1 The Honorable Kenneth J. Krieg, Under Secretary of Defense for AT&L, signed the DoDI on Nov.2, 2006 Consistent with Goal 6: Improved Governance and Decision Processes Overview of DoDI

2 To conform more closely to (AT&L) memorandum of Sept. 23, 2005: “…a greater emphasis on the management of personal property will provide the foundation necessary for obtaining and sustaining an unqualified “clean” audit opinion, as well as: increasing operational efficiency and mission performance; enabling sound investment decision-making and cost control due to greater financial and physical accountability; mitigating/eliminating fraud, waste, and abuse; and resolving material weaknesses” Why reissue the DoDI ?

3 The DoD Property Accountability Mission The DoD property mission is a large and complex endeavor, involving assets valued in the trillions of dollars. It is essential that these assets are accounted for and managed in a manner necessary to meet ever-changing operational requirements—and consistent with Federal Accounting Standards. This requires an organized and concerted effort aimed at managing the challenges, priorities, and improvement actions and obtaining a level of performance needed to better support operations. As you can see from the next slide, “property” comes in a variety of classes and categories

4 Property From a Financial Perspective Assets Personal Property Land Property, Plant & Equipment Real Property Repairables General Facilities Structures Buildings Other Equipment Military Linear Consumables Inventory Operating Materials and Supplies Software

5 Equipment and Other Accountable Property Inventory/Material Real Property Each mission area has its own policy and procedures Again, DoDI prescribes policy and procedures for only the Equipment and Other Accountable Property mission area Property From a Mission Perspective

6 Introduction The new Instruction, renamed “Accountability and Management of Equipment and Other Accountable Property,” replaces DoD Instruction , "Defense Property Accountability," August 13, 2002, which is now canceled  The new Instruction has a number of new and important revisions. It includes, for example, updated Component responsibilities; clarifies GFP policy, and contains new performance objectives for physical inventories;  It also includes a number of new and important definitions,e.g., “Accountable Property System of Record”, “Full Cost”, “Valuation”, “Stewardship Responsibility”

7 DoD Component Responsibilities Be accountable for and manage all property acquired, leased, or otherwise obtained throughout an asset's lifecycle Establish Accountable Property Systems of Record; ensure their appropriate integration with core financial and other systems Establish implementing regulations and procedures, including the assessment and reporting of its overall property management maturity level Develop and maintain effective and meaningful performance measures

8 DoD Component Responsibilities (cont.) Perform periodic internal reviews and audits necessary to assess property accountability and management system effectiveness. Ensure that all persons entrusted with Government property are made aware of their responsibilities—responsibilities that include proper care and stewardship—and are properly trained to their level of functional responsibility.

9 DoD Human Capital Actions  OUSD(AT&L) Memorandum, Dated Dec 6, 2006 Secretaries of the Military Departments and Directors of Defense Agencies shall: Identify all current Accountable Property Officers and ensure that property management responsibility is addressed in their job descriptions or Performance Requirement Descriptions Ensure that Industrial Property Managers and Accountable Property Officers performance outcomes are tied to DoD goals Align Industrial Property Manager and Accountable Property Officer resources to the appropriate human capital strategic plan

10 Any Questions? Tom Ruckdaschel x138