CAP PROPERTY MANAGEMENT –ORMS
2015 CAP ANNUAL CONFERENCE
28 August 2015
OUR GOALS TODAY
 Introduce new logisticians to property
management tools and procedures
 Provide an update on the recent changes in
ORMS
PROPERTY AND EQUIPMENT
$26,000
PROPERTY AND EQUIPMENT
$500,000
PROPERTY AND EQUIPMENT
$1.2 million
PROPERTY AND EQUIPMENT
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Aircraft
Vehicles
Computers
Other Property
$117 Million
$ 25 Million
$ 5 Million
$ 25 Million
CAP REGULATION 174-1
PROPERTY MANAGEMENT AND ACCOUNTABILITY
CAPR 174-1
Implements CAP’s property management and
accountability policy
Incorporates guidance from OMB Circulars, DoD
Manual 4160.21M and the Cooperative
Agreement between CAP and USAF
Includes input from NHQ CAP, CAP-USAF,
volunteer advisors and field units
Currently under revision
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
What is a property management officer ?? –
“any member holding a position of logistics,
supply or communications officer.”
Regions or wings may supplement CAPR 174-1
GENERAL
Property Freezes
Three levels of property freeze -- each
progressively more restrictive
Reflects less than adequate control over
assigned resources
 Improper housekeeping
 Unsatisfactory inventory results
 Unauthorized sale or disposal
 Pattern of misuse or noncompliance
CAP–USAF or CAP may impose freezes
ORMS
–
Property Management Data Base
• Contains all types of CAP property
• Rolled out in January 2010
• Improved accountability at all levels
• Increased accessibility by members
• Improved recordkeeping
• Reduced paperwork
• Incorporates ROS and assessments
CLASSES OF PROPERTY
 Property Classification … expendable and
non-expendable
 Determines how it will be tracked in ORMS
 Directs the method of disposal
NON-EXPENDABLE PROPERTY
What is 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
Must meet all criteria above
NON-EXPENDABLE PROPERTY
 Non-expendable property tracking in ORMS
 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
NON-EXPENDABLE PROPERTY
 There is no requirement to track property with
an acquisition cost of less than $500
NON-EXPENDABLE PROPERTY
Two categories of non-expendable property
 Equipment…Property with an acquisition
cost of $5,000 or greater and a useful life
of more than 1 year
 Supplies
EXPENDABLE PROPERTY
What is expendable property?
1. Not non-expendable
2. Normally intended for limited use
3. May be consumed during use
4. Not entered into ORMS
5. Does not require a property tag
EXPENDABLE PROPERTY
Tracked expendable property?
1. Property with initial cost of <$500
2. Property with an acquisition cost >$500
3. and depreciated to below $500
ROS decision at wing/CC level
A few excepted property items
SOURCE
Acquisition
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Purchased
Donated
Found on base (FOB)
State or local funded/owned
Historical property
SOURCE
Purchased Property
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Appropriated funds
Corporate (unit) funds
State or local govt funds
Consult CAPR 70-1 CAP Acquisition
Regulation for policy on funds expenditure
SOURCE
Donated Property
 A variety of sources
 CAPR 173-1 Financial Procedures and
Accounting and CAPR 173-4 Fund Raising
and Donations
 Be Careful
 Consult with appropriate level legal officer
 Annotate as “Donated” in the source field
SOURCE
Found on Base (FoB)
 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
Should rarely be used….but often overused
SOURCE
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 property
was accepted
 Annotate as “State Funded” in ORMS
PROPERTY TAGS
Property Tags and PCN
 Property tags are 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
INVENTORY MANAGEMENT
Five functions of property control
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Transfer
Assignment
Issuance
Inventory
Retirement
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
INVENTORY MANAGEMENT
Transfer
 Ensure that property (i.e., aircraft. vehicles,
communications or other equipment and
supplies) is assigned with applicable tables of
allowance in mind.
 Property should be transferred in ORMS to
the unit where the property is actually located
and is being used. This practice is optional
for aircraft
INVENTORY MANAGEMENT
Transfer
 When property is used temporarily at a
location or in an activity other than that of
assignment, it need not be transferred in
ORMS (i.e., encampments, mission training
exercises, weekend activities, etc.).
INVENTORY MANAGEMENT
Assign
 Property is assigned to another piece of
property like an aircraft, vehicle or kit
 Assigned property doesn’t have be
unassigned to be transferred
 Property with items assigned cannot be
retired until other items have been
unassigned
INVENTORY MANAGEMENT
Issue
 Property is issued to individuals
 Issue non-expendable property using transfer
function of ORMS
 Recipient acknowledges receipt through
ORMS within 7 days
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
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
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
ANNUAL INVENTORY
Annual Physical Inventory
Property inventory is mandated by the Circulars
Ensure property is safeguarded and managed
Conduct annual inventory between 1 October
and 31 December
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
ANNUAL INVENTORY
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
ANNUAL INVENTORY
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
CHANGEOVER INVENTORY
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 optional
PROPERTY ON LOAN
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
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
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
INVENTORY MANAGEMENT
Property Recovery
 Commanders shall make a reasonable effort to
recover property from members who terminate
 Document recovery efforts in writing and load
to ORMS
 Send demand letters by certified mail….consult
legal officer first
 Document unsuccessful recovery efforts in
Report of Survey (ROS)
LOST OR DAMAGED PROPERTY
Report of Survey
 One way to remove property from inventory
 Report loss or damage to commander or
property management officer
 Individual receiving the report changes the
condition to “missing/damaged” in ORMS
 Automatically initiates an ROS
 Commander appoints an impartial investigating
officer
LOST OR DAMAGED PROPERTY
Report of Survey
 The report of survey summarizes
circumstances concerning loss, damage or
destruction of CAP-owned property and
documents an adjustment to the property
inventory.
 It also documents a charge of financial liability
assessed against an individual or unit, or
provides relief from financial liability.
LOST OR DAMAGED PROPERTY
Report of Survey
Delay for other agency investigations
 Investigating officer records results of
investigation
 Upload supporting documents in ORMS
 Investigating officer makes recommendations
to prevent recurrence of conditions that caused
the loss or damage
 Wing commanders recommend assessments if
property is not tracked expendable
 Region commanders, make the assessment
LOST OR DAMAGED PROPERTY
Assessment policy
 Intended to reduce property loss/damage by
holding members accountable
 No assessments for acts of God or events over
which the member or unit had no control
 Individuals and/or units may be assessed
INCIDENT TYPE
Type I Incident
 Member or unit failed to use care that a
reasonable person would use under similar
circumstances
 Region commanders shall assess the lesser of
the cost to repair or replace or $500
INCIDENT TYPE
Type II Incident
 More serious than Type I
 Incident marked by an unreasonably high
degree of risk to others or to property
 Conscious or willful disregard for others or
property or Intentional violation of CAP or
Government regulations
 Region commanders shall assess the lesser of
the cost to repair or replace or $5000
INCIDENT TYPE
Type III Incident
 Most serious of all
 Incident results from willful or intentional
misconduct with a reckless disregard for the
consequences
 Region commanders shall assess the lesser of
the cost to repair or replace or $5000
 National Commander may increase the
assessment to full value to repair or replace
ASSESSMENT
Assessment Procedures
 Wing CC recommends to Region CC
 Region CC reviews the Online Mishap Report
and all other documentation in addition to the
Wing CC recommendation
 Two or more members can be found equally
culpable and can be assessed accordingly
 CAP/NC monitors for fairness and consistency
ASSESSMENT
Assessment Procedures
 Member has the right to appeal
 File appeal in writing to National Commander
through NHQ/LG
 National Commander’s decision is final
 Member has one year to make payment in full
 There is an installment option
 Proof of payment maintained in ORMS
 Property remains on the books until paid in full
ASSESSMENT
Assessment procedures
 If their payment is late or if not made in full
within the installment plan period members
who have been assessed will be flagged in the
National database and will not be permitted to
renew their membership
ASSESSMENT
Tracked Expendable Assessment
Procedures
 Wing CC makes the determination
 Region CC is the appeal authority
RETIREMENT
Disposal
 Retirement is the preferred method of
removing property from inventory
 Property must have zero value or be
unserviceable
 Upon retirement initiation, ORMS notifies
individuals responsible for approval
 Wing CC has approval authority for property
purchased with corporate funds
RETIREMENT
Disposal
 Contact lending agency for disposal
instructions for property provided by state or
local govt.
 Refer to CAPR 173-4 for requirement for
disposal of donated property
 Acquisition source determines the disposal
method
RETIREMENT
Approved Methods of Disposal
 Property found on base will be disposed like
Federal excess property and goes to DRMO
 Disposal of all Federally-funded equipment will
be in accordance with CAP-USAF instructions
 Non-expendable supplies, not obtained from
DoD excess, that have exceeded their useful
life, do not have to be returned to DRMO.
 Must be disposed of IAW local environmental
rules
RETIREMENT
Sale of Federally-Sourced Property
 CAP-USAF may direct that equipment be sold
 Normally sold through a sealed bid process or
through an NHQ approved broker
 Retain all documentation regarding the bid
process and successful bidder’s contact
information
RETIREMENT
Donation to non-profit organizations
 Property must be from non-govt sources or
purchased with corporate funds
 Contact NHQ/GC to re-donate property
 Upload all documentation regarding donation
to ORMS
DEMIL
Demilitarization
 Comm gear must be sanitized to prevent
compromise of keys, codes and freqs
 Deprogram programmable gear
 Remove all frequencies
 Mark equipment with “All CAP frequency
information and /or frequency determining
elements removed.” Include date and
signature.
FEDERAL-EXCESS PROPERTY
Screening Federal-Excess Property
 Sourced through GSA OR DRMO
 Reviewing property at DRMO for availability is
called “screening”
 Forward requests to acquire this property to
NHQ/LGS for coordination with CAP-USAF
 Wings may appoint up to 4 screeners
 Regions may appoint 1 per region
GOVERNMENT-SOURCED PROPERTY
Federal-Excess Property
 Submit written requests for screeners through
the CAP-USAF LR/LG
 Re-accomplish screener list annually or
whenever a screener changes
 Scan and load the letter into ORMS
 Screening can be done online or in person--online is the preferred method
 Get CAP-USAF LR/LG approval to pick up
GOVERNMENT-SOURCED PROPERTY
Federal-Excess Property
 Property request should contain the Table of
Allowances (TA) item number and justification
 If not listed in TA prepare justification for each
item requested
 NHQ/LGS must approve non-TA items from
Federal sources
 Annotate property tag number on DD Form
1348-1, scan and load into ORMS
GOVERNMENT-SOURCED PROPERTY
Federal-Excess Property
 Mark expendable property obtained from DoD
excess with letters “DRMO”
 Use the online Form 111 or locally generated
spreadsheet to document receipt and transfer
of expendable property
 There is no requirement to load expendable
property into ORMS or affix property tags
 All FOB, DoD- or Federal-excess property
must be returned to DRMO
GOVERNMENT-SOURCED PROPERTY
Disposal of Federal-Excess Property
 Initiate retirement in ORMS
 CAP-USAF will provide turn-in instructions and
document number
 Enter document number on the electronic turnin document
 Scan and upload turn-in documents
 When signed turn-in document is loaded in
ORMS NHQ is notified to retire property
REAL PROPERTY AND FACILITIES
Acquisition
 Purchase, donation lease, license or no-cost
arrangement require wing CC approval
 Load all associated documentation into ORMS
 CAP units using DoD facilities must have a
USACE license/written agreement authorizing
the use and describing the terms of use
 Region CCs forward request and renewals to
NHQ/GC for review
REAL PROPERTY AND FACILITIES
Acquisition
 No matter what the terms, lease, nominal fee
or no charge, it is best to have some form of
written agreement documenting permission
and terms of use
 Sign no agreements with “hold harmless” or
“indemnification” clauses
 CAP has comprehensive liability insurance to
cover members, but no fire insurance or
extended coverage for the facility
REAL PROPERTY AND FACILITIES
Acquisition
 Ensure property is free of hazardous substances
 Real Property Module is now available in ORMS
 Real property survey and contributed facilities and
utilities are now incorporated into ORMS
REAL PROPERTY AND FACILITIES
Disposal
 Real property acquired by CAP becomes
corporate property and may not be sold,
transferred or disposed of without written
permission of the CAP National Board
 Coordinate approval through NHQ/GC
 Proceeds from sale of real property normally
goes to NHQ/FM
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