1. 20 August 2011

2. IT’S ALL ABOUT ACCOUNTABILITY TRACKED FROM ACQUISITION THROUGH DISPOSAL TRACKED FROM ACQUISITION THROUGH DISPOSAL LOST, STOLEN OR DAMGAGED – REPORT IT LOST, STOLEN OR DAMGAGED – REPORT IT REPORT OF SURVEY – ASSESS YES NO REPORT OF SURVEY – ASSESS YES NO

3. $24,000

4. $472,000

5. $50,000

6. $1.2 million

7.  Aircraft$115 Million  Vehicles$ 20 Million  Computers$ 3 Million  Other Property$ 25 Million

8. 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

9. OPERATIONAL RESOURCE MANAGEMENT SYSTEM CI Supply Findings - 55% due to:  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

10. – 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 OPERATIONAL RESOURCE MANAGEMENT SYSTEM

11. 1. Enthusiasm 2. Disillusionment 3. Panic and hysteria 4. Search for the guilty 5. Punishment of the innocent 6. Praise and honor for the non-participants

12. 1. Enthusiasm 2. Disillusionment 3. Panic and hysteria 4. Search for the guilty 5. Punishment of the innocent 6. Praise and honor for the non participants

13. OPERATIONAL RESOURCE MANAGEMENT SYSTEM  Transfer  Assignment  Issuance  Inventory  Retirement Incorporates five primary functions of property control

15.  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

16.  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

17.  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

18.  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

19.  Property Freeze Level I  Stops acquisition of equipment and supplies from 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

20.  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

21.  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

22.  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

23.  Applicable CAP FORMS  CAPF 37 – Temporary Issue Receipt  CAPF 111– Expendable Property Transfer  CAPF 111A – Expendable Property Issue  DD Form 1348-1A – Issue Receipt Document

24.  Property Classification  Classifications … expendable and non- expendable  Determines how it will be tracked in ORMS  Determines how it will be disposed of

25.  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

26.  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

27.  Expendable Property  Not non-expendable  Normally intended for limited use  May be consumed during use  Not entered into ORMS  Does not require a property tag

28.  Acquisition  Purchased  Donated  Found on Base  State or local funded/owned

29.  Purchased Property  Appropriated funds  Corporate (unit) funds  State or local govt funds  Consult CAPR 70-1 CAP Acquisition Regulation for policy on funds expenditure

30.  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

31.  Found on Base (FoB)  Rarely used  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

32.  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

33.  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

34.  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

35.  Five functions of property control  Transfer  Assignment  Issuance  Inventory  Retirement

36.  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

37.  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.

38.  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.).

39.  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

40.  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

41.  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

42.  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

43.  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

44.  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

45.  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

46.  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

47.  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

48.  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

49.  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

50.  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

51.  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)

52.  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

53.  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

54.  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

55.  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

56.  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

57.  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

58.  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

59.  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

60.  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

61.  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

62.  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

63.  Approved methods of disposal  Property found on base will be disposed like Federal excess property and go 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 destroyed IAW local environmental rules

64.  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

65.  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

66.  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.

67.  Federal-excess Property  Sourced through GSA OR DRMO  Forward requests to acquire this property to NHQ/LGS for coordination through CAP-USAF  Reviewing property at DRMO for availability is “screening”  Wings may appoint up to 4 screeners  Regions may appoint one per region

68.  Federal-excess Property  Submit written requests for screeners through the state director to CAP-USAF 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

69.  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

70.  Federal-excess Property  Mark expendable property obtained from DoD excess with letters “DRMO”  Use the online Form 111 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

71.  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 turn- in document  Scan and upload turn-in documents  When signed turn-in document is loaded in ORMS NHQ is notified to retire property

72.  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

73.  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

74.  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

75.  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

76.  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

77.  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

78. AAcquisition PPurchase, donation lease, license or no-cost arrangement require wing CC approval LLoad all associated documentation into ORMS CCAP units using DoD facilities must have a USACE license/written agreement authorizing the use and describing the terms of use RRegion CCs forward request and renewals to NHQ/GC for review

79.  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

80.  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

81.  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