Reclamation Supplement to Federal Property Management Regulations

Part 60 Property Accountability

Subpart 114S-60.4 Classification of Property

114S-60.400 Responsibility.

(a) The RSC, D-7910, is responsible for determining all classifications of property and for assigning Federal Supply Classification numbers.

(b) The Movable Property System (MPS) contains the classification listing of nonexpendable property mentioned in 410 DM 114-60.400. Items not listed are generally expendable; however, good judgment must be used in the application of classifications. The listing is provided as a guide only. It is prescriptive with regard to the Federal Supply Classification and Suffix (FSC/SFX); cost account, and basic description. Property personnel must use good judgment in selecting the most definitive category, however.

(c) Any item of equipment may be accounted for in the MPS, at the direction of the Accountable Officer, for the express purpose of imposing a record control over that item.

(d) If in doubt about the appropriate classification, seek advice from the next higher office.


114S-60.401 Classification Criteria.

Terms used in this subpart have the following meaning (See also 114S-60.1):

(a) Nonexpendable. Nonexpendable property is property which has a continuing use, is not consumed in use, is of a durable nature with an expected service life of one or more years, has an acquisition cost of $300 or more, and does not become a fixture or lose its identity as a component of other equipment or plant.

(1) Capitalized. Nonexpendable property with an original cost of $5,000 or more which is charged to an asset (standard general ledger) account by Finance and Accounting Services and is to be distributed to capital accounts in accordance with established Reclamation procedures.

(2) Noncapitalized. Nonexpendable equipment with an original cost of less than $5,000 and is charged to an expense or operating account upon receipt and is controlled by Custodial and/or Cognizant employees.

(3) Sensitive. Sensitive equipment is nonexpendable property regardless of the original cost, which is controlled by a detail property accountability record, and has been determined by the accountability unit or accountable office to be sensitive by its high probability of theft or misuse, or its susceptibility to pilferage, theft, or misappropriation regardless of original cost. Refer to 114S-60.100(bb) for a detailed listing of sensitive equipment.

(b) Expendable. Expendable property is that which is consumed, loses its identity, or becomes an integral part of other property when put to use or has an expected service life of less than 1 year (example: materials and supplies).

(c) Property Control Number (PCN). A unique number assigned and affixed to each item of nonexpendable equipment, whether the equipment is purchased, fabricated, transferred in, received from excess, borrowed, rented, or leased. See also 114S-60.602.

(d) Installed. Installed equipment is equipment/property that is hard-wired, bolted down or onto another piece of equipment and becomes an integral part of that equipment, and/or is an item that cannot function without its counterpart.


114S-60.401-70 Equipment Classified as Noncapitalized or Expendable.

(a) Items clearly expendable by definition are not listed in MPS system. Items listed in Appendix F in the MPS and designated as noncapitalized have been so determined administratively. Items in general do not warrant the treatment accorded other nonexpendable property. Such items will be accounted for and treated the same as materials and supplies. For methods and procedures on processing, evaluating, and documenting items returned to stores see 114S-60.7.

(b) The disposal procedures in 41 CFR 101-43 and 41 CFR 101-45 will be followed.

(c) Offices will ensure that appropriate safeguards and controls are established at the operating office level. Offices will ensure that appropriate safeguards and controls are established to guard against:

(1) Excessive losses,

(2) Excessive purchases or withdrawals when compared to program requirements for any specific items, or

(3) Use of property for other than official purposes.

The use of annually issued memoranda, tool checks, or modified versions thereof will satisfy the record requirements of adequate notification of employees property responsibilities. For example, a standard tool or instrument kit may be issued to computer technicians, mechanics, or draftsmen simply by virtue of the position and without taking a receipt of any kind. In such circumstances there should be on file a listing of items that make up the type of kit and the job classification receiving it, so the accountability unit will have this information in clearing employees in the event of job transfer or termination. Moreover, individual kit items can be replaced without making a responsibility record if worn out items are turned in, or a satisfactory explanation is given in the event of damage or loss. The decision to issue item replacements without cost or to make an appropriate charge for damaged or lost items is discretionary with the local accountability unit, dependent on circumstances, or unless otherwise determined by the Accountable Officer. (See also 114S-60.8.)


FPMR-22 - 11/27/95