NIH POLICY MANUAL
26101-25-2 - Personal Property Management Guide
Issuing Office: OA/OLAO 496-5711
Release Date: 6/1/03
Partial Revisions: 5/31/00; 10/16/00; 12/12/90
1. Explanation of Latest Material Transmitted: Material in Sections
X and Y has
been revised to update information on records retention and management
controls.
2. Filing Instructions: Revise as follows:
Changes Effective 6/1/03:
Section X, first paragraph: last sentence now references
an additional item number
Section Y: revised in entirety
Changes Effective 10/16/00:
Section S: remove and reference NIH Manual 26101-25-2-9 dated 10/16/00
Changes Effective 5/31/00:
Section D
(paper copy: remove pp. 3-4, dated 12/12/90; insert pp. 3-4 dated 5/31/00)
Change to read:
5. Board of Survey: A committee consisting of three to five
officials and/or employees appointed to make inquiries into the circumstances of a
shortage, loss, damage, destruction or cannibalization of property. The Board reports its
findings and recommendations to the Determining Authority. For additional information see
NIH Manual 26101-25-2-16.
Section D
(paper copy: remove 5-8, dated 11/30/90; insert pp. 5-8 dated 5/31/00)
Change to read:
9. Determining Authority: A designated official responsible for making
final determinations on Board of Survey recommendations. For additional information see
NIH Manual 26101-25-2-15.
28. Report of Survey: Form HHS 342, Report of Survey, used to document
the circumstances surrounding loss, damage or destruction of Government Owned property and
property loaned to the Government. This form also documents the proceedings of the Board
of Survey, their recommendations, the decision of the Determining Official, and at NIH
initiates the removal of property from the property and financial records. For additional
information see NIH Manual 26101-25-2-16.
Section E
Change to read: For additional
information see NIH Manual 26101-25-2-2.
Section F
Change to read: For additional
information see NIH Manual 26101-25-2-2.
Section G
Change to read: For additional
information see NIH Manual 26101-25-2-2.
Section P
(paper copy: remove 21-22, dated 11/30/99; insert pp. 21-22 dated 5/31/00)
Change to read:
P. Lost, Damaged, Destroyed, or Stolen Property:
For additional information see NIH Manual 26101-25-2-16.
Section U
(paper copy: remove 33-38, dated 12/12/90; insert pp. 33-38 dated 5/31/00)
Change to read:
U. BOARD OF SURVEY:
For additional information see NIH Manual 26101-25-2-16.
Section V
(paper copy: remove 39-40, dated 12/12/90; insert pp. 39-40 dated 5/31/00)
Change to read:
Personal property which is not recoverable shall be reported immediately on HHS Form
342, Report of Survey, by the Property Management Representative to the respective
Property Survey Board (For additional information see NIH Manual 26101-25-2-16), for Board
of Survey action. The form shall give the name and title of the employee; a complete
description, including the value and date of issue of each item; and complete information
on why the property is not recoverable. The IC PMR upon receipt of the HHS Form 342 that
property is not recoverable, will determine the need to convene a Board of Survey to
determine responsibility for the loss and personal liability, if any. On the basis of the
Board of Survey findings, the supervisor, IC Personnel Officer, and IC Property Management
Representative will be advised of appropriate action.
Appendix 3 - Redelegation as Property
Management Representative and Acceptance Agreement: Change to read:
For additional
information see NIH Manual 26101-25-2-2.
Appendix 4 - Delegation as Property Custodial
Officer and Sample Acceptance Agreement: Change to read: For additional
information see NIH Manual 26101-25-2-2.
Appendix 7 - Responsibilities of Supervisors: Change to read:
For additional
information see NIH Manual 26101-25-2-2.
The on-line version at
http://www1.od.nih.gov/oma/manualchapters/acquisitions/26101-25-2/ has been updated to
reflect these changes.
PLEASE NOTE:
For questions on this chapter, contact the Office of Logistics
and Acquisition Operations on 301-496-5711.
For information on the NIH Manual System, please call the Office of
Management Assessment on 301-496-2832 or go to http://www1.od.nih.gov/oma/manualchapters/
A. Purpose:
This Guide establishes policies, procedures and responsibilities governing the receipt,
accountability, recordkeeping, management and survey of Government- owned personal
property in order to ensure its control, care, use, and disposal.
B. Background:
General and special legislation, regulations and Executive Orders place on the
Director, National Institutes of Health (NIH); ICD Directors; subordinate line officials,
and heads of offices and laboratories the responsibility for establishing and maintaining
an efficient personal property management program. To be effective and prevent losses,
waste, hazards, unauthorized or improper use, and unwarranted accumulations of property,
the property management program provides the following:
- Effective planning and scheduling of requirements for all personal property to assure
that supplies and equipment are available to serve operations while at the same time
maintaining inventory levels at a minimum.
- Assurances that:
a. Maximum use of personal property is obtained, and property is used for official
purposes only.
b. Adequate inventory controls and accountability records are maintained.
c. Property is properly cared for, including preservation, preventive maintenance,
handling and storage.
d. Property is made available to other NIH activities including research contractors and
grantees, when such property is no longer required for present or future needs.
e. Newly acquired property is adequately inspected to assure proper quantities, acceptable
conditions, and compliance with specifications and standards.
f. Property management reports, including accountability requirements, are submitted as
required.
C. References:
The following statutory provisions establish requirements for agencies to maintain
property accountability, establish internal controls and adequate inventory controls and
to provide for proper recordkeeping in the management of personal property.
- Section 202(b) of the Federal Property and Administrative Services Act of 1949, as
amended (40 U.S.C. 483(b)) requires that each executive agency maintain adequate inventory
controls and accountability systems for property under its control.
- Title 31 of the U.S. Code (31 U.S.C. 3512) requires that each executive agency establish
and maintain systems of accountability and internal controls designed to provide effective
control over and accountability for all property for which it is responsible, including
adequate monetary property accountability records.
- Title 18 of the U.S. Code (18 U.S.C. 641) outlines penalties for embezzlement, theft,
etc. of any property or thing of value of the United States, or of any Department or
agency thereof.
- Title 16 of the U.S. Code (16 U.S.C. 18f) establishes requirements for the management
and maintenance of items of museum properties.
- Title 2 (Accounting) of the GAO Policy and Procedures Manual contains principles,
standards and related requirements dealing with accounting for the acquisition and
retirement of Government-owned property.
- 41 CFR 101-43 -- Utilization of Personal Property
- HHS Material Management Manual, 103-27 -- Inventory Management
- HHS Material Management Manual, 103-43 -- Utilization of Excess
- NIH Manual 1130,
Delegations of Authority
- HHS General Administration Manual, Chapter 1-90 - Clearance of Personnel for Separation
or Transfer
- Memorandum dated August 16, 1989, from Deputy Assistant Secretary for Management and
Acquisition, DHHS, Subject: Property Accountability Criteria
D. Definitions:
The terms used in this issuance are defined as follows:
- Accountability: An obligation imposed by law, administrative order, or
regulation, upon officials of an agency, to render an accounting to another official for
funds or property entrusted to him/her, whether agency owned, leased or acquired by loan
from any source through the maintenance of records and submission of prescribed reports.
Accountability also includes the responsibility for the custody, use, care, and
safekeeping of property.
- Accountable Property Officer: The Chief, Personal Property Branch,
Division of Logistics, Office of Acquisitions, is the NIH Accountable Property Officer.
This individual is responsible for the day-to-day management of the property system at
NIH.
- Accountable Property: Government-owned personal property that meets the
DHHS accountable property criteria for which controls must be maintained.
- Acquisition: To obtain ownership of property in any manner, including
purchase, transfer, donation, manufacture, construction, condemnation, or production at
Government-owned plants or facilities.
- Board of Survey: A committee consisting of three to five officials
and/or employees appointed to make inquiries into the circumstances of a shortage,
loss, damage, destruction or cannibalization of property. The Board reports its findings
and recommendations to the Determining Authority. For additional information see NIH
Manual 26101-25-2-16.
- Cannibalization: The removal of serviceable components from otherwise
unserviceable Government property. Approval by the Chief, PPB, is required before
Government property may be cannibalized.
- Capitalization: The assignment of dollar values to property for the
purposes of reflecting such values on proper accountability records and general ledger
asset accounts.
- Custodial Area: An area specifically defined by organizational or
geographic limits to which personal property accountability is assigned to a designated
Property Custodial Officer.
- Determining Authority: A designated official responsible for making
final determinations on Board of Survey recommendations. For additional information
see NIH Manual 26101-25-2-16.
- Disposal: The transfer and removal of property physically from its
assigned location and from the official records by sale, donation, transfer, condemnation
and destruction, trade-in, or other means. All disposal actions are coordinated and
approved by the Chief, Property Utilization Branch (PUB), NIH.
- Equipment: An article of personal property which is complete in itself,
of durable nature, with an expected service life of one year or more, that does not
ordinarily lose its identity or become a component part of another article when put into
use. Furniture is not included in this term.
- Excess Property: Property that is no longer required, has been reported
to GSA, and is available for transfer to other Federal departments and agencies. At NIH,
property is declared excess by the Chief, PUB.
- Expendable Property: Property which does not meet the definition for
equipment, is of relatively low dollar value, is consumed in the performance of an agency
function, or is incorporated into the end item. Also referred to as a "consumable
item".
- General Ledger: A fiscal record maintained at NIH by the Division of
Financial Management, that reflects the dollar values of assets on hand. The general
ledger is the primary record against which all other property financial records are
balanced.
- Inventory Adjustment: Changes made to the official accountable property
records when physical counts and records do not agree.
- Inventory, Contractor/Grantee: Any property acquired by and in the
possession of a grantee, contractor or subcontractor, including Government-furnished
property, to which title is vested in the Government.
- Inventory (Noun): Assets belonging to an organization. Also, a
complete record of all personal property assigned to an organization, whether or not such
property is in use. It includes nomenclature, serial and model numbers, decal number,
location, acquisition cost and other descriptive information.
- Inventory (Verb): The act of listing and physically counting items. The
physical inventory includes the reconciliation of any differences in the physical counts
and listings.
- Leased Personal Property: Property acquired from a vendor for a
specified period which the Government has the right to use but does not own. At the end of
the lease period the property is surrendered to the vendor.
- Non-Expendable Property: Categories of property which are carried as
assets on property control records and the NIH General Ledger account.
- Off-Site: Any location which does not fall under the definition of
on-site.
- On-Site: Any location where NIH is the owner of the real property or
improvements thereto; or any location where NIH is signatory to the lease or has obtained
a sublease through another Federal agency. The payment of costs associated with a
contractor's or grant recipient's acquisition of real property through lease or purchase
does not establish a location as on-site, regardless of whether or not title transfers to
NIH under the contract or grant, unless the purpose of the contract is the acquisition of
property. The physical location of NIH property or NIH personnel at an off-site location
in no way converts that location to an on-site location for property management purposes.
- Personal Custody Property: Property which is less than the current
accountability criteria, but which must be accounted for in property records during its
useful life. Included are items, regardless of cost, which are issued for the exclusive
use of an employee or a unit and by their very nature are considered sensitive and
accountable. Included under this definition are all items of accountable property used by
personnel while in travel status. Employees must sign for the receipt of this property and
are personally responsible for it. Refer to Appendix I for the listing of personal custody
property.
- Property Custodial Officer: An employee, accountable to the IC Property
Management Representative, who is responsible for the day-to-day custody, use, care, and
safekeeping of property in a defined custodial area. These individuals are designated, in
writing, by the IC Property Management Representative. The Property Custodial Officers
report to the NIH Property Accountable/Management Officer and are responsible for
reporting any changes to the records regarding acquisitions, transfers, disposal, etc.,
affecting property under his/her custody.
- Property Management: The broad function which includes the management,
coordination and administration of activities concerned with planning property
requirements; the acquisition of property; the receipt, storage and distribution of
property; the utilization, care and disposition of property; and property accountability
controls.
- Property Management Officer: The Director, OLM, is the NIH Property
Management Officer. This individual is responsible for directing an effective personal
property system, including: Property accountability, inventory, utilization and
reutilization, declaration of excess property, and rehabilitation.
- Property Management Representative: An official who is responsible for
directing the personal property management program in an IC, and is accountable to the NIH
Property Management Officer. At NIH this individual is the IC Executive Officer. The
duties and responsibilities of the Property Management Representative may be redelegated.
- Report of Survey: Form
HHS 342, Report of Survey, used to document the circumstances
surrounding loss, damage or destruction of Government Owned property
and property loaned to the Government. This form also documents
the proceedings of the Board of Survey, their recommendations, the
decision of the Determining Official, and at NIH initiates the removal
of property from the property and financial records. For additional
information , see NIH Manual 26101-25-2-16.
- Reutilization: The identification, reporting and transfer of excess
personal property among Federal agencies to fill current and future requirements in lieu
of a new procurement.
- Trade-In (Exchange): The action of providing to a vendor a like item
for a new item purchased and applying an agreed upon value for the like item toward the
purchase price of a new item. Such actions require the approval of the Chief, Property
Administration Branch (PAB), PMD.
- Scrap: Personal property or material that has no value except for its
basic material content.
- Surplus Property: Any excess personal property for which there is no
longer a need in the Federal Government. Such property is declared "surplus" by
the General Services Administration (GSA).
- Utilization: The degree to which property assigned to a custodial area
is actually in use.
- Unrequired Property: Property which is no longer required by an
organization and is available for transfer for further utilization. At NIH
"unrequired" property is held by the Property Utilization Branch (PUB), PMD, and
is available for reissue to other NIH entities. If not reissued, it is declared
"excess" by the Chief, PUB, and placed under GSA jurisdiction.
"Excess" property not acquired by other Federal agencies is eventually declared
"surplus" by GSA and donated to eligible organizations or sold to the public as
Government surplus.
E. Responsibilities: For additional
information see NIH Manual 26101-25-2-2.
F. Redelegation of ICD Property Management Representative
Authorities: For additional
information see NIH Manual 26101-25-2-2.G. Designation of Property Custodial Officers:
For additional
information see NIH Manual 26101-25-2-2.
H. Property Management Training Requirements:
- It is the policy of the NIH that personnel engaged in the property management process
receive prescribed property management training. Specific training requirements are
outlined in Appendix V. After successful completion of the required courses, employees
will receive Property Management Certification.
- Property management authority is delegated to named individuals, not to positions. Newly
appointed property management officials who have not had the opportunity to receive proper
training certification prior to beginning their duties may obtain interim authority for
one year.
I. Personal Property Management Committee (PPMC):
The Personal Property Management Committee (PPMC) is established to provide effective
communications by involving representatives from the NIH property community. The PPMC
serves in an advisory capacity to the Director, DL, AM, on all aspects of property
management, including policies and procedures. Membership of the PPMC shall consist of the
Director, DL; Chief, PPB; and the ICD Property Management Representatives.
Each member shall designate an alternate who shall attend the PPMC meeting when the member
cannot attend. Regular committee meetings shall be held at a time designated by the
Chairperson each month. In addition to regular meetings, the PPMC may hold planning
seminars, training sessions, and/or conferences for the purpose of promoting better
communications and working relationships.
J. Capitalization of Personal Property:
All non-expendable NIH-owned personal property meeting established accountability
criteria is regarded as an asset and is reflected in the NIH's central property
accountability and control records, maintained by the PAS, PPB, DL, AM.
Personal property will be capitalized, however, if it meets the following criteria:
- The item (a) has a unit acquisition cost of $25,000 or more (including accessories); (b)
is complete in itself; (c) does not lose its identity or become a component part of
another article when put into use; and (d) is of a durable nature with an expected life of
one year or more.
- The item is a durable end-product of expendable or non-expendable personal property
items which have been merged, assembled, joined, or otherwise manufactured to form a
single unit or system with a combined acquisition cost of $25,000 or more.
Capitalized equipment is valued at the net acquisition cost if readily determinable;
otherwise, at the estimated acquisition cost. Property acquired at no cost is capitalized
at the normal acquisition cost to the Government (estimated if not known) of a similar
item. Items acquired on a trade-in basis are capitalized at gross acquisition price; that
is, no deductions shall be made for the trade-in allowance on the item replaced.
Commercial, trade, and volume discounts are deducted from the total price in arriving at
the net cost to be recorded.
Where the cost of an article is Freight on Board destination, the delivered cost is
used. If the cost is FOB point of origin with transportation charges to be paid by the
Government, the cost at the point of origin is used and transportation cost to the
Government is not capitalized.
In those instances where the cost of the article includes installation charges, such
charges are capitalized. Cost to relocate or to reinstall at some later date is charged to
operating expenses.
NIH-manufactured articles are capitalized in the same manner as similar articles obtained
from commercial or other sources.
At NIH, activities financed from regular appropriations do not depreciate property on
their records. Only when activities are financed from a revolving fund or on a working
capital basis is non-expendable property depreciated, and the depreciation considered as a
current operating cost.
The total dollar acquisition value of any item of capitalized property which is retired
from service, donated, sold, exchanged, or otherwise disposed of by the PMD is deleted
from the accountability records and the general ledger account.
K. Ownership of Property:
Title to all NIH-owned property is vested in the Federal Government. The NIH is
accountable and responsible for property which it acquires by purchase from its
appropriations, gift funds (see NIH Manual
Issuance 1135, Gift Administration), by transfer, by donation or otherwise, until the
property is disposed of in an authorized manner, regardless of whether or not such
property is in NIH's immediate custody.
- Interagency and Intra-Agency Agreements
NIH does not acquire title to U.S. Government property that it receives for use under
interagency or intra-agency agreements from other organizations unless so stipulated in
the agreement. In such cases, the agreement becomes the acquisition document for proof of
ownership.
- Cooperative Agreements
The cooperative agreement shall list each item of NIH non-expendable property assigned
to the project, and shall provide custodial responsibilities by the organization having
the use and control of the property, and for the disposition of the property when it has
served its purposes or the project terminates. In no case shall disposition be
substantially later than the completion date of the project.
Each agreement providing for the purchase of property with NIH funds shall specify whether
acquired property is wholly-owned by the Federal Government or whether the Federal
Government has a partial interest, as in the case of property acquired by pooled funds. In
the first instance, there shall be a written agreement which provides specifically for the
disposition of property when it has served the purposes of the project, and in no case
later than upon completion of the project. In the second instance, a written
agreement shall specify the degree of Federal ownership and provide appropriate provisions
for disposition of equities through adjustment of funds or a disposition of specific
property equal to the residual interests of the Federal Government at the completion of
the project.
A copy of all cooperative agreements which include NIH owned non-expendable property must
be submitted to the Chief, PAS, PPB, DL, AM. Accountability of all Government-owned
property is required in the accountability system until disposition of such property
occurs.
- Research and Development Contracts
Contracts for research, development, and technical services which include property
furnished by NIH and property acquired under the contract must state that the contractor,
who is reimbursed by NIH, will be accountable and responsible for the custody, care, and
maintenance of such property. The contractor must maintain adequate property control
records and identify all NIH-owned property. Upon completion of the contract, or upon
termination of the need for the property in the performance of a contract, the Contracting
Officer, with the concurrence of the Chief, PAS, PPB, DL, AM, shall instruct the
contractor regarding disposition of the NIH property.
A copy of all research and development contracts which include property provisions must be
submitted to the Chief, PAS, PPB, DL, AM. Accountability of all Government-owned property
is required until disposition of such property occurs.
- Small Business Innovation Research (SBIR) Grants and Contracts
Title for Government-furnished or funded equipment shall vest in the Federal Government
during the course of the SBIR funding agreement, but may be transferred to the awardee
organization upon conclusion of the SBIR project, if it is found to be more cost effective
to do so than to recover the equipment (reference Public Law 97-219). A written
determination and authorization by the appropriate Grants Management or Contracting
Officer is required for the transfer of title to Government property to an SBIR awardee.
- Grants To For-Profit Organizations
Title to equipment acquired by a for-profit recipient under a financial assistance award
shall vest upon acquisition in the Federal Government. The management, control and
disposition of property in the hands of grantees will be governed by the rules applicable
to contractors which are set forth in 48 CFR 345.
L. Property Records:
NIH uses an on-line system to account for accountable property. Access to the system is
through the NIH Administrative Data Base. ICDs are delegated the on-line responsibility
for the day-to-day maintenance of their non-expendable property records. This includes
transactions such as adding and transferring items in the ADB system. The PAS, PPB,
maintains the official file of all supporting documentation affecting the general ledger
account and has the overall responsibility for review and approval of ICD transactions.
M. Physical Inventory:
A Physical inventory is a periodic physical count of property that is actually on hand
and the comparison of those counts with the applicable property records. Physical
inventories of accountable property, items that require special control, or are determined
to be subject to unusual rates of loss, theft, or misuse, (i.e., sensitive items) are to
be done annually. Refer to Appendix VI for physical inventory criteria.
Refer to Appendix I for a listing of Government property to be classified as sensitive
equipment or personal custody property regardless of dollar value.
N. Identification of Property:
Regulations require that all Government property, meeting accountability criteria
(including those that bear a manufacturer's serial number), be individually identified
with an NIH decal. Property identification decals shall not be removed, defaced,
obliterated, or changed. If the number is damaged or defaced, the Property
Custodial Officer shall notify the Property Management Representative and request a new
decal and adjustment of the property records.
When accountable property is received, the individual receiving must report it to the
Property Custodial Officer. The Property Custodial Officer is responsible for ensuring
that the decal is affixed and that the information is entered into the automated property
data base within five working days.
The property decal shall not be placed on the back or sides of the equipment, where it
cannot be seen without moving the item, but shall be readily visible. The area to be
decaled shall be cleaned with alcohol. The decal shall be attached on a permanent part of
the item, on the front right hand side preferably, and if this is not possible, in a
location which will not affect the operation of the equipment but which will be easily
visible without disturbing the equipment. Decals should be placed, if possible, on a
smooth, rather than rough or crinkled surface of the equipment.
O. Off Site Use of Government Owned Property by NIH
Employees:
This procedure is accomplished with the use of the NIH Property Pass and
a hand receipt for off-site use of the NIH Property Pass and a hand
receipt for off-site NIH employee property use. Use the PMIS
on-line property pass for accountable property and Form NIH 368, Property
Pass, for non accountable property. Hand receipts available
for use are the on-line Record of Personal Custody Items; Form NIH-2066,
Record of Personal Appeal Items; and Form HHS-439, Personal
Custody Property Record/Hand Receipt. All property passes must
be approved by at least the user's supervisor. Issue property
passes for a set period. Supervisor's approval of employee property
passes certifies:
1. The off-site use of property is necessary.
2. The property will be used exclusively for the performance of NIH work.
3. All requisite approvals have been obtained for property to be used in research,
including scientific, ethical and legal committees.
4. The employee has been instructed as to the appropriate use of property, term
of the pass, liability for the property and ownership of the property.
5. The period of the off-site use is appropriate for the work to be performed.
6. The users are responsible for:
a. Obtaining advance written approval for use of NIH property at any off-site location.
b. Safe and appropriate use, housing, and prompt return of the property when no longer
required for its approved use.
c. Returning the property for required maintenance or repair. NIH will bear the
cost of repair or maintenance due to normal use.
P. Lost, Damaged, Destroyed, or Stolen Property: For
additional information see NIH Manual 26101-25-2-16.
Q. NIH Property Loans:
1. General Information applicable to all loans.
a. All loan forms may be found on line at: http://forms.cit.nih.gov/ .
b. NIH ICs may loan NIH personal property (except motor vehicles) when determined to be
in the best interest of the government for a period Not To Exceed (NTE) one year.
c. An official at least one level higher than the official proposing the loan or
specifically authorized under laws, rulings, or regulations must approve the justification
and must certify that the proposed use of the property has been reviewed and approved by
any and all required legal, ethical and/or scientific review panels.
d. Prior written approval of the NIH Property Management Officer (PMO). Property may
not be removed prior to approval of the PMO.
e. Property must be returned upon expiration of the loan.
f. Loan renewals are not automatic. Loan renewals must be submitted to the PMO, at
least one month prior to the expiration date of the current loan to avoid the need to
return the property.
g. If an NIH or HHS requirement for the property has been identified, the property must
be used to fulfill that requirement before a loan is made to a non-federal organization or
individual.
h. Federal Acquisition Regulations limit the property that may be provided to
contractors. Contracting Officers are required to review, approve and document the
provision of property to contractors, (FAR Part 45 and associated clauses). The
appropriate provision of property to holders of grants and cooperative agreements is
discussed in OMB Circular A-110 and Loans will not be made to avoid the initiation of or
modification of a contract, grant or cooperative agreement, when such a vehicle is
otherwise appropriate.
2. Loans from NIH to Non-Government Individuals, Organizations or Institutions:
When it has been determined the loan would be beneficial to the Government, the loaning
organization must complete Form NIH 2489-2, Record of Personal Property Loan To Non-Federal
Government Organizations or Individuals, and submit for prior approval. The loan must
meet the following conditions set forth in the HHS Logistics Management Manual (LMM),
Subchapter E, 103-27.5502-1 as follows:
a. The property is not currently required by another NIH organization, and its absence
and use would not be used to justify new procurement of a similar article of property or
acquiring a similar item from excess.
b. The property is not excess. Excess property will be made available for use by other
Federal agencies.
c. The permitted use of the property will not cause the article to be destroyed or
damaged.
d. The agreement is subject to termination by the Government at any time at the
discretion of the NIH authorizing official.
e. The loan is for a specified time period, NTE one year.
f. The approving official has determined the borrower to be in compliance with Title VI
of the Civil Rights Act of 1964 (42 USC 200d, et seq.) by virtue of participation in other
programs, or through an assurance from the borrower.
3. NIH Form 2489-2, Record of Personal Property Loan To Non-Federal Government
Organizations or Individuals
Instructions for completing NIH Form 2489-2, are shown on the reverse side of the form.
In addition to the instructions, the loaning organization will assure that the loan
document contains information set forth in the HHS, LMM, Subchapter E, 103-27.5502-1
as follows:
a. Term of the loan (NTE one year).
b. The intended use of the item(s) and purpose (Justification).
c. The stipulation of any reimbursement or its absence.
d. The loan criteria stated in Q1 & Q2 above have been met.
4. The I/C Property Management Representative will review the NIH Form 2489-2, for
completeness, the justification for adequacy, and submit to the Property Management
Officer (PMO). Upon approval, arrange property movement to the loan recipient. Do not
release property for loan until PMO approval is received.
5. Label each piece of loaned property with a tag showing the item is:
a. "Borrowed Property";
b. The name and address and telephone number of owning I/C;
c. The loan number, assigned by the Property Management Division; and
d. The time period of the loan (NTE one year).
6. Loans to Federal Organizations or Federal (Other than NIH) Individuals: Refer to NIH Manual
Issuance 1165, "Interagency and Intra-Agency Agreements" when making loans
to other agencies. The property lending procedures are the same, except use NIH Form 2489-3,
Record of Personal Property Loan to Federal Organizations or Individuals.
7. Accountability and Control of Loaned Equipment: Property on a loan shall remain in
the subsidiary records and general ledger accounts of the activity making the loan. The
PMR will establish a memorandum account to reflect and contain:
a. An approved Personal Property Loan Record signed and dated by the borrower.
b. An inventory of the property received, signed and dated by the borrower indicating
receipt of property.
c. A copy of the agreement with the borrower.
d. Period of the loan (NTE one year).
8. Loans of HHS Personal Property During Disaster as outlined in the LLM Subchapter E,
103-27.5502-4.
a. The Disaster Relief Act of 1974 (P.L. 94-288) authorized Federal agencies on
direction of the President to provide personal property and other resources to state and
local governments during any major disaster or emergency.
b. HHS organizations will cooperate fully when a request is received for available
personal property from the Executive Office of the President; the Federal Emergency
Management Administration (FEMA); Department of Housing and Urban Development; a Governor
or his/her authorized representative; or any HHS-counterpart State agency head or his/her
authorized representative. Such property may be loaned under terms and conditions as
promulgated by FEMA in execution of the President=s
declaration of a major disaster or emergency. Property accountability officers will
maintain proper and accurate records of loaned personal property. After the circumstances
necessitating the loan have past, property will be returned or disposal action will be
taken in accordance with LMM 103-43 or 103-44.
9.Accountability
a. Accountability for property loaned to another internal organization or to other
government agencies will remain with the accountable area authorizing the loan.
b. The PAO for the activity using borrowed property, shall be responsible for
maintaining a record of each item. The record shall include as a minimum a signed loaned
agreement and HHS 557.
10. Loans to NIH from Non-Government Activities:
This includes property left in the possession of the NIH for demonstration purposes,
etc. In the event a loan of this type is considered to be in the best interest of the
Government, NIH
Form 2179, Agreement for the Loan of Property To NIH, must be completed and signed by
the lender, the borrower, and the IC Property Representative. The form is to be submitted
to the Chief, PAB, for approval, prior to acceptance of property.
R. Utilization and Disposal of Property:
It is the policy of the Government to utilize all unrequired and excess property to the
maximum extent possible. Excess property is the first source of supply. Unrequired
property should be considered to meet possible requirements elsewhere in the organization,
or to be used as a trade-in on a new acquisition. NIH staff should contact the PUB, PMD,
either by telephone (496-4247) or in person.
All organizational units shall review property under their control to determine that
which is unneeded. Unrequired property shall be promptly transferred to the PUB, PMD, as
outlined in Section S. below.
- Unserviceable Property:
Property that is unserviceable shall be transferred to the PUS, PMD, using NIH Form 649,
Report of Property Transfer. The Property Custodial Officer shall list such property on
the NIH Form 649, which is accessed through the automated NIH Administrative Data Base,
Property Management Information System Module. The form shall be transmitted on-line to
the PUS, PMD, after assuring that all clearances are obtained prior to transmittal. In
addition, the Property Custodial Officer is responsible for attaching an NIH Form 2683,
Certification that Equipment is Free From Hazards, to each item medical/scientific
equipment item. The PUS, PPB, will arrange for pick-up of the items by the Transportation
Branch (TB), DL. TB personnel will not pick up items that are not tagged.
- Unrequired Property:
All unrequired usable property that has been transferred to the PUS, PPB, is placed on
display in Building 13, Room 2E65 for at least 30 days usually to permit inspection and
reissue to NIH activities. Reissue to NIH organizations is accomplished through Form
NIH-649, Report of Property Transfer, from the PUS, PPB, to the gaining custodial area
through the on-line Administrative Data Base, Property Management System.
A listing of all unrequired property at NIH is available on-line through the NIH
Administrative Data Base, Property Management System. Property not reutilized by NIH
activities within the thirty day screening period will be reported to the GSA for
screening by other Federal, State and other eligible agencies. Once property has been
reported to GSA, it can only be reissued to NIH activities with the written authorization
of GSA.
- Trade-In (Exchange) of Government-Owned Property:
Requests for trade-in are to be submitted to the Chief, PAS, PPB. In addition to the
description and data for the new item to be purchased, the following information
concerning the item to be traded-in is required:
a. Dollar Value Offered By Vendor For Trade-In:
$
b. Vendor's Name, Address, Telephone Number:
c. Description (Including Federal Supply Classification Group Number, serial number, model
number, NIH decal number, and any other identifying information)
d. Condition:
e. Date Acquired:
f. Reason for Replacement:
g. Available for Inspection (Location: Building, Room Number)
h. Date Available for Release:
i. Certification: (To be signed by cognizant Administrative Officer) "The item of
property to be traded-in is deemed similar to the item to be acquired and is eligible to
be traded in accordance with the provisions of the Federal Property Management Regulations
and the DHHS Material Management Manual. The item acquired will be used in the performance
of all the tasks or operations in which the item replaced would be used and any proceeds
accruing from the exchange of item replaced will be applied against the acquisition cost
of the replacement item."
NIH Form 1872, Report of Action on Disposal of Replacement Property, will be prepared
by the PPB and the package will be returned to the requesting organization for processing
through the procurement system.
- Donations:
a. Domestic
NIH does NOT have the authority to make gifts or donations of unrequired supplies or
property to domestic schools, individuals, charities, communities, states, etc. This
authority rests solely with the General Services Administration.
b. Foreign (Under the PHS Act)
When it has been determined that the donation of property to an organization, institution,
or individual in a participating foreign country would be beneficial to the United States
Government and the NIH mission, NIH Form XXXX, (form number to be determined) Personal
Property Foreign Donation Record, must be completed by the donating NIH organization and
submitted for prior approval with the following:
(1) An explanation specifying the benefit or useful purpose to be derived by the United
States Government and the NIH mission;
(2) Clearance by the Chief, Shipping and Receiving Branch, DL, indicating that the
property has been approved by the Department of Commerce for exportation, regardless of
who is paying for the shipment.
The ICD Property Management Representative will review the request for completeness and
the justification for adequacy, and will submit the NIH-XXXX, (form number to be
determined) Personal Property Foreign Donation Record, to the Chief, PPB, through the
Chief, Shipping and Receiving Branch, for clearance. The Chief, PPB, will review the
documentation and contact the Department of State to obtain clearance to import the
property into the foreign country. The PPB will obtain final approval from the appropriate
NIH official. When this approval is received, arrangements can be made to have the
property shipped to the recipient. Property will not be released for donation until
approval is received.
- GSA Sales
The GSA conducts sales of NIH property or other surplus Government property. Such property
is offered for sale by auction, and NIH employees may submit competitive bids; however, no
purchase of property may be made either directly or indirectly by an employee who was in
any way connected with its condemnation, declaration as surplus, or sale.
S. Property Transfers: For additional
information see NIH Manual 26101-25-2-9.
T. Construction, Conversion, or Alteration of Property:
- Construction or Fabrication of Property:
Accountable personal property that is fabricated or manufactured by an NIH shop facility,
laboratory, or other NIH organization, is to be reported by the Property Custodial Officer
to the PPB within seven working days from receipt. The report shall indicate the cost of
such items, including material, labor and overhead and should identify the organizational
unit to which the property is accountable. Items incorporated into buildings, in such a
manner where removal will substantially destroy the identify of the item, are considered
to be fixed property and do not have to be reported.
- Property Furnished by Construction Contracts:
Accountable personal property which is installed as a part of a construction contract is
to be reported to the Chief, PAS, PPB, by the Property Custodial Officer within seven
working days from receipt. The report shall indicate the cost of such items, including
material, labor and overhead and should identify the organizational unit to which the
property is accountable.
- Cannibalization of Property:
Requests for cannibalization are to be submitted to the Chief, PPB, and should contain all
identifying information on the item, including the NIH decal number, if applicable. Prior,
written approval, by the Chief, PPB, is required for the cannibalization of all
non-expendable property. If approved, all remaining residual parts are to be transferred
to the PUS, PPB, for disposition, using NIH Form 649, Report of Property Transfer.
U. Board of Survey: For additional
information see NIH Manual 26101-25-2-16.
V. Clearance of Personnel for Separation or Transfer:
Regulations require that all personnel being separated from or transferred to another
organization be cleared for a number of items, including personal property indebtedness,
using NIH
Form 2737-2, Clearance of Personnel for Separation or Transfer. The cognizant IC
Administrative Officer shall be responsible for initiating NIH Form 2737-2 immediately
upon learning of the pending separation or transfer of an employee from the organization.
The Property Management Representative, and other applicable clearing officers shall
recover items charged to the employee, complete the applicable portions of the NIH Form
2737-2, and return the form and related documents to the originating Administrative
Officer.
Personal property which is not recoverable shall be reported immediately
on HHS Form
342, Report of Survey, by the Property Management Representative
to the respective Property Survey Board. (For additional information
see NIH Manual 26101-25-2-16),
for Board of Survey action. The form shall give the name and title
of the employee; a complete description, including the value and date
of issue of each item; and complete information on why the property
is not recoverable. The IC PMR, upon receipt of the HHS Form 342 that
property is not recoverable, will determine the need to convene a
Board of Survey to determine responsibility for the loss and personal
liability, if any. On the basis of the Board of Survey findings,
the supervisor, IC Personnel Officer, and IC Property Management Representative
will be advised of appropriate action.
Supervisors are responsible for ensuring that issues of employee indebtedness to the
Government are resolved and that actions taken are noted on the NIH Form 2737-2.
In cases where the IC Property Management Representative is separating or transferring,
an IC Property Custodial Officer shall determine whether all property has been accounted
for and complete the pertinent part of the clearance form. The Property Custodial Officer
shall be notified in advance by the Administrative Officer so that the transfer of
accountability can be accomplished in a timely manner.
W. Removal of Property for Repair/Maintenance:
Security procedures have been established to ensure the safeguarding of all Government
assets. All property, regardless of its condition, is property of the United States
Government. Government property is NOT available for personal use.
Government property requiring repair/maintenance shall be removed from NIH with a
properly executed NIH Form 1884 Request for Shipment. Personnel releasing property to a
contractor for repair purposes shall obtain a receipt for said property from the
contractor. Copies of shipping documents, receipts, return goods or return materials
authorization must be retained by the PCO to document these transactions pending the
return of the property.
X. Records Retention and Disposal:
All records (e-mail and non-e-mail) pertaining to this chapter must be retained and
disposed of under the authority of NIH Manual
1743, "Keeping and Destroying Records, Appendix 1, "NIH Records Control
Schedule," Item 2600-A, "Procurement" and Item 2600-C,
"Property and Supply Management."
NIH e-mail messages. NIH e-mail messages (messages, including attachments, that
are created on NIH computer systems or transmitted over NIH networks) that are evidence of
the activities of the agency or have informational value are considered Federal records.
These records must be maintained in accordance with current NIH Records Management
guidelines. Contact your IC Records Officer for additional information.
All e-mail messages are considered Government property, and, if requested for a
legitimate Government purpose, must be provided to the requester. Employees' supervisors,
NIH staff conducting official reviews or investigations, and the Office of Inspector
General may request access to or copies of the e-mail messages. E-mail messages must also
be provided to Congressional oversight committees if requested and are subject to Freedom
of Information Act requests. Since most e-mail systems have back-up files that are
retained for significant periods of time, e-mail messages and attachments are likely to be
retrievable from a back-up file after they have been deleted from an individual's
computer. The back-up files are subject to the same requests as the original messages.
Y. Management Controls:
The purpose of this manual issuance is to provide guidance to personnel engaged in property management functions and to
establish the responsibilities for each employee regarding the management of Government
property.
1. Office Responsible for Reviewing Management Controls Relative to this Chapter:
Property Administration Branch, DPPS/OLAO/OA/OM/OD
2. Frequency of Review: On-going reviews will be conducted on a rotating basis
among the Institutes and Centers. In addition, annual physical
inventories of accountable property will be conducted.
3. Method of Review: Annual physical inventories, special
inventories, coupled with reviews of property records, systems and practices
are used to determine compliance with the requirements of this manual.
Informal reviews are conducted on a constant basis and consist of a
review of selected transactions, background documentation and procedural
compliance.
Additionally, formal reviews will be conducted among the various
Institutes and Centers. These reviews will typically be scheduled so
that all ICs are reviewed during a cycle. However, reviews may vary in
frequency and scope and may be directed at specific circumstances or problem
areas. ICs will be apprised, prior to the review, of the purpose,
method and scope of the review. Issues identified by PAB will be
referred to the ICs for comment and correction. Regulatory infractions
will require IC response and corrective action. Recommendations will
also be made when areas of improvement or best practices can be identified,
but those areas do not result in a regulatory infraction.
In addition to the annual Physical Inventory, ICs must operate Property
Survey Boards to resolve incidents of loss, damage or destruction to
non-capital Government property within their areas of responsibility.
If issues are identified that span more than a single IC, they are brought
to the attention of the Personal Property Management Committee, which is
responsible for addressing and resolving common property management
concerns.
The Property Management Officer (PMO), OLAO, will be apprised of any
difficulties in implementing policy. The PMO may provide additional
instructions or requirements dependent upon the nature and severity of the
problem.
A single, NIH-wide, Property Survey Board will be organized to make
determinations on loss, damage or destruction of capital property items.
4. Review Reports are sent to: Director, Office of Administration, Deputy Director
for Management and the cognizant IC Executive Officer.
Appendix 1. Sensitive and Personal Custody Equipment
Property (Regardless of Item Cost):
Cellular Phones
Gamma Counters
Laboratory Balances
Liquid Scintillation Counters
Motor Vehicles (for road use only)
Personal Computers:
Central Processing Unit (CPU)
Monitors
Portables
Printers
Photographic Cameras and Lenses
Televisions
VCRs
Weapons (Including Tranquilizer Guns)
Appendix 2. NIH Property Management Organizational
Structure:
PROPERTY MANAGEMENT OFFICER, NIH
(Director, Division of Logistics)
ACCOUNTABLE PROPERTY OFFICER, NIH
(Chief, Personal Property Branch)
PROPERTY MANAGEMENT REPRESENTATIVE, ICD
(Executive Officer, ICD)
(ICD Property Representative)
PROPERTY CUSTODIAL OFFICERS, ICD
(Sub-Custodians)
EMPLOYEES, ICD
Appendix 3. Samples - Redelegation as Property
Management Representative and Acceptance Agreement: For additional
information see NIH Manual 26101-25-2-2.
Appendix 4. Samples - Delegation as Property Custodial
Officer and Sample Acceptance Agreement: For additional
information see NIH Manual 26101-25-2-2.
Appendix 5. Property Management Training Certification:
- NIH policy requires that all individuals with property management authority obtain
Property Management Certification. Certification is contingent upon the successful
completion of the following courses, or the equivalent:
a. Property Management Information System
b. Property Management for Custodial Officers
- All training requirements shall be fulfilled within one year following the receipt of
the interim Delegated Property Management Authority.
- In an effort to provide continuing education to everyone in the property field, the
Personal Property Branch will sponsor advanced property seminars on selected topics.
- Space for training courses and seminars is limited. DHHS Forms 350 will be reviewed and
priority attendance given to those individuals with interim Property Management
Certification. Other individuals will be allowed to attend on a space available basis.
Appendix 6. Physical Inventory Requirements:
Removed 3/31/97.
Appendix 7. Responsibilities of Supervisors:
For additional
information see NIH Manual 26101-25-2-2.
Appendix 8 -
See paper copy for Appendix VIII - Loan/Donation and Export of
NIH Property to Foreign Countries.
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