20 August 2011

IT’S ALL ABOUT ACCOUNTABILITYIT’S ALL ABOUT ACCOUNTABILITY TRACKED FROM ACQUISITION THROUGH TRACKED FROM ACQUISITION THROUGH DISPOSALDISPOSAL LOST, STOLEN OR DAMGAGED – REPORT ITLOST, STOLEN OR DAMGAGED – REPORT IT REPORT OF SURVEY – ASSESS YES NOREPORT OF SURVEY – ASSESS YES NO

$24,000

$472,000

$50,000

$1.2 million

AircraftAircraft $115 Million$115 Million VehiclesVehicles $ 20 Million$ 20 Million ComputersComputers $ 3 Million$ 3 Million Other PropertyOther Property $ 25 Million$ 25 Million

OPERATIONAL RESOURCE MANAGEMENT SYSTEM

• Two separate property databases CAP Asset Tracking System (CATS) Communication Equipment Management

System (CEMS)

• Consistently poor CI results for Supply 2007 – 41% marginal/unsat 2008 – 36% marginal/unsat

OPERATIONAL RESOURCE MANAGEMENT SYSTEM

• CI Supply Findings - 55% due to: Poor accountability for non-expendable

property Inadequate files Individual issues – poor/no documentation Unorganized/dangerous storage areas Annual inventory not accomplished

• OMB A-133 Single-Audit Finding Maintaining two databases (CATS & CEMS) is

inefficient

– ORMS Objectives • Improve accountability at all levels• Increase accessibility by members• Automate key processes• Improve recordkeeping• Eliminate paperwork• Automate depreciation calculation• Incorporates ROS and assessments

OPERATIONAL RESOURCE MANAGEMENT SYSTEM

1. Enthusiasm2. Disillusionment3. Panic and hysteria4. Search for the guilty5. Punishment of the innocent6. Praise and honor for the non-

participants

1. Enthusiasm2. Disillusionment3. Panic and hysteria4. Search for the guilty5. Punishment of the innocent6. Praise and honor for the non

participants

OPERATIONAL RESOURCE MANAGEMENT SYSTEM

Transfer Assignment Issuance Inventory Retirement

Incorporates five primary functions of property control

Implements CAP’s property management and accountability policy

Incorporates guidance from OMB Circulars, DoDGARS, DoD Manual 4160.21M and the Cooperative Agreement between CAP and USAF

Includes input from NHQ CAP, CAP-USAF, volunteer advisors and field units

All property no matter what the source becomes CAP property once acquired

Commanders and property management officers are responsible for management, control, maintenance and disposal

Property management officer – “any member holding a position of logistics, supply or communications officer.”

Regions and wings may supplement the reg

Property Freezes CAP–USAF or CAP may impose freezes Less than adequate control over assigned

resources Improper housekeeping Unsatisfactory inventory results Unauthorized sale or disposal Pattern of misuse or noncompliance

Three levels of property freeze -- each progressively more restrictive

Not selective – applies to entire unit Restricts units from receiving DoD excess or

property purchased with Federally-appropriated funds

CAP National Commander may further restrict units from acquiring property using corporate funds

Property Freeze

Level I Stops acquisition of equipment and supplies

from DRMO, GSA and state/local surplus Property cannot be transferred to units under

a Level I freeze After six months in Level I units are elevated

to Level II Freeze

Property Freeze

Level II All Level I freeze restrictions apply Cannot acquire vehicles, aircraft,

communications equipment, DDR property or any other CAP-purchased property

Region CC will transfer new vehicles and aircraft to another wing or retain at the region until Level II freeze is lifted

Aircraft upgrades will be permitted

Property Freeze

Level III Level III freeze imposed when a unit under

Level II freeze fails to correct the condition in 1 year

All Level II restrictions apply Total freeze on equipment, supplies, vehicles

and aircraft… plus no reimbursements Grounded from AFAM and corporate missions

Property Freeze CAP-USAF/Commander and CAP National

Commander may waive any or all freeze restrictions for critical mission requirements

Waiver coordinated through CAP region commander and CAP-USAF liaison region commander

All unit freezes are reported by NHQ/LG

Applicable CAP FORMS CAPF 37 – Temporary Issue Receipt CAPF 111– Expendable Property Transfer CAPF 111A – Expendable Property Issue DD Form 1348-1A – Issue Receipt Document

Property Classification Classifications … expendable and non-

expendable Determines how it will be tracked in ORMS Determines how it will be disposed of

Non-expendable Property Is complete in itself Is durable in nature Has a continuing use Is not consumed through use Is not a component of another item Has an expected service life of at least 1 year Has an initial unit acquisition cost of more

than $500

Non-expendable Property All non-expendable property is entered in

ORMS regardless of source Non-expendable items are allocated to a

specific unit It may be issued to individuals Acquisition cost must be entered into ORMS Must have a property tag and number

Expendable Property Not non-expendable Normally intended for limited use May be consumed during use Not entered into ORMS Does not require a property tag

Acquisition Purchased Donated Found on Base State or local funded/owned

Purchased Property Appropriated funds Corporate (unit) funds State or local govt funds Consult CAPR 70-1 CAP Acquisition

Regulation for policy on funds expenditure

Donated Property A variety of sources CAPR 173-1 Financial Procedures and

Accounting and CAPR 173-4 Fund Raising and Donations

Consult with appropriate level legal officer If valued at $250 or more enter into ORMS Annotate as “Donated” in the source field

Found on Base (FoB) Rarely used Non-expendable property for which the

funding source is unknown Managed like DoD excess and disposed of

through DRMO Annotate as “FoB” in the source field

State-funded/owned property Track all state/local govt funded or owned

property in ORMS Disposal will be in accordance with

instructions provided at time the propertywas accepted

Annotate as State funded inORMS

Property Tracking in ORMS ORMS is used to track all non-expendable

property regardless of source Available to view by all in eServices Property management officers’ permissions

based on duty position and unit of assignment

Property Tags and PCN To be placed on all non-expendable property Each item in ORMS must have a property tag

number May use on expendable property but do not

assign a property tag number Property control number (PCN) is unique to

each item and will not change over the life of the property

Five functions of property control Transfer Assignment Issuance Inventory Retirement

Transfer Property transfer occurs between units Transfer non-expendable property using

transfer function of ORMS Transferred property must be accepted within

10 working days of transfer initiation Use CAP Form 111 for transfer/receipt of

expendable property

Transfer Commanders and property management

officers will ensure that property (i.e., aircraft. vehicles, communications or other equipment and supplies) is assigned with applicable tables of allowance in mind. Property will be transferred in ORMS to the unit where the property is actually located and used.

Transfer In circumstances where property is used

temporarily at a location or in an activity other than that of assignment, property need not be transferred in ORMS (i.e., encampments, mission training exercises, weekend activities, etc.).

Assign Property is assigned to another piece of

property like an aircraft, vehicle or kit Assigned property must be unassigned to be

transferred Property with items assigned cannot be

transferred or retired until the other items have been unassigned

Issue Property is issued to individuals Issue non-expendable property using transfer

function of ORMS Member acknowledge receipt through ORMS

within 7 days Use CAP Form 111a for issue/receipt of

expendable property Remain on 111a for 3 years or until turned in

Issue When accepting property, members agree to

reimburse CAP for the depreciated value of the property if lost or damaged.

When ORMS is not available, use the CAP Form 37 to initially issue property

When issuing property to individuals under the age of 18, ORMS will generate a property receipt to be signed by the individual’s parent or guardian

Issue Individuals under the age of 18 years are not

permitted to hold logistics, supply, transportation or communications duty positions that include ORMS permissions to transfer, issue or assign property

Issue When returning property individuals should

receive a CAPF 37, Individual Issue Receipt, indicating turn-in. Members should hold this receipt until ORMS has been updated to reflect turn in. Members may verify their own issued property list by accessing ORMS

Annual Physical Inventory Ensure property is safeguarded and managed Annual inventory is mandated by DoDGARS Conduct annual inventory between 1 January

and 31 March Failure to complete the inventory during this

period may result in a property freeze Complete all pending issues, transfers and

retirements before beginning the inventory

Annual Physical Inventory Use the ORMS inventory worksheet to perform

the inventory Verify presence,condition and accuracy of data

for each item Ensure that each non-expendable item is

properly tagged Remote functional checks can be used to verify

condition and presence of off-site equipment

Annual Physical Inventory All non-expendable property issued to

individuals must be made available for a property manager to validate

Inventory is not complete until all issued items have been validated and accepted in ORMS

Commanders determine how best to inventory property that cannot be transported

Commanders must acknowledge completion

Changeover inventory Upon assignment of a new commander or

property management officer ORMS provides changeover inventory guidance Inventory of individually issued property is not

required If an annual inventory was completed recently

and both individuals agree, a changeover inventory is not required

Property on loan to other agencies Document on the CAPF 37 Scan and upload a signed copy of the Form 37

into ORMS Physically check during annual inventory and

re-validate every 60 days Include name of organization, address, phone

number, name of point of contact and expected property return date

Property out for repair Annotate in ORMS master record in

“Maintenance” Include name of repair facility, address, point

of contact, date sent out for repair, tracking number and estimated date of return

Update location and condition when returned

Unit deactivation Commanders accountable for reclaiming all

property from deactivating units Prior to deactivation but no later than 30 days

post deactivation ORMS automatically assigns property to the

000 unit for 30 days to allow the wing to transfer it to a desired location

After 30 days it moves to 001

Property recovery Commanders shall make a reasonable effort to

recover property from members who terminate Document recovery efforts in writing and load

to ORMS Send demand letters by certified mail….consult

legal officer first Document unsuccessful recovery efforts in

Report of Survey (ROS)

Property loss or damage Report to commander or property management

officer Individual receiving the report changes the

item’s condition to “missing/damaged” in ORMS

Automatically initiates an ROS Commander appoints an impartial investigating

officer

Property loss or damage Investigating officer records results of

investigation Upload supporting documents in ORMS Investigating officer makes recommendations

that would prevent recurrence of conditions that caused the loss or damage

Wing commanders recommend assessments Region commanders, make the assessment

Assessment policy Established at Winter 09 NEC Intended to reduce property loss/damage by

holding members accountable No assessments for acts of God or events over

which the member or unit had no control Individuals and/or units may be assessed

Type I Incident Member or unit failed to use care that a

reasonable person would use under similar circumstances

Region commanders shall assess the lesser of the cost to repair or replace or $500

Type II Incident More serious than Type I Incident marked by an unreasonably high

degree of risk to others or to property Conscious or willful disregard for others or

property or Intentional violation of CAP or Government regulations

Region commanders shall assess the lesser of the cost to repair or replace or $5000

Type III Incident Most serious of all Incident results from willful or intentional

misconduct with a reckless disregard for the consequences

Region commanders shall assess the lesser of the cost to repair or replace or $5000

National Commander may increase the assessment to full value to repair or replace

Assessment procedures Wing CC recommends to Region CC Region CC reviews CAPF 79 and all other

documentation in addition to the Wing CC recommendation

Two or more members can be found equally culpable and can be assessed accordingly

CAP/NC monitors for fairness and consistency

Assessment procedures Member has the right to appeal File appeal in writing to National Commander

through NHQ/LG National Commander’s decision is final Member has one year to make payment in full There is an installment option Proof of payment maintained in ORMS Property remains on the books until paid in full

Assessment procedures Members who are assessed will be flagged in

the National database and will not be permitted to renew their membership if their payment is late or if not made in full within the installment plan period

Disposal Non-expendable property can only be removed

from inventory through retirement via ORMS Property must have zero value or be

unserviceable Upon retirement initiation, ORMS notifies

individuals responsible for approval Wing CC has approval authority for property

purchased with corporate funds

Disposal Contact lending agency for disposal

instructions for property provided by state or local govt.

Refer to CAPR 173-4 for requirement for disposal of donated property

Acquisition source determines the disposal method

Approved methods of disposal Property found on base will be disposed like

Federal excess property and go to DRMO Disposal of all Federally-funded equipment will

be in accordance with CAP-USAF instructions Non-expendable supplies, not obtained from

DoD excess, that have exceeded their useful life, do not have to be returned to DRMO.

Must be destroyed IAW local environmental rules

Sale of Federally-sourced property CAP-USAF may direct that equipment be sold Normally sold through a sealed bid process Retain all documentation regarding the bid

process and successful bidder’s contact information

Donation to non-profit organizations Property must be from non-govt sources or

purchased with corporate funds Contact NHQ/GC to re-donate property Upload all documentation regarding donation

to ORMS

Demilitarization Comm gear must be sanitized prior to disposal to

prevent compromise of keys, codes and freqs Deprogram programmable gear Remove all frequencies Mark equipment with “All CAP frequency

information and /or frequency determining elements removed.” Include date and signature.

Federal-excess Property Sourced through GSA OR DRMO Forward requests to acquire this property to

NHQ/LGS for coordination through CAP-USAF Reviewing property at DRMO for availability is

“screening” Wings may appoint up to 4 screeners Regions may appoint one per region

Federal-excess Property Submit written requests for screeners through

the state director to CAP-USAF LR/LG Re-accomplish annually or whenever a

screener changes Scan and load the letter into ORMS Screening can be done online or in person---

online is the preferred method Get CAP-USAF LR/LG approval to pick up

Federal-excess Property Property request should contain the Table of

Allowances (TA) item number and justification If not listed in TA prepare justification for each

item requested NHQ/LGS must approve non-TA items from

Federal sources Annotate property tag number on DD Form

1348-1, scan and load into ORMS

Federal-excess Property Mark expendable property obtained from DoD

excess with letters “DRMO” Use the online Form 111 to document receipt

and transfer of expendable property There is no requirement to load expendable

property into ORMS or affix property tags All FOB, DoD- or Federal-excess property

must be returned to DRMO

Disposal of Federal-excess Property Initiate retirement in ORMS CAP-USAF will provide turn-in instructions and

document number Enter document number on the electronic turn-

in document Scan and upload turn-in documents When signed turn-in document is loaded in

ORMS NHQ is notified to retire property

Acquisition Purchased using Congressional appropriated

funds or funds generated from sale of aircraft Purchased using corporate funds from CAP

regions or subordinate units Donations from state, another agency or

individual (See CAPR 173-4) Obtained from DoD excess by NHQ staff only

Aircraft Distribution Based on mission requirements A coordinated effort between NHQ, regions

and wings involving initial distribution and transfers to maintain the correct balance

Initial allocation and subsequent transfers are accomplished in ORMS

Disposal Coordinated through CAP-USAF Methods of disposal are trade-in, sealed bid,

broker or turn-in CAPR 70-1 provides guidance on aircraft sales Once selected for sale aircraft are transferred

to NHQ in ORMS Proceeds from sales retained at NHQ and

used to purchase new aircraft

Acquisition Purchased using Congressional appropriated

funds or funds generated from insurance or sale of vehicles

Purchased using corporate funds from CAP regions or subordinate units

Donations from state, another agency or individual (See CAPR 173-4)

Obtained from DoD excess

Acquisition Wing CC submits CAPF 175, Vehicle

Justification, to region commander who in turn forwards to NHQ/LGT

Fill highest priority first… wrecked vehicles, too costly to repair and from 100 oldest vehicle list

Vehicle utilization report plays a role in process List coordinated through region CC and

National Commander

Disposal Coordinated through CAP-USAF Methods of disposal are trade-in, sealed bid or

turn-in CAPR 70-1 provides guidance on disposal Funds from sale of vehicles acquired using

Federally appropriated $$ are retained at NHQ Sale from corporate funded vehicles or

donated vehicles remains with the wing

Acquisition Purchase, donation lease, license or no-cost

arrangement require wing CC approval Load all associated documentation into ORMS CAP units using DoD facilities must have a

USACE license/written agreement authorizing the use and describing the terms of use

Region CCs forward request and renewals to NHQ/GC for review

Acquisition No matter what the terms, lease, nominal fee

or no charge, it is best to have some form of written agreement documenting permission and terms of use

Sign no agreements with “hold harmless” or “indemnification” clauses

CAP has comprehensive liability insurance to cover members, but no fire insurance or extended coverage for the facility

Acquisition Ensure property is free of hazardous substances Real Property Module not yet available in ORMS In the interim, maintain paper copies of all

documentation until they can be scanned and stored in ORMS

Real property survey is incorporated into ORMS

Disposal Real property acquired by CAP becomes

corporate property and may not be sold, transferred or disposed of without written permission of the CAP National Board

Coordinate approval through NHQ/GC Proceeds from sale of real property normally goes

to NHQ/FM