Handbook AS-701, Material Management, Section 541.28, Internal Reviews, contains procedures for conducting a semiannual review of capital property records. The procedures require either the installation head or designated material accountability officer (MAO) to conduct a semiannual internal review and an evaluation of the status of property records and files. The mandatory completion date for installation heads/MAOs for the semiannual review of capital property is August 25, 2008. Installation heads: if you do not have a designated MAO, please refer to Handbook AS-701, chapter 5, section 541 and Exhibit 541.21 for the assignment procedure and a sample letter of delegation, respectively.
We have made a few notable changes in the process used to complete a semiannual capital property review and they are as follows: For the upcoming August 2008 Capital Property Records review, Supply Management and Finance Accounting Policy, Headquarters will randomly select approximately 10 percent of capital assets with an acquisition cost of $10,000 or above for inventory and notify installations of the items selected. Previously, installations self-selected the random sample. If your installation does not have any assets with an acquisition cost of $10,000 or greater, your finance number will be excluded from this inventory. We plan to revisit capital assets with an acquisition cost under $10,000 in future inventories. This is a one-time exception that allows us to assess the impact of the change in process on a smaller population of assets.
In addition, write-offs of assets that were disposed of or that installations were unable to locate will no longer be charged to the installation finance number. Effective 2008, all write-offs will now be applied to a servicewide finance number.
If you are an installation head or a designated MAO, you must complete the review and evaluation process by following these steps:
- Meet with the designated material accountability assistant (MAA) (if you have one) and discuss the material accountability background of the installation. If you do not have a designated MAA, please refer to Handbook AS-701, chapter 5, section 541.3 and Exhibit 541.32 for the assignment procedure and a sample letter of delegation, respectively.
- Review the local standard operating procedures.
- Review files and records to verify that they are being maintained in accordance with procedures outlined in Handbook AS-701, chapter 5, sections 551, 552, 553, and 556.
- Review the past six property changes for the month to ensure they have been properly verified.
- Use PS Form 2880 for additions/deletions. PS Form 2880 has been revised to include an Undepreciated Balance column for each asset. The new PS Form 2880 can be located on the Blue page at http://blue.usps.gov; click Forms. The total for this column, rather than the Acquisition Cost column, will now be used to determine if a copy of the form should be sent to Accounting Policy, Headquarters (Undepreciated Balance over $100K). The original will still be sent to San Mateo for processing. Note that you will be required to indicate both the acquisition cost and the undepreciated balance for each asset on this form.
— National Supply Management Programs,
Supply Management, 8-14-08