UNCLASSIFIED (U)

14 FAM 420 

DOMESTIC PERSONAL PROPERTY MANAGEMENT

(CT:LOG-297;   11-02-2020)
(Office of Origin:  A/LM)

14 FAM 421  GENERAL

14 FAM 421.1  Scope

(CT:LOG-244;   03-27-2018)
(State Only)

a. This policy explains what is required for managing personal property.  It provides requirements for the receipt, management, accountability, storage, utilization, maintenance, reporting and disposal of all U.S. Government-owned and leased personal property controlled by the U.S. Department of State activities located in Washington, DC and domestic field offices

b. See 14 FAM 410, for information on government-furnished property (GFP), contractor-acquired property (CAP) and grantee-furnished property.

c.  The Integrated Logistics Management System-Asset Management (ILMS-AM) application must be used by all Department bureaus/offices to track personal property owned or leased by the Department of State.

14 FAM 421.2  Authorities

(CT:LOG-134;   11-05-2012)
(State Only)

See 14 FAM 411.5 for details.

14 FAM 421.3  Clarification or Exceptions to Policy

(CT:LOG-297;   11-02-2020)
(State Only)

a. Send requests, in writing, for clarification or exceptions to these policies to the Chief, Logistics Policy Unit, A/LM/POL via email to LogisticsPolicyQuery@state.gov.

b. For personal property operational questions contact your property desk officer via email PropMgtDeskOfficers@state.gov within the Property Management Division, A/LM/PMP/PM.

14 FAM 421.4  Compliance with Property Management Requirements

14 FAM 421.4-1  Compliance Monitoring

(CT:LOG-297;   11-02-2020)
(State Only)

a. Compliance with these policies must be monitored by the following means:

(1)  Form DS-1875, Property Management Report, which includes the Administrative Property (Part A) and Centrally Controlled Program Property (Part B);

(2)  The Property Management Division (A/LM/PMP/PM (PM)) staff will conduct training and periodic on-site assist visits at the request of responsible bureau officials, or as required.  Additionally, the Property Management Division (PM) staff will routinely verify the bureau’s compliance to property management policy by monitoring activities within ILMS Asset Management;

(3)  PM staff may verify with Bureau of the Comptroller and Global Financial Services officials that assertions relating to property management requirements by responsible domestic bureau officials in Statements of Assurances are accurate; and

(4)  Risk assessments as directed by the Office of Management Control (CGFS/MC).

b. Evidence of noncompliance with property policies will be brought to the attention of the Agency Property Management Officer (Director, A/LM/PMP).

14 FAM 421.4-2  Compliance Enforcement

14 FAM 421.4-2(A)  Notification of Noncompliance

(CT:LOG-134;   11-05-2012)
(State Only)

a. The Agency Property Management Officer, Director, Program Management and Policy (A/LM/PMP), or authorized staff, must notify the appropriate accountable property officer (APO) of any instance of noncompliance detected through the monitoring process.  Upon receipt of this notice, the APO must initiate immediate remedial action and within 60 days, report actions taken to the Agency Property Management Officer.  If the report is not received in A/LM/PMP within 60 days, the responsible personnel are subject to penalties referred to in 14 FAM 421.4-2(B).

b. The Agency Property Management Officer must refer repeated or serious instances of noncompliance to the appropriate bureau’s Assistant Secretary with a letter that will state that disciplinary action should be taken in accordance with 3 FAM 4500, Civil Service Disciplinary and Adverse Actions, or 3 FAM 4300, Disciplinary Action (Including Separation for Cause), as appropriate (see 14 FAM 421.4-2(B)), for situations involving:

(1)  Failure by the APO to submit the required Form DS-1875, Property Management Report, or a valid request for an extension of time;

(2)  Failure to take remedial action; or

(3)  False certification to either the annual Certification of Inventory Reconciliation or Regulations Compliance Report.

14 FAM 421.4-2(B)  Penalties for Noncompliance

(CT:LOG-134;   11-05-2012)
(State Only)

Individuals who fail to fulfill responsibilities under these policies or falsely certify either the annual Certification of Inventory Reconciliation or the Regulations Compliance Report may be subject to administrative sanctions as described in 3 FAM 4500 or 3 FAM 4300, as appropriate.  The Agency Property Management Officer and any other party must promptly report knowledge of or reasonable suspicion of anyone making a false certification to the Office of Inspector General/Office of Investigations (OIG/INV).

14 FAM 422  DEFINITIONS

(CT:LOG-297;   11-02-2020)
(State Only)

See 14 FAM 411.4, Definitions.

14 FAM 423  RESPONSIBILITIES

14 FAM 423.1  Separation of Duties

(CT:LOG-58;   04-07-2009)
(State Only)

A sound management control system must ensure that no individual is in the position to control all aspects of a transaction affecting the receipt, storage, or disposition of expendable or nonexpendable personal property.  If a separation of duties is not possible, the accountable property officer (APO) or authorized designee must conduct a management review at least twice a year (see 14 FAH-1 H-120, Domestic Responsibilities).  Duties which are to be separated whenever possible are procurement, receiving, payment, property records keeping, and conducting the annual physical inventory.

14 FAM 423.2  Agency Property Management Officer

(CT:LOG-134;   11-05-2012)
(State Only)

The Director, Program Management and Policy (A/LM/PMP), is the designated Agency Property Management Officer for the Department, and is responsible for establishing policy for the management and control of the Department’s personal property; reviewing property management program operations; developing and implementing property management policies and procedures; and providing guidance in areas of receipt, storage, property accountability, inventory management, property utilization, and disposal.

14 FAM 423.3  Accountable Property Officer (APO)

(CT:LOG-134;   11-05-2012)
(State Only)

See 14 FAM 411.2-2 for details.

14 FAM 423.4  Unassigned

(CT:LOG-134;   11-05-2012)
(State Only)

14 FAM 423.5  Custodial Officer (CO)

(CT:LOG-134;   11-05-2012)
(State Only)

See 14 FAM 411.2-3 for details.

14 FAM 423.6  National Utilization Officer

(CT:LOG-134;   11-05-2012)
(State Only)

See 14 FAM 411.2-5 for details.

14 FAM 423.7  Signing Authority

(CT:LOG-58;   04-07-2009)
(State Only)

a. Authority to sign requests for supplies and equipment is vested in heads of organizational units having rank equivalent to division chief or higher.  An officer with signing-level rank may delegate, in writing, with a copy kept on file, signing authority to an employee of branch level or comparable rank, if the employee reports directly to the delegating officer.

b. The principal custodial officer (PCO) or the accountable property officer (APO) must approve property disposal requests which are initiated by an area custodial officer.

c.  The APO must approve property disposal documents initiated by the PCO.

14 FAM 423.8  Department Employees

(CT:LOG-297;   11-02-2020)
(State Only)

See 14 FAM 411.2-10 for details.

14 FAM 424  CONTROL OF EXPENDABLE PROPERTY

(CT:LOG-1;   05-27-2005)
(State Only)

It is incumbent upon the accountable property officer (APO) to see that adequate controls are placed on expendable supplies.  Internal procedures must ensure that a limited number of employees, with alternates, are authorized to request, receive, and control supplies within the organization.

14 FAM 425  CONTROL OF NONEXPENDABLE PROPERTY

14 FAM 425.1  Use Standards

(CT:LOG-297;   11-02-2020)
(State Only)

The accountable property officer (APO) assigned to each domestic activity must make a determination as to whether requirements for furniture and office equipment can be met through the utilization of already owned items, prior to initiating an acquisition request.  The acquisition of new items must be limited to those requirements that are considered essential.  The justification for the action must be fully documented and kept in the acquisition file, such as:

(1)  For essential requirements for additional employees; or

(2)  To ensure the success of critical programs.

14 FAM 425.1-1  Office Furniture Use Standard

(CT:LOG-134;   11-05-2012)
(State Only)

See 14 FAM 412.2 for details.

14 FAM 425.1-2  Draperies

(CT:LOG-18;   02-09-2006)
(State Only)

The assignment of draperies is limited to the deputy assistant secretary level and higher.

14 FAM 425.2  Property Replacement Standards

 (CT:LOG-134;   11-05-2012)
(State Only)

See 14 FAM 412.3 for details.

14 FAM 425.3  Property Utilization

(CT:LOG-1;   05-27-2005)
(State Only)

Utilization is the measurement of the use of personal property (supplies and equipment) in comparison with established standards.  U.S. Government property must be protected against fraud, waste, and abuse.

14 FAM 425.3-1  Employee

(CT:LOG-297;   11-02-2020)
(State Only)

a. Each employee must immediately provide the area custodial officer (ACO) with a written explanation on Form DS-132, Property Disposal Authorization and Survey Report, of the circumstances surrounding any missing, damaged, or destroyed property issued for that employee’s use.

b. Employees to whom property is assigned must ensure that repairmen are authorized to remove property from the building for repairs, before releasing property to them, and will inform the office supervisor when it is necessary for the property to be removed, so that a Form DS-1953, Authorization for Removal of Property, can be obtained.

14 FAM 425.3-2  Surveys

(CT:LOG-134;   11-05-2012)
(State Only)

The custodial officer must walk through his or her area of responsibility at least annually to assure care and maximum use of property; to identify property for reassignment within the organization; or to identify unneeded property.  Once the survey is complete, the custodial officer must document the findings in a memorandum; provide a copy to the principal custodial officer (PCO); and keep a copy for his or her own records.

14 FAM 425.3-3  Preventive Maintenance and Repair

(CT:LOG-134;   11-05-2012)
(State Only)

See 14 FAM 412.4-1 for details.

14 FAM 425.3-4  Property Loans and Charge Outs

(CT:LOG-297;   11-02-2020)
(State Only)

a. Property loans:  The accountable property officer (APO) or acting alternate may authorize the loan of nonexpendable property for official purposes, on a temporary basis, to other bureaus.  In the absence of the APO or the alternate, the property management officer (PMO) must authorize the loan using Form DS-584, Property Transaction, and the ILMS loanable property (LP) module.  Approval may also include liabilities, inventorying schedules, maintenance, property passes, and other agency-specific requirements.  A definite loan period must be established and all loans must be reviewed promptly at the end of the loan period.  If a loan extension is requested, it must require the same approval process as the initial loan request.  Such loans, generally, are not to exceed 90 days and must be documented on Form DS-584, Property Transaction.

b. For loans to other executive agencies, the loaning agency’s property management official (bureau’s accountable property officer) must coordinate with the borrowing agency’s property management official for approval.

c.  Property charge outs:  Property items regardless of cost (e.g., personal digital assistants (PDAs), laptops, tools, etc.) required by an employee for the employee's job over an extended period of time, should be issued under “charge out” procedure to ensure that property accountability for the item is maintained.  Such arrangements are approved by the APO and documented on Form DS-584.  The APO must ensure that the employee understands that any property provided to the employee in the performance of employee’s official duties belongs to the U.S. Government and may not be used to conduct private business or any illegal or illicit activities.  The property must be returned to the agency by the employee when the property is no longer needed for the use for which it was originally provided.  The existence and condition of the property must be checked at least annually.

d. U.S. Government-furnished personal property provided to contractors and/or grantees may not be accomplished with a loan.  All issues related to personal property furnished to contractors or their employees should be addressed by the contracting officer for a specific contract, or grants officer as it applies to grants.

e. Each bureau or office APO must ensure all Department-owned or -leased mobile phones worldwide, irrespective of cost thresholds, are accounted for and tracked using the ILMS LP module as follows:

(1)  Issue to each employee for official 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 425.3-5  Authorization to Remove Property from Buildings

(CT:LOG-18;   02-09-2006)
(State Only)

a. When an employee wishes to remove property from the building, the employee's ACO must complete Form DS-1953, Authorization for Removal of Property.  Form DS-1953 must also be initiated for the removal of property taken out for repair, as well as the removal of privately owned property.  The only exceptions are personal and U.S. Government-issued items such as beepers, personal digital assistants (PDAs), or cellular telephones that are issued to employees and signed for on Form DS-584, Nonexpendable Property Transaction, and the removal of excess property being taken by Department of Agriculture personnel for which the turn-in document, Form DS-1882, Domestic Property Excess, will substitute for Form DS-1953, Authorization for Removal of Property.

b. Property leaving the building via the loading dock must be accompanied by a Form DS-1953, Authorization for Removal of Property, bill-of-lading, or manifest identifying the property, person or company removing the property, and its destination.

c.  A Form DS-1953 must be issued each time property is removed from the premises unless the Form DS-1953 authorizes daily removals.  All Form DS-1953s must include an expiration date, which must not exceed 90 days.

d. The uniformed security officers at the exits are authorized to require any individual who is removing U.S. Government-owned or privately owned property to surrender an original valid Form DS-1953 describing the property being removed.

e. The loss of a valid Form DS-1953 must be immediately reported to the area custodial officer (ACO).

14 FAM 425.3-6  Property Relocation, Reutilization or Redistribution

(CT:LOG-134;   11-05-2012)
(State Only)

Relocation, reutilization or redistribution of property to activities within the Department of State must be appropriately authorized; documented on Form DS-584, Nonexpendable Property Transaction; and recorded in the ILMS Asset Management system.  The relocation, reutilization or redistribution of property to another custodial area within that bureau is authorized by the principal custodial officer (PCO).  However, the redistribution of property to another bureau must be approved by the accountable property officer (APO).

14 FAM 425.4  Property Receipt

(CT:LOG-297;   11-02-2020)
(State Only)

a. Signing for incoming deliveries of property must be controlled.  All property (expendable and nonexpendable) delivered to ordering offices must be inspected promptly by the area custodial officer (ACO) or designated alternate.  In ILMS Asset Management, the Form DS-127, Receiving and Inspection Report, must be generated by the system for partial and complete deliveries.  Copies of Form DS-127 and Form OF-347, Order for Supplies or Services, are kept on file for 3 complete fiscal years.  Any discrepancies in the shipment will be reported to the servicing procurement office.

b. If a contract employee is assigned receiving duties, the employee may perform inspection and receiving functions but may not sign the receiving report (Form DS-127) or Form OF-347.  Acceptance of property on behalf of a Federal agency is an inherently governmental function that is to be performed only by U.S. Government employees.

c.  When a U.S. Government purchase card is used to order “accountable property” (property which meets the criteria specified in 14 FAM 411.4), the custodial officer (CO) must ensure that the item is accurately recorded on the accountable property records (ILMS Asset Management), and is properly bar-coded.

d. 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 425.5  Warehouse Operations

(CT:LOG-297;   11-02-2020)
(State Only)

a. The Office of Logistics Management has responsibility for the management and control of all domestic warehouse operations.  Warehouse services, including receipt, storage, packing, and distribution are centrally provided by the Secure Warehouse Division (A/LM/OPS/SL).  All requests for the acquisition of additional warehouse space or related services must be approved by the Director, Office of Logistics Operations.  This approval is to be obtained prior to requesting the acquisition of space by the Office of Real Property Management (A/OPR/RPM) in the Bureau of Administration’s Office of Operations (A/OPR).

b. It is the policy of the Department that personal property in any warehouse facility be accounted for at all times, and be protected against loss or damage.  It will be the responsibility of the facility custodian to assure that effective management controls are in place to prevent loss from damage, theft, or pilferage during receipt, storage, and shipment of U.S. Government property.  Access to the warehouse must be limited to those 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.

c.  Operating procedures must be issued covering receipt and inspection of personal property to insure that all property received is inspected promptly as to condition and quantity, and that the property is in accordance with the terms and specifications of the procurement document.

d. Operating procedures must establish a time frame (not to exceed 5 working days) for processing all incoming shipments and include provisions for a periodic written status report by receiving personnel, to an appropriate supervisory level, on all material remaining in the receiving holding area beyond the time frame specified in the procedures.

e. Only those individuals so designated may receive and sign for incoming property.

f.  Hazardous commodities include explosives, flammables, corrosives, combustibles, oxidizers, poisons, toxins, sources of ionizing radiation or radiant energy, biological, radiological, magnetic substances, or compressed gases, which because of their nature are dangerous to store or handle.  They present real or potential hazards to persons and/or property.  Hazardous commodities must be segregated properly from each other and from other types of supplies (consult the Bureau of Administration’s Domestic Environmental and Safety Division (A/OPR/FMS/DESD) for assistance).

g. An annual physical inventory must be taken and the results reconciled with the property records of all stock; and records of ownership of all property held in the facility must be maintained (including any property set aside to be rehabilitated).

h. Safety:  The Department has established a hazard communication program that provides written guidelines for complying with the Hazard Communication Standard.  All domestic activities handling hazardous materials are to contact the Domestic Environmental and Safety Division (A/OPR/FMS/DESD) for assistance in implementing program requirements.

i.  The operation, maintenance, and storage of powered industrial trucks (e.g., forklifts) should be consistent with Occupational, Safety and Health Administration (OSHA) regulation 1910.178 (revised December 1, 1998) and American National Standards Institute (ANSI) regulation ANSI B56.6 safety standard for low-lift and high-lift trucks.

j.  Storage of stocks must comply with OSHA safety standards with regard to distance from sprinkler systems, fire extinguishers, and building exits.

14 FAM 425.6  Records Accountability

(CT:LOG-134;   11-05-2012)
(State Only)

Accountable property records must be maintained on expendable and nonexpendable stock inventory and on nonexpendable property in use that meets the accountability criteria prescribed in this policy.

14 FAM 425.6-1  Accountability Criteria

14 FAM 425.6-1(A)  Accountability Level

(CT:LOG-111;   11-28-2011)
(State Only)

Accountable property is 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.

14 FAM 425.6-1(B)  Information Technology

(CT:LOG-134;   11-05-2012)
(State Only)

Nontempest information technology (IT) equipment (see 14 FAM 425.6-1(A)) must be included on bureau accountable property records (Integrated Logistics Management System (ILMS) Asset Management application).

14 FAM 425.6-2  Recording Costs

14 FAM 425.6-2(A)  Property Purchased

(CT:LOG-134;   11-05-2012)
(State Only)

See 14 FAM 415.1-1 for details.

14 FAM 425.6-2(B)  Property Transferred or Donated

(CT:LOG-134;   11-05-2012)
(State Only)

See 14 FAM 415.1-2 and 14 FAM 415.1-3 for more information.

14 FAM 425.6-3  Capitalization and General Ledger

(CT:LOG-134;   11-05-2012)
(State Only)

For capitalized personal property, see 14 FAM 415.2-1.

14 FAM 426  PHYSICAL INVENTORY AND RECONCILIATION

14 FAM 426.1  General

(CT:LOG-297;   11-02-2020)
(State Only)

Physical inventories of accountable personal property must be taken annually, and beginning FY 2010 starting not earlier than October 1 (ILMS Asset Management or other authorized accountability system).  Physical inventories should be taken by trained personnel independent of the accountable property officer (APO).  Upon completion of the reconciliation and appropriate approval of any records adjustments resulting from inventory discrepancies, the APO must prepare Part A of Form DS-582, Certification of Inventory Reconciliation for Domestic Offices, generated by the ILMS Asset Management system for the signature of the accountable property officer (APO), and submitted to the Property Management Branch (A/LM/PMP/PM) by March 15 of the same fiscal year to ensure financial integrity.  More frequent inventories of sensitive items such as weapons, portable computers, cameras, lenses, etc., is recommended and would be a valuable management practice.

14 FAM 426.2  Inventory Reconciliation

(CT:LOG-297;   11-02-2020)
(State Only)

a. When discrepancies are found between the physical inventory count and the property records, immediate action must be taken by the accountable property officer (APO)/area custodial officer (ACO) to resolve the discrepancies.

b. Inventory overages must be documented and added to the property records.  Inventory overages do not offset inventory shortages.

c.  The ACO must report all inventory shortages to the accountable property officer (APO) on Form DS-132, Property Disposal Authorization and Survey Report.  In cases involving inventory shortage where the dollar value does not exceed one percent of the expendable or nonexpendable inventory value (total acquisition cost), or when the cost of individual missing items is under $5,000 per item, the property management officer (PMO) may authorize inventory adjustments when satisfied that efforts to reconcile have been reasonable and sufficient.  A copy of the completed Form DS-132, Property Disposal Authorization and Survey Report, must be forwarded to the Chief, Property Management Branch (A/LM/PMP/PM).  When the value (acquisition cost) of the shortage exceeds one percent, or when the acquisition cost of individual missing items is $5,000 or more per item, the PMO must refer the report to the property survey board.  Form DS-132, Disposal Authorization and Property Survey Report, and all related documentation is sent by the APO to the Secretary of the Survey Board (the APO may contact the Property Management Branch staff (A/LM/PMP/PM) for identification and location of the board secretary).  After the property survey board action is complete, the secretary of the board returns the original copy of Form DS-132 to the APO.  The property survey board must address relief from responsibility and property records adjustment in the comments field of the form.

d. The APO or ACO must keep a physical inventory and reconciliation file for 3 fiscal years.  The file must contain:

(1)  A copy of any Form DS-127, Receiving and Inspection Report, documenting inventory overages, if appropriate;

(2)  A copy of any Form DS-132 documenting inventory shortages, if appropriate;

(3)  A copy of Form DS-582, Property Management Report; and

(4)  The following Integrated Logistics Management System-Asset Management (ILMS-AM) application-generated reports:  Comprehensive Report, Visual Report, Inventory Coverage, and Missing Property Report.

14 FAM 427  EXCESS PROPERTY

14 FAM 427.1  Nonexpendable Property

(CT:LOG-134;   11-05-2012)
(State Only)

Property that is no longer needed by the office that it was assigned to or property that is no longer economically repairable should not be allowed to accumulate in offices.  See 14 FAH-1 H-720 for procedures on disposing of excess property.

14 FAM 427.2  Inspection for Classified Material

(CT:LOG-244;   03-27-2018)
(State Only)

a. Responsibilities:  Prior to the removal of unneeded property from offices, 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.  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.  Responsibility for further inspections and completion of Form DS-586 rests with the area custodial officer (ACO), unit security officer (USO) and, as appropriate, the information systems security officer (ISSO) (see 12 FAM 561, Security Inspection of Excess Property and 14 FAH-1 H-722, Inspection of Personal Property Prior to Disposition).

b. Safes:  Before excessing safes, the unit security officer must reset combinations on safe files to the factory standard 50-25-50.  Padlocks are to be removed from bar-lock cabinets and the combinations are to be reset to 10-20-30.  When the combination is not reset to the factory standard, the current combination must be identified on a tag affixed to the item(s).

14 FAM 427.3  Acquiring Excess Personal Property from Other Federal Agencies for Official Use

(CT:LOG-134;   11-05-2012)
(State Only)

To the maximum extent practical, requirements for personal property must be filled by using existing Department of State property or by obtaining excess property from other Federal agencies in lieu of new procurement.  The U.S. Government maintains the GSAXcess Web site to facilitate the screening and transfer of excess personal property and exchange/sale property worldwide between Federal agencies.  Principal custodial officers (PCOs) should provide names and contact information of U.S. Government employees requesting authorization to requisition excess or exchange/sale property via GSAXcess, and will have the authority to sign the electronic forms regarding excess property generated by GSAXcess via email to the Department of State National Utilization Officer (Chief, Property Management Branch A/LM/PMP/PM).  The Property Management Branch staff will appropriately register the individuals into the GSAXcess Web site to be issued a user ID and password to report and/or acquire excess property via the Web site processes.

14 FAM 428  REPORTING PROPERTY LOSS OR DAMAGE

(CT:LOG-155;   09-10-2013)
(State Only)

a. The custodial officer (CO) must report missing, damaged, or destroyed property to the accountable property officer (APO) through the principal custodial officer (PCO) within 15 calendar days of discovering the loss or damage.

b. The APO or the property survey board, as appropriate, will act on reported instances of missing, damaged, or destroyed U.S. Government-owned personal property.  Findings and decisions serve to relieve the APO of accountability for the property, and to establish whether an employee is personally liable for damaged or missing property.  If it is determined that damage resulted from carelessness or negligence, or other fault of an employee, the employee may be required to reimburse the U.S. Government.  Seek guidance from the Bureau of the Comptroller and Global Financial Services (CGFS) at 4 FAH-3 H-320, Collections.

c.  Employees will not be held liable for loss, damage, or destruction attributable to inherent defects in the property.

d. The extent of financial liability for damaged property is 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 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 other cultural 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 of the item.  If an item not recorded on the property records is involved, and the acquisition cost cannot be determined, the fair-market value (less any salvage value) is used for reimbursement purposes.

14 FAM 428.1  Property Survey Report

14 FAM 428.1-1  Area Custodial Officer (ACO) Action

(CT:LOG-134;   11-05-2012)
(State Only)

a. Upon the discovery of missing, damaged or destroyed property, the custodial officer (CO) must immediately prepare and submit Form DS-310, Property Survey Report, to the principal custodial officer (PCO).

b. In the case of stolen property, the area custodial officer (ACO) will promptly notify the building guard service.

14 FAM 428.1-2  Accountable Property Officer (APO) Action

(CT:LOG-134;   11-05-2012)
(State Only)

a. In those instances, throughout the year, where the acquisition cost of the missing, damaged, or destroyed property is less than $5,000 per item (acquisition cost), the accountable property officer (APO) will conduct an internal investigation, ascertain the facts, determine what corrective actions are necessary to strengthen internal controls, and authorize an adjustment to inventory records.  The APO must forward a completed copy of Form DS-310, Property Survey Report to the Chief, Property Management Branch (A/LM/PMP/PM).  Where the APO determines that the employee should be liable for missing, damaged, or destroyed property, and the employee contests the APO decision, the APO refers the case to the property survey board for action.  The APO must refer all reports of surveys on property with an acquisition cost of $5,000 or more per item and reports of surveys involving “program property” having an acquisition cost of $1,000 or more per item, or reports of survey when theft is suspected, regardless of cost, to the property survey board.  Reports of nonvolatile media (e.g., portable computers, personal digital assistants (PDAs)), regardless of acquisition cost, that have been used to process classified data must be reported to DS/SI/IS/APD.  If the media contained personally identifiable information (PII), it must be immediately reported to DS/SI/CS/CIRT.

b. In cases involving inventory shortage where the dollar value is one percent or less of the expendable or nonexpendable inventory value, or when the acquisition cost of an individual missing item is under $5,000 (acquisition cost) per item, the APO will conduct an internal investigation, ascertain the facts, determine what corrective actions are necessary, authorize an adjustment to inventory records, and forward a copy of the completed Form DS-310, Property Survey Report, to the Chief, Property Management Branch (A/LM/PMP/PM).

c.  When the shortage exceeds one percent, or when the acquisition cost of an individual missing item is $5,000 or more per item, the report must be referred to the property survey board.  If theft or fraud is suspected as accounting for the shortage, the APO must report all relevant information to the Office of Inspector General, Office of Investigations (OIG/INV).

d. The secretary of the property survey board will forward a copy of all survey actions received from the APO involving inventory shortages exceeding one percent of the total value of the inventory or copies of all survey actions involving items having an acquisition cost of $5,000 or more per item to OIG/INV, immediately upon receipt of the report from the APO.  The secretary will also provide a copy of survey reports to the Chief, Property Management Branch (A/LM/PMP/PM).

e. Cases involving loss, damage, or destruction of program property involving items having an acquisition cost of $1,000 or more per item, and all cases caused by civil disturbance or acts of God must be reported to the property survey board, regardless of value involved.

14 FAM 428.2  Property Survey Board

14 FAM 428.2-1  Composition

(CT:LOG-134;   11-05-2012)
(State Only)

The membership of the Property Survey Board consists of officials from three separate bureaus or offices including a chairperson and a secretary.  The Chairperson (Director A/LM/PMP) recruits and selects volunteers to serve on the board, as needed.  An attorney from the Office of the Legal Adviser (L), designated by the Assistant Legal Adviser for Buildings and Acquisitions (L/BA) and a member of the Property Management Branch (A/LM/PMP/PM) may serve in an advisory capacity.  Neither the custodial officer nor members of the custodial officer's staff, an individual involved, or immediate supervisor of an individual involved in a survey action may be a member of the Property Survey Board.  If any member is thus ineligible, the board chairperson will appoint a temporary replacement for that particular survey action.  The board may also ask other officers in the Department to sit with the board in an advisory capacity.  The board secretary will arrange for the board to meet, and reports should not be held more than 90 days without board action.

14 FAM 428.2-2  Purpose

(CT:LOG-58;   04-07-2009)
(State Only)

a. The survey board will make decisions and take actions on reported instances of loss, damage, or destruction of U.S. Government-owned expendable and nonexpendable personal property having an acquisition cost of $5,000 or more per item, all reports involving program property having an acquisition cost of $1,000 or more per item, and reports of inventory shortages of one per cent or more of the value of the expendable or nonexpendable inventory.

b. The board will examine all evidence presented and will conduct such further inquiry as it deems necessary.

c.  The accountable property officer (APO), principal custodial officer (PCO), or the area custodial officer (ACO) may be invited to meet with the board.

14 FAM 428.2-3  Distributing Completed Survey Reports

(CT:LOG-134;   11-05-2012)
(State Only)

When Survey Board action is completed, the Secretary of the Survey Board must forward a copy of the completed Form DS-310, Property Survey Report, to the accountable property officer (APO), as well as the Chief, Property Management Branch (A/LM/PMP/PM) to post on the PM Web site so that the Office of Inspector General, Office of Investigations (OIG/INV) officials and domestic Survey Board members will have access to the reports.  The APO will provide a copy of the completed Form DS-310 to the employee involved.

14 FAM 428.3  Employee Appeal

(CT:LOG-1;   05-27-2005)
(State Only)

a. On reports handled by the accountable property officer (APO), where the decision goes against the employee and the employee contests the decision, the employee may appeal to the Property Survey Board.  The decision of the Property Survey Board is administratively final.

b. On reports handled by the Property Survey Board, where the decision goes against the employee and the employee contests the decision, the employee may appeal to the Deputy Assistant Secretary for Logistics Management (A/LM), whose decision is administratively final.

14 FAM 428.4  Reimbursement by Employee

(CT:LOG-155;   09-10-2013)
(State Only)

a. Reimbursement may be made in cash or by check payable to the Department of State, and the Bureau of the Comptroller and Global Financial Services (CGFS) will credit the appropriate account based on the source of the funding for the asset.

b. If the employee does not consent to reimburse the U.S. Government, the case is forwarded to CGFS for collection in accordance with 4 FAM.

c.  Employee reimbursement collections for lost, damaged, or destroyed property claims should be forwarded to the financial management in the bureau and deposited in accordance with 4 FAH-3 H-320, Collections.  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 429  REPORTING REQUIREMENTS

14 FAM 429.1  Property Management Report

(CT:LOG-134;   11-05-2012)
(State Only)

a. Form DS-1875, Property Management Report, must be submitted annually.  Form DS-1875 must be signed by the accountable property officer (APO) and the principal custodial officer (PCO).  The inventory must be started no earlier than October 1 and the certification (Form DS-1875) submitted to A/LM/PMP/PM by March 15 of the same fiscal year to ensure financial integrity.  The original Form DS-1875 should be kept in the Inventory and Reconciliation file (see 14 FAM 426.2, subparagraph d(3)) by the PCO, and a copy should be scanned and submitted electronically to the Property Management Branch.  If the March 15 deadline cannot be met, the APO must submit a written request for permission to submit a late report to A/LM/PMP/PM prior to March 15 and must include a justification for the delay and a date by which the report will be submitted.

b. If any of the responses in the Regulations Compliance Report portion of the Form DS-1875 are negative, the Form DS-1875 must be accompanied by a memorandum stating what corrective action has been initiated and include a date by which the reporting office will be in full compliance with property management regulations.  The office must subsequently send a follow-up memorandum, by the projected compliance date, confirming that the office is in total compliance with regulations.

14 FAM 429.2  Capitalized Property Information

(CT:LOG-155;   09-10-2013)
(State Only)

The Bureau of the Comptroller and Global Financial Services (CGFS/F) accounts for capitalized personal property assets based on the data maintained in the property accountability systems.  CGFS/F obtains property records directly from the Integrated Logistics Management System (ILMS).

14 FAM 429.3  Exchange/Sale Report

(CT:LOG-244;   03-27-2018)
(State Only)

All exchange/sale property transactions must be recorded in the approved Department’s Integrated Logistics Management System’s-Asset Management (ILMS-AM) application, for generating the Department’s consolidated annual Exchange/Sale Report due to the General Services Administration by December 30.

UNCLASSIFIED (U)