Navigating US Department of State Personal Property Management: A Comprehensive Guide

Effectively managing personal property is crucial for any organization, and for the U.S. Department of State, it’s a matter of public trust and operational efficiency. This guide provides a comprehensive overview of the policies and procedures governing personal property management within the Department, drawing from the established framework to ensure accountability, compliance, and responsible stewardship of government assets.

I. Foundations of Personal Property Management

1. Scope and Applicability

This manual sets forth the policy framework for the entire lifecycle management of State personal property worldwide. It serves as the guiding document for the detailed procedures outlined in the Department’s Personal Property Management Handbook (14 FAH-1). The policies are rooted in U.S. laws and government-wide regulations that mandate strict accountability for U.S. Government personal property.

What is U.S. Government Personal Property?

The definition is broad, encompassing a wide array of assets including, but not limited to:

• Program property
• Motor vehicles
• Aircraft
• Watercraft
• Information Technology (IT) equipment
• Hazardous materials
• Heritage assets
• U.S. Munitions List (USML) items
• Contractor-held and Grantee-held property
• General materials and supplies

It’s important to note that specific categories of property may have additional or unique management requirements. For detailed policy interpretations, the Logistics Policy Unit A/LM/POL is the primary point of contact.

Who is Affected?

The applicability of these guidelines varies depending on location and agency:

• “State/USAID”: Applies to USAID personal property at foreign locations and all Department of State personal property worldwide.
• “State only”: Applies to all Department of State personal property worldwide (excluding USAID domestic property).
• “Domestic State only”: Applies exclusively to Department of State personal property within the U.S. and its territories, not at foreign locations. Other foreign affairs agencies (USAID, Commerce, USAGM, Agriculture) have their own distinct domestic property policies.

Core Objective

The fundamental objective of personal property management is to safeguard public interests through efficient and effective asset management. This necessitates robust accountability and control systems that:

1. Comprehensive Record-Keeping: Maintain records of all accountable personal property, including its initial acquisition cost.
2. Responsibility Assignment: Clearly assign responsibility for the safeguarding and proper use of all government property.

System of Record

All Department of State organizations are mandated to utilize the Integrated Logistics Management System (ILMS) for personal property accountability.

Special Property Categories

• Motor Vehicles: U.S. Government motor vehicles globally are classified as personal property and fall under this manual’s policies. Specific guidance for foreign locations is detailed in 14 FAM 430, and for domestic fleets in 6 FAM 1930 and 6 FAM 1940.
• Aircraft: Aircraft are also personal property subject to these policies. 2 FAM 800 provides detailed guidance for managing State-owned or leased aircraft, including drones (Unmanned Aircraft Systems – UAS).
• Contractor and Grantee Property: U.S. Government personal property in the custody of contractors (Government Furnished Property – GFP, Contractor Acquired Property – CAP) and grantees is managed under specific regulations and guidance, primarily overseen by Contracting Officers (CO), Contracting Officer Representatives (COR), Grants Officers (GO), and Grants Officer Representatives (GOR). Key regulations include 41 CFR 102-36.150 through 102-36.175, Federal Acquisition Regulation (FAR) 48 CFR 45, and Department-level policies like 48 CFR 645 and 2 CFR 200.

For any questions regarding policy interpretation or exceptions, designated parent agency offices should be contacted.

2. Roles and Responsibilities

Effective personal property management relies on a clearly defined structure of roles and responsibilities.

2.1 Property Management Officer (PMO)

The Property Management Officer (PMO) is central to overseeing all personal property functions.

• Department of State PMO: The Managing Director, Office of Program Management and Policy (A/LM/PMP), serves as the agency PMO for the State Department worldwide. This role involves establishing policy, overseeing program operations, implementing regulations, and providing expert guidance on all aspects of property management.
• USAID PMO: For USAID property abroad, the Director, Office of Management Services (M/MS/OMD), acts as the agency PMO. Their responsibilities mirror those of the State Department PMO but are focused on USAID’s overseas property program.

Key PMO Responsibilities:

• Establishing and maintaining an effective framework of property management controls.
• Designating key personnel: Accountable Property Officer (APO), Property Disposal Officer (PDO), and Receiving Officials (these designations cannot be sub-delegated).
• Ensuring the annual physical inventory is completed, reconciled, and certified, with reports submitted to A/LM/PMP/PM by March 15th annually via the ILMS Certification Submission Center (CSC).
• Maintaining signature authority for the annual physical inventory, non-delegable except in cases of prolonged absence, where full PMO authority must be formally transferred.

In posts lacking a Management Counselor/Officer or USAID Executive Officer, the Principal Officer assumes PMO responsibilities. Domestic State PMOs are typically Bureau Executive Directors or Office Directors, or senior administrative officials designated in writing by the head of the establishment (Assistant Secretary or equivalent).

2.2 Accountable Property Officer (APO)

The Accountable Property Officer (APO) is operationally responsible for the day-to-day management of personal property.

• Typically the General Services Officer (GSO) for general personal property and the Diplomatic Technology Officer (DTO) for IT equipment.
• Must be a U.S. citizen direct-hire employee, designated in writing by the PMO. In posts without a GSO or DTO, the PMO may retain APO responsibilities or designate a U.S. citizen PSA hire as APO. Locally Employed (LE) staff are not authorized for this role.

Key APO Responsibilities:

• Direct oversight of property management procedures and key functions (procurement tracking, receiving, storage, accountability, maintenance, inventory, utilization, disposal, dispute resolution).
• Ensuring the custody, care, and safekeeping of all personal property.
• Maintaining property records in ILMS-AM (Asset Management), Final Receipt, Loanable Property (LP), and Expendables modules.
• Conducting and reconciling the annual physical inventory, ensuring survey board actions are completed, and submitting reports by March 15th via ILMS-CSC.
• Managing property disposal, including required security inspections (DS-586), and proper documentation to prevent accumulation.
• Ensuring proper procedures for overseas property sales and transfers.
• Managing reporting of foreign gifts and decorations.
• Ensuring property management staff receive necessary training.
• Conducting quarterly spot-check inventories to verify ILMS record accuracy and reconcile discrepancies.
• Reviewing and approving personal property requisitions.
• Preparing ICASS reports for subscribing U.S. Government agencies (for overseas property).
• Ensuring GSA approval and PDO authorization for domestic transfers to other U.S. agencies (SF-122).
• Utilizing ILMS-Analytics reports to improve property management and identify potential theft, fraud, or misuse, and reporting such instances to OIG Investigations.

APOs are not authorized to delegate signature authority for the annual physical inventory. In their absence, the PMO must delegate full APO authority to another direct-hire employee, notifying the Property Management Desk Officer. For Agriculture (FAS), the APO is the FAS Principal Officer at post, responsible for annual inventories of FAS-owned property.

2.3 Custodial Officer

Custodial Officers are responsible for the physical control and recordkeeping of personal property within their assigned areas.

• Must be U.S. Government direct-hire employees, designated in writing by the PMO.
• In smaller organizations, a single custodial officer may have total responsibility. Larger entities may have multiple custodial officers with responsibilities tailored by area or commodity type (e.g., IT equipment).

Key Custodial Officer Responsibilities:

• Maintaining custody, care, and safekeeping of assigned personal property.
• Assisting the APO with annual physical inventory planning and execution.
• Ensuring accurate documentation in ILMS-AM, LP, and Expendables modules.
• Authorizing property removal from buildings (DS-1952).
• Preparing disposal documentation (DS-132) for unneeded, missing, or damaged property.
• Coordinating excess property disposal nominations and removals via ILMS-AM Excess Property Tool.

Custodial officers cannot delegate their duties, and contractors are not authorized to serve in this role.

2.4 Property Disposal Officer (PDO)

The Property Disposal Officer (PDO) manages the disposal of personal property.

• PDO duties are assigned in writing by the PMO to a U.S. citizen direct-hire officer, ideally someone other than the APO. If a separate PDO cannot be designated, the PMO retains these responsibilities.
• Domestically, the APO often serves as the PDO.

Key PDO Responsibilities:

• Selecting the most advantageous disposal method according to U.S. Government regulations.
• Documenting disposal via ILMS-generated forms (DS-132 for State, AID-534-1 for USAID).
• Preparing, maintaining, and distributing disposal forms and coordinating actions with relevant sections (finance, property management).
• Adhering to local laws, including environmental and tax regulations.
• Securing property during screening and sale processes.
• Ensuring timely property removal by new owners after transfer or sale.
• Training and supervising personnel involved in physical disposal.
• Determining when trade-ins provide greater value than sales.
• Determining when abandonment or destruction is appropriate for property with no commercial value or when costs exceed proceeds.
• Deciding between recycling and landfill disposal or donation.

Foreign Locations – Additional PDO Responsibilities:

• While routine administrative tasks may be delegated to the APO (except when the APO is not a GSO or DTO), the PDO must witness key disposal activities like sales, cash handling, and ensure proper ILMS documentation.
• Setting disposal sale terms, lot composition, referencing market conditions, handling disputes, and executing sales documents.
• Coordinating with the RSO for diplomatic security equipment disposal (DS armored vehicles cannot be sold).
• Ensuring proper handling of sales receipts and deposit of proceeds.

2.5 National Utilization Officer (NUO)

The National Utilization Officer (NUO) promotes the reuse of excess personal property within the agency.

• For State, the Director, Property Management Division (A/LM/PMP/PM) is the NUO, authorized to designate alternate NUOs (U.S. direct-hires) and delegate responsibilities.

Key NUO Responsibilities:

• Promoting the use of excess personal property as the primary source of supply.
• Reviewing and approving acquisitions and disposals of excess property.
• Ensuring Department procedures comply with Federal Acquisition Regulation (FAR) 48 CFR 8.1 and Federal Management Regulation (FMR) 41 CFR 101-26.101 and 41 CFR 102-36.45.
• Approving access and permissions for the GSA Personal Property Management System (ppms.gov).

2.6 USAID Controller

The USAID Controller is responsible for financial controls related to USAID-owned property.

• Establishing procedures for U.S. dollar and Trust Fund monetary accounting control for nonexpendable USAID property, as per USAID financial management regulations (ADS Chapter 620).

2.7 USAID Regional Inspector General

The USAID Regional Inspector General (RIG) has specific responsibilities related to personal property funded by RIG/A funds.

• RIG personal property is funded from Regional Inspector General audit funds (RIG/A).
• The USAID Executive Officer or embassy GSO (where no USAID Executive Officer) conducts the annual physical inventory and forwards it to M/MS/OMD.
• Inventory records must clearly indicate “RIG/A” ownership.

2.8 Office of U.S. Foreign Disaster Assistance (OFDA)

The Office of U.S. Foreign Disaster Assistance (OFDA) manages property acquired with disaster assistance funds.

• Property acquired with disaster assistance funds is USAID personal property and must be used exclusively for disaster-related programs.
• OFDA is responsible for procurement, storage, management, accountability, and release of these stockpiles, following policies in USAID ADS Chapter 251, BHR/OFDA’s annual guidance, and financial management regulations.

2.9 Officers Separately Funded from USAID

Senior officers of entities at post separately funded from USAID have specific agreements regarding property management.

• They may authorize commingling, common-issue, and single account records for household/office furnishings with the USAID mission, requiring a written agreement with the USAID PMO.
• RIG property is excluded and must always be separately identified and recorded from USAID OE-funded property.

2.10 Employee Responsibility for U.S. Government Property

All employees bear responsibility for the proper handling of U.S. Government property.

• Each employee is accountable for the care, custody, and appropriate use of issued federal property.
• Employees may be financially liable for missing, stolen, damaged, lost, or destroyed property due to negligence, misuse, or willful actions. Contractors are subject to FAR 48 CFR 52.245-1(h).
• Authorization from the APO or Custodial Officer (DS-1953) is required to remove U.S. Government personal property from government buildings. Restrictions on certain uses of U.S. Government equipment and networks are outlined in 5 FAM 723 (6) and (7).

2.11 Categories of Program Property

Specific categories of program property are managed by designated entities within the Department:

• IT Program Property: Managed by Global Information Technology Infrastructure Modernization Division (DT/FO/ITI/GPTM).
• Armored Vehicles and Protective Equipment: Managed by the Office of Physical Security Programs (DS/C/PSP).
• Overseas Motor Vehicle Program (excluding armored and ICASS vehicles): Managed by the Overseas Fleet Division (A/LM/PMP/OF).
• SPEAR Program Property: Managed by the Office of Antiterrorism (DS/T/ATA) and High Threat Programs Director (DS/HTP), with the RSO as APO.
• Consolidated Networked IT Property (Domestic): Managed by the Operational Support Services Division (DT/OPS/CCS/OSS) for bureaus under consolidation agreements.
• Aircraft (including UAS): Managed by the Bureau of International Narcotics and Law Enforcement – Office of Aviation (INL-A).
• Security Technology Program Property: Overseen by the APO for the Diplomatic Security Office of Security Technology (DS/C/ST/STO/OSB).
• OBO Program Personal Property: Requires OBO headquarters approval for acquisition, installation, maintenance, inventory, movement, and disposition, including:
  • Large electrical generators (OBO/OPS/FAC)
  • Furniture, furnishings, and equipment (FF&E) for representational residences (OBO/OPS/RDF)
  • Cultural heritage objects (OBO/OPS/CH)
  • Art in Embassies program artwork (OBO/OPS/ART)

II. Ensuring Compliance and Effective Use

3. Compliance With Property Management Requirements

Maintaining compliance is essential for responsible property management.

3.1 Compliance Monitoring

Compliance is continuously monitored through various mechanisms:

• Annual Inventory Certification: PMOs and APOs electronically sign annual inventory reports in ILMS-CSC and submit them to A/LM/PMP/PM for certification by March 15th.
• Regional Training and Assistance: A/LM/PMP/PM staff conduct regional training, assistance visits, business process reviews, and data reviews as requested or required.
• ILMS Analytics Review: A/LM/PMP/PM staff routinely verify compliance using ILMS Analytics reports and activity logs within ILMS modules.
• Verification with CGFS: A/LM/PMP/PM staff may verify property management-related assertions, findings, and deficiencies in annual Statements of Assurance with the Bureau of the Comptroller and Global Financial Services (CGFS).
• Risk Assessments: Bureau, office, or post management must conduct risk assessments as required by the Office of Management Control (CGFS/MC).
• Ambassador’s Annual Statement of Assurance: PMOs or service providers should provide a copy of the Ambassador’s Annual Statement of Assurance to customer agencies’ PMOs. APOs should brief the ICASS council on property management internal controls and annual inventory results before the Statement of Assurance is prepared.
• Property Survey Boards (PSB): PSBs independently review and adjudicate cases of missing, damaged, or destroyed property.

APOs are required to report any identified deficiencies or weaknesses to their PMO. Posts can leverage A/LM/PMP/PM Property Management Desk Officers as resources for addressing compliance issues.

Significant deficiencies or material weaknesses identified through monitoring, or instances of fraud, waste, or abuse, must be reported via a memorandum of noncompliance and a Corrective Action Plan (CAP) to the Director, Property Management Division (A/LM/PMP/PM) and/or Director, M/MS for USAID.

Evidence of noncompliance with customer agency property policies is shared by A/LM/PMP/PM with the respective parent agency office. Suspected fraud, waste, or misuse is reported to the Office of the Inspector General (OIG/INV).

3.2 Compliance Enforcement

Enforcement mechanisms are in place to address noncompliance.

• Notification of Noncompliance: The Director, Property Management Division (A/LM/PMP/PM) notifies the PMO of serious noncompliance cases. PMOs must initiate corrective actions within 30 calendar days and report them to A/LM/PMP/PM. Failure to report within 30 days may result in personnel actions as per 3 FAM 4370 or 3 FAM 4540. Examples of serious noncompliance include failure to submit annual inventory reports by March 15th, failure to take timely corrective action, or failure to provide accurate and timely agency-specific reports.
• Referral to Assistant Secretary: Repeated or serious noncompliance instances are referred to the applicable bureau Assistant Secretary with recommendations for personnel action.
• Reporting False Certifications: Agency PMOs and employees must promptly report to OIG/INV any knowledge or suspicion of false certifications in property management reports (DS-582, customer agency reports, etc.) or suspected fraud, theft, or misuse.
• Cooperation with OIG: Employee cooperation with OIG is mandatory (1 FAM 053.2-5), and false certifications carry potential penalties under 18 U.S.C. 1001.

4. Key Definitions in Personal Property Management

A clear understanding of terminology is crucial for effective communication and compliance. Key definitions include:

• Accountability: The ability to track personal property with a complete audit trail from receipt to disposal.
• Accountable Personal Property: Nonexpendable property with a useful life of two years or more and an acquisition value of $5,000 or more, tracked in ILMS Asset Management or Loanable Property. Includes capitalized property, sensitive property (regardless of cost – motor vehicles, aircraft, watercraft, heritage assets, leased property, firearms, law enforcement equipment, CPUs, radios, residential furniture, munitions list items, safes, loaned government property, serialized property >$500).
• Acquisition Cost: Original purchase price including vendor payments, transportation, installation, handling, storage, labor, production costs, and design/specification services (excluding training and warranties). Fair market value can substitute if acquisition cost is unknown.
• Agency Property Management Officer: Focal point for personal property management within an agency, responsible for effective acquisition, control, use, and disposal.
• Barcode Label: Machine-readable label for unique property identification and accountability.
• Capitalized Personal Property: Nonexpendable property with a useful life of two or more years and acquisition cost exceeding $25,000 per item, recorded on the Department’s general ledger. Includes State-owned motor vehicles, software exceeding $3,000,000 total cost, and all aircraft (except drones <= $25,000).
• Commerce Control List Items (CCLIs): Dual-use items subject to export control by the Department of Commerce.
• Condition: Physical state, functionality, and continued usefulness of an asset, based on evaluation (condition codes 1-new, 4-used, 7-repairable, X-salvage, S-scrap).
• Contractor-Acquired Property: Property acquired by a contractor where the U.S. Government holds title.
• Control: Maintaining physical oversight and surveillance of property throughout its lifecycle.
• Demilitarization: Rendering a product unusable for its intended purpose.
• Depreciation: Allocation of asset cost over time, reflecting value decline due to wear or obsolescence.
• Disposal: Authorized processes for removing property from official records (transfer, donation, sale, abandonment, destruction, exchange/trade-in).
• Excess Personal Property: Property no longer needed by the U.S. Government agency.
• Exchange/Sale Authority: Authority to exchange or sell non-excess property and use proceeds for similar property acquisition.
• Expendables: Items consumed in normal use, losing identity, or becoming part of another item. Control typically ceases upon issuance from storage.
• Fair-Market Value: Best estimate of gross proceeds from a public sale.
• Federal Supply Class (FSC) Codes: U.S. Government-wide commodity classification for property grouping.
• Firearm: Weapon designed to expel a projectile by explosive action (defined under 18 U.S.C. 921).
• Foreign Excess Personal Property: U.S. Government-owned excess property located outside the U.S. and specific territories.
• Foreign Gift and Decoration: Presents from foreign governments (subject to 41 CFR 102-42).
• Government Aircraft: Aircraft operated exclusively for an executive agency.
• Government Furnished Property: Property owned by the U.S. Government and provided to a contractor.
• Hazardous Personal Property: Property classified as hazardous material, substance, or waste under relevant acts (HMTA, RCRA, TSCA).
• Heritage Asset: Unique property with historical, natural, cultural, artistic, or architectural significance (antiques, art, cultural objects).
• Information Technology (IT): Equipment or systems used for data/information processing, storage, manipulation, management, etc. (computers, software, related services).
• Inspection: Examination and testing of property/services to ensure contract compliance.
• Integrated Logistics Management System (ILMS): Unified web-based system for Department supply chain management, including property management (ILMS-AM).
• ILMS-INL End Use Monitoring (EUM) Module: INL-specific module to track property transferred to foreign governments.
• International Cooperative Administrative Support Services (ICASS): Interagency system for managing and funding administrative support abroad.
• Inventory: Formal listing and verification of accountable property condition, location, and quantity.
• Invoice Cost: Total vendor payment, including transportation/installation if on the initial invoice.
• Issue of U.S. Government Property: Permanent provision of property for official government business.
• Law Enforcement Equipment (LEE): Tactical items like ballistic armor and protective gear used by law enforcement.
• Loan of U.S. Government Property: Temporary provision of property (generally <= 90 days) for official government business.
• Loss of U.S. Government Property: Unintended loss, damage, or destruction reducing economic benefits (excluding wear/tear, obsolescence, defects).
• Motor Equipment: Self-propelled or mechanically drawn equipment (construction, maintenance, watercraft).
• Motor Vehicle: Vehicle designed for highway transportation of property or passengers (see 14 FAM 430).
• Motorized Utility Equipment (MUE): Self-propelled or mechanically drawn equipment for transportation, not intended for public road use (Gator™, Mule™, golf cart, ATV).
• Munitions List Items (MLIs): Defense articles or services listed in the International Traffic in Arms Regulation (ITAR).
• Nonexpendable Personal Property: Tangible assets not for sale, intended for entity use, durable nature with >2-year useful life (furniture, IT, vehicles, aircraft, generators, weapons, communications).
• Non-Federal Recipient Report: Annual report on property furnished to non-federal entities (transfer, donation, loan, lease, sale, abandonment, etc.).
• Personal Property: Tangible property, excluding real property and U.S. Government records (vehicles, aircraft, furniture, equipment, supplies, program property).
• Personal Protective Equipment and Clothing (PPE&C): Nontactical safety items (respirators, gloves, safety shoes).
• Physical Inventory: Physical count to determine actual on-hand quantity.
• Privately Owned Property: Items belonging to employees/visitors, hand-carried onto government premises.
• Program Funded Property (USAID only): Property procured with USAID activity/project funds.
• Program Property: Specialized property for unique programs, managed by a single bureau/agency (vehicles, secure phones, radios, etc.).
• Property Management: System for acquiring, maintaining, using, and disposing of personal property.
• Property Survey Board: Appointed members to adjudicate loss cases and determine financial responsibility.
• Purchase Price: Cost paid to vendor, excluding shipping, packing, and storage.
• Real Property: Land and associated improvements, structures, and fixtures.
• Receiving Report: Written evidence of U.S. Government acceptance of property/services (DS-127).
• Reconciliation: Rectifying discrepancies between physical inventory and ILMS records.
• Replacement Property: Property acquired to replace older property still needed but no longer adequate.
• Reutilization of U.S. Government Property: Identifying and reassigning idle or unneeded property within the agency.
• Salvage: Property with value exceeding material content but impractical or uneconomical to repair.
• Salvage Value: Estimated asset value at the end of its useful life (standard 10% salvage value, zero for some properties like DS armored vehicles).
• Scrap: Property with value only in its basic material content.
• Sensitive Personal Property: Items requiring high control due to loss, theft, misuse, or security concerns.
• Shelf-Life: Timeframe for property to remain usable without degradation (storage conditions may affect shelf-life).
• Similar Personal Property: Items identical, within the same FSC group, parts/containers for similar items, or designed for the same purpose (for exchange/sale).
• Standardization: Selecting specific brands/types of equipment for public interest.
• USAID Trust-Funded Property: Property purchased with USAID Trust Funds, used for USAID activities, and accounted separately. Reverts to host country upon disposal.
• Unclaimed Personal Property: Abandoned property found on government premises. U.S. Government may claim title after 30 days.
• Uniform: Specified clothing mandated for employee use for identification (excluding safety equipment or normal work attire).
• Useful Life: Estimated period an item is usable in trade/business or income generation.
• Voluntarily Abandoned Property: Property intentionally relinquished to the U.S. Government.
• Watercraft: Vessel for transporting persons/materials on water.
• Working Capital Fund: Intragovernmental revolving fund for centralized service provision (e.g., ICASS).

5. Personal Property Authorities

Personal property management is governed by a framework of laws and regulations:

5.1 Laws

• 40 U.S.C. Public Buildings, Property, and Works; Federal Property and Administrative Services, Chapter 5 – Property Management: Authority for procurement, warehousing, property use (including inventory and accountability mandates), disposal, and proceeds from sale/transfer.
• Federal Personal Property Management Act of 2018: Amended 40 U.S.C. Chapter 5, authorizing GSA to set capitalization and accountability thresholds and requiring annual inventory/assessment of capitalized and accountable personal property.
• Foreign Excess Property Act: Provides authorities for disposing of excess property in foreign areas.
• 22 U.S.C. 2684: Authority for the Department of State working capital fund (WCF), including ICASS, credited with receipts from property sales/exchanges.
• 22 U.S.C. 4082: Authority to loan household furnishings to Foreign Service members to reduce transportation costs.
• 15 U.S.C. 3710, Utilization of Federal Technology: Authority to transfer excess research equipment to nonprofit educational institutions.
• 18 U.S.C. 641: Penalties for embezzlement, theft, or unauthorized conversion of U.S. Government personal property.
• 31 U.S.C. 1344: Limits use of funds for passenger carrier maintenance/operation/repair to official purposes.
• 31 U.S.C. 1349: Mandates suspension for unauthorized use of government vehicles or aircraft.

5.2 U.S. Government Regulations

• 41 CFR 102-35, Disposition of Personal Property: U.S. Government-wide policy for identifying and reporting excess property, prohibiting title transfer to non-federal entities without legal authorization.
• 41 CFR 102-36, Disposition of Excess Personal Property: Regulations ensuring intra-departmental and inter-agency use of excess property before new procurement.
• 41 CFR 102-37, Donation of Surplus Personal Property: Covers donation of surplus federal property within a State, including foreign excess property returned to a State.
• 41 CFR 102-38, Sale of Personal Property: Regulations governing U.S. Government property sales.
• 41 CFR 102-39, Replacement of Personal Property Pursuant to Exchange/Sale Authority: Implements 40 U.S.C. 503, allowing exchange/sale of used items for similar new property.
• 41 CFR 102-40, Utilization and Disposition of Personal Property with Special Handling Requirements: Regulations for hazardous materials and other special categories.
• 41 CFR 102-41, Disposition of Seized, Forfeited, Voluntarily Abandoned, or Unclaimed Personal Property: Covers disposition of property under various legal authorities.
• 41 CFR 102-42, Utilization, Donation, and Disposal of Foreign Gifts and Decorations: Regulations for foreign gifts and decorations under 5 U.S.C. 7342.
• 41 CFR 101-25: General supply management regulations supporting logistical programs.
• Joint Financial Management Improvement Program (JFMIP) Requirements: Property Management Systems Requirements (JFMIP-SR-00-4) and Inventory, Supplies and Materials Systems Requirements (JFMIP-SR-03-02) outlining government-wide mandatory requirements for inventory and property management systems.
• Statement of Federal Financial Accounting Standards (SFFAS) 3 and 6: Accounting standards for inventory and related property, and property, plant, and equipment (PP&E).
• 5 CFR 2635, Standards of Ethical Conduct for Employees of the Executive Branch: Requires government employees to use U.S. Government property only for official business.

5.3 Executive Orders/Executive Office of the President Documents

• Executive Order 12999: “Educational Technology: Ensuring Opportunity for All Children in the Next Century,” guidance for transferring excess computer equipment to U.S. nonprofit schools.
• Executive Order 13589: “Promoting Efficient Spending,” guidance on limiting IT devices issued to employees.

III. Planning, Use, and Acquisition

6. Requirements Planning and Use

Efficient personal property management starts with careful planning and utilization.

It is U.S. Government policy to limit personal property acquisitions to the necessary quantity and quality for cost-effective government operations (41 CFR 101-26.103).

• Bona Fide Need: Acquisition must be based on a genuine need. APOs must maximize property utilization. Property utilization surveys are required to determine if new purchases are necessary or if existing Department property can meet requirements (41 CFR 101-26.103-1).
• Excess Property Preference: APOs must prioritize determining if excess property from any U.S. Government agency is suitable before initiating new procurement requests (41 CFR 102-36.65, 48 CFR 8.102, 41 CFR 102-36.45(a)).
• Decoration Restrictions: Government funds can be used for decorative items (pictures, art, plants, flowers) in federal buildings approved by OBO. However, funds cannot be used solely for personal preference or desires (41 CFR 101-26.103-2).
• Motorized Utility Equipment (MUE) and Motor Equipment: Purchases abroad fall under Chief-of-Mission (COM) authority. COMs establish mission-specific policies and accountability, including written procedures for safe operation and using the Fleet Management Information System (Equipment) for tracking fuel, maintenance, and operators. COM policies may be stricter than U.S. Government-wide policies to address local conditions.

7. Property Analysis and Management

Proactive property analysis and management are essential for effective resource allocation.

• ILMS Analytics reports should be used for immediate and long-range planning, including new and replacement property requirements.
• APOs must keep PMOs informed of proposed program and staffing needs. PMOs verify needs analysis with operating officers.
• Procedures for requirements planning and use are detailed in 14 FAH-1 H-200.
• Property with shelf-life or specific storage requirements must be closely monitored to ensure timely use and proper storage (41 CFR 101-27.2). Shelf-life property nearing expiration (3-6 months prior) should be identified for disposition to maximize its utility.

8. Office Furniture Use Standard

Cost-effectiveness is paramount in office furniture acquisition and utilization.

• Office furniture purchases, leases, and re-utilization must be limited to the least expensive options meeting essential functional requirements for efficient government operations over the property’s planned lifecycle.
• Upgrades for aesthetics, decor, status, or latest designs are prohibited (41 CFR 101-25.104).
• PMOs (or designees) assign office furniture based on grade level:
  • Executive furniture (FS-01/GS-15 and above)
  • Middle management furniture (FS-02/GS-14 and FS-03/GS-13)
  • General office furniture (all other employees)
• Justification is needed for new furniture requests when existing furniture is still serviceable. Modular furniture with higher initial costs may be acceptable if it reduces office space and lifecycle costs.
• Domestically, draperies are limited to Deputy Assistant Secretary level and above, using only noncombustible or flame-resistant fabrics (41 CFR 102-74.360(e); 41 CFR 101-25.302-7).

9. Replacement Standards

U.S. Government-wide and Department-specific replacement standards guide property replacement decisions.

• Executive agencies must adhere to U.S. Government-wide minimum replacement standards for materials handling equipment (41 CFR 101-25.405), furniture (41 CFR 101-25.404), and motor vehicles (41 CFR 102-34.270). Usable items should be retained even if replacement standards are met, provided they can continue operating without excessive maintenance costs or significant value reduction.
• The Department has additional minimum replacement standards (14 FAH-1 H-213, paragraph d) based on pooled resources, industry standards for longer lifecycles, and cost reduction for taxpayers.
• Deviations from replacement standards require a written request approved by the APO (or designee) with justification, retained in procurement and property management files, under conditions such as:
  • Continuous breakdowns and productivity loss.
  • Excessive cumulative repair costs.
  • Unavailability of repair parts causing downtime.
  • Lack of essential features for ongoing tasks.
  • Safety or occupational health issues that cannot be economically corrected.

10. Use of U.S. Government Personal Property

Proper use of government property is a fundamental employee responsibility.

• All employees have a duty to protect and conserve U.S. Government property.
• Personal property must be used only for official U.S. Government business, cost-effectively, and in compliance with safety requirements (5 CFR 2635.704).

10.1 Preventive Maintenance and Repair

Proactive maintenance and timely repairs are crucial for maximizing asset lifespan and operational readiness.

• Preventive Maintenance: Scheduled servicing to preserve equipment reliability by replacing worn components before failure. Maximizes equipment availability, reduces downtime and major repairs, conserves assets, and extends asset life.
  • Property must be maintained per manufacturer’s recommendations and warranty conditions (often in owner manuals or manufacturer support documents).
  • Routine inspections promote safety and extend property lifespan.
  • Maintenance or calibration may require specialized tools, equipment, or trained personnel. APOs/custodial officers must assess organizational capabilities.
  • Cost-effectiveness of maintenance contracts versus per-call servicing should be evaluated based on performance standards, reliability needs, usage, age, condition, and performance.
• Repair: Restoring broken, damaged, or failed property to a safe and usable condition. Typically required after wear, damage, or partial destruction.
  • APOs/custodial officers must monitor property to ensure maximum use, detect non-use or misuse, and prevent unauthorized disposal.
  • Custodial officers must obtain and review repair estimates against ILMS records to determine the cost-effectiveness of repair versus replacement, considering replacement standards (14 FAM 412.3), repair history, and replacement acquisition costs.
  • Repair costs and types must be recorded in ILMS Asset Management for accountable property and potentially for subcomponents of certain critical property.
• Calibration: Custodial officers must ensure equipment calibration per manufacturer specifications and maintenance requirements. Inoperable or uncalibrated equipment must be removed from service to maintain data integrity and employee safety and potentially destroyed (e.g., faulty detectors, medical devices, test equipment).

10.2 Loan of U.S. Government Personal Property

Loans of government property are permitted under specific conditions and for official purposes.

• U.S. Government personal property (e.g., laptops, tablets for official travel) may be loaned temporarily for official business to:
  • U.S. Government employees.
  • Other U.S. Government agencies.
  • State Overseas: Employee associations, employee-operated services (commissary, mess, recreational facilities). Associations must reimburse direct equipment costs (hardware, furniture, air conditioners, refrigerators, freezers).
  • State and USAID Overseas: U.S.-sponsored schools abroad, to support education for dependents of U.S. citizens (under COM authority).
• All property loans (regardless of cost) must be documented with start and end dates on Form DS-584 via the ILMS Loanable Property (LP) module. Lending offices must follow up on overdue loans.
• Loans exceeding 90 calendar days require APO authorization. Loan extensions require the same approval process as original requests.
• Interagency Property Loans require:
  • An interagency agreement (IAA) with reimbursement clauses for damage/loss, inventory, and maintenance.
  • IAA uploaded to ILMS Asset Management after signatures.
  • APO authorization and PMO approval via DS-584 in ILMS-LP for internal tracking.
• Loans involving IT property must consider 12 FAM 620, 12 FAH-10 H-260 (Media Protection), and use of U.S. Government enterprise licensed software.
• New property cannot be purchased to replace similar property on loan.
• All loaned accountable property must be physically inventoried annually.
• Government Furnished Property (GFP) under contracts or grants is not considered a loan and is managed under FAR 48 CFR 45 and 48 CFR 52.245-1 government property clauses. U.S. Government policy generally requires contractors to furnish their own property, with exceptions (48 CFR 45.102, 48 CFR 45.301). State grantees require specific statutory authority for GFP (14 FAM 411.1(i)).
• USAID or USAID/IG Property Loans:
  • USAID PMO approves loans < 90 days.
  • Loans >= 90 days require USAID Principal Officer (or RIG/A for USAID/IG property) authorization.
  • RIG/A authorizes loans of RIG-funded equipment.
  • USAID PMO or Principal Officer authorizes other USAID property loans.
  • Loans to employee-operated facilities must comply with USAID ADS Chapters 534 and 532.
• Loans of State-owned personal property within the U.S. and territories to non-federal recipients must be reported annually by A/LM/PMP/PM (41 CFR 102.300). Due to ILMS reporting limitations, the responsible federal agency must directly enter disposition data into the GSA Personal Property Reporting Tool each fiscal year.
• Additional loan requirements are in 14 FAH-1 H-424.

10.3 Loan of Privately Owned Property

Loans of private property to the U.S. Government are uncommon and require careful consideration.

• Not prohibited, but highly unusual due to supplemental appropriations, ethics restrictions (5 CFR 2635), and procurement regulations, especially with parties having government business dealings.
• Loans must be documented, defining U.S. Government and lender responsibilities. U.S. Government responsibility is limited to ordinary protection and upkeep. Insurance requirements from the lender should be reviewed by the parent agency legal office.
• Privately owned property should not be recorded in ILMS.
• Clear marking as externally owned is essential to prevent misidentification as U.S. Government property during inventories.

IV. Property Receipt and Control

11. Property Receipt

Proper receipt procedures are crucial for accurate accountability.

11.1 General Receipt Procedures

• The PMO must designate a receiving clerk and an alternate in writing.
• Receiving clerks must promptly inspect all delivered property for quantity, quality, and condition against acquisition documents.

11.2 Receiving Areas

• Receiving activities abroad must be centralized, though sub-receiving areas are permissible.
• Written SOPs for sub-receiving areas must include methods for informing the central receiving area of all receipts.

11.3 Receiving Responsibility

• Receiving clerks are responsible for property receipt and inspection and preparing/distributing receiving reports.
• They are the link between procurement, property, accountability, and certifying functions.
• Signing a receiving report completes procurement, initiates accountability, and triggers payment processing.
• State only: Contract employees can perform inspection and receiving functions but cannot sign receiving reports, as acceptance of property is an inherently governmental function.
• USAID only: Personal services contractors are considered U.S. Government personnel for receiving duties, including signing receiving reports.

11.4 Receiving Files

• Central receiving clerks must provide acquisition document copies to appropriate receiving areas to establish pending order files.
• Completed centralized receiving files must be maintained at the central receiving area.

11.5 Receiving Action

• For Department of State activities abroad, DS-127 (Receiving and Inspection Report) is unnecessary for single-delivery orders if receipt is annotated in the receiving section of OF-347 (Order for Supplies or Services). Property and serial numbers are recorded on OF-347. DS-127 is required for partial deliveries.
• Receiving sections on OF-347 and DS-127 must be in English, with costs in U.S. currency, and any damages or discrepancies noted. ILMS can generate DS-127 reports for partial and complete deliveries.
• State activities using ILMS AM must immediately affix barcode labels to accountable nonexpendable property upon receipt (except group records and certain heritage assets).
• State only: Designated receiving officials must receive State-owned/leased mobile phones (per 14 FAH-1 H-312) and create asset records in ILMS Loanable Property (LP) module. State mobile phones do not require barcoding.

11.6 Post-Receiving Actions

• Shipment discrepancies must be documented, and SF-364 (Report of Discrepancy) filed as needed. Prompt action on discrepancies is required.

11.7 Warehousing and Storing Property

Efficient and secure warehousing programs are essential for property management.

• PMOs must implement economical warehousing programs with written SOPs for handling and storage. Special considerations include:
  • Secure/controlled areas for theft-prone or perishable equipment/supplies.
  • In joint warehousing, property may need to be stored separately by activity/agency but should not be segregated by location to maximize space. Commingled property must be clearly identified by agency ownership.
  • Firebreak walls and isolated storage for flammables (paints, fuels).
  • Proper shelving/racking for expendable and nonexpendable property.
  • Appropriate materials handling equipment.
  • Proper building ventilation.
  • Comprehensive safety and security procedures.
  • Limited warehouse access to authorized personnel, with security lock/code changes per procedure, when compromised, or when personnel access needs change.
• Implementing procedures for administrative property are in 14 FAH-1 H-318.

12. Control of Personal Property

Maintaining control over personal property is a continuous process.

• PMOs must establish procedures to reasonably ensure property control as prescribed in regulations.

12.1 Accountability

Accountability is maintained through diligent record-keeping.

• Accountable property records must be maintained for expendable and nonexpendable stock inventory and for nonexpendable property in use meeting accountability criteria.

12.1.1 Accountability Criteria

• Personal property tracked on records (including capitalized property) must meet criteria in 14 FAM 411.4 (Definitions).
• USAID only: Inventory records are required for all accountable property (defined in 14 FAM 411.4) and capitalized property (defined in 14 FAM 415.2 and ADS Chapter 629) titled to or in USAID custody. Records must indicate funding source (OE, trust fund, program-funded, RIG/A, OFDA, etc.) and be reported annually to M/MS/OMD.

12.1.2 Program Property

• State only: Program property is typically accounted for by the funding organization and tracked in ILMS or authorized automated systems.
• State only: When program property is centrally controlled by headquarters, PMOs delegate custodial responsibility at post. Custodial responsibility for security/communications equipment rests with security and communications officers. Custodial officers conduct physical inventories and reconcile with controlling offices. Supplemental post records must align with central records.
• USAID trust-funded and program-funded property:
  • Trust-funded nonexpendable property is controlled like USAID-owned property unless trust agreements specify otherwise. Property must be marked and records kept separate by funding source.
  • USAID contractor-held property is controlled by contract provisions. Upon contract completion and USAID assuming title, receiving reports are made and items added to USAID inventory. See 14 FAM 417.1-7 for USAID contractor property.
• Non-TEMPEST IT and word processing equipment meeting accountability criteria (14 FAM 414.1-1), regardless of funding, is considered administrative property and must be on post property records.

12.1.3 Heritage Assets

• Antiques, art, and cultural objects must be accounted for in ILMS Asset Management (Department’s system of record). See 4 FAM 733.2 for financial management considerations.
• Supporting documentation (maker information, acquisition documents, appraisals, conservation reports, etc.) should be consolidated for permanent retention. OBO/OPS/CH SharePoint site provides specific guidelines.

12.1.4 USAID Software Accountability and Disposal

• Software accountability has specific considerations due to its intangible nature. Barcoding software licenses can be managed in binders. Copyright licenses must be respected. Accountability standards for USAID software in mission custody include:
  • Pre-loaded software: Inventoried only if priced separately and >$500. Lower-priced or non-priced pre-loaded software is expendable.
  • Standalone packages: Inventoried if value exceeds $500 upon issuance.
  • Site licenses: Inventoried in USAID/W or at post, not both. Missions inventory mission-specific site licenses >$500.
  • Upgrades: Superseded versions are abandoned, upgrade licenses are inventoried if >$500 (DS-127).
  • Internally developed software: Non-copyrighted software developed by missions must be inventoried.
  • Capitalized software: Software exceeding the capitalization threshold ($25,000) must be reported as capitalized property.
• Software’s short lifespan leads to faster obsolescence and abandonment (14 FAM 417.2-6). Obsolete software must be deleted, and source disks, manuals, and licenses destroyed upon disposal.
• Redistribution, transfer, sale, or donation of software must comply with licensing agreements.

12.2 Ownership and Identification

• All nonexpendable property must be marked to indicate agency ownership soon after receipt.

12.2.1 Approved Property Record Systems

• State only:
  • Nonexpendable property: ILMS Asset Management (AM) is the approved system.
  • Expendable supplies: ILMS Expendable Management System for warehouse/storeroom materials (see 4 FAM 732 and SFFAS 3).
  • State-owned/leased mobile phones: ILMS Loanable Property (LP) module, regardless of cost.
• USAID only: ILMS Asset Management System. BarScan is also usable until ILMS deployment.
• USDA/FAS only: Foreign Property Management Inventory System (FPMIS).
• USDA/APHIS only: Corporate Property Automated Information System (CPAIS).

12.2.2 USAID Property Marking

• Operating expense-funded property: Marked “USAID”.
• Trust fund-purchased property: Marked “TF” (host government titled).
• IG fund-purchased property: Marked “IG”.
• Program appropriation-purchased property: Marked “USAID” with project account number.
• Contractor-marked property:
  • “USAID” for USAID-owned.
  • “HG” or country symbol for host-government-owned.
  • “IG” for USAID Inspector General property.
• Project property in USAID custody should be marked as host-government-owned with project number, where feasible. Post operating procedures should address marking conflicts with host-government regulations.

12.3 Personal Custody Records

• When property is issued for exclusive employee use (radios, laptops, tablets, weapons, PDAs, toolkits), transactions must be documented on DS-584 and a “charge-out file” maintained until return.
• State only: Department policy for laptops (classified/unclassified) includes centralization, inventory control, encryption, secure transport, labeling, and training:
  • Management Officer (MO) approval is needed for wireless IT devices. DTO/ISSO must minimize laptop numbers and PII.
    • Annual laptop cybersecurity awareness briefing and signed acknowledgement are mandatory for users. ISSOs maintain records.
    • Annual certification of laptop encryption (FIPS 140-3) is required. SafeNet Protect Drive is recommended. NSA Type One encryption for classified laptops unless waived.
    • IRM/IA manages laptop encryption waiver requests on a case-by-case basis with strong justification.
  • DTO/ISSO and APO must record, validate, and reconcile laptops in ILMS-Asset Management, regardless of cost or purchasing office. DTO/ISSO must participate in annual physical inventory (DS-582 submission by March 15). Mid-year (6-month) laptop validation and reconciliation is strongly recommended, though DS-582 submission is not required.
  • DTO/ISSO is accountable for laptop inventory, encryption, and physical security. Centralized laptop control and check-out procedures are required (DS-7642 recommended). Loan documents must be kept for 12 months after laptop return.
  • Users must report suspected theft/loss, loss of control, media loss, tampering, or abnormal functionality immediately ([email protected], (301) 985-8347). DTO/ISSO must report damaged, missing, or destroyed laptops to the APO via DS-132 (14 FAM 416.5). Suspected theft/fraud must be reported to OIG/INV. Media disposal security requirements are in 12 FAH-6 H-542.5-10 (classified).
  • Department-owned wireless IT devices are restricted in CAAs unless authorized (12 FAH-6 and 12 FAH-10 H-170).
• State only: ILMS LP module is used to control mobile phones:
  • Issue for office business use (>90 days).
  • Loan for temporary official needs (<=90 days).
  • Document on DS-584 via ILMS LP.
  • Reuse: Returned phones must be updated in ILMS LP, wiped/reformatted by ISSO before reassignment (12 FAH-10 H-164.2(13)).

12.4 Managing Property in Stock

Effective stock management is crucial for expendable and nonexpendable items.

• PMOs must ensure procedures for:
  • Controlling stock inventory in warehouses/storerooms.
  • Establishing safeguards to ensure issues are for official use only.
  • Requiring approval for stock replenishment orders.
  • Screening excess property at post or nearby posts before new procurement.
  • Managing spare parts, materials, supplies, and equipment in storage using ILMS expendable management system.
  • Using requisitions for vehicle/equipment parts.
  • Requiring turn-in of used parts when new parts are issued.
  • Disposing of unsalvageable used parts as scrap.
  • Adding usable used parts to inventory for reissue.

12.5 Internal Requisitioning Procedures

Effective requisitioning and issuing procedures are essential for controlled property movement.

• APOs must ensure effective internal requisitioning and issuing procedures, minimally ensuring:
  • Requisitions (DS-583, DS-584, DS-585) are used for services, expendable/nonexpendable property, returns to stock, and debiting/crediting stock/property records, signed by authorized personnel.
  • APO (or designated LE staff) approves expendable item requests from stock. APO approves procurement actions. Facilities maintenance officers can approve maintenance spare parts. APO or designee issues operating materials/supplies from storage.
  • Residence occupants sign for residential property requests and receipts.
  • Employees or office supervisors sign for receipts of property.
  • Copies of completed DS-583, DS-584, and DS-585 are filed to support stock/property records.

12.6 Authorization to Remove Property from Buildings

Controlling property leaving government buildings is a security measure.

• APOs or designees must document and authorize property removal from U.S. Government buildings (property pass) including the individual’s name and property description. Exceptions may include privately owned items, government-issued items signed for on DS-584, and excess property being returned for disposal (DS-132). PMOs may waive this requirement in impractical local conditions.
• Implementing procedures are in 14 FAH-1 H-425.

V. Acquisition and Financial Records

13. Acquisition of Personal Property

Accurate recording of property costs is fundamental to asset management.

13.1 Recording Property Cost

13.1.1 Property Purchased

• Acquisition cost of purchased nonexpendable property must be recorded in U.S. currency on property records, including all costs to put property into use (vendor payments, transportation, handling, storage, labor, production costs, design/specification services, per 4 FAM 734 and SFFAS 6).
• USAID only:
  • Accountable property: Record purchase price as defined in 14 FAM 411.4 (Acquisition Cost).
  • Capitalized property: Record identifiable shipping, packing, and handling charges for capitalized items when the total cost exceeds $25,000.
• If an item’s cost is indeterminable, estimate fair market value at acquisition.

13.1.2 Property Transferred By Other U.S. Agencies

• Agencies must prioritize using existing agency property or obtaining excess property from other federal agencies before new procurements (41 CFR 102-36.35(a)). Transfers are typically at no cost for the property itself, only for movement.
• Depreciated property is recorded at the transferor’s accumulated depreciation. Consult CGFS/F/AO (State) or M/MS/OMD (USAID) for motor vehicle/aircraft transfers.
• If the transferor hasn’t recorded depreciation, property is recorded at fair market value at transfer time. Consult CGFS/F/AO or M/MS/OMD for questions.
• Heritage assets from federal entities are recorded at zero cost unless multi-use, in which case the transferring entity’s book value is used. If book value is unknown, fair market value is used. If fair market value is not estimable, record type and quantity of assets.
• Customer agencies transferring residential furniture to Department of State ICASS furniture pools (22 U.S.C. 2695) must use SF-122 (Transfer Order Excess Personal Property). Transferred items become Department of State (ICASS) property subject to 14 FAM 410 and working capital fund regulations.

13.1.3 Donation of Property to U.S. Government

• Donated personal property from nonfederal entities is recorded at fair market value, including transportation/placement costs. Fair value at acquisition is used. Foreign government gifts require formal appraisal.

13.1.4 Acquisition Involving Exchange/Sale Property

• Cost of property acquired through exchange (trade-in) is the fair value of surrendered property at exchange time. Federal entity exchanges are treated as transfers. If acquired property fair value is more readily determinable, it’s used as cost. If neither fair value is determinable, surrendered property’s recorded cost (net of depreciation) is used. Gains/losses are recognized for differences.
• Cash consideration in exchanges increases acquired property cost (cash paid) or decreases it (cash received).

13.2 Capitalization and General Ledger Accounting

13.2.1 Capitalized Personal Property

• Personal property with acquisition cost >=$25,000 per item, >=2-year useful life, and not losing identity/becoming a component part is capitalized property. Motor vehicle/aircraft acquisition cost includes all placement costs (shipping, armoring).
• State and USAID only (4 FAM 734.2):
  • Motor vehicles: All on-road 4-wheeled vehicles in post fleets are fully capitalized regardless of cost, including contractor-held vehicles in high-risk locations.
  • Aircraft: All aircraft (fixed-wing, rotary-wing, UAS) are capitalized regardless of value/type, except drones <= $25,000 cost basis.
• State only: Commercial off-the-shelf software configured for Department operations with total cost >=$3,000,000 is capitalized (4 FAM 734.2). Department-developed software with direct-hire/contractor service costs >=$3,000,000 is also capitalized. Software maintenance/data conversion costs are not capitalized and are excluded from threshold calculations. Software capitalization guidance is in 4 FAM 734.2 and IT acquisition regulations in 5 FAM 900, 5 FAM 1000, and DOSAR.
• USAID only: USAID OE capitalized property and software are reported to USAID/W, M/CFO/CAR for depreciation per ADS Chapter 629.3.6.

13.2.2 Depreciation of Capitalized Personal Property

• While most property acquisitions are operating expenses, capitalized property is depreciated (14 FAH-1 H-512) to account for ownership cost over its useful life and value decline due to wear or obsolescence.

13.2.3 Coordination of Property and Fiscal Accounting Records

• ICASS service providers managing USAID-owned property must provide timely data to USAID missions (per annual M/MS/OMD instructions) for mandatory reporting (14 FAM 418).
• ADS Chapter 629 and ADS Chapter 534 detail policy/procedures for accounting and administrative reporting of USAID-owned property.

VI. Inventory, Reconciliation, and Disposal

14. Physical Inventory and Reconciliation

Regular physical inventories are critical for maintaining accurate property records.

14.1 General Inventory Requirements

• Physical inventory is required:
  • Residence furniture, furnishings, and equipment upon occupancy change, reconciled immediately with Residential Custodial Files.
  • Other accountable personal property annually, reconciled immediately with property records, including:
    • Accountable program property.
    • Motor vehicles.
    • Accountable and expendable property in warehouses/storerooms (supplies, parts, tools/equipment from NEC/NCC/major rehab projects, medical supplies/drugs).
• State only: Annual inventory process may not start before October 1 and must be submitted to A/LM/PMP/PM via ILMS Certification Submission Center (CSC) by March 15th of the same fiscal year for financial integrity. CSC creates necessary forms and reports, including DS-582.
  • ILMS expendable module physical inventory reporting tool must be used for annual expendable property inventory.
• State only: Annual accountable property inventory is mandatory for all overseas posts. More frequent spot checks of sensitive items (weapons, laptops, tablets, phones, cameras, etc.) are recommended.
• “Blind” inventories are standard (counts without prior records). However, posts using ILMS AM or automated systems may use Inventory Listing by Location Reports with scanners. Manual scanner entries require APO scrutiny, PMO/APO signature on Manually Entered Reports, and CSC submission.

14.2 Annual Physical Inventory Process

• Advance announcement of scheduled inventory dates minimizes office disruption.
• APOs must assign an inventory supervisor to coordinate activities.
• Property record keepers should not participate in physical counts (separation of duties). Inventory takers verify each item and its condition physically.
• DTO/IMO or designee should participate in IT equipment inventory.
• Physical inventory and reconciliation files must be kept for 3 years (NARA GRS 5.4 item 010). Files must contain:
  • DS-127 documenting overages.
  • DS-132 (State) or AID-534-1 (USAID) documenting shortages.
  • DS-582 Property Management Report and supporting reports (visual report, motor vehicle report, shortage report, CAP).
• Annual Accountable Item Inventory and certificate must be filed for ILMS posts.
• Variance reports for expendables inventory reconciliation must be filed for posts with Expendable/Medical Expendable modules.
• Agriculture only:
  • Inventories are submitted to International Services Division by June 30 annually.
  • FAS is responsible for annual physical inventories.

14.3 Residential Furniture and Equipment Inventories

• Separate inventory file per residence. Physical inventory upon occupancy change. See 15 FAM 730 for representational residence requirements for OBO/OPS/RDF. All parties involved sign the inventory. Signed original is filed, occupant receives a copy. Subsequent transaction documents are filed to update the inventory.
• Residence inventory file is kept until resident departure, then moved to inactive files with shortage/damage reports (DS-132 or AID-534-1). Files can be disposed of after 3 fiscal years if damage/missing property issues are resolved.
• When ILMS property is issued to residences, IRMO (or equivalent) must update ILMS records with employee name and property location.
• USAID Principal Officer residences: Furnishing limitations and annual certification requirements are in 15 FAM Exhibit 781(A) and 15 FAM 780.
• Outgoing occupant certification: APO signs and dates inventory statement confirming property return in good condition and survey board compliance, relieving occupant responsibility (unless financial liability exists).
• Incoming occupant acknowledgment: Occupant signs and dates inventory acknowledging receipt and financial responsibility for damage/loss beyond normal wear and tear.
• Inventory and statements must be signed within 30 days of occupant arrival.
• Outgoing occupant residential property inventory is electronically scanned. Shortages/damages (beyond wear and tear) may be occupant-payable. APO reports shortages/damages on DS-132 (State) or AID-534-1 (USAID). Occupant responsibility is not relieved until survey action is completed and APO accepts inventory reconciliation results. Employees at all levels may be financially liable for lost/damaged property (14 FAM 416.5-3).

14.4 Reconciling the Annual Inventory

• Unresolved discrepancies between physical inventory and property records after reviewing transaction documents (DS-132 or AID-534-1) require immediate APO/designee action.
• Reconciliation actions apply to residence, annual (expendable/nonexpendable), and spot-check inventories.
• Inventory overages must be documented and recorded, not offsetting shortages.
• USAID only:
  • Distribute AID-534-1 copies to PMO, USAID Controller, USAID/W (M/MS/OMD), and Property Disposal file.
  • Missions provide nonexpendable property inventories to M/MS/OMD by November 15 annually. RIG/A and HG property must be identified separately.
  • Capitalized property dollar values on records must be reconciled with the USAID controller’s general ledger accounts. Adjust records and general ledger accordingly.
• After reconciliation and PMO approval, record adjustments are made before DS-582 signature.

14.5 Reporting Damaged, Missing, or Destroyed Property

14.5.1 Report of Survey

14.5.1(A) APO Action

• APOs must immediately report missing, damaged, or destroyed property to PMOs on DS-132 (State) or AID-534-1 (USAID). PMO or Property Survey Board acts on the report. Findings determine APO accountability relief and employee financial liability. Employee negligence may result in liability for repair/replacement costs.

14.5.1(B) PMO Action

• For damaged, missing, or destroyed property with acquisition cost <$5,000/item, PMOs investigate, determine liability, corrective actions, and authorize inventory adjustments. PMOs forward completed DS-132 or AID-534-1 for missing property to A/LM/PMP/PM (State) or M/MS/OMD (USAID). Employee-contested liability decisions are referred to the Property Survey Board. All reports for property >=$5,000 acquisition cost/item, or suspected theft (regardless of cost), are referred to the Property Survey Board.
• For annual inventory shortages <=1% of expendable or nonexpendable inventory value, PMOs investigate, verify facts, determine corrective actions, and authorize inventory adjustments. PMOs forward completed DS-132 or AID-534-1 documenting adjudication to A/LM/PMP/PM or M/MS/OMD. Suspected theft/fraud must be reported to OIG/INV.
• Inventory shortages >1% value or missing items >=$5,000 acquisition cost require PMO referral to the Property Survey Board. DS-132 (State) or AID-534-1 (USAID) and missing item list must be sent to OIG/INV or USAID OIG/I concurrently with PSB referral.
• Program property loss/damage/destruction >=$5,000/item is referred to the Property Survey Board.
• Missing DS Program property >=$5,000/item reported by engineering service centers is reviewed and acted upon by the DS Executive Director/APO and adjudicated by the Domestic Survey Board if warranted.

14.5.2 Post’s Property Survey Board

• Post’s Property Survey Board acts on reported instances of missing, damaged, or destroyed U.S. Government property referred by PMOs. Boards determine financial liability and its extent for employee negligence, misuse, or willful actions, and set the liability amount.
• Property Survey Board Composition at Post:
  • State only: Post heads designate boards of >=3 members (chairperson, secretary), excluding PMO, APO, or their staff, involved individuals, or supervisors. Chairpersons appoint alternates if members are ineligible.
  • USAID only: USAID Principal Officers designate boards of U.S. direct-hire Foreign Service employees at posts managing their own property and not participating in ICASS-like agreements.
• Closing USAID missions abroad: M/MS/OMD Director can appoint survey boards for property accountability matters.
• State only: For ILMS property cases, IRMO (or equivalent) forwards completed DS-132 to A/LM/PMP/PM.

14.5.3 Employee Liability

• Employees are not liable for loss/damage/destruction due to inadequate training/supervision or inherent property defects.
• Financial liability for damaged property is the repair cost (including shipping) or estimated repair cost if unrepaired. Fair market value is used if repair cost exceeds it.
• Financial liability for missing/destroyed property is based on depreciated value (straight-line method), minimum liability level is 10% of acquisition cost (except non-depreciated heritage assets). Deliberate/preventable actions diminishing value may result in liability up to fair market value.
• Nonaccountable property with undetermined acquisition cost uses fair market value (less salvage value) for reimbursement.
• Upon survey report completion, PMOs ensure completed DS-132 (State) or AID-534-1 (USAID) copies are forwarded to:
  • Employees held liable (with payment demand; payment does not convey property title).
  • Employees involved but cleared of liability.
  • Employees signing DS-584 for loaned property involved in survey action but not responsible for damage/loss.
• Employee Liability (14 FAM 416.5-3) does not apply to OBO/OPS/CH property and OBO/OPS/RDF-funded FF&E (see 15 FAM 245 and 15 FAM 245.2 for pet damage liability).

14.5.4 Distributing Completed Survey Reports

• State only: Upon survey board completion, PMOs forward DS-132 copies to APO and A/LM/PMP/PM. A/LM/PMP/PM posts DS-132s on the PM website for OIG and domestic property management official access.

14.5.5 Employee Appeal

• State only: Employee-contested PMO decisions are reviewed by the Property Survey Board. Board decisions contested by employees are reviewed by the Chief of Mission. COM-contested board decisions are reviewed by the Agency PMO (Managing Director, A/LM/PMP), whose decision is final. COMs can appeal board decisions against them to the Agency PMO.
• USAID only: Employee-contested PMO or board decisions are forwarded to the USAID Principal Officer, whose decision is final. Principal Officers can appeal board decisions to USAID/W, M/MS/OMD, whose decision is final. For closed USAID missions, appeals are directed to the Chief, M/MS/OMD, whose decision is final.

14.5.6 Reimbursement by Employee

• If liable for loss/damage/destruction, employee reimbursement must be secured before post departure (contractors: FAR 52.245-1(h)(l)).
• Reimbursement is made to the owning agency’s account:
  • State: FMO credits appropriate account based on asset funding source. Payment via cash or check payable to U.S. Department of State.
  • USAID: Controller credits appropriate account.
• Employee non-consent or post-departure cases are forwarded to CGFS (State) or M/CFO/P (USAID) for debt collection. Implementing procedures are in 14 FAH-1 H-623.
• Reimbursement receipt copies must be included in relevant property files to document action closure.

15. Disposal of Personal Property

Proper disposal methods are essential for responsible asset retirement.

• Implementing procedures are in 14 FAH-1 H-700.

15.1 General Disposal Policies

15.1.1 Policy Guidelines

• Foreign Service post property disposal must be:
  • Consistent with U.S. foreign policy.
  • Compliant with local laws and customs.
  • In conformity with treaties or host-nation agreements.
  • For grantee-returned property with State title, disposal must align with this section’s policy.
• Hazardous chemical materials disposal requires informing recipients of hazards and safe use. Safety, Occupational Health and Environmental Management Resource Guide Section 1.13 provides further information.
• State only: Nonvolatile IT media must be sanitized per 12 FAM 600. Hard drives (unclassified, SBU, classified) must be shipped via classified pouch to the Department for destruction per Overseas Security Policy Board and 12 FAM 600.

15.1.2 Classifying Unneeded Property

• Foreign Service post property for disposal is classified as replacement property or foreign excess property.
• Replacement property for sale/exchange is not “excess,” representing asset conversion for similar new items. Replacement property is redistributed, transferred, or sold, with proceeds used for similar property procurement (except ICASS/OBO-funded property). State sale proceeds reporting refers to 4 FAM. USAID proceeds are deposited to Budget Clearing Account 72F3845; Agriculture (FAS) proceeds to account 12 F 3845.029 (deposit voucher fax to OFSO/ISD).
• Foreign excess property designation indicates no projected owning agency need, not for redistribution or sale for replacement.

15.1.3 Approval for Foreign Excess Classification

• State only: Foreign excess classification requires Director, Property Management Division (A/LM/PMP/PM) approval.
• USAID only: Foreign excess classification requires M/MS/OMD approval.

15.1.4 Inspection for Classified Material

• Prior to property removal for disposal, inspection for classified/sensitive material is mandatory. DS-586 (Turn-In Property Inspection Certification) is initiated by the user and signed by the user and removal authorizing person, certifying inspection. Drawers, file cabinets, computer equipment, etc., require thorough inspection.
• Safe file combinations must be reset to 50-25-50, bar-lock cabinet padlock combinations to 10-20-30.
• DS-586 must be completed before property removal arrangements.

15.1.5 Program Property Disposal

• Program property (vehicles, security/communications equipment) disposal requires specific authorization from the controlling office/bureau/agency.
• State only: Motor vehicle disposal see 14 FAM 436.7.
• USAID only: USAID program-funded property disposal guidance see 14 FAM 417.1-7 and ADS Chapter 534.

15.1.6 Trust Fund Property Disposal

• Trust fund property disposal follows Trust Fund Agreement terms. In absence of an agreement, disposal must be per regulations:
  • Return property to host government, obtain receipt, and adjust records.
  • Sale of trust fund property requires Trust Fund Agreement or host government permission. If unapproved and property not returned, it’s sold, and proceeds are deposited in the trust fund account. Separate documentation is always required.

15.1.7 USAID Project Property/Contract Property

• Project property titling follows project/strategic objective agreements or acquisition/assistance instruments.
• USAID ADS Chapter 534 governs transfer/disposal of program-funded property titled to USAID.

15.1.8 Disposal of USAID Personal Property to Non-U.S. Government Agencies

• USAID property donation can be made to organizations qualified under Foreign Assistance Act of 1961 Section 607(a) (friendly countries, international organizations, Red Cross, voluntary agencies) with USAID/Washington (USAID/W) foreign excess approval and a Section 607(a) determination. Requests for disposal must be addressed to M/MS/OMD.

15.1.9 Disposal of Property Acquired by Means Other than New Procurement

• Replacement property acquired by redistribution or transfer cannot be sold/exchanged within 1 year of transfer without parent agency approval (Director, Property Management Division (State) or M/MS/OMD (USAID)).

15.2 Disposal Methods

• All disposal actions (except Grants (b)(7)) require documentation on DS-132 (State) or AID-534-1 (USAID) and formal disposal processes. Separate reports for expendable/nonexpendable property.

• Acceptable disposal methods (in order of preference):

  1. Redistribution within parent agency.
  2. State only: Transfer to commissary/mess/recreational facility.
  3. Transfer to other U.S. Federal agencies abroad.
  4. Sale or exchange.
  5. USAID only: Grant-in-aid or project contribution.
  6. Donation.
  7. State only: Return excess to U.S. for eligible recipient reuse (41 CFR 102-36.390).
     • U.S. Government GSA Personal Property Management System (ppms.gov) is available for reporting excess/exchange-sale property and processing transfer requests. Posts can request ppms.gov access via the Department of State NUO (Director, Property Management Division).
  8. Abandonment or destruction. (State only: Public Diplomacy grants furthering public diplomacy objectives per Federal Assistance Directive).

• Disposal method selection considers:

  • Property condition.
  • New and present value.
  • Need at other posts (considering storage, packing, shipping costs).
  • Local sales interest/value.
  • Other U.S. agency needs.
  • USAID only: Host-government and project needs.

15.2.1 Redistributing Replacement Property

• Redistribution to other posts is preferred for replacement property in good condition if packing/shipping costs are economically viable.
• USAID only: PDO notifies USAID/W, M/MS/OMD of redistribution plans. M/MS/OMD notifies posts in the area or worldwide, allowing for a 15-day response. M/MS/OMD makes final decisions on competing requests.
• Redistribution is without reimbursement, but receiving posts pay packing, transportation, and incident costs.
• All redistribution actions must be documented.

15.2.2 Transfers

• Transfer to other U.S. Government agencies:
  1. When no responses from other posts, other U.S. agencies at post location are notified. Transfer is possible if:
     • Requesting agency certifies bona fide need.
     • Receiving agency pays packing, shipping, and incident costs.
  2. Agencies offering replacement property for transfer require reimbursement no greater than estimated sale proceeds or trade-in value.
  3. All transfer actions must be documented.
  4. Requesting agencies receive foreign excess property non-reimbursably.
• USAID only:
  1. USAID/W, M/MS/OMD approval is needed for foreign excess disposal requests.
  2. Foreign excess property use under Foreign Assistance Act of 1961 sections 214(b) and 607 is prioritized, with situs country preference before other missions.
  3. Transfer of unneeded USAID replacement property to U.S. schools abroad receiving USAID sponsorship (Foreign Assistance Act of 1961, Part 636d) is possible with M/MS/OMD permission.
• Foreign excess property not needed by U.S. agencies at post should be assessed for cost-effective return to the U.S. for further federal use or donation (41 CFR 102-36.390). Parent agency authorization is required before return, with full property details provided to the parent agency.
• State only: Transfer of unneeded property (replacement or foreign excess) to commissary/mess/recreational facilities or U.S.-sponsored schools abroad is possible at no cost if the receiving activity certifies a bona fide need and non-resale intent. PMO approval and documentation are required. USAID activities must also comply with ADS Chapters 534 and 532.

15.2.3 Exchange/Sale Property

• Foreign excess property not disposed of by transfer or return to the U.S. may be sold if in the U.S. Government’s best interest. Foreign excess property sale proceeds are deposited in the Treasury as miscellaneous receipts.
• Replacement property that cannot be redistributed/transferred can be sold/exchanged:
  1. Property may be sold, and proceeds used for similar property acquisition by the selling establishment or parent agency worldwide (see 4 FAM). ICASS/OBO-funded property sale proceeds are not restricted to similar property acquisition.
  2. OBO/OPS/RDF written authorization is required for selling, exchanging, transferring, or disposing of items in representational residences (15 FAM 735). OBO/OPS/CH written authorization is required for antiques, art, or cultural objects in mission properties (15 FAM 770).
  3. OBO-purchased property sale proceeds are deposited to the Embassy Security, Construction, and Maintenance Appropriation.
  4. USAID only: USAID property sale proceeds are returned to USAID’s Budget and Clearing Account 72F3845.
• Property may be exchanged as full or partial payment for similar items.
• Sales methods: Sealed bid, spot bid, auction (including online).
• Advertising is mandatory unless prohibited by property nature/condition or local conditions.
• Foreign excess property and replacement property distinctions must be maintained.
• PDO must witness key disposal activities on sale day (14 FAM 411.2).
• Sealed-bid sales require locked bid boxes secured in safes with separate key security.
• Commercial auctioneer agreements must comply with local law and FAM, using fixed pricing (flat fee, percentage, or combination).
• Credit card auction proceeds must comply with CGFS policies and USDO instructions (4 FAH-3 H-325.5 and 4 FAH-3 H-327). Itemized sales amounts must be identified.
• Sale expenses (advertising, auctioneer fees, customs, taxes, transportation, contractor labor, security, space rental, sales agents, equipment rental) may be deducted from proceeds. Regular staff salaries/overtime are not deductible (normal post business).
• Sales documents must state purchaser compliance with U.S./host-government import laws. Purchasers must pay customs, taxes, and charges and provide receipts before property release (including online sales). Local requirements vary.
• U.S. citizen employees and relatives (excluding sale initiators/authorizers/controllers) may participate in competitive public sales if they certify in writing:
  1. Property is for personal use.
  2. Property will not be resold during post tour except to another U.S. citizen employee with similar certification.
  3. Local taxes/obligations will be satisfied upon end-of-tour resale to non-duty-free individuals (certification to PDO required). Non-compliance may result in disciplinary action.
• Foreign Service National employees, personal service contractors, contractor employees, and relatives (excluding sale preparers/conductors) may participate in public competitive bid sales if successful bidders certify personal use and pay local duties/taxes.
• Principal officer at post can cancel planned sales if not in the U.S. Government’s interest.
• Foreign excess property sale proceeds are deposited in the Treasury as miscellaneous receipts by the FMO.
• Risk of loss: U.S. Government is responsible for property after inspection availability but before removal, adjusting for loss/damage not caused by the purchaser.
• Permanently attached fixtures may be sold on a negotiated basis to building owners/landlords at fair market value when vacating.
• Negotiated sales are permitted for property estimated fair market value <=$15,000 after unsuccessful competitive attempts or in emergencies requiring written PDO justification and PMO approval. Large quantities cannot be divided to avoid the $15,000 limit. Negotiated sales reporting requirements are in 14 FAM 418.3-3.
• Negotiated sales to U.S. Government employees, relatives, or contractor employees/relatives are prohibited.
• PDO has authority to dispose of salvage/scrap material by sale.
• Replacement property that cannot be redistributed/transferred may be exchanged for similar items.
• Personal property cannot be offered/sold on credit.
• APOs must ensure property records accurately reflect disposal by sale/exchange.
• Personal property in specified FSC groups (weapons, nuclear ordnance, fire control, guided missiles, aircraft/airframe components (except FSC Class 1560), firefighting/safety equipment, nuclear reactors (FSC Class 4472 only), hand tools, prefabricated structures, chemicals (except medicinal), clothing) cannot be processed as exchange/sale property per 41 CFR 102-39.60.

15.2.4 Project Contribution or Grant-in-Aid

15.2.4(A) Property Transfer—General

• USAID only: Transfer of USAID-titled/PASA group-custodied property to cooperating governments can be project contribution or grant-in-aid:
  • Project contribution: Property aligned with a specific project.
  • Grant-in-aid: Property for broad country program objectives.
• Host government agency written requests to USAID Director are required, stating requirements/purposes/objectives. Director signs bilateral transfer agreements based on staff clearance.
• Worn-out property should not be transferred except for technical/mechanical/electrical training programs sanctioned by the host government, with customs/tax implications considered.
• Administrative management:
  • Grant-in-aid property is assessed at fair market or depreciated value for potential country program offset credit.
  • AID-534-1 is used for record adjustments.
  • Property is transferred “as-is, where-is.”
  • Transfer methods are not for convenient disposal.
  • USAID officers must avoid premature property commitment.
  • Property should be on USAID records for grant/contribution, but direct transfers from contractors or distant project sites can occur with full documentation.

15.2.4(B) Project Contribution

• USAID only: Documenting project contribution transfers:
  • Transfer agreements list property as addenda to Project Agreements.
  • Fair market value is shown on the addendum (informational).
  • Dollar value is not included in financial plans, no PIO/T needed.
  • New project commodity application may warrant fair market value assessment against the project, adjusting property agreement.
  • Transaction copy is forwarded to USAID/W regional bureau program office.

15.2.4(C) Grant-in-Aid

• USAID only: Upon grant-in-aid request from a host government agency, USAID Director must:
  1. Inquire about property availability.
  2. Determine purpose merit.
  3. Approve (with prior M/MS/OMD approval) or reject the request.

15.2.5 Donation

• Personal property donation is an alternative to abandonment/destruction:
  1. If property cannot be redistributed, transferred, or sold and has little/no commercial value.
  2. If PDO determines care, handling, and storage costs exceed estimated sale proceeds.
• Donation recipients:
  • Nonprofit educational institutions (schools, orphanages, youth programs).
  • Public health, welfare, charitable, scientific, literary institutions.
  • International bodies with U.S. participation.
• Priority to U.S.-organized/funded/tax-exempt institutions.
• Donees must be in-country and pay all acquisition/moving costs.
• All Department of State property donations must be documented and recorded in property records/ILMS Asset Management.
• USAID only: Replacement property donation requires Mission Director and M/MS/OMD written approval attached to AID-534-1.

15.2.6 Abandonment or Destruction

• Abandonment/destruction is the last resort. PDO must document efforts to use other disposal options. Witnessed by APO/PDO, with a signed certificate of destruction/abandonment.
• Hazardous materials abandonment/destruction requires SHEM Division (OBO/OPS/SHEM) guidance due to safety/environmental risks.
• Property disposal (including capitalized property) by abandonment/destruction must be recorded in property records/ILMS Asset Management immediately.

15.2.7 Public Diplomacy Equipment Grants

• State only: New/used personal property acquired with Public Diplomacy funds (account PD 0113.P only) can be disposed of via Public Diplomacy grants to further U.S. foreign policy. See A/OPE Property Grants and Federal Assistance Directive requirements for property grants from A/OPE/AP/FA.

15.3 Disposal of Flags, Seals, Insignia, Etc.

• Obsolete/unserviceable flags, seals, signs, insignia, door plates, rubber/wax stamps bearing the U.S. seal must be completely mutilated, preferably by burning. Impressions/seals must be removed/obliterated before disposal.

15.4 Protective Custody Property

• Property left by U.S. Government/quasi-governmental agencies must not be disposed of without specific authorization from the owning agency.

15.5 Disposition of other Agency Property

• Posts must assist in disposing of other agency property with written authorization. Sale proceeds are deposited in the owning agency’s account minus shared sale costs.

15.6 Cannibalization of Nonexpendable Property

• Cannibalization of nonexpendable property is prohibited without PMO approval via DS-132 (State) or AID-534-1 (USAID). Removing parts rendering working equipment inoperable is cannibalization. Removing parts from broken equipment to fix another is not, if broken parts are replaced with the removed item’s broken parts. Items cannibalized of all usable parts should be excessed as “Salvage.”
• State only: Transaction must be recorded in ILMS Asset Management, especially for capitalized assets.
• Justifications for permitting cannibalization:
  1. Uneconomical rehabilitation.
  2. Impractical disposal via sale, redistribution, transfer, or grant-in-aid.
  3. High value and condition of parts justifying extraction labor.

VII. Reporting Requirements

16. Reporting Requirements

Comprehensive reporting ensures transparency and accountability in property management.

16.1 Property Management Report

16.1.1 State Only

• Form DS-582 (Property Management Report) is submitted annually, signed by APO and PMO. Inventory process starts no earlier than October 1, submitted via ILMS Certification Submission Center (CSC) to A/LM/PMP/PM by March 15 of the same fiscal year. All annual inventory reports are accessed via ILMS.
• Late submission requests must be submitted to A/LM/PMP/PM before March 15 with valid justification and submission date.
• Negative responses in Compliance Report (Part B) require a memorandum stating corrective actions and compliance date, followed by a compliance confirmation memorandum by the projected date.
• DTO (or designee) completes annual physical inventory/reconciliation of program property in ILMS and submits inventory certification to A/LM/PMP/PM by March 15.
• Embassies maintaining property records for constituent posts must specify included posts and their separate report submissions for property duties not performed by the embassy.
• Designated APO for health unit drugs/property must provide PMO with inventory certification. PMOs must state if no health unit or property exists.
• Designated APO for narcotics affairs section non-project property must provide PMO with inventory certification unless PMO maintains records.

16.1.2 USAID Only

• USAID mission reporting requirements are detailed in ADS Chapters 534 and 629.

16.2 Annual Fiscal Year Exchange/Sale Report

• State Only: ILMS generates the Sale/Exchange Report, submitted to Director, Property Management Division (A/LM/PMP/PM) by October 30 annually. Data is used for the consolidated Agency annual Fiscal Exchange/Sale report to GSA by December 30 (41 CFR 102-38.330).
• Posts using ILMS-AM do not need to submit this report.

16.3 Capitalized Property Records

16.3.1 Department of State

• State Only: Posts must provide quarterly information on capitalized property and heritage assets to CGFS/F/AO as per data call cables. Records of submissions/non-submissions are maintained.
• Posts using ILMS-AM do not need to submit this report as CGFS/F/AO can access records directly from ILMS (4 FAM 734.3).

16.3.2 USAID

• USAID only: USAID missions report capitalized property quarterly to M/CFO/CAR via the USAID Controller. Reporting covers all USAID-owned capitalized property (nonexpendable, IT, vehicles, real property), per ADS and 14 FAM 411.4. M/CFO/CAR and M/MS/OMD provide quarterly reporting instructions. Mission Executive Officers certify vehicle data, Mission Controllers certify nonexpendable property, vehicle, and real property data.
• M/CFO/CAR oversees capitalized nonexpendable/real property reporting. M/MS/OMD provides instructions and assistance for capitalized vehicle reporting.
• Depreciated property cost is recorded in Agency financial ledgers (M/CO/CAR) after cut-off.

16.4 Fiscal Year Negotiated Sales Report

• State Only: Posts must provide information for the annual Fiscal Year Negotiated Sales Report to Director, Property Management Division (A/LM/PMP/PM) by October 30 annually. The Director consolidates data for the agency’s Negotiated Sales report to GSA by November 29 (41 CFR 102-38.330).

This comprehensive guide provides a detailed framework for personal property management within the U.S. Department of State. Adherence to these policies and procedures is paramount for maintaining accountability, ensuring compliance, and responsibly managing government assets in support of the Department’s global mission.