclassified, SBU and classified) must be shipped via classified pouch to the Department for destruction in accordance with Overseas Security Policy Board and 12 FAM 600 requirements.
14 FAM 417.1-2 Classifying Unneeded Property
(CT:LOG-124; 05-16-2012)
(Uniform State/USAID/Commerce/Agriculture)
a. Personal property scheduled for disposal by Foreign Service posts is either classified as replacement property or as foreign excess property.
b. Property that is to be sold or exchanged for replacement is not considered "excess" since such an action merely represents the conversion of an asset as whole or part payment for a new item of similar property. Replacement property is either redistributed to other posts of the parent agency, transferred to another agency, or sold and with the exception of ICASS property or property purchased with Overseas Buildings Operations funds, the sale proceeds are used for the procurement of similar property. For reporting proceeds of sale, State activities should refer to 4 FAM. Proceeds of sale for USAID personal property must be deposited to: Budget Clearing Account 72F3845 Proceeds from Sales of Personal Property U.S. Agency for International Development. For Agriculture proceeds of sale for FAS property must be deposited in Agency/Bureau 12/29, account 12 F 3845.029. A copy of the deposit voucher should be faxed to OFSO/ISD.
c. When an agency declares personal property to be foreign excess, it underlines the fact that there is no projected need by the owning agency for such property. Therefore, this property is not needed for redistribution and will not be sold for replacement purposes.
14 FAM 417.1-3 Approval for Foreign Excess Classification
(CT:LOG-299; 11-25-2020)
(Uniform State/USAID)
State only: Property may not be classified as foreign excess without approval by the Director, Property Management Division (A/LM/PMP/PM).
USAID only: Property may not be classified as foreign excess without approval of M/MS/OMD.
14 FAM 417.1-4 Inspection for Classified Material
(CT:LOG-124; 05-16-2012)
(Uniform State/USAID/Commerce/Agriculture)
a. Prior to the removal of unneeded property from offices for return to the warehouse, the property must be inspected for any classified/sensitive information/material. Documentation of the inspection process begins with the employee who has used the item of property, and the person authorizing removal of the property must ensure inspection has been conducted and that Form DS-586, Turn-In Property Inspection Certification, is begun and signed by the former user. Special care is required to ensure that no classified/sensitive material has lodged behind or under drawers in desks, file cabinets, or inside computer equipment, etc.
b. Combinations must be reset to factory standards 50-25-50 for safe files and 10-20-30 for padlocks used with bar-lock cabinets.
c. Form DS-586, Turn-In Property Inspection Certification, must be completed certifying that a search for classified material has been completed on all pertinent furniture items and equipment.
d. Arrangements for removal of the property must not be made until these actions have taken place.
14 FAM 417.1-5 Program Property Disposal
(CT:LOG-124; 05-16-2012)
(Uniform State/USAID/Commerce/Agriculture)
a. Program property, such as motor vehicles, security equipment, and communications equipment, must not be disposed of without specific authorization from the controlling office, bureau, or agency.
b. State only: See 14 FAM 438 for disposal of motor vehicles.
c. USAID only: For guidance on disposal of USAID program-funded property, see 14 FAM 417.1-7 and ADS (Automated Directives System) Chapter 534.
14 FAM 417.1-6 Trust Fund Property Disposal
(CT:LOG-60; 05-14-2009)
(USAID Only)
The disposal of trust fund property must be in accordance with the terms and conditions of the Trust Fund Agreement. In the absence of a trust agreement, the disposal of trust fund property must be in accordance with the procedures of this regulation:
(1) Return the property to the host government, obtain a receipt, and adjust the property records; or
(2) The sale of trust fund property must be authorized by the Trust Fund Agreement or by specific host government permission. In the absence of approval and if property is not returned, the property is sold and the proceeds are deposited in the trust fund account. Separate documentation is always used.
14 FAM 417.1-7 USAID Project Property/Contract Property
(CT:LOG-124; 05-16-2012)
(USAID Only)
a. Project property will be titled in accordance with the terms of the project/strategic objective agreement or acquisition or assistance instrument.
b. Regulations pertaining to the transfer or disposal of program-funded property titled with USAID are found in USAID ADS (Automated Directives System) Chapter 534.
14 FAM 417.1-8 Disposal of USAID Personal Property to Non-U.S. Government Agencies
(CT:LOG-95; 05-23-2011)
(USAID Only)
Disposal of USAID personal property by donation can be made to organizations qualified to receive assistance under Section 607(a) of the Foreign Assistance Act of 1961, as amended (friendly countries, international organizations, the American National Red Cross, and voluntary agencies), provided that USAID/Washington (USAID/W) approves the disposal of property as foreign excess, and a Section 607(a) determination has been executed for the recipient in accordance with Chapter 7, Direct Acquisition Program, of Handbook 16, Excess Property. A request for disposal of USAID-owned property under a Section 607(a) determination must be addressed to: M/MS/OMD Attention: Overseas Management Staff.
14 FAM 417.1-9 Disposal of Property Acquired by Means Other than New Procurement
(CT:LOG-299; 11-25-2020)
(Uniform State/USAID/Commerce/Agriculture)
Replacement property acquired by redistribution within an agency or transfer from other Federal agencies may not be sold or exchanged until 1 year from the date of transfer without prior approval from the parent agency (Director, Property Management Division (A/LM/PMP/PM), for State and M/MS/OMD for USAID)
14 FAM 417.2 Disposal Methods
(CT:LOG-299; 11-25-2020)
(Uniform State/USAID/Commerce/Agriculture)
a. All property disposal actions, except for (b)(7) Grants, must be documented on Form DS-132, Property Disposal Authorization and Survey Report, for State or Form AID-534-1, Personal Property Disposal Authorization and Report, for USAID and be subjected to a formal disposal process. Separate reports are prepared for expendable and nonexpendable property.
b. There are eight acceptable methods of property disposal, and the disposal must be in the following order:
(1) Redistribution to establishments within the parent agency;
(2) State only: Transfer to commissary/mess/recreational facility;
(3) Transfer the property for re-use by other U.S. Federal agencies abroad;
(4) Sale or exchange;
(5) USAID only: Grant-in-aid or project contribution;
(6) Donation;
(7) State only: Return excess personal property to the U.S. for re-use by eligible recipients per 41 CFR 102-36.390.
NOTE: The US Government has a Web site, the GSAXcess Web site for the reporting of all available excess property or exchange/sale property worldwide that may be used to ensure U.S. Federal agencies and eligible individual State agencies for surplus property have access to information about the available property and to process transfer requests. Any post may request a user ID and password to report and/or acquire excess property via the GSAXcess Web site. The request should be submitted, via e-mail, to the Department of State’s National Property Utilization Officer (Director, Property Management Division (A/LM/PMP/PM); or
(8) Abandonment or destruction. (State only: Disposal by grant to further public diplomacy objectives in accordance with Property Grants and Requirements for the Disposal of Property through Federal Assistance Awards (GPD 30) issued by A/OPE.)
c. In determining the method of disposition most beneficial to the U.S. Government, consideration must be given to the following:
(1) Condition of the property;
(2) New and present value;
(3) Bona fide need at another post abroad (taking into consideration the cost of storage, packing and shipping, and other related costs);
(4) Local sales interest and value;
(5) Other U.S. Government agency needs; and
(6) USAID only: Host-government and project needs.
14 FAM 417.2-1 Redistributing Replacement Property
(CT:LOG-124; 05-16-2012)
(Uniform State/USAID/Commerce/Agriculture)
a. Redistribution to other posts is the preferred method of disposing of replacement property. The property being redistributed must be in good condition and the cost of packing and shipping must be economically compatible with the cost of acquiring new property.
b. USAID only: If the PDO determines that property is appropriate for redistribution to nearby posts, the PDO must notify USAID/W, M/MS/OMD, of this decision. M/MS/OMD will notify posts within the geographical area, or worldwide, of the availability of property for redistribution and allow for a 15-day or earlier response, depending on the disposing mission's urgency to remove the property. M/MS/OMD will notify the missions selected to receive available property. USAID/W, M/MS/OMD, makes the final determination on competing requests for redistribution of property.
c. Redistribution will be made without reimbursement, except that the receiving post must pay for packing transportation and any other costs incident to the transaction.
d. All redistribution actions must be documented.
14 FAM 417.2-2 Transfers
(CT:LOG-304; 01-22-2021)
(Uniform State/USAID/Commerce/Agriculture)
a. Transfer to other U.S. Government agencies:
(1) When no response is received to offers of property to other posts within the geographic area, other U.S. Government agencies at the post location must be notified of the availability of the property. Property can be transferred providing:
(a) The requesting agency certifies that a bona fide need exists; and
(b) The receiving agency pays packing, shipping, and all other costs incident to the transfer;
(2) Agencies offering replacement property for transfer must require reimbursement not greater than the best estimate of the gross proceeds if the property were to be sold on a competitive basis, or the dollar value offered on a trade-in basis;
(3) All transfer actions must be documented; and
(4) A requesting agency receives foreign excess property on a nonreimbursable basis.
b. USAID only:
(1) The PMO must obtain USAID/W, M/MS/OMD approval for disposal of personal property as foreign excess. The request must state the reasons and requirement of the requesting agency;
(2) When foreign excess property is available, and before returning it to the United States, consideration must be given for its use under provisions of sections 214(b) and 607 of the Foreign Assistance Act of 1961, as amended. First preference must be given to situs country before notification of its availability is made to other USAID missions; and
(3) Transfer of unneeded USAID replacement property may be made at no cost to a U.S. school abroad already receiving sponsorship from USAID through the Foreign Assistance of 1961, Part 636d. To do so, the mission PDO must first get permission from M/MS/OMD by explaining why this disposal method is preferred over redistribution to another USAID mission or by sale at post and will give the inventory value and estimated open market value of the items requested for donation. If M/MS/OMD approves the donation, it will notify the appropriate USAID/W finance office of the donation so that the USAID contribution to support of U.S. schools abroad will reflect this cost.
c. Foreign excess property: If foreign excess property is not required by other U.S. Government agencies at the post, the PMO will determine whether it would be in the interest of the United States to return the property to the United States for further Federal use or donation; see the Federal Management Regulation (41 CFR 102-36.390). The quantity must be substantial and consideration must be given to whether transportation and accessorial costs would make return of the property a cost-effective action. Authorization must be granted by the parent agency prior to any return action. The post must provide the parent agency with full description, quantities, value, age, and condition of the property.
d. State only: Transfer to commissary/mess/recreational facilities or U.S.-sponsored schools abroad: Transfer of unneeded (replacement or foreign excess) property may be made at no cost to commissary/mess/ recreational facilities or to U.S.-sponsored schools abroad, providing that the receiving activity certifies that a bona fide need for the property exists and that it is not being acquired for resale. All transfers must be documented and must require the approval of the PMO. USAID activities must also comply with specific regulations in ADS (Automated Directives System) Chapter 534 and ADS Chapter 532.
14 FAM 417.2-3 Exchange/Sale Property
(CT:LOG-302; 12-28-2020)
(Uniform State/USAID/Commerce/Agriculture)
a. If foreign excess personal property is not disposed of by transfer or return to the United States, it may be sold if in the best interest of the U.S. Government. The proceeds from sale of any foreign excess personal property (see definition in 14 FAM 411.4), when sold abroad, are deposited in the Treasury as miscellaneous receipts.
b. If replacement property cannot be redistributed or transferred, it may be sold or exchanged (see 14 FAH-1 H-716), as explained below:
(1) The property may be sold and the proceeds from sale used for the acquisition of similar property either by the selling establishment or by the parent agency, on a worldwide basis (see 4 FAM). For ICASS or OBO-funded property only, the proceeds of sale are not restricted to the acquisition of similar property;
(2) The management officer or equivalent position must request and receive written authorization from OBO/OPS/RDF to sell, exchange, transfer, or dispose of any items, including antiques, works of art, and other cultural objects located in representational residences (15 FAM 735). The management officer or equivalent position must also request and receive written authorization from OBO/OPS/CH to sell, exchange, transfer, or dispose of any antiques, works of art or other cultural objects located in any mission properties;
(3) Proceeds of sale from personal property, e.g., furniture, originally purchased by the Bureau of Overseas Buildings Operations (OBO) will be deposited to the Embassy, Security, Construction, and Maintenance Appropriation; and
(4) USAID only: When USAID property is involved, proceeds of sale are returned to USAID's Budget and Clearing Account 72F3845.
c. The property may be exchanged in whole or in partial payment for similar items.
d. The types of sales used are sealed bid, spot bid, auction (including online auction sites), and negotiated.
e. Advertising must be used unless prohibited by the nature or condition of the property or when local conditions prohibit the advertising of sales.
f. The distinction between foreign excess property and replacement property must always be maintained.
g. The PDO must be a witness to key disposal activities on sale day (see 14 FAM 411.2, paragraph d).
h. When the sale is a sealed-bid sale, the PDO must use a locked bid box for depositing and storing bids until the announced bid-opening time. The bid box must be secured in a safe during nonworking hours and the bid-box key must be secured separately.
i. When a commercial auctioneer is used, Post must verify that the auction agreement complies with local law and FAM provisions. The auction agreement must use a fixed price (for example, a flat listing fee, percentage of sales fee, or combination of both).
j. When an auction involves the use of a credit card, whether conducted directly by post or through an intermediary, proceeds of sale collections must be consistent with Bureau of Comptroller and Global Financial Services (CGFS) policies and USDO instructions as outlined in 4 FAH-3 H-325.5 and 4 FAH-3 H-327. When multiple items are sold, post GSO must identify the amount received for each individual item sold.
k. Expenses incurred in connection with the sale may be paid from the proceeds. Only the net proceeds are deposited. Expenses that may be deducted include advertising, auctioneer fees (including online auction fees), custom fees, duties, taxes, commercial transportation, contractor labor, additional security, rental of temporary space, sales agents/companies, and equipment rentals, directly related to the sale of the property. Expenses that may not be deducted include regular salary or overtime payments for American or locally employed staff since property sales are considered normal post business; (see 4 FAH-3 H-327.2-3, regarding simplified acquisition methods to obligate funds in advance of services requested.)
l. Sales documents must show that purchasers of unneeded U.S. Government personal property must comply with U.S. and host-government import laws. When warranted, purchasers of such property must pay any customs duties, local taxes, or other charges imposed by the foreign government concerned, and must furnish copies of receipts proving such payments prior to the release of the property (including those sales completed through an online auction site). Some taxing authorities allow used imported goods (including those purchased or imported tax or duty-free) to be sold tax free after a certain period of time elapses; others prohibit the resale of such goods. Posts must ensure that local requirements, which may vary within a country, are met.
m. With the exception of individuals who initiate, authorize, or directly control the sale of U.S. Government property (i.e. PMOs, APOs, or PDOs), or anyone acting on their behalf, U.S. citizen employees and their relatives may participate in competitive, publicly advertised sales of property authorized for disposal, provided the employee certifies in writing:
(1) That the property is for the employee's personal use;
(2) That the employee will not sell the property during the employee's tour at the post except to another U.S. Government citizen employee who will make a similar written certification; and
(3) That, if at the end of the employee's tour, the employee sells such property to persons not having duty-free privileges, the employee will certify, in writing, to the PDO that local taxes and other obligations have been satisfied. Failure to comply with this requirement could result in disciplinary action.
n. With the exception of individuals directly involved in selecting items to be disposed of or immediately involved in the preparations for or conduct of the sale or anyone acting on their behalf, Foreign Service National employees, personal service contractors, employees of contractors, and their relatives, are authorized to participate in publicly advertised, competitive bid sales. However, a successful bidder must certify that the property is for his or her personal use and must pay local customs duty and any taxes due.
o. The principal officer at post may cancel the planned sale of any personal property item(s) if, in the principal officer's judgment, it is not in the interest of the U.S. Government.
p. The proceeds from the sale of any foreign excess personal property are deposited by the financial management officer in the Treasury as miscellaneous receipts.
q. Risk of loss: Unless otherwise provided in the invitation, the U.S. Government will be responsible for property subsequent to its being available for inspection and prior to its removal. Any loss, damage, or destruction occurring during such a period will be adjusted by the PDO to the extent it was not caused directly or indirectly by the purchaser or the purchaser's agent or employees.
r. Permanently attached fixtures: Personal property is classified as a part of real property when it is permanently installed on a building or structure and removal will be either difficult or costly, i.e., split unit air conditioning units. Permanently attached fixtures may be sold on a negotiated basis to the building owner/landlord when vacating, at its fair market value.
s. Negotiated sale: Property may be sold on a negotiated basis if the estimated fair market value of the property is $15,000 or less, and at least one attempt to sell the property competitively was unsuccessful either because there were no bidders or because the bids were unreasonable (prior bidders must have the opportunity to submit offers on the negotiated sale). Large quantities may not be divided to avoid the $15,000 limit. Negotiated sales are also permitted when an emergency exists which does not allow sufficient time to advertise a competitive sale. This method of sale is used only in special circumstances and requires written justification by the PDO and approval by the PMO. (See Reporting Requirements in 14 FAM 418.3-3).
t. Property must not be sold to U.S. Government employees or their relatives or U.S. Government contractor employees or their relatives on a negotiated basis.
u. The property disposal officer has the authority to dispose of salvage or scrap material by sale.
v. Replacement property that cannot be redistributed or transferred may be exchanged in whole or in partial payment for similar items.
w. Personal property must not be offered or sold on credit.
x. For property disposed of by sale or exchange, post’s accountable property officer must ensure that the property records reflect this disposal accurately.
y. Personal property in the following Federal supply class groups may not be processed as exchange/sale property, per 41 CFR 102-39.60 including:
(1) FSC 10 Weapons;
(2) FSC 11 Nuclear ordnance;
(3) FSC 12 Fire control equipment;
(4) FSC 14 Guided missiles;
(5) FSC 15 Aircraft and airframe structural components (except FSC Class 1560 Airframe Structural Components);
(6) FSC 42 Firefighting, rescue, and safety equipment;
(7) FSC 44 Nuclear reactors (FSC Class 4472 only);
(8) FSC 51 Hand tools;
(9) FSC 54 Prefabricated structure and scaffolding;
(10) FSC 68 Chemicals and chemical products, except medicinal chemicals; and
(11) FSC 84 Clothing, individual equipment, and insignia.
14 FAM 417.2-4 Project Contribution or Grant-in-Aid
14 FAM 417.2-4(A) Property Transfer—General
(CT:LOG-335; 11-24-2021)
(USAID Only)
a. Transfer of U.S. Government personal property where title is with USAID, and/or custody is with a PASA group. PASA group is defined as “participating agency employees appointed as noncareer Foreign Service officers assigned abroad for 1 year or more” or a contractor to the cooperating government may be accomplished in one of two ways: by project contribution or grant-in-aid:
(1) Property transferred to a ministry or agency under project contribution must be a commodity item aligned with a particular project; and
(2) Transfer of any U.S. Government property under grant-in-aid must also be to a designated ministry or agency of the host government and transfers should clearly be defined for official purpose, such as carrying out the broad objectives of the country program.
b. Written requests for transfer of property by either method must be indicated by an official agency of the host government and sent to the USAID Director stating the requirements, purposes, and objectives. The director will sign the bilateral transfer agreement based upon staff clearance and signatures presented on clearance copy (see 14 FAH-1).
c. Property aged or worn to a condition of liability must not be transferred to the cooperating government except in a particular circumstance, such as when the local government desires, sponsors, or approves a program of technical, mechanical, or electrical training; USAID may then transfer worn vehicles, refrigerators, typewriters, air conditioners, etc., to assist in such training programs. Host-government sanction is necessary because such rehabilitated equipment would normally be subject to customs duties and taxes; therefore, final utilization or disposition by the local training group should be clearly established and understood in advance.
d. Administrative management:
(1) Grant-in-aid property must be assessed in dollars at fair market value or depreciated value. This amount may be used as an offset credit to the country program if USAID considers it feasible and prudent;
(2) Form AID-534-1, Personal Property Disposal Authorization and Survey Report, is completed to account for required adjustments to acquisition costs on property records and fiscal account records;
(3) Property transferred must be on an as-is where-is basis;
(4) USAID must not employ either transfer method as a convenient or expeditious device for property disposal;
(5) USAID officers must refrain from intimating commitment of property prior to internal discussion and approval; and
(6) Normally and logically, property must be on USAID's records in order to effect a grant or contribution to the host government. However, this administrative procedure is sometimes unrealistic; for example, when U.S. Government property in custody of a contractor (that is, not on USAID's property records) is to be transferred to the host government. These transfers may be done directly by USAID without debiting and immediately crediting USAID records for the sake of formality. However, in such cases, total documentation must be recorded to satisfy any future audit. Another example would be when property is located at a distant project site and continued use there is planned.
14 FAM 417.2-4(B) Project Contribution
(CT:LOG-335; 11-24-2021)
(USAID Only)
When the responsible officer of USAID and the cooperating government have agreed to the transfer of U.S. Government property to a specific project, the transaction must be documented as follows:
(1) The assigned transfer agreements list property to be transferred. The transfer agreement must constitute an addendum to the Project Agreement (see 14 FAH-1);
(2) A "fair-market value" assessment of the property in dollars must be shown on the addendum. This dollar value is informational for the purpose of audit and property accountability;
(3) It is not necessary to include the total value in the financial plan nor does a Project Implementation Order/Technical Services (PIO/T) need to be prepared;
(4) If commodities are applied to a new project, it may be appropriate to assess the fair market value total against the project. The property agreement must be adjusted accordingly; and
(5) One copy of the transaction should be forwarded to the respective USAID/W regional bureau's program office for appropriate action and information.
14 FAM 417.2-4(C) Grant-in-Aid
(CT:LOG-335; 11-24-2021)
(USAID Only)
Upon receipt of a request for personal property under grant-in-aid from a ministry or agency of the cooperating government, the USAID Director must:
(1) Order inquiry into availability of property for transfer;
(2) Determine the merit of the declared purpose; and
(3) Approve (with prior M/MS/OMD approval) or reject the request.
14 FAM 417.2-5 Donation
(CT:LOG-124; 05-16-2012)
(Uniform State/USAID/Commerce/Agriculture)
a. Personal property may be donated instead of abandoned or destroyed:
(1) If the property cannot be disposed of by redistribution, transfer, or sale and has little or no commercial value; or
(2) If the PDO makes a written determination that the estimated cost of care, handling and storage would exceed the estimated proceeds from its sale.
b. Instead of abandonment or destruction, personal property may be donated to the following:
(1) Nonprofit educational (schools, orphanages, or youth programs);
(2) Public health, welfare, charitable, scientific, literary institutions; or
(3) International bodies in which the United States participates.
c. The PDO must give priority consideration to institutions organized under U.S. law, supported by U.S. taxpayer funds, or which have tax-exempt status as a nonprofit organization.
d. Donees must be located in the country in which the property is situated and are responsible for all costs to acquire the property including moving expenses.
e. All personal property donated by the Department of State must be properly documented and the disposal properly recorded on the accountable property (inventory) records, or ILMS Asset Management system.
f. USAID only: Donation of replacement property under this provision requires the prior written approval of the mission director and the concurrence of M/MS/OMD. This approval is attached to form AID-534-1, Personal Property Disposal Authorization and Survey Report.
14 FAM 417.2-6 Abandonment or Destruction
(CT:LOG-124; 05-16-2012)
(Uniform State/USAID/Commerce/Agriculture)
a. Disposal of property by destruction or abandonment is executed as a last resort. The PDO must document efforts to dispose of the property by all other disposal options indicated in this section. The destruction or abandonment must be witnessed by the APO or the PDO and a certificate of destruction or abandonment must be prepared and signed.
b. Abandonment or destruction of hazardous materials can result in significant safety and health problems or environmental contamination. Therefore, before this option is implemented, contact the Safety, Health, and Environmental Management Division (OBO/OPS/SHEM) for guidance.
c. Immediately upon completion of the abandonment or destruction of the personal property, including capitalized personal property, the disposal of the item must be recorded in the accountable (inventory) records (for State) or ILMS Asset Management System.
14 FAM 417.2-7 Public Diplomacy Equipment Grants
(CT:LOG-184; 01-29-2015)
(State Only)
New or used personal property, when acquired with Public Diplomacy funds (account PD 0113.P only), can be disposed of through Public Diplomacy grants when post officials determine that this action will further U.S. Government foreign policies and goals. See (Office of the Procurement Executive) A/OPE Property Grants and Requirements for the Disposal of Property through Federal Assistance Awards (GPD 30), Disposal of Excess Public Diplomacy Property.
14 FAM 417.3 Disposal of Flags, Seals, Insignia, Etc.
(CT:LOG-124; 05-16-2012)
(Uniform State/USAID/Commerce/Agriculture)
Obsolete or unserviceable flags, seals, signs, insignia, door plates, rubber or wax stamps bearing the seal of the United States must be mutilated completely, preferably by burning. Impressions or seals placed upon items must be removed or obliterated before disposal is made.
14 FAM 417.4 Protective Custody Property
(CT:LOG-124; 05-16-2012)
(Uniform State/USAID/Commerce/Agriculture)
Property left by U.S. Government Agencies or quasi-governmental agencies must not be disposed of without specific authorization from the owning agency.
14 FAM 417.5 Disposition of other Agency Property
(CT:LOG-124; 05-16-2012)
(Uniform State/USAID/Commerce/Agriculture)
Posts must assist in the disposal of other agency property, provided authority is furnished, in writing, by the agency concerned. Proceeds from the sale will be deposited in the appropriate agency's account, minus any shared costs incurred to conduct the sale, i.e., advertising, auctioneer services, etc.
14 FAM 417.6 Cannibalization of Nonexpendable Property
(CT:LOG-124; 05-16-2012)
(Uniform State/USAID/Commerce/Agriculture)
a. Cannibalization of nonexpendable property is prohibited unless approved in advance by the post’s PMO using Form DS-132 (for State), or Form AID-534-1 for USAID. If a part is removed from a working piece of equipment which thereby renders this working piece of equipment inoperable, then this is cannibalization. However, it is often the case that the best utilization of U.S. Government property involves removing working parts from one broken item of equipment to fix another item of equipment. This is not cannibalization. In order to maintain the integrity of the broken item from which parts are being removed, it is essential that its parts be replaced with the broken parts of the item being repaired. Once all usable parts have been removed from a broken item of equipment, and it can no longer be used for this purpose, it can be excessed with a condition code of "Salvage."
State only: The transaction must be recorded on the accountable property records, ILMS Asset Management System, especially when capitalized assets are involved.
b. Justifications for permitting cannibalization are:
(1) Rehabilitation is uneconomical;
(2) Disposal by sale, redistribution, transfer, or grant-in-aid is impractical; or
(3) Value and condition of useful parts and components are high enough to justify time and labor to extract them for repair of working equipment.
14 FAM 418 REPORTING REQUIREMENTS
14 FAM 418.1 Property Management Report
14 FAM 418.1-1 State Only
(CT:LOG-299; 11-25-2020)
(State Only)
a. Form DS-582, Property Management Report, is submitted annually. The APO and the PMO must sign the report. Beginning FY 2010 the inventory process must be started no earlier than October 1 and the Property Management Report must be submitted in the Certification Submission Center (CSC) in the Integrated Logistics Management System to the Property Management Division (A/LM/PMP/PM) by March 15 of the same fiscal year. All required annual inventory reports may be accessed from the Department’s system of record, Integrated Logistics Management System.
b. If the March 15 deadline cannot be met, written requests for permission to submit late reports are to be submitted to A/LM/PMP/PM prior to March 15 and must include a valid justification for the delay and a date by which the report will be submitted.
c. If any of the responses in the Compliance Report (Part B) are negative, the Property Management Report must be accompanied by a memorandum stating what corrective action has been initiated and include a date by which the post will be in full compliance with property management regulations. The post must subsequently send a follow-up memorandum, by the projected compliance date, confirming that the post is in total compliance with regulations.
d. The information resource management officer (IMO) (or designee) must complete the annual physical inventory and reconciliation of all program property tracked in the Integrated Logistics Management System (ILMS), and subsequently the IMO must complete and submit an inventory certification to the ILMS program office (A/LM/PMP/PM) by March 15, each year.
e. Embassies which maintain property records for constituent posts, and are including those posts in the certification of inventory reconciliation and sale exchange parts of the report, must specify the name of each post included. If constituent posts are performing any of the property duties indicated on the regulations compliance part of the report, which are not being performed by the embassy on behalf of the constituent post, those posts must submit a separate report addressing that part only.
f. The designated accountable property officer for drugs and any other property under the control of the health unit must provide the PMO with an inventory certification for such property. If a post does not have a health unit or has no such property at post, the PMO must state this on the post's annual certification.
g. The designated accountable property officer for the narcotics affairs section's accountable office and residential (nonproject) personal property must provide the PMO with an inventory certification for such property, unless the PMO maintains the property records.
14 FAM 418.1-2 USAID Only
(CT:LOG-60; 05-14-2009)
(USAID Only)
USAID mission reporting requirements are detailed in ADS (Automated Directives System) Chapters 534 and 629.
14 FAM 418.2 Annual Fiscal Year Exchange/Sale Report
(CT:LOG-304; 01-22-2021)
(State Only)
The ILMS system will generate the Sale/Exchange Report. The report must be submitted to the Director, Property Management Division (A/LM/PMP/PM), by October 30 of each year. The data is needed by A/LM/PMP/PM officials to prepare a consolidated Agency annual Fiscal Exchange/Sale report to submit to GSA by December 30, in accordance with the requirements of 41 CFR 102-38.330.
NOTE: The posts which have implemented the Integrated Logistics Management System Asset Management (ILMS-AM) for personal property accountability do not need to submit this report.
14 FAM 418.3 Capitalized Property Records
14 FAM 418.3-1 Department of State
(CT:LOG-304; 01-22-2021)
(State Only)
Posts must provide information quarterly to CGFS/F/AO on capitalized property and heritage assets as instructed on the quarterly data call cable. This information is generated by the Department's system of record. A record of post submissions and nonsubmissions are maintained for reporting to management as requested. The posts which have implemented the Integrated Logistics Management System Asset Management (ILMS-AM) for personal property accountability do not need to submit this report, as CGFS/F/AO can obtain your property records directly from ILMS (see 4 FAM 734.3).
14 FAM 418.3-2 USAID
(CT:LOG-245; 03-28-2018)
(USAID Only)
a. USAID missions are responsible for reporting capitalized property on a quarterly basis to M/CFO/CAR through the USAID Controller. USAID capitalizes individual items of nonexpendable property that have an acquisition cost of $25,000 or more per item and an estimated life of 2 years or longer; see ADS (Automated Directives System) and 14 FAM 411.4). Instructions for reporting will be provided to missions by M/CFO/CAR and M/MS/OMD on a quarterly basis. Reporting will cover all USAID-owned property that meets the capitalization criteria to include nonexpendable property, information technology property, motor vehicles, and real property. The mission executive officer is responsible for certifying the capitalized vehicle data. The mission controller will certify the nonexpendable property, vehicles, and real property data.
b. M/CFO/CAR is responsible for providing oversight and guidance to missions on the reporting of capitalized nonexpendable property (excluding vehicles) and real property on a quarterly basis. M/MS/OMD will provide instructions and assistance to missions on reporting capitalized motor vehicles on a quarterly basis and will ensure that all missions comply with the requirement.
c. After the cut-off date the depreciated cost of the property is recorded in the Agency’s (M/CO/CAR) financial ledgers.
14 FAM 418.3-3 Fiscal Year Negotiated Sales Report
(CT:LOG-299; 11-25-2020)
(State Only)
Posts must provide information for the annual Fiscal Year Negotiated Sales Report to the Director, Property Management Division (A/LM/PMP/PM), by October 30 of each fiscal year. The Director, Property Management Division, consolidates the data for the agency’s Negotiated Sales report to the General Services Administration by November 29 of each year in accordance with the requirements of 41 CFR 102-38.330.
14 FAM 419 unassigned