CAP Property Management – ORMS Civil Air Patrol Annual Conference

1. CAP Property Management – ORMS Civil Air Patrol Annual Conference 20 August 2011

2. CAP Property Management IT’S ALL ABOUT ACCOUNTABILITY • TRACKED FROM ACQUISITION THROUGH DISPOSAL • LOST, STOLEN OR DAMGAGED – REPORT IT • REPORT OF SURVEY – ASSESS YES NO

3. Property and equipment $24,000

4. Property and equipment $472,000

5. Property and equipment $50,000

6. Property and equipment $1.2 million

7. Property and equipment • Aircraft $115 Million • Vehicles $ 20 Million • Computers $ 3 Million • Other Property $ 25 Million

8. ORMS OPERATIONAL RESOURCE MANAGEMENT SYSTEM • Two separate property databases • CAP Asset Tracking System (CATS) • Communication Equipment Management System (CEMS) • Consistently poor CI results for Supply • 2007 – 41% marginal/unsat • 2008 – 36% marginal/unsat

9. ORMS OPERATIONAL RESOURCE MANAGEMENT SYSTEM • CI Supply Findings - 55% due to: • Poor accountability for non-expendable property • Inadequate files • Individual issues – poor/no documentation • Unorganized/dangerous storage areas • Annual inventory not accomplished • OMB A-133 Single-Audit Finding • Maintaining two databases (CATS & CEMS) is inefficient

10. ORMS OPERATIONAL RESOURCE MANAGEMENT SYSTEM • ORMS Objectives • Improve accountability at all levels • Increase accessibility by members • Automate key processes • Improve recordkeeping • Eliminate paperwork • Automate depreciation calculation • Incorporates ROS and assessments

11. Six Phases of a project 1. Enthusiasm 2. Disillusionment 3. Panic and hysteria 4. Search for the guilty 5. Punishment of the innocent 6. Praise and honor for the non-participants

12. Six Phases of a project 1. Enthusiasm 2. Disillusionment 3. Panic and hysteria 4. Search for the guilty 5. Punishment of the innocent 6. Praise and honor for the non participants

13. ORMS OPERATIONAL RESOURCE MANAGEMENT SYSTEM Incorporates five primary functions of property control • Transfer • Assignment • Issuance • Inventory • Retirement

14. CAP Regulation 174-1 Property Management and Accountability

15. Background • Implements CAP’s property management and accountability policy • Incorporates guidance from OMB Circulars, DoDGARS, DoD Manual 4160.21M and the Cooperative Agreement between CAP and USAF • Includes input from NHQ CAP, CAP-USAF, volunteer advisors and field units

16. General • All property no matter what the source becomes CAP property once acquired • Commanders and property management officers are responsible for management, control, maintenance and disposal • Property management officer – “any member holding a position of logistics, supply or communications officer.” • Regions and wings may supplement the reg

17. General • Property Freezes • CAP–USAF or CAP may impose freezes • Less than adequate control over assigned resources • Improper housekeeping • Unsatisfactory inventory results • Unauthorized sale or disposal • Pattern of misuse or noncompliance

18. General • Three levels of property freeze -- each progressively more restrictive • Not selective – applies to entire unit • Restricts units from receiving DoD excess or property purchased with Federally-appropriated funds • CAP National Commander may further restrict units from acquiring property using corporate funds

19. General • Property Freeze Level I • Stops acquisition of equipment and supplies from DRMO, GSA and state/local surplus • Property cannot be transferred to units under a Level I freeze • After six months in Level I units are elevated to Level II Freeze

20. General • Property Freeze Level II • All Level I freeze restrictions apply • Cannot acquire vehicles, aircraft, communications equipment, DDR property or any other CAP-purchased property • Region CC will transfer new vehicles and aircraft to another wing or retain at the region until Level II freeze is lifted • Aircraft upgrades will be permitted

21. General • Property Freeze Level III • Level III freeze imposed when a unit under Level II freeze fails to correct the condition in 1 year • All Level II restrictions apply • Total freeze on equipment, supplies, vehicles and aircraft… plus no reimbursements • Grounded from AFAM and corporate missions

22. General • Property Freeze • CAP-USAF/Commander and CAP National Commander may waive any or all freeze restrictions for critical mission requirements • Waiver coordinated through CAP region commander and CAP-USAF liaison region commander • All unit freezes are reported by NHQ/LG

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

24. Inventory Management • Property Classification • Classifications … expendable and non-expendable • Determines how it will be tracked in ORMS • Determines how it will be disposed of

25. Inventory Management • Non-expendable Property • Is complete in itself • Is durable in nature • Has a continuing use • Is not consumed through use • Is not a component of another item • Has an expected service life of at least 1 year • Has an initial unit acquisition cost of more than $500

26. Inventory Management • Non-expendable Property • All non-expendable property is entered in ORMS regardless of source • Non-expendable items are allocated to a specific unit • It may be issued to individuals • Acquisition cost must be entered into ORMS • Must have a property tag and number

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

28. Inventory Management • Acquisition • Purchased • Donated • Found on Base • State or local funded/owned

29. Inventory Management • Purchased Property • Appropriated funds • Corporate (unit) funds • State or local govt funds • Consult CAPR 70-1 CAP Acquisition Regulation for policy on funds expenditure

30. Inventory Management • Donated Property • A variety of sources • CAPR 173-1 Financial Procedures and Accounting and CAPR 173-4 Fund Raising and Donations • Consult with appropriate level legal officer • If valued at $250 or more enter into ORMS • Annotate as “Donated” in the source field

31. Inventory Management • Found on Base (FoB) • Rarely used • Non-expendable property for which the funding source is unknown • Managed like DoD excess and disposed of through DRMO • Annotate as “FoB” in the source field

32. Inventory Management • State-funded/owned property • Track all state/local govt funded or owned property in ORMS • Disposal will be in accordance with instructions provided at time the propertywas accepted • Annotate as State funded inORMS

33. Inventory Management • Property Tracking in ORMS • ORMS is used to track all non-expendable property regardless of source • Available to view by all in eServices • Property management officers’ permissions based on duty position and unit of assignment

34. Inventory Management • Property Tags and PCN • To be placed on all non-expendable property • Each item in ORMS must have a property tag number • May use on expendable property but do not assign a property tag number • Property control number (PCN) is unique to each item and will not change over the life of the property

35. Inventory Management • Five functions of property control • Transfer • Assignment • Issuance • Inventory • Retirement

36. Inventory Management • Transfer • Property transfer occurs between units • Transfer non-expendable property using transfer function of ORMS • Transferred property must be accepted within 10 working days of transfer initiation • Use CAP Form 111 for transfer/receipt of expendable property

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

38. Inventory Management • Transfer • In circumstances where property is used temporarily at a location or in an activity other than that of assignment, property need not be transferred in ORMS (i.e., encampments, mission training exercises, weekend activities, etc.).

39. Inventory Management • Assign • Property is assigned to another piece of property like an aircraft, vehicle or kit • Assigned property must be unassigned to be transferred • Property with items assigned cannot be transferred or retired until the other items have been unassigned

40. Inventory Management • Issue • Property is issued to individuals • Issue non-expendable property using transfer function of ORMS • Member acknowledge receipt through ORMS within 7 days • Use CAP Form 111a for issue/receipt of expendable property • Remain on 111a for 3 years or until turned in

41. Inventory Management • Issue • When accepting property, members agree to reimburse CAP for the depreciated value of the property if lost or damaged. • When ORMS is not available, use the CAP Form 37 to initially issue property • When issuing property to individuals under the age of 18, ORMS will generate a property receipt to be signed by the individual’s parent or guardian

42. Inventory Management • Issue • Individuals under the age of 18 years are not permitted to hold logistics, supply, transportation or communications duty positions that include ORMS permissions to transfer, issue or assign property

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

44. Inventory Management • Annual Physical Inventory • Ensure property is safeguarded and managed • Annual inventory is mandated by DoDGARS • Conduct annual inventory between 1 January and 31 March • Failure to complete the inventory during this period may result in a property freeze • Complete all pending issues, transfers and retirements before beginning the inventory

45. Inventory Management • Annual Physical Inventory • Use the ORMS inventory worksheet to perform the inventory • Verify presence,condition and accuracy of data for each item • Ensure that each non-expendable item is properly tagged • Remote functional checks can be used to verify condition and presence of off-site equipment

46. Inventory Management • Annual Physical Inventory • All non-expendable property issued to individuals must be made available for a property manager to validate • Inventory is not complete until all issued items have been validated and accepted in ORMS • Commanders determine how best to inventory property that cannot be transported • Commanders must acknowledge completion

47. Inventory Management • Changeover inventory • Upon assignment of a new commander or property management officer • ORMS provides changeover inventory guidance • Inventory of individually issued property is not required • If an annual inventory was completed recently and both individuals agree, a changeover inventory is not required

48. Inventory Management • Property on loan to other agencies • Document on the CAPF 37 • Scan and upload a signed copy of the Form 37 into ORMS • Physically check during annual inventory and re-validate every 60 days • Include name of organization, address, phone number, name of point of contact and expected property return date

49. Inventory Management • Property out for repair • Annotate in ORMS master record in “Maintenance” • Include name of repair facility, address, point of contact, date sent out for repair, tracking number and estimated date of return • Update location and condition when returned

50. Inventory Management • Unit deactivation • Commanders accountable for reclaiming all property from deactivating units • Prior to deactivation but no later than 30 days post deactivation • ORMS automatically assigns property to the 000 unit for 30 days to allow the wing to transfer it to a desired location • After 30 days it moves to 001