NAO 208-108: Preparation of Form CD-435, Procurement Request, for Personal Property Reconciliation

Issued 10/06/04; Effective 04/16/93;
Revoked 07/06/11

SECTION 1. PURPOSE.

This Order prescribes the policy, guidelines, procedures, and responsibilities for the proper preparation of procurement requests for accountable personal property in the National Oceanic and Atmospheric Administration (NOAA) in order to fulfill personal property and financial record requirements for the reconciliation of these records.

SECTION 2. BACKGROUND.

.01 The accurate accounting for personal property in the possession of Federal agencies is important because of the large amount of public funds that is invested in personal property. This investment requires management to effectively manage the proper procurement, use, tracking, and disposal of personal property. Accurate financial and property information is essential for preparing financial reports to the Congress and to management.

.02 The NOAA financial management system requires that NOAA-owned accountable personal property be recorded in asset accounts on a consistent basis according to legal requirements and generally accepted accounting practices. The Financial Management Division (BF2), Office of the Comptroller, is responsible for maintaining the financial records. NOAA designated Property Accountability Officers (PAO), contractors, and grantees shall maintain the more detailed property records.

.03 The reconciliation of financial and property records shall require the cooperation of management, procurement, contract, and finance officials and all personnel who originate purchase requests. This is true regardless of the method of procurment employed, whether Imprest Fund, BankCard, FEDSTRIP, SF-44, purchase order, delivery order, or contract. The proper preparation of the Form CD-435, Procurement Request, is critical because it is the first step in the procurement process for purchases by purchase order, delivery order and contract. These documents are prepared on the basis of the Form CD-435. Finance payments are made based upon the procurement document. In order for an accountable piece of property to match a payment record, the Form CD-435 must be prepared according to the provisions of this Order.

SECTION 3. DEFINITIONS.

.01 Non-expendable Personal Property. This is personal property that is complete within itself. It does not lose its identity or become a component part of another article when put into use. It is of a durable nature and has an expected service life of one (1) year or more.

.02 Capitalized Personal Property. This is any single item of non-expendable personal property with a value of $5,000 or more that has a life expectancy of two (2) years or more. Object class codes beginning with 311x are used for this property. Software costing over $25,000 is included in this category.

.03 Non-Capitalized Personal Property. This is any single item of non-expendable personal property with a value between $1,000 and $4,999 that has a life expectancy of one (1) or more years; items costing $5,000 or more with a life expectancy between one (1) and two (2) years; sensitive items with a cost of $100 or more regardless of useful life; and all firearms regardless of cost or useful life. These items should be purchased using object class codes beginning with 312x. Software is not included in this classification.

.04 Accountable Personal Property. This is all personal property for which responsibility for control is formally assigned to an individual and official records are maintained. It includes both capitalized and non-capitalized property.

.05 Component Property Item. This is an item of personal property which meets all the criteria of accountable personal property whether it is capitalized or non-capitalized but loses its identity or is absorbed by another piece of equipment when placed in use.

.06 Sensitive Item. This is non-expendable personal property that may be tempting to convert to private use, has a high potential for theft, and has a unit cost equal to or greater than $100 and less than $1,000. Firearms are sensitive regardless of cost. Sensitive equipment includes audio-visual equipment, ADP equipment, calculators, and cameras. (See the Department of Commerce Personal Property Management Manual, Chapter 4.5, for a complete definition.)

SECTION 4. POLICY/RESPONSIBILITIES.

.01 Staff Office (SO) and Line Office (LO) managers must be aware of their responsibilities in the personal property acquisition and control process. The assistance and cooperation of management is mandatory in order to successfully implement the provisions of this Order. SO/LO managers shall:

.02 The Administrative Services Division; Procurement, Grants and Administrative Services Office, or the Facilities and Logistics Division of the Administrative Support Center shall screen the Form CD-435 to ensure that the provisions of this Order have been followed. This is in addition to the normal screening process which ascertains the availability of excess property required to fill the needs of the requesting office.
Any Form CD-435, Procurement Request, that is not completed properly shall be returned to the requesting office for the necessary revisions at the discretion of the Administrative Services Division or the Facilities and Logistics Division of the Administrative Support Center. Any delay in the procurement of specified items caused by the improperly completed Form CD-435 shall be the responsibility of the requesting office.

SECTION 5. PROCEDURES.

.01 The specific instructions of this subsection should be incorporated into the general preparation instructions for the Form CD-435 contained in Attachment 3 to this Order.

a. Block 9. Include the Property Custodian Number in the delivery address, e.g. 54001N001, that will be initially assigned to the property. The transfer of property to another Property Custodian after initial delivery shall be documented on Form CD-509, Property Transaction Request.

b. Block 12. Line item numbers shall be assigned to each specific item to be purchased except when items being purchased will form a system.

c. Block 15. Object class assignments shall be in accordance with the NOAA Finance Handbook.

d. Block 31. Provide the name and telephone number of the person who will be initially responsible for accepting the property for the Government and for applying Department of Commerce barcode labels to the property. If automatic procedures prohibit the use of Block 31, place this information at the end of Block 14.

e. Block H. All internal and external clearances must be obtained. This includes the Property Custodian and the Personal Property Manager of the Administrative Services Division or the Facilities and Logistics Division of the Administrative Support Center.

.02 Grouping of Items on the Form CD-435.

a. When preparing a Form CD-435 for multiple line items which form a system, the Form CD-435 must indicate the parts that form the system. For financial and property accountability purposes, each system line item must be assigned an appropriate object class. Attachment 1 to this Order illustrates a properly prepared Form CD-435 for a personal computer as a system which includes a monochrome monitor, a keyboard, and a central processing unit (CPU).

b. When preparing a Form CD-435 for multiple line items which do not form a system, the items that are not an integral part of the system must be listed as separate line items on the Form CD-435. For financial and property accountability purposes, each line item must be assigned a separate line item number and a separate appropriate object class. Attachment 2 to this Order illustrates a properly prepared Form CD-435 for this type of procurement for multiple line items which do not form a system with respect to their property aspects.

SECTION 6. EFFECT ON OTHER ISSUANCES.

None.

SIGNED,

Director, Office of Administration

Attachments

Attachment 1
Attachment 2
Attachment 3

Office of Primary Interest:
Office of Administration
Procurement, Grants and Administrative Services Office
Administrative Services Division
Support Services Branch
Personal Property Section (OA3332)