CAP PROPERTY MANAGEMENT –ORMS
CIVIL AIR PATROL ANNUAL CONFERENCE
22 August 2012
CAP PROPERTY MANAGEMENT
IT’S ALL ABOUT ACCOUNTABILITY
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TRACKED FROM ACQUISITION THROUGH DISPOSAL
LOST, STOLEN OR DAMAGED – REPORT IT
REPORT OF SURVEY – ASSESS
YES
NO
PROPERTY AND EQUIPMENT
$24,000
PROPERTY AND EQUIPMENT
$472,000
PROPERTY AND EQUIPMENT
$50,000
PROPERTY AND EQUIPMENT
$1.2 million
PROPERTY AND EQUIPMENT
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Aircraft
Vehicles
Computers
Other Property
$115 Million
$ 20 Million
$ 3 Million
$ 25 Million
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
ORMS
OPERATIONAL RESOURCE MANAGEMENT SYSTEM
• CI Supply Findings - 55% due to:
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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
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
ORMS
OPERATIONAL RESOURCE MANAGEMENT SYSTEM
Incorporates five primary functions of
property control
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Transfer
Assignment
Issuance
Inventory
Retirement
CAP REGULATION 174-1
PROPERTY MANAGEMENT AND ACCOUNTABILITY
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
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
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
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
GENERAL
 Property Freeze
Level I
 Stops acquisition of equipment and supplies
from DLA-DS (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
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
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
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
INVENTORY MANAGEMENT
 Applicable CAP FORMS
 CAPF 37 – Temporary Issue Receipt
 CAPF 111A – Expendable Property Issue
 DD Form 1348-1A – Issue Receipt Documentt
INVENTORY MANAGEMENT
 Property Classification
 Classifications … expendable and nonexpendable
 Determines how it will be tracked in ORMS
 Determines how it will be disposed of
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
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
INVENTORY MANAGEMENT
Expendable Property
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Not non-expendable
Normally intended for limited use
May be consumed during use
Not entered into ORMS
Does not require a property tag
INVENTORY MANAGEMENT
Acquisition
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Purchased
Donated
Found on Base
State or local funded/owned
INVENTORY MANAGEMENT
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
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
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 DLA-DS (DRMO)
 Annotate as “FoB” in the source field
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 property
was accepted
 Annotate as State funded in
ORMS
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
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
INVENTORY MANAGEMENT
Let’s look at the 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
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.
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.).
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
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
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
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
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
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
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
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
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)
INVENTORY MANAGEMENT
Property loss or damage
 Report to commander or property management
officer
 Individual receiving the report changes the
item’s condition to “missing/damaged” in
ORMS
 Automatically initiates an ROS
 Commander appoints an impartial investigating
officer
INVENTORY MANAGEMENT
Property loss or damage
 Investigating officer records results of
investigation
 Upload supporting documents in ORMS
 Investigating officer makes recommendations
that would prevent recurrence of conditions
that caused the loss or damage
 Wing commanders recommend assessments
 Region commanders, make the assessment
INVENTORY MANAGEMENT
Assessment policy
 Established at Winter 09 NEC
 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
INVENTORY MANAGEMENT
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
INVENTORY MANAGEMENT
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
INVENTORY MANAGEMENT
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
INVENTORY MANAGEMENT
Assessment procedures
 Wing CC recommends to Region CC
 Region CC reviews CAPF 79 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
INVENTORY MANAGEMENT
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
INVENTORY MANAGEMENT
Assessment procedures
 Members who are assessed will be flagged in
the National database and will not be permitted
to renew their membership if their payment is
late or if not made in full within the installment
plan period
INVENTORY MANAGEMENT
Disposal
 Non-expendable property can only be removed
from inventory through retirement via ORMS
 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
INVENTORY MANAGEMENT
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
INVENTORY MANAGEMENT
Approved methods of disposal
 Property found on base will be disposed like
Federal excess property and go to DLA-DS
 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 DLA-DS.
 Must be disposed IAW local environmental
rules
INVENTORY MANAGEMENT
Sale of Federally-sourced property
 CAP-USAF may direct that equipment be sold
 Normally sold through a sealed bid process
 Retain all documentation regarding the bid
process and successful bidder’s contact
information
INVENTORY MANAGEMENT
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
INVENTORY MANAGEMENT
Demilitarization
 Comm gear must be sanitized prior to disposal
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.
GOVERNMENT-SOURCED PROPERTY
Federal-excess Property
 Sourced through GSA OR DLA-DS
 Forward requests to acquire this property to
NHQ/LGS for coordination through CAP-USAF
 Reviewing property at DLA-DS for availability
is “screening”
 Wings may appoint up to 4 screeners
 Regions may appoint one per region
GOVERNMENT-SOURCED PROPERTY
Federal-excess Property
 Submit written requests for screeners to CAPUSAF LR/LG
 Re-accomplish 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”
 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 DLA-DS
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 signed turn-in documents
 When signed turn-in document is loaded in
ORMS NHQ is notified to retire property
CORPORATE AIRCRAFT
Acquisition
 Purchased using Congressional appropriated
funds or funds generated from sale of aircraft
 Purchased using corporate funds from CAP
regions or subordinate units
 Donations from state, another agency or
individual (See CAPR 173-4)
 Obtained from DoD excess by NHQ staff only
CORPORATE AIRCRAFT
Aircraft Distribution
 Based on mission requirements
 A coordinated effort between NHQ, regions
and wings involving initial distribution and
transfers to maintain the correct balance
 Initial allocation and subsequent transfers are
accomplished in ORMS
CORPORATE AIRCRAFT
Disposal
 Coordinated through CAP-USAF
 Methods of disposal are trade-in, sealed bid,
broker or turn-in
 CAPR 70-1 provides guidance on aircraft sales
 Once selected for sale aircraft are transferred
to NHQ in ORMS
 Proceeds from sales retained at NHQ and
used to purchase new aircraft
CORPORATE VEHICLES
Acquisition
 Purchased using Congressional appropriated
funds or funds generated from insurance or
sale of vehicles
 Purchased using corporate funds from CAP
regions or subordinate units
 Donations from state, another agency or
individual (See CAPR 173-4)
 Obtained from DoD excess
CORPORATE VEHICLES
Acquisition
 Wing CC submits CAPF 175, Vehicle
Justification, to region commander who in turn
forwards to NHQ/LGT
 Fill highest priority first… wrecked vehicles, too
costly to repair and from 100 oldest vehicle list
 Vehicle utilization report plays a role in process
 List coordinated through region CC and
National Commander
CORPORATE VEHICLES
Disposal
 Coordinated through CAP-USAF
 Methods of disposal are trade-in, sealed bid or
turn-in
 CAPR 70-1 provides guidance on disposal
 Funds from sale of vehicles acquired using
Federally appropriated $$ are retained at NHQ
 Sale from corporate funded vehicles or
donated vehicles remains with the wing
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 not yet available in ORMS
 In the interim, maintain paper copies of all
documentation until they can be scanned and
stored in ORMS
 Real property survey is 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