PROPERTY MANAGEMENT UPDATE FOR POSTS ABROAD AND

UNCLAS SECTION 01 OF 03 STATE 124077

SIPDIS

E.O. 12958: N/A
TAGS: ATRN AMGT ASUP KNEP KWPA
SUBJECT: PROPERTY MANAGEMENT UPDATE FOR POSTS ABROAD AND
ANNUAL INVENTORY REMINDER

REF: 14 FAM 410

STATE 00124077 001.2 OF 003



1. SUMMARY. The Office of Logistics Management, Property
Management Branch (PM) would like to advise posts abroad of
the May 14, 2009 14 FAM 410 changes regarding personal
property management and remind posts of the due date for
annual physical inventory certifications. A/LM continually
seeks to improve employees' knowledge of current personal
property management policies to meet our customers' needs,
ensure accountability of assets, improve internal controls,
and improve the efficiency of personal property management
programs. END SUMMARY.


2. This cable addresses important property management changes
and issues to assist posts with the preparation of their
upcoming inventory. It highlights pertinent PM changes
concerning 1) Fiscal Year Inventories; 2) Accountability
criteria for electronic equipment; 3) Inclusion of Motor
Vehicle Assets on the DS-582; and 4) Submission of Annual
Fiscal Year Exchange/Sale Report for NEPA Posts.


3. Please share the full text of this cable with others
involved with inventory and management of the Department of
State's Personal Property Management Program.

--------------
Fiscal Year Inventories
--------------


4. Beginning October 1, 2009, annual physical inventories
will be referred to as fiscal year inventories instead of
calendar year inventories. This change, as stated in the May
14, 2009 14 FAM 410 policy update, was required for the
Department of State financial statements and assurance
purposes to ensure that we are conducting the physical
inventory in the same fiscal year that we are reporting those
personal property assets on our financial statements. This
process will improve the accuracy of inventory reports and
measures, while maintaining consistency with other financial
reporting cycles.


5. In accordance with 14 FAM 416.1(a) Posts must begin their
FY2010 physical inventory no earlier than October 1, 2009, and
should submit their inventory certification to the Property
Management (PM) Branch by March 15, 2010.


6. Also, per 14 FAM 416.1 (a) and 14 FAM 416.3 physical
inventory of residence furniture, furnishings, and equipment
in use must be taken at the time of change of occupancy (as
occupants move in and out of the residence) and the inventory
must be reconciled immediately with property records.


7. According to 14 FAM 416.1(b) Overseas Staffing Models
(OSM) Category 1 and 2 Posts (typically smaller posts)are
required to conduct physical inventories only in even numbered
fiscal years. Consequently, due to the switch from calendar
year to fiscal year, (OSM) Category 1 and 2 Posts, are
required to conduct a FY2010 physical inventory beginning no
sooner than October 1, 2009 and submit the DS-582, Property
Management Report to the Property Management Branch by March
15, 2010. Future DS-582 submissions for OSM Category 1 and 2
Posts are as follows:

--March 15, FY2010: Certification Required
--March 15, FY2011: Exempt from Reporting
--March 15, FY2012: Certification Required

A complete list of OSM 1 and 2 Posts may be viewed from the
Property Management Branch website at:

http://hrweb.hr.state.gov/prd/hrweb/rma/uploa d/2009-emb-core-
info-by-category-for-web-sept-2009.pdf


8. In January 2010, ILMS Asset Management will be upgraded
as part of the ILMS PeopleSoft 9.0 Upgrade. In addition to
simplifying the process for creating asset records, we are
introducing several new enhancements. These include improved
functionality, such as allowing users to easily identify
hazardous assets, supporting attachments up to 1MB, and
assigning custom attributes for an asset. There will also be
other improvements that will enhance the capability to track
and inventory IT equipment.


9. To ensure a smooth FY 2010 inventory, the Property
Management Branch strongly encourages all posts using ILMS
Asset Management to begin their scanning as soon as possible

STATE 00124077 002.2 OF 003


Posts must upload all scanned data before December 20, 2009.
After that date, scanning and uploading will not be possible
until the system has been upgraded in January and posts have
upgraded their scanner's software. Scanning and uploading can
resume in late January after the upgrade is complete.

-------------- ---
Accountability Criteria for Electronic Equipment
-------------- ---


10. In accordance with 14 FAM 414.1-1 Accountability
criteria, electronic equipment must be tracked on property
records, and inventoried based on the criteria listed below.

Electronic Equipment:
a) Computer and information processing equipment including
but not limited to switches and hubs, servers, printers,
and scanners, when the acquisition cost of the item is
$500.00 or greater;
b) Communication equipment when the acquisition cost is
$500.00 or greater;
c) Classified CPUs, unclassified CPUs, monitors, and laptop
computers, regardless of acquisition costs;
d) Excluded: beepers, thumb drives, personal digital
assistants (PDAs),cell phones, handheld and mobile
satellite phones, ONE fobs, external computer devices and
other computer or communication devices when the
acquisition cost of the item is less than $500.00 (see 14
FAM 414.1-1, subparagraph a(9). Bureaus and Posts can
choose to include these items that are identified as
sensitive by nature, attractive for personal use, and
highly pilferable.

-------------- --
Inclusion of Motor Vehicle Assets on the DS-582
-------------- --


11. Capitalized personal property is personal property that
has an acquisition cost of $25,000 or more per item and an
estimated service life of two years or longer. State-owned
on-road, minimum of four-wheels motor vehicles are capitalized
property regardless of cost. Information Technology (IT)
software with a total cost of $500,000 or more is also
considered capitalized property.


12. The Form DS-582 Property Management Report has been
revised to include information about capitalized assets at
post. Motor Vehicle assets should be included in both the
nonexpendable and Capitalized Asset sections of the DS-582
form. This requirement is necessary because the GSO and
Management Officer at post must certify the value of all types
of property controlled by post.
Posts must include both motor vehicles and nonexpendable
property assets when calculating the field "Total Number of
Capitalized Assets" and "Total Amount of Capitalized Assets".
The DS-582 in ILMS Asset Management will be modified shortly
after the January 2010 PeopleSoft Upgrade to automatically
calculate the values for nonexpendable and capitalized asset
totals.


13. At ILMS posts, most property staff do not have access to
both nonexpendable and vehicle information in Asset
Management. However, GSOs are given access to both property
types and should generate the Form DS-582 with the correct
values for the capitalized assets using the automated Form DS-
582 in Asset Management.


14. At NEPA posts, it is necessary to obtain the motor
vehicle quantity and dollar value before completing the DS-582
form. The total quantity and dollar amount of capitalized
assets should consist of all motor vehicles listed on the
"Inventory of On-hand Vehicles" Report in ILMS plus all assets
listed on the "Capitalized Property Depreciation" Report in
NEPA. This process is critical and will allow PM to verify the
accuracy of capitalized assets reported on the Certification
Form DS-582. The Nonexpendable Property Total should be
calculated by adding together the totals from the Inventory
On-hand Vehicles Report from ILMS and the Inventory Listing by
Location Report in NEPA.

--------------
Annual Fiscal Year Exchange/Sale Report
--------------


15. Submission of Annual Fiscal Year Exchange/Sale Report for
posts using the Web NEPA Application: A recent FAM update
requires Posts using Web NEPA to submit the FY2009
Exchange/Sale Report to Property Management Branch
(A/LM/PMP/BA/PM) by October 30, 2009. (Please see 14 FAM
418.2).


STATE 00124077 003.2 OF 003


PM requests that Posts submit the Sales/Exchange Report in an
Excel file format to the proper Property Management Branch
regional representative via e-mail. The instructions for
producing the Web NEPA report into Excel are as follows:

1. Go to File and select Save as Accessible HTML File

2. Click on the Select File button

3. Select your C Drive (or a location where you want to
save the file in)

4. Type in "SalesExchangeFY2009" as the File Name and
click the Select button

5. Click the Save button (You will receive a "HTML
successfully saved" message)

6. Click the Ok button

7. Go to My Computer and locate the "Sales/ExchangeFY2009"
HTML file

8. Right-click on the file -Open With ? Microsoft Office
Excel

9. Go to File and select Save As

10. Select "Microsoft Office Excel Workbook (*.xls)" in
the Save as type drop down field

11. Click the Save button

--------------
PM Contact Info
--------------


16. If you have any questions, PM regional representatives
can be contacted individually, as follows:

EUR: Charles Chavez 703-875-4472, chavezCS@state.gov
AF: Keith Flynn 703-875-6416, flynnKF@state.gov
WHA: Kristian Houck 703-875-5232, houckKJ@state.gov
EAP: Lan N. Nguyen 703-875-4360, nguyenL2@state.gov
NEA/SCA: Wanda Washington 703-875-7025, washingtonWM@state.gov

You can also send questions to the e-mail box for Property
Management at PropertyManagementQuery@state.gov.

Thank you for your assistance and cooperation.


17. Minimized considered.
CLINTON