Property Management Workshop Physical Inventory ~ Outline

1. Property Management Workshop Physical Inventory ~ Outline Outline [to understand and discuss]: • Definition of Physical Inventory • Purpose and Impact of inventory management • Types of inventory • Appropriate inventory methods/frequency for various accountable property assets. • Questions and Contacts MA-653 May 2013

2. Property Management Workshop Definition of Physical Inventory • Physical Inventory • The verification of the existence, location, and quantity of property items; the physical count of items of stock in storage or in use for the purpose of verifying the actual balance on the master records; the method by which we test the accuracy of our records. MA-653 May 2013

3. Property Management Workshop Purpose and Impact of Inventory Management • The purpose of inventory management to establish and continually improve the inventory accuracy and accountability of property in the custody of Federal agencies and contractors. • The success of the physical inventory program has direct impact on: • property availability • accurate and timely procurement actions • overall supply effectiveness. MA-653 May 2013

4. Property Management Workshop Purpose and Impact of Inventory Management (cont) • Physical inventories serve to continuously monitor: • property condition • operational availability • validate accountable property record accuracy. • The scheduling, type, method, and scope of the physical inventory process is to align with management expectations and risks. • “Need to know what you have and where you have it.” MA-653 May 2013

5. Property Management Workshop Purpose and Impact of Inventory Management (cont) • All Government property is to be accounted for from inception through formal disposition processing and release from the agency’s formal property records, but certain categories of property require a more deliberate and methodical approach to inventory control and accountability…. • Sensitive Property and Precious Metals • High-Risk Personal Property • Firearms • Capital Equipment • Special Test Equipment MA-653 May 2013

6. Property Management Workshop Physical Inventory – Types • Cyclic inventory • scheduled physical inventory which is to be conducted on a group of items within a specific period of time according to an established plan. • Special inventory • scheduled physical inventory of selected items of property for a specific purpose deemed appropriate by the agency. • Spot inventory • unscheduled physical inventory conducted to determine the accuracy of agency records. • Selected item inventory • unscheduled physical inventory of in-use property or otherwise identified item, when accountable records reflect a zero balance. MA-653 May 2013

7. Property Management Workshop Types of Physical Inventory Methods • There are various types of physical inventory methods such as : • wall-to-wall • sampling • Sampling may be used provided statistically valid results are achieved • “by exception” • Use of actions or transactions as demonstration of an inventory event: • This inventory method is appropriate/best, such as : • Utilization/maintenance actions, move tickets/orders, transfer records—all can qualify as a “touch” • Events such as building closures, remodeling events, organizational relocations • With Software management system that routinely "ping" computers (or other equipment) on a network MA-653 May 2013

8. Property Management Workshop • Appropriate inventory methods/frequency for various accountable property assets. • Are wall-to-wall inventories required for sensitive property, precious metals and HRPP? • Yes….however there could be reasons that the property cannot or need not be physically touched, such as: • Is the property contaminated? • Is the property in a classified area? • Are there safety conditions to consider? • Is the property unavailable due to a project/research? • Is adequately covered by internal controls (such as software pings) MA-653 May 2013

9. Property Management Workshop • Appropriate inventory methods/frequency for various accountable property assets. MA-653 May 2013

10. Property Management Workshop • DOE Accountable Personal Property • Physical Inventory • Office of Property Management/Personal Property Policy Division MA-653 • Mert Williams (202) 287-1593 • meredith.williams@hq.doe.gov • EM Consolidated Business Center/Office of Technical Support and Asset Management • Ken Lewis (513) 246-0592 • ken.lewis@emcbc.doe.gov • Defense Contract Management Agency (DCMA) • Deputy Director Government Property • Tom Ruckdaschel 804-734-0505 • Tom.Ruckdaschel@dcma.mil MA-653 May 2013

11. Property Management WorkshopInventory of DOE Accountable Personal Property Inventory Questions? MA-653 May 2013