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7.01.01
PURPOSE
This subchapter describes the management of personal property that is owned, leased, or loaned to or by the National Institute of Standards and Technology (NIST). See Subchapter 8.11 for information on equipment financing.

7.01.02
SCOPE
This subchapter applies to NIST (Gaithersburg and Boulder) and all remote sites.

7.01.03
POLICY
a. It is NIST policy to maintain accountability for all government property and to use appropriate means to procure, use, and manage it properly, efficiently, and effectively. Government property is entrusted to NIST managers just as other resources such as funds and personnel. Each employee who uses, supervises the use of, or has control over government property, is obligated to ensure the proper use, care, and protection of that property. The NIST Director is responsible for establishing and administering a personal property management program within the organization consistent with the requirements of the Department of Commerce (DoC) Personal Property Management Manual (PPMM) and other applicable Regulations.

This subchapter contains Department policy and procedures as issued in the PPMM. Relevant portions of the Federal Property Management Regulations (FPMR); relevant regulations of the Office of Management and Budget (OMB), General Services Administration (GSA), the General Accounting Office (GAO), existing laws, Executive Orders, and mandatory regulations of control agencies have all been implemented and have supplemented Department guidance.

7.01.04
DEFINITIONS
a. Personal Property - Property of any kind except Real Property (land, buildings) and records of the federal government. This includes expendable supplies and nonexpendable property that does not meet the definition of equipment, and is not an investment of the Working Capital Fund (WCF), or is not considered as personal appeal. It is disposed of using a Form NIST-6, Report of Excess Property.

b. Accountable Personal Property - Property for which accountability must be maintained in the NIST personal property management system. Accountability must be maintained for:

(1) All Working Capital Fund invested equipment;

(2) All property that meets the definition of equipment with a unit cost of $5,000 or greater;

(3) Personal property with an acquisition cost less than $5,000 that may be converted to private use or have a high potential for theft and listed in the personal appeal items (see Appendix C);

(4) All loaned or leased personal property to NIST; and

(5) All contractor/grantee personal property.

c. Acquisition Cost - The full cost (including all costs related to acquisition, delivery, and major installation costs in excess of $5,000.00 of putting a piece of personal property into use.

d. Amortization - A monthly charge, generally to an overhead project code, to recover the WCF investment for a piece of equipment.

e. Depreciation - A monthly allocation of the acquisition cost of capitalized equipment, regardless of the funding source, over its estimated useful life. This monthly allocation is recognized in the NIST financial statement, no charge is recorded on a division project code.

f. Equipment - Nonexpendable property, other than land or buildings. It is complete in itself, of a durable nature with a life expectancy of at least one year, and does not lose its identity when put into use as a component part or accessory of other property. Equipment with an acquisition cost of $5,000 or more, or that is part of a system, the cost of which is at least $5,000, is subject to inventory control by the Personal Property Management Office.

g. WCF Invested Equipment (Formerly Depreciable Equipment) - Equipment that is acquired as an investment of the WCF. The WCF recovers the investment through monthly amortization charges that continue until the amortization charges collected equal the acquisition cost of the equipment. Obligations and accruals are recorded on project codes in the series 800-809 for Direct Purchase or 810-849 for Construction in Process CIP (Manufacture). The division, based on guidelines established by NIST, determines the finance terms for each piece of equipment.

h. Point of Contact (POC) - Every NIST employee and guest researcher that uses, supervises the use of, or has control over government personal property, is responsible for that property. This responsibility includes:

(1) Ensuring that accountability procedures are in place for all personal property;

(2) Notifying the Property Custodian (PC) when personal property becomes excess;

(3) Notifying the PC when personal property is lost, stolen, damaged, or destroyed;

(4) Ensuring Local authorities investigate any theft and receive a copy of an official police report; and

(5) Ensuring that personal property is acquired for official government use and not for personal use.

i. Property Custodian (PC) - An individual designated by the Division Chief to assist in the management, control, and inventory reconciliation of personal property within a specified area.

j. Division Chief - An individual who has full responsibility of making decisions to purchase new equipment and to excess old equipment. They have sole ownership of property in their division and what it is used for. They delegate the Property Custodian to act in their behalf to manage and control the use of government property.

k. Property Management Officers Assistant (PMOA) - An individual designated by the Operating Unit (OU) Director to assist in the management, control, and inventory reconciliation of all personal property within their respective OU.

l. Property Board of Review (PBR) - A standing committee, generally appointed by the Property Management Office (PMO). The Property Board of Review consists of five to six members who are responsible for examining facts to determine and establish the extent of personal liability for lost or damaged property and authorize the removal of items from official property records.

m. Property Accountability Officer (PAO) - An individual designated by name or organizational position to be responsible for the maintenance of a system of control and accountability for personal property within a specified accountability area.

n. Property Management Officer (PMO) - A NIST employee responsible for controlling the acquisition, use, and disposal of all NIST personal property. Appointed by the NIST Director, normally the Chief of the Administrative Services Division.

7.01.05
AUTHORITIES
a. The authority and primary responsibility for providing direction, leadership, and general supervision in the development and administration of an effective and efficient personal property management system for the Department has been delegated to the Departmental Property Management Officer (DPMO). The Office of Administrative Services (DoC Headquarters) has been assigned the responsibility to administer the DPMO functions, which are as follows:

(1) The establishment of Department-wide policies, regulations, and procedures for personal property; and

(2) The review, evaluation, and improvement of personal property management programs, functions, operations, and procedures.

b. The Chief Financial Officer and Assistant Secretary for Administration has redelegated the following authorities to the NIST Director:

(1) Designating the OU Property Management Officer (PMO) within the following limitations:

(a) Only one PMO is to be designated at NIST. Neither the title designation nor the responsibilities of the PMO are to be redelegated. The Chief, Administrative Services Division, has been designated the PMO for Gaithersburg and Boulder.

(b) One PAO is to be designated at each site, Gaithersburg and Boulder.

(c) One or more PC may be designated to control personal property within a specified area. At NIST, OU Directors and/or division chiefs designate PCs and PMOAs.

(2) Authorizing exceptions for replacement standards for office machines, furniture, furnishings, and other related equipment specified in FPMR 101-25.3 and 101-25.4.

(3) Authorizing the retention for official use of abandoned or other unclaimed personal property including voluntarily abandoned or forfeited property.

(4) Identifying excess personal property and, when appropriate, reporting it to GSA.

(5) Assigning or transferring excess personal property to other federal agencies, to wholly owned or mixed-ownership government corporations, to cost-reimbursable contractors, or to authorized grantees.

(6) Authorizing transfer of title to government-furnished personal property to contractors or grantees in accordance with regulations.

(7) Authorizing donation of educationally useful excess personal property to schools or non-profit educational organizations.

c. Except for the selection of the NIST PMO, the authorities delegated to the NIST Director have been redelegated to the PMO to enable personal property management functions to be performed at the operating unit level best equipped to handle such functions.

7.01.06
RESPONSIBILITIES
a. NIST Director - is responsible for the establishment and administration of a personal property management program that provides for:

(1) Creating and maintaining complete and accurate inventory control and accountability records;

(2) Ensuring the proper care and security of personal property;

(3) Identifying personal property no longer required by NIST and making it available for transfer to other DoC activities;

(4) Ensuring that excess personal property is reported to GSA for transfer, donation, or disposal, as appropriate, under the provisions of the FPMR and PPMM;

(5) Ensuring that educationally useful excess personal property is made available for donation to schools or non-profit educational organizations in accordance with regulations.

(6) Submitting required personal property management reports;

(7) Ensuring that all accountable personal property is maintained in the NIST personal property management system;

(8) Advising employees of their responsibilities for government personal property and providing training as needed; and

(9) Supporting general ledger control accounts for personal property by maintaining appropriate subsidiary accounts and records.

b. PMO - has the responsibility and authority to ensure the effective control, acquisition, use, and disposal of personal property. The PMO is responsible for:

(1) Providing direction, leadership, and general supervision in the implementation and maintenance of the personal property management program throughout NIST;

(2) Establishing and maintaining regulations and procedures satisfying the requirements of the Department's PPMM and the various laws and regulations referenced therein;

(3) Establishing training for PAOs, PMOAs, PCs, NIST staff, and Property Boards of Review;

(4) Insure the certification and yearly training of PAOs, PCs and NIST staff. Training shall meet the guidelines within the DoC Property Official Certification Program Manual (Revised Edition), January 2007.

(a) PMO and PAO must complete: Government Ethics training, Federal Personal Property Management training (40 hours), SunFlower PMO and PAO User Training (40 hours), and initial bureau specific training on the bureau personal property system.

(b) PCs must complete: Government Ethics training, Federal Personal Property Management training (40 hours), SunFlower PC User Training (8 hours), and initial bureau specific training on the bureau personal property system.

(c) Each Property Official must complete eight hours of refresher training each year by choosing and attending courses from the approved list provided in the DoC Property Official Certification Program Manual, which can be found at http://www.osec.doc.gov/oas/imd1/Property_Official_Certification_Program_Manual_version3.pdf.

(5) Developing and implementing inventory schedules, monitoring inventory progress, and reconciling accountable personal property records with the financial accounting system;

(6) Assigning, in writing, PAOs to account for and control personal property within their assigned jurisdiction;

(7) Implementing procedures for the repair and rehabilitation of personal property;

(8) Providing PAOs with disposition instructions in accordance with the FPMR;

(9) Ensuring that excess personal property is archived as “retired” in the NIST personal property management system after final disposition of the property; and

(10) Ensuring that lost, stolen, destroyed, or damaged personal property is investigated in accordance with the PPMM.

c. PAOs are responsible for:

(1) Ensuring the effective administration and maintenance of a system of control and accountability for personal property assigned to their accountability area, Gaithersburg or Boulder;

(2) Ensuring that PCs have current records for assigned accountable personal property;

(3) Ensuring that physical inventories are taken, records are reconciled, and discrepancies are investigated and resolved;

(4) Ensuring that requests for Property Board of Review action for lost, stolen, damaged, or destroyed personal property are correctly prepared and processed using Form NIST-6A, Request for Property Board of Review Action;

(5) Coordinating actions required by the Property Board of Review;

(6) Ensuring that personal property is fully utilized, safeguarded from misuse or theft, and that unneeded personal property is promptly reported for reutilization, redistribution, or disposal;

(7) Ensuring that bar code labels are affixed on accountable personal property; and

(8) Ensuring that receipts, transfers, and retirements are entered into the personal property management system in a timely manner.

d. PMOAs - are responsible for oversight of property custodians and the management of personal property records by PCs within their assigned operating unit, including:

(1) Assists PCs for inventory purpose on a yearly basis;

(2) Audits and reviews certificates and hand receipts of property custodians;

(3) Ensures that divisions update their loans on a yearly basis for their respective OU;

(4) Assists PCs with transfer of property within assigned OU;

(5) Performs Form NIST-6A, Request for Property Board of Review Action, investigation on property of initial value greater than $25,000, for OU Director Signature;

(6) Point of contact in regard to PCs actions and re-training;

(7) Issues tag numbers to new untagged equipment and fill in the appropriate information and submit Purchase Order or Credit Card information to Personal Property Office for updating the property database and to forward to accounts for costing the property;

(8) Monitors OU procedures that govern the use of Separation and Clearance Certificate (Form CD-126, Separation Clearance Certificate); and

(9) Makes recommendation to Division Chief and OU Directors with PC problems encountered that require resolutions or new appointment.

e. PCs - are responsible for maintaining accountability of all personal property within their assigned area, including:

(1) Maintaining current custodial records on all accountable personal property, including, but not limited to, maintaining accurate contact and location information in the personal property management system and maintaining records on all loans;

(2) Initiating documentation as required on all actions affecting the accountability or custody of accountable personal property (Forms NIST-6, NIST-81, NIST- 6A, & NIST-393);

(3) Ensuring that personal property is secured, protected, and is used only for official purposes;

(4) Identifying and reporting excess personal property by submitting Form NIST-6, Report of Excess Property, to the PAO. Property shall be protected and secured while waiting for excess property to pick up;

(5) Promptly submitting Form NIST-6A, Request for Property Board of Review Action, for lost, stolen, damaged, or destroyed personal property. Form should be accompanied with official police report from the local jurisdiction were the property was stolen;

(6) Quarterly print out property certificates by POC and have POC sign acknowledging the property to still be in their possession; and must keep and file all copies affecting the division property;

(7) Conducting yearly inventories as required by the Personal Property Office;

(8) Perform Separation and Clearance Certificate (Form CD-126, Separation Clearance Certificate) checks for personal property, and reassign vacant property as required;

(9) Document loans of accountable personal property between divisions or OUs in writing;

(10) Loans of accountable personal property outside NIST must be approved by the Personal Property Office and documented on Form NIST-393, Equipment Loan Authorization, Receipt, and Property Pass. Loaned accountable personal property will remain on the NIST personal property records and be updated as needed;

(11) Accountable personal property sent out for repair remains on the personal property records of the operating unit to which it is assigned. PCs must maintain a record of items sent out for repair. Shipping documents must reflect the property number of the items sent out for repair, and the tag numbers must not be removed;

(12) Ensuring that the personal property system is updated to reflect the changes if the physical location, and/or property contact of accountable personal property changes within a division; and

(13) Completing the required training courses, which initially include Government Ethics training, Federal Personal Property Management training (40 hours), SunFlower PC User Training (8 hours), and initial bureau specific training on the bureau personal property system. Also, eight hours of refresher training to be completed each year by attending courses from the list provided in the DoC Property Official Certification Program Manual. (See Subchapter 7.01.06(b)4.)

f. Division Chiefs - Are ultimately responsible for the proper care, usage and maintenance of all government property under their division.

(1) They appoint a responsible employee to be the PC to manage all the division personal property;

(2) They insure that all property is being cared for and managed in accordance with manufacturer guidelines and NIST Policy;

(3) Insure that any unused equipment is excessed for re-distribution and use or disposal;

(4) Ensure that PCs have the yearly training and the time to perform their duties as a Property Custodian; and

(5) Ensures that the PC re-assigns vacant property to Group Leaders until it can be re-issued to new staff.

g. NIST employees (POC) who use, supervise the use of, or have control over government personal property, are responsible for that property. This responsibility may include:

(1) Personal responsibility where each employee is required to properly maintain, handle, use, and protect government personal property issued to or assigned for the employee's use at or away from the site. This includes:

(a) Ensuring that a copy of Form NIST-393, Equipment Loan Authorization, Receipt, and Property Pass, accompanies personal property at all times when removed from the Gaithersburg or Boulder sites;

(b) Ensuring that personal property in their possession, custody, or control is used only for government purposes and not for personal or private use;

(d) Immediately report to supervisors any personal property that is lost, stolen, damaged or destroyed. If the property is stolen, insure that the local authority performs an investigation and obtain an official police report to accompany the Form NIST-6A, Request for Property Board of Review Action;

(e) When personal property is loaned between employees of the same operating unit, records are to be kept by the loaning employee who must also notify the PC for update of the property database;

(f) Loans of accountable personal property outside NIST must be approved by Personal Property Office and documented on Form NIST-393, Equipment Loan Authorization, Receipt, and Property Pass. Loaned accountable personal property will remain on the NIST personal property records and be updated as needed;

(g) Accountable personal property sent out for repair remains on the personal property records of the organizational unit to which it is assigned. POCs must notify their PC of all items sent out for repair. Shipping documents must reflect the property number of the items sent out for repair, and the tag numbers must not be removed; and

(h) If the physical location, and/or property contact of accountable personal property changes within a division, the POC must notify the PC of the change to ensure that the personal property system is updated to reflect the changes.

(2) Supervisory responsibility, in which a supervisor is obligated to establish and enforce administrative and security measures to ensure proper protection and use of all government personal property under their jurisdiction. Supervisors are also responsible for:

(a) Ensuring that accountability procedures are in place for all personal property under their jurisdiction;

(b) Notifying the PC when personal property becomes excess;

(d) Ensuring that any personal property including property scheduled for abandonment or destruction, is only acquired for official Government use and not for personal use;

(e) In some cases supervisors and group leaders will need to sign for equipment that is being used by a NIST fellow or guest researcher since only government employees are allowed to have government property assigned to their names. In the PC notes, should indicate that name of the person using the equipment or have it loaned to the guest; and

(f) Vacant personal property that shall be assigned to the group leader and reassigned to new staff upon hire.

h. Finance Division - administers depreciation and amortization policies. The Finance Division is responsible for ensuring that NIST policies and procedures are in compliance with DoC financial policies and that NIST financial statements are prepared according to generally accepted accounting principles.

i. Personal Property Office, Administrative Services Division - administers policies for accountability, rehabilitation, cannibalization, utilization, reutilization, and disposal of personal property.

j. Property Board of Review - conducts reviews at the request of the PAOs and makes recommendations on:

(1) The liability of employees for lost, stolen, damaged, or destroyed government personal property;

(2) The amount of financial liability for which the employee should be responsible when the Property Board of Review determines that an employee shall be held liable. When it has been determined that an employee shall be held liable, the Office of the General Council is notified and assists in determining the pecuniary responsibility of the employee; and

(3) They provide guidance and recommendations to the PMO on improvements and changes to NIST personal property management.

k. Guest Researchers and NIST Associates - Are non-governmental employees that are here on a temporary basis. Not being a government employee, they are not allowed to have personal property assigned to them in the personal property management system. This personal property will need to be assigned to the group leader or other NIST employee and a loan slip will be issued for the property that the Guest or Fellows is allowed to use outside NIST grounds.

7.01.07
PERSONAL PROPERTY RECORDS
a. Property Custodian must ensure that copies are kept for all actions affecting the division, OU, and NIST property accountability, this includes but is not limited to the following forms:

(1) NIST-6, Report of Excess Property;

(2) NIST-81, Intra-Office Transfer of Equipment;

(3) NIST-386, Shipping Order;

(4) NIST-393, Equipment Loan Authorization, Receipt, and Property Pass;

(5) SF-122, Transfer Order Excess Personal Property; and

(6) CD- 210, Record of Gift or Bequest.

b. Property Office will keep copies of all Internal Transfers, PBR, Loans, and Donations.

7.01.08
PERSONAL PROPERTY TRANSACTIONS
Property record transactions are grouped into four categories:

a. Receipts - Receipts are transactions that result in personal property being added to the NIST accountability records. Receipt transactions are:

(1) Procurements from federal agencies;

(2) Procurements from commercial sources;

(3) Transfers to NIST from federal agencies;

(4) Completed Construction in Process (Manufactured Equipment);

(5) Loans or leases to NIST;

(6) Found abandoned on NIST premises; and

(7) Donations to NIST.

b. Transfers - Transfers are transactions involving the movement of accountable personal property between divisions/groups within NIST requiring changes to be made in accountability records. When transfers result from reorganization, operating units must provide Personal Property Office with notification of disposition of all affected accountable personal property. Property transfers cannot be implemented until this requirement is met.

c. Retirements - Retirements are transactions resulting in accountable personal property being removed from accountability records at NIST. Retirement transactions include:

(1) Transfers of title to another federal agency;

(2) Donations to another organization outside the federal government;

(3) Abandonment, destruction, or cannibalization;

(4) Personal property that has been lost, stolen, damaged beyond repair, or destroyed;

(5) Trade-ins. The trade-in of any type of government-owned property must first be approved by Personal Property Office to ensure that the interests of the government are protected. When an item is traded, it must be removed from the personal property records. The balance of unpaid amortization, if any, will be charged to the division in a lump sum payment. If Personal Property Office is not notified at the time of trade-in, the responsible division will still show the traded equipment on their inventory list during the next inventory. (Purchase or Credit Card Orders must reflect the NIST Tag number of the item that is being used as a trade in and the total dollar amount received.); and

(6) GSA sale of surplus personal property.

7.01.09
NEW PROCUREMENTS
a. Installation Costs - Equipment to be installed by NIST is depreciated and/or amortized at the purchase price shown on the purchase order plus major (those exceeding $500) installation costs. Installation costs include utility connections, ductwork, and pedestals, etc., necessary to put a piece of equipment in operable condition. Not included are costs for the modification of the basic equipment, connection of separately depreciated and/or amortized auxiliaries, attachment of experimental setups, or other special arrangements necessary to adapt the equipment into its initial program use.

(1) When the NIST Plant Division installs equipment on a fixed-price basis, the operating unit acquiring the equipment must designate on Form NIST-461, Interdivision Work Order, the project code (excluding construction in process) and purchase order number on which the equipment was acquired. The Plant Division sends the Personal Property Office a copy of Form NIST-461 indicating the amount charged and the Purchase Order number used. This amount is added to the equipment purchase price in order to establish value.

(2) Installation costs are added to the acquisition cost of equipment the first time a piece of equipment is installed and put into operation. Moving and installation costs after the original installation are not applied to the acquisition cost.

b. Lease to Purchase - For accountable personal property to be purchased after initial rental, the cost placed in the property records is the net present value of the minimum lease payments over the life of the lease including costs already paid. Depreciation is calculated from the lease start date.

c. Leased Equipment greater than 90 days must be tagged. The operating unit will inform the Personal Property Office when the leased equipment is returned to the owner so the Personal Property Office can retire the equipment from NIST’s active records as “returned to owner”.

d. Identification Number - All accountable government personal property must be bar coded to identify it as U.S. Government personal property. If the original bar code is removed or destroyed, a Request For Tag will be submitted to the Personal Property Office so another bar code can be applied.

NIST Barcodes must not be removed or defaced by anyone except a representative from the Personal Property Office. Special tagging arrangement can be made with prior coordination between Division and the PMO.

e. Equipment Financing – See Subchapter 8.11, Equipment Financing.

7.01.10
CONSTRUCTION IN PROCESS (CIP)
a. Individual project codes are established:

(1) in the Other-Federal-Government Agency or STRS project code series to accumulate the cost of each piece of non-WCF invested equipment to be constructed; and

(2) in the WCF invested equipment series (810-849) for WCF invested equipment. If more than one piece of identical equipment is to be made, a single project code may be established for accumulating costs.

b. Form NIST-409, Notice of Completed Manufactured Equipment, is used to notify the Financial Policy Division when equipment results from research and development efforts, or when construction in process is completed.

(1) Equipment resulting from or built as a result of research and development efforts is given an estimated value and is classified as CIP equipment because no one has purchased it.

(2) Form NIST-409, Notice of Completed Manufactured Equipment, is sent directly to the Financial Policy Division to provide notification of completed Construction in Process. The Financial Policy Division notifies the Personal Property Office to bar code the equipment.

7.01.11
REHABILITATION OF EQUIPMENT
a. The following requirements are guidelines that should be met to classify work as rehabilitation:

(1) The equipment requires extensive renovation;

(2) The work cannot be accomplished by insertion, modification, or replacement of one or a few readily removable parts;

(3) The work is not to correct recurring or readily predictable faults;

(4) The cost exceeds $5,000, but is less than 80 percent of the original acquisition cost of the equipment; and

(5) The life of the equipment will be extended.

b. Rehabilitation cost for invested equipment is charged to the WCF. This cost for other categories of equipment is charged to a current program project code.

c. Extensive rehabilitation beyond reasonable repairs is treated as a replacement of equipment. The new net book value of the rehabilitated equipment is the net book value of the old equipment plus the cost of rehabilitation. Net book value is the original value minus the amount recovered through depreciation and/or amortization charges.

7.01.12
EXCESSING PERSONAL PROPERTY
a. Personal property not being utilized and having no anticipated usage by other NIST operating units should be made available to the Personal Property Office for redistribution, regardless of whether or not it is bar coded. Each division chief should ensure that an annual review of the division's personal property is made to identify excess personal property. Factors to consider for excessing personal property are:

(1) The personal property is not in use and there are no plans for its use in the near future;

(2) The personal property is obsolete, inadequate, or insufficient for its intended purpose. There is other personal property to do the work, or new and better personal property will be purchased; and

(3) The cost of maintenance and repair is so great that continued use is not economical.

b. Form NIST-6, Report of Excess Property, must be prepared and submitted to the Personal Property Office to schedule pickup of excess personal property. An accurate item description, condition code and bar code number (if applicable) must be provided. Excess personal property is moved from the laboratory or office to the warehouse by the Personal Property Office or representatives of, except for very large or delicate equipment that may be left in place until arrangements are made for its delivery to the next user. Upon pickup of the excess personal property, one copy of Form NIST-6 is signed by a representative of the Personal Property Office and returned to the originating organizational unit’s POC listed on the NIST-6 as verification of pickup. If PC wishes to be coordinated with for special pick-ups and final copy of NIST-6, it may be requested in the remarks box. NIST excess personal property is available for redistribution and may be screened by NIST employees.

c. Hallway Storage of Excess Property as per Subchapter 6.05 Appendix B is not permissible. Storage of excess property in hallways and receiving rooms is a hazard to building occupants and emergency services personnel when responding to an emergency, and shouldn’t be done.

d. The Property Custodian and Point of Contact are responsible for securing excess property until it is picked up by the Property Office and a receipt of pick up is received.

e. It is important to note that personal property bought with Working Capital Fund (WCF) appropriations may still have an outstanding balance against the property. If property is submitted as excess, your division will still pay for the property. At any point that the property is deemed retired, any unpaid balance to the WCF will be drawn as a lump sum from your division project code. If property is picked up from the excess property warehouse by or reassigned to another division and there is a remaining balance, the receiving division is then responsible for repayment of the remaining balance. (See Subchapter 7.01.18.)

7.01.13
LOST, STOLEN, DAMAGED, OR DESTROYED PERSONAL PROPERTY
a. Damaged or destroyed personal property must be reported by the responsible organizational unit using Form NIST-6A, Request for Property Board of Review Action. When completing Form NIST-6A, indicate pertinent, detailed information, including how and by whom personal property was damaged or destroyed, whether the damage was willful or accidental, the estimated or actual cost of repair of damaged items, and other pertinent information. Submit Form NIST-6A, which must be evaluated by the Property Board of Review, to the Personal Property PAO. If the value of the missing personal property exceeds $25,000, Form NIST-6A must be reviewed and signed off by the OU Director for concurrence.

b. Lost or stolen personal property must be reported to the Police Services Group (or local authority if off of the NIST campus) as soon as the disappearance of the personal property is discovered. If the personal property is not found, the responsible operating unit must prepare Form NIST-6A, Request for Property Board of Review Action, attach the police report, and forward it to the Personal Property PAO for review by the Property Board of Review. When completing Form NIST-6A, indicate all pertinent, detailed information, location, point of contact, what was done to locate the property and the actual cost of replacement, or any other pertinent information. If the value of the missing personal property exceeds $25,000, Form NIST-6A must be reviewed and signed off by the OU Director for concurrence.

c. Reports of lost personal property may be submitted to the Personal Property PAO by the operating unit without an attached police report when there is no information that suggests that the personal property has been stolen. You will still need to complete the Circumstances Block that fully describes the division’s effort to find the property and search undertaken to recover the missing property. Without substantiating effort to find the property, the Property Board of Review will not take action on your request and will return it for further investigation by the PMOA or PC. If the value of the missing personal property exceeds $25,000, Form NIST-6A must be reviewed and signed off by the OU Director for concurrence.

d. It is important to note that personal property bought with WCF appropriations may still have an outstanding balance against the property. If property is submitted for Property Board of Review action and found eligible to be written off, any unpaid balance to the WCF will be drawn as a lump sum from your division project code in the property system.

7.01.14
CANNIBALIZING PERSONAL PROPERTY
a. Personal property is cannibalized if:

(1) it is dismantled for parts;

(2) a part is removed to be used as a piece of personal property; or

(3) it is used in the manufacture of another piece of personal property.

b. Personal property may be cannibalized when all the following conditions exist:

(1) Repair of broken or worn parts is not possible or cost-effective;

(2) Required parts are not available; and

(3) The benefit realized from cannibalization exceeds the estimated trade-in or sale value of the unit being considered for cannibalization.

c. If cannibalization results in the need to remove the cannibalized piece of property from the personal property records, prior approval must be obtained from the Property Board of Review on Form NIST-6A, Request for Property Board of Review Action.

d. Personal property must not be cannibalized for the purpose of deleting the item from the accountable records or merely to reduce its value.

e. Cannibalization for stock pile purpose is not authorized.

7.01.15
AMORTIZATION AND DEPRECIATION
a. A range of useful lives has been established for each category of NIST accountable personal property (see Appendix B). Requests to amortize equipment over a time period longer than the established useful life must be requested and justified through the Financial Policy Division prior to submitting the purchase request. Approval is not required to amortize equipment for a period less than the established useful life.

b. Amortization charges begin after a personal property record is established in the personal property management system and will be calculated from the prorate date. The prorate date is the first day of the month following the placed in service date. The placed in service date is the acceptance date, the date the requisitioner signed the Receipt and Inspection Report (R&I). Amortization and Amortization Surcharge rates are determined by prorating the acquisition cost of the equipment over the period of the finance terms or the useful life. Amortization on excess equipment will continue to be charged to the operating unit until the equipment is acquired by another NIST division, retired, or fully amortized.

c. If the equipment is transferred to another division within NIST, the responsibility for remaining amortization charges is also transferred. However, if the equipment is transferred to an organization outside NIST or retired for any reason, the balance of the unpaid amortization is charged to the owning operating unit's overhead project code unless the Financial Policy Division has approved another project code (see Subchapter 8.11).

d. Depreciation of capitalized equipment also begins when a property record is established and is calculated from the prorate date.

7.01.16
LOANS AND DONATIONS
a. Loans within NIST - These loans are encouraged for maximum utilization of accountable personal property.

(1) Less than 30-day loans within NIST require approval by the responsible PC of both the lending and borrowing OU. PCs must retain records of these loans for inventory reconciliation, up date the property database to indicate that the property is on loan less than 30 days, and a Form NIST 393, Equipment Loan Authorization, Receipt, and Property Pass, must be completed. Once the property is returned, the PC must enter the date returned in the system.

(2) Loans for 30 days or more must be for a specified period of time not to exceed one year and must be approved by the Personal Property Office. It is the lending operating unit's responsibility to ensure that the borrower's signature is obtained on Form NIST-393, Equipment Loan Authorization, Receipt, and Property Pass, and to return the completed NIST-393 to the Personal Property Office. If the loan is to be extended beyond one year, the lender must confirm that the borrower is still using the personal property and that it is being used for the purpose for which it was loaned. The lending OU must complete a new Form NIST-393 or forward a memorandum to the Personal Property Office to request an extension of the existing loan. The lending OU must notify the Personal Property Office when loaned personal property is returned via the use of the NIST 393 or via e-mail indicating the property number and date of return.

(3) If personal property of significant value is loaned to another OU within NIST for an extended period of time, amortization charges may be transferred to the borrowing OU for the length of the loan. To transfer costs, when preparing Form NIST-393, Equipment Loan Authorization, Receipt, and Property Pass, the monthly amortization rate, the estimated duration of the loan, and the project code to be charged must be included. Forward completed Form NIST-393 to the Personal Property Office. The Personal Property Office will forward this form to finance for amortization charges.

(4) An OU lending equipment has the option of negotiating an agreement with the borrower covering responsibility for repairs and calibrations while the equipment is on loan. A condition of all agreements must be that no modification to the equipment is made without permission of the lender. The lender must tell the borrower of any prior modifications made to the equipment which require special operating instructions.

(a) Equipment may be loaned on an as-is basis. The OU lending the equipment does not guarantee the condition at the time of the loan. The borrower is responsible for seeing that the equipment is in good working order before using it.

(b) The lending OU can certify that the equipment is in good condition at the time of the loan. The borrower must agree to pay for any repairs or calibrations required during the period of the loan and return the equipment in good condition.

(c) The borrower notifies the lending OU of any malfunction during the time of the loan. The lending OU makes repairs and charges the borrowing OU all or part of the cost of the repairs. The lending OU could also require inspection upon return with the costs charged to the borrowing OU.

(5) When the equipment has been returned and amortization is again to be charged to the OU to which the personal property is assigned, a copy of Form NIST-393, Equipment Loan Authorization, Receipt, and Property Pass, must be sent to the Personal Property Office requesting the change. The Personal Property Office will forward this form to the Finance Division for amortization charges.

b. Loans Outside NIST - All loans outside of NIST must be documented on Form NIST-393, Equipment Loan Authorization, Receipt, and Property Pass, and require approval by the Personal Property Office. Loaned personal property must have a NIST bar code or a blue label to identify it as NIST U.S. Government personal property. Property loaned that does not require a property number, must be listed as: Item Description, Model Number, and Serial Number. The lending OU must notify the Personal Property Office when loaned personal property is returned. Amortization charges continue to accrue against the project code of the property owner. Depreciation costs continue in the NIST financial statements.

(1) Personal property that required a NIST Property Number must be tagged before leaving the NIST site. Personal property may be loaned to other government agencies when the personal property is not excess to NIST.

(2) Personal property may be loaned to non-profit educational institutions.

(3) Personal property may be loaned in support of contractual agreements (i.e., Cooperative Research and Development Agreements).

(4) Loans can be made to local non-government agencies in emergencies involving threat to human life or prevention of suffering until agencies have a reasonable opportunity to obtain replacement.

(5) To remove personal property from the NIST site, Gaithersburg or Boulder, the employee removing/borrowing the personal property must have in their possession a properly completed Form NIST-393, Equipment Loan Authorization, Receipt, and Property Pass. This requirement applies to all personal property whether or not it has a NIST bar code. Failure to comply may result in disciplinary action.

c. Donations - All donations of personal property regardless of whether or not the property is bar coded must be approved and processed by the Personal Property Office.

(1) Personal Property is authorized to donate computer equipment under Executive Order 12999, (CFL) Education Technology: Ensuring Opportunity for All Children in the Next Century. The Executive Order was designed to streamline the transfer of surplus federal computer equipment to schools and non-profit educational organizations pre-kindergarten through high school, giving special consideration to areas of pervasive poverty and unemployment in the United States and its territories. The Personal Property Office screens computer equipment received as excess personal property and identifies pieces suitable for donation. Computers are donated using the Computers for Learning (CFL) website located at http://computersforlearning.gov/ based upon indications of need. These indicators include whether a school is located in an empowerment zone (zones established by law designed to create self-sustaining, long-term economic development in impoverished areas); its computer-to-student ratio; and the percentage of students receiving subsidized lunch assistance. Employees are welcome to browse the website to learn more about the program or view registered schools and educational non-profits. The NIST coordinator for this program, the Personal Property Office, must process all donations to ensure compliance with the Personal Property Regulations and the Executive Order. For example, the NIST Personal Property Office must offer excess personal property to NIST and DoC staff for 15 days prior to donation.

Division employees can promote NIST participation in this program by accurately assigning condition codes on Form NIST-6, Report of Excess Property, for the personal property being excessed and identifying cannibalized items.

Software may be donated where transfer of the license is permitted. The Personal Property Office works with the DoC Office of Information Resources Management on software donations.

(2) The Personal Property Office has the authority under the Stevenson-Wydler Technology Innovation Act to donate surplus scientific and research equipment to schools or non-profit organizations. Computer equipment may be donated to colleges and universities under this Act. This program is to promote technology and scientific education and research.

Non-profit organizations and all accredited public and private schools, including those with religious affiliations, involved in technical and scientific education and research activities are eligible to receive donations under this Act.

Employees may designate excess equipment to be donated and the school or non-profit organization that is interested in the donation. Attach a cover letter to designate the equipment and the proposed recipient organization. The Personal Property Office considers each request to ensure that donations are fairly and equitably distributed. When targeting equipment for donation, employees should consider Adopt-A-School/Partnership schools, schools in economically depressed areas, magnet or rural schools, schools in education reform initiatives, etc.

Before the Personal Property Office offers scientific and research equipment to a potential recipient, the equipment must be offered to NIST and DoC staff for 15 days. Employees should ensure that the organization the equipment is to be offered has the resources and knowledge to utilize the equipment properly.

(3) The NIST PMO may NOT approve foreign excess personal property donation when there is no utilization potential within the same geographic area by other federal agencies. Foreign excess personal property with an original acquisition value of less than $1000 at any one location should not be considered for return for further utilization unless recovery is in the best interest of the government. Form NIST-6A, Request for Property Board of Review Action, must be prepared requesting abandonment of foreign property when it is in the best interest of the Government.

7.01.17
TRANSFER OF PERSONAL PROPERTY INTO NIST
The following transfers are by means other than original procurement.
a. Donated Accountable Property - Accountable personal property donated to NIST as a gift is carried on the personal property accounting records. Operating units notify the Personal Property Office on Form CD-210, Record of Gift or Bequest, when an offer to donate is made. The OU must notify the Personal Property Office prior to acceptance of the gift. Approval for donations will be in accordance with Subchapter 8.10 and DoC Administrative Order (DAO) 203-9. Approval from the OUs must be obtained so the personal property can be entered into the OUs personal property records and tagged.

b. Loans to NIST - A record of all non-expendable personal property loaned to NIST are maintained by the Personal Property Office. Due to conflict of interest and liability problems, loans of commercially-owned personal property to NIST with intent to purchase require advance approval and should be avoided unless the loan is clearly in the best interest of the government.

Upon receipt of the borrowed personal property, the responsible PC must notify the Personal Property Office. The notification should include the name of the borrowing OU, custodian's name, loaning agency or organization, a brief description of the personal property including serial and model number, receipt date, length of loan, and the approximate acquisition cost and expected duration of the loan.

When the personal property is returned, the borrowing OU must notify the Personal Property Office in order to retire and remove from active records.

c. Personal Property from Other Federal Government Agencies -

(1) The nationwide inventory of excess personal property reported by other federal government agencies can be screened by the Personal Property Office on the GSA Federal Disposal System (FEDS) or in the Defense Reutilization and Marketing Service (DRMO)

(2) Operating units must obtain approval and completion of the Form SF-122, Transfer Order Excess Personal Property, from the Personal Property Office before obtaining excess personal property from other federal government agencies.

(3) Personal property transferred from other sources at no cost to NIST other than packing and shipping is recorded in property records at the fair value at the time of transfer. Fair value ranges from 50 percent to 80 percent of the original acquisition cost depending upon the condition of the personal property. Condition code 1 is recorded at 80 percent of original acquisition cost, condition code 4 at 65 percent, and condition code 7 at 50 percent.

(4) Employees may submit current and future excess personal property requirements to the Personal Property Office. The item description, quantity, model number, manufacturer, minimum condition required, and any other information that could aid in a search should be included. NIST and GSA or Defense Reutilization and Marketing Service excess inventories will be searched.

7.01.18
INTERNAL TRANSFERS AND SHARED USE
a. Transfers - Form NIST-81, Intra-Office Transfer of Equipment, is used for transferring personal property from one OU to another. Form NIST-81 is signed by the responsible PCs, Administration Officer, and Division Chief in both the releasing and receiving operating units.

b. Shared Use -

(1) Most major NIST equipment and facilities are available for use by NIST employees, employees from other government agencies, and under certain conditions, non-governmental institutions. Major equipment and facilities usually require specially trained and experienced personnel to operate them. Operation by others is permitted with appropriate instruction and/or supervision.

(2) Owner OUs are responsible for:

(a) Scheduling use and priorities;

(b) Establishing fees to be paid by users outside the purchasing OU;

(c) Establishing requirements for sharing OU personnel to operate equipment and/or for training others in using equipment;

(d) Determining that proposed use is relevant to NIST goals and responsibilities;

(e) Determining that proposed experiments are feasible in terms of safety and practicality;

(f) Arranging schedule for optimum utilization of the equipment or facility;

(g) Specifying safety procedures; and

(h) Monitoring use by others to ensure that all operating procedures are followed.

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National Institute of Standards and Technology,
Office of the Director - Management and Organization Division
Questions concerning context, contact darla.yonder@nist.gov
Problems/Suggestions, contact gwenda.roberson@nist.gov
1/8/08