Property Accounting
Basics
Elizabeth Erdman
Medical Equipment and Logistics Solutions Directorate
Naval Medical Logistics Command
Context
• Property Accounting is a high-visibility area for Audit
Readiness
Purpose
• Discuss property accounting requirements and best
business practices
Objectives
• Provide an overview of property accounting from
cradle-to-grave
• Discuss required documentation for audit readiness
FOR OFFICIAL USE ONLY
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References
SECNAVINST 7320.10a
DODI 5000.64
DOD FMR Volume 4 and Volume 12 Chapter 7
BUMED Guidance
• NAVMED P-5132
• FY12 Logistics Guidance
• BUMED SOP
The Defense Medical Logistics
Standard Support (DMLSS) System
is the accountable system of record
for Navy Medicine.
Custodian
Q: Who is responsible for assigning Custodians in
DMLSS?
A: The Equipment Manager (EM)
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EM’s should validate their Custodian List regularly.
Custodians must be appointed in writing and be
properly assigned in DMLSS to ensure proper
accountability of assets in the department.
FOR OFFICIAL USE ONLY
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Scenario: Equipment
Lifecycle
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A package arrives at your warehouse
marked for “MATMAN.” The
packing slip says that it is a Pelton &
Crane Delta Q Sterilizer from Henry
Schein. Do you sign for it?
• Procurement Validation
Wait! How do you know this
equipment belongs to your
Command? You will need to find the
Purchase Order, DD1155, DD250, or
other procurement information
before signing for the equipment.
FOR OFFICIAL USE ONLY
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Scenario: Equipment
Lifecycle
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You have located the DD form
1155 which shows that the
equipment was purchased by
NAVMEDLOGCOM . You
sign for the item and bring it to
your office. What is the next
step?
Contact NAVMEDLOGCOM
to confirm receipt so the invoice
can be paid and interest
payments will not accrue.
FOR OFFICIAL USE ONLY
• Procurement Validation
• Receipt Documentation
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Scenario: Equipment
Lifecycle
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You must gain the equipment in DMLSS and
barcode the equipment within 7 calendar
days.
Because this item was centrally procured,
upon completion of the gain send a copy of
the equipment record to
NAVMEDLOGCOM for verification.
The item is over $5,000. What must be
affixed to the equipment?
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• Procurement Validation
• Receipt Documentation
Virtual UID (UII). DMLSS will automatically
generate this for you at the EOD after the
item is gained. Affix the barcode to the
equipment and check the “UID Label
Affixed” on the Approval/Acquisition tab.
FOR OFFICIAL USE ONLY
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Gain Transaction Reasons
Accountability Changed to Required: property and does
not meet the required accountability threshold but the
command decided to account for the property, i.e.
pilferable items.
Borrowed equipment, Government: loaner property
borrowed from another government entity. Return date
is required to complete this transaction.
Borrowed Equipment, Non-Government: loaner
property borrowed from a non-government entity.
Return date is required to complete this transaction.
FOR OFFICIAL USE ONLY
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Gain Transaction Reasons, Cont.
Capital Leased Equipment: Leased property that meets
the capitalization threshold and satisfies at least one of
the criteria listed in SECNAVINST 7320.10A.
Normally, ownership is transferred to the lessee by the
end of the lease term.
Component Gain: Component of a system or part of an
assembly.
Cost Per Test: cost per test item and risk of ownership is
not transferred to the government at the end of the
contract. Contract number is required to complete this
transaction.
FOR OFFICIAL USE ONLY
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Gain Transaction Reasons, Cont.
Donated Property: Accountable property that is
received from a non-federal entity without
exchange or payment.
Equipment Inventory Adjustment Gain:
Accountable property, other than capital or
operating lease
Found on Installation: Accountable property found
during physical inventory and with no visible trace
of ownership.
FOR OFFICIAL USE ONLY
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Gain Transaction Reasons, Cont.
Gain From Another MTF: Property transferredin from another MTF. You must use this
transaction reason to complete a lateral transfer
in DMLSS
Gain from DRMO: Property transferred-in from
DRMO.
Gain from Non-DoD Organization: Property
transferred-in coming from Non-DoD
Organization.
FOR OFFICIAL USE ONLY
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Gain Transaction Reasons, Cont.
Operating Leased Equipment: Leased property with
lease agreement where the NPV of the lease payments
is less than $100,000 or the lease term is less than 2
years or none of the capital lease criteria are met.
Operating leases are leases that do not transfer the risk
of ownership to the Department of the Navy DON.
Research/Grant Equipment: Non-government funded
property.
User Test: Equipment for test and evaluation use. Return
date is required to complete this transaction.
FOR OFFICIAL USE ONLY
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Anatomy of an Equipment
Record
Procurement
Request
• Customer
• Maintenance
Activity
Contract
• Contract/PO
Number
• Acquisition Date
• Transaction
Reason
• Acquisition Cost
• Asset Control
Number
• Common Model
Equipment
Research
• Common Model
• Item ID/Device
Code
• Nameplate Model
• Commodity Class
• Serial Number
• Installation Date
• Manufacturer
• Warranty
Information
• SystemComponents
FOR OFFICIAL USE ONLY
• Acquisition Fund
Code
• Location
• Acquisition
Specialty
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Commodity Class
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“EQUIPMENT” use for all personal property
“CAPITAL” use for equipment with an acquisition cost $100K and
over
“EXPENSE” use for equipment with an acquisition cost <$100K
“CENT PROC” use for equipment procured by
NAVMEDLOGOM or another higher echelon
“MEDICAL” equipment with a medical application (includes
laboratory equipment)
“NON-MEDICAL” equipment without a medical application
Examples:
MRI will be “EQUIPMENT CAPITAL CENT PROC MEDICAL”
Laptop will be “EQUIPMENT EXPENSE NON-MEDICAL” 15
FOR OFFICIAL USE ONLY
System/Component Relationship
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Required for equipment that functions as a System
For capital items, the total acquisition cost should be
recorded on the System Record.
Examples:
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DDI
PACS
Endoscopy Towers
Rad Rooms
Mobile Dental Units
FOR OFFICIAL USE ONLY
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Acquisition Cost
Purchase Price: Unit Price
Discounts: Discount cost when
acquiring an item or system
Trade-ins: Trade-in cost when
acquiring an item or system
Transportation Costs: Transportation
Cost of an item or system
Other Costs: Other costs or
miscellaneous costs
Upgrades: The cost to upgrade the
equipment item or system when
acquired
Acquisition Cost: Total cost of
acquisition
***Changes to the acquisition cost
are to be completed after the gain
process. Changes in the acquisition
cost “money bag” will be reflected in
the transaction history.
FOR OFFICIAL USE ONLY
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Scenario: Equipment
Lifecycle
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This equipment is
Maintenance Significant.
BIOMED will have to
perform an Acceptance
Inspection.
FOR OFFICIAL USE ONLY
• Procurement Validation
• Receipt Documentation
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Scenario: Equipment
Lifecycle
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The item has now been
received, gained in DMLSS,
and Acceptance Tested by
BIOMED. It is ready to go
to the Department.
FOR OFFICIAL USE ONLY
• Procurement Validation
• Receipt Documentation
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Scenario: Equipment
Lifecycle
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Do you want to print the
Custodian Action List?
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Yes! Take both copies to
the Custodian for signature.
Leave one with them, and
place the other in your
Equipment Folder
FOR OFFICIAL USE ONLY
• Procurement Validation
• Receipt Documentation
• Custodian Action List
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Scenario: Equipment
Lifecycle
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The item has been in your Command’s
inventory for several months. The
Department has informed you that it will
be transferred to an outlying clinic.
Print the e-mail or other confirmation of
transfer from the department if available.
Perform the transfer in DMLSS.
Do you want to print the Custodian
Action List?
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Procurement Validation
Receipt Documentation
Custodian Action List
Supporting E-mails
Custodian Action List
Yes! The losing and receiving Custodians will
their respective copies. Keep each Custodian
Action list in your Equipment Folder.
FOR OFFICIAL USE ONLY
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Scenario: Equipment
Lifecycle
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After several years the Clinic informs you
that they no longer have a need for the
equipment and it can be turned into DRMO.
Can the item be turned in to DRMO?
Not yet - Items over $500 with a condition
code of A, B, or C (prefer condition code A)
and at least 6 months of useful life left must
be reported to Excess. Transfer the item to
your “EMHOLD” Account in DMLSS. Do
you want to print the Custodian Action List?
Yes! Take both copies to the Custodian for
signature. Leave one with them, and place
the other in your Equipment Folder
FOR OFFICIAL USE ONLY
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Procurement Validation
Receipt Documentation
Custodian Action List
Supporting E-mails
Custodian Action List
Custodian Action List
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Scenario: Equipment
Lifecycle
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You have reported the item to
Excess for 45 days and no one
has requested it. The item is
ready to be turned into DRMO.
You fill out the ETID required
by your local DRMO. Can you
remove the item from DMLSS?
No! You must have the signed
or stamped ETID in hand from
DRMO before performing a
loss in DMLSS.
FOR OFFICIAL USE ONLY
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Procurement Validation
Receipt Documentation
Custodian Action List
Supporting E-mails
Custodian Action List
Custodian Action List
Disposal Paperwork
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Loss Transaction Reasons
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Component Loss – Loss of a system’s component.
For example, if a repair was done and a single
component was replaced.
Equipment Inventory Adjustment Loss – For
equipment removed as a result of inventory. This
includes equipment for which a DD 200 was initiated
but no Financial Liability Investigation was conducted.
Financial Liability Investigation – Use when a
Financial Liability Investigation was conducted upon
discovery of missing, lost, stolen, or damaged
equipment.
FOR OFFICIAL USE ONLY
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Loss Transaction Reasons, Cont.
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Item Changed to Not Accountable – Use when
accountability requirements change. For example, you
can use this transaction reason when removing
computer monitors from DMLSS.
Loss to Deployment – Use for equipment that was
deployed and could not be recovered.
Loss to Natural Disaster – For example, if there was
flooding in a facility and equipment was damaged
beyond repair.
FOR OFFICIAL USE ONLY
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Loss Transaction Reasons, Cont.
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Ship to Another MTF – Use for transfers to the Navy, Army,
and Air Force facilities using DMLSS. You must use this
transaction reason in order to complete the lateral transfer
process in DMLSS.
Trade-In Equipment – Transfer to vendor outside of the
Federal Government.
Turn-in to DRMO – Use this transaction reason for items
turned in to DRMO. DMLSS will automatically generate a DD
1348-1A when using this transaction reason. Do not use this DD
1348-1A because the signed or stamped ETID or DTID should
have already been returned to you before performing a loss in
DMLSS.
FOR OFFICIAL USE ONLY
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Scenario: Equipment
Lifecycle
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You now have the complete,
cradle-to-grave lifecycle of your
equipment from procurement to
disposal. All actions performed
in DMLSS are justified by your
DD Forms and Custodian
Action Lists.
You will pass an audit with
flying colors!
FOR OFFICIAL USE ONLY
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Procurement Validation
Receipt Documentation
Custodian Action List
Supporting E-mails
Custodian Action List
Custodian Action List
Disposal Paperwork
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Scenario: Equipment
Lifecycle
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It has been 18 months since the
equipment was turned into DRMO.
You have limited space in your office
and are looking to purge your
records. Can you dispose of this
Equipment Folder?
No! All documentation must be
maintained for at least 36 months
after the item has been disposed.
If physical space is a concern,
consider scanning the file folder onto
a shared drive that is backed-up
regularly.
FOR OFFICIAL USE ONLY
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Procurement Validation
Receipt Documentation
Custodian Action List
Supporting E-mails
Custodian Action List
Custodian Action List
Disposal Paperwork
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Metrics
QA Reports
Gain-Loss Report
Removed from Inventory With Life
UID Discrepancies
Invalid Nomenclature Including General Purpose
Commodity Class Review
Spotlight Metrics
Capital Asset Reports
Monthly Capital Gain and Loss Report
Monthly Capital Depreciation Report
FOR OFFICIAL USE ONLY
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Further Information
Q: Where can I find more information about:
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Device Code Determination?
Automated Data Processing Equipment?
System/Component Relationship?
UID Errors?
Government Furnished Equipment?
Lateral Transfer of Equipment?
DDI/PACS Property Accounting?
A: FY12 Logistics Guidance:
https://gov_only.nmlc.med.navy.mil/guidance.asp
FOR OFFICIAL USE ONLY
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ETM POCs
Program Manager
• Edlouie Ortega – ETM Supervisor
Analytics/Equipment Management
• HM1 Sherwin Villagracia – Data Quality Management
• Elizabeth Erdman – Inventory Management/LAV
Equipment Management
• HA Denise Matamoro – Property Accounting Support
NMLC-ETM@med.navy.mil
BUMED-PMO@med.navy.mil
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Related Sessions
LO-M-1-D
LO-M-1-E
LO-M-1-F
LO-T-3-B
LO-W-3-C
LO-W-3-D
LO-W-3-E
Government Furnished Equipment
Inventory Management Process Using DMLSS
Business Objects Training for Equipment Managers
Equipment Management Self Assessment - Conduct Your
Own LAV
Automatic Identification Technologies (AIT) /IUID and
RTLS
Equipment Management Process
Annual Inventory Process and Requirements
FOR OFFICIAL USE ONLY
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