1.14.4  Personal Property Management

Manual Transmittal

November 24, 2014


(1) This transmits a revised IRM 1.14.4, Personal Property Management which addresses program operations of the Property and Asset Management Program in Facilities Management and Security Services (FMSS), Agency-Wide Shared Services (AWSS).


This IRM provides purpose, authorities, directives, and responsibilities for the Property and Asset Management Program.

Material Changes

(1) Updated IRS Disposal Codes and the Associated Property Documents were added. See Exhibit 1.14.4-2

(2) Updated policy guidance for using SF-122 versus Form 1933 (F-1933) was added to reflect TIGTA audit recommendations. See IRM

(3) Updated the organization name throughout of Real Estate and Facilities Management (REFM) to Facilities Management and Security Services (FMSS). This is due to the merger of Physical Security and Emergency Preparedness (PSEP) and Real Estate and Facilities Management effective October 1, 2014.

Effect on Other Documents

This supersedes IRM 1.14.4 dated May 8, 2012, and should be referenced in conjunction with IRM 1.14.3, Furniture and Equipment Standards, and IRM 1.14.7, Motor Vehicle Management, and IRM 2.14.1, Asset Management, Information Technology (IT) Asset Management.



Effective Date


Kevin Q. McIver, Director
Facilities Management and Security Services (FMSS)
Agency Wide Shared Services (AWSS)  (11-24-2014)

  1. The IRS Property and Asset Management Program is based on the following law, regulations, Executive Orders, Treasury Directives, and IRS policy:

    1. The Federal Property and Administrative Services Act of 1949, Sections 202 - 206

    2. Federal Property Management Regulation (FPMR) 41 CFR 101-25, 101-48

    3. Federal Management Regulation (FMR) 41 CFR, SubChapter B, Part 102-31 through 102-42


      The Federal Management Regulation (FMR) is the successor to the Federal Property Management Regulation (FPMR). It contains updated regulatory policies originally found in the FPMR. However, it does not contain FPMR material that described how to do business with the GSA.

    4. Federal Acquisition Regulations (FAR) 7.4

    5. The Gift Authority Statute, 31 USC 321(d)

    6. Executive Order 12999, Computers for Learning

    7. Treasury Directive (TD) 61-04, Foreign Gifts and Decorations

    8. Treasury Directive (TD) 61-09, Department of the Treasury Gift Acceptance Authority

    9. Treasury Directive (TD) 73-01, Personal Property Management  (11-24-2014)

  1. Personal Property is generally defined as property which can include any asset other than real estate. The distinguishing factor between personal property and real estate is that personal property is movable and not fixed permanently to one location, such as land or buildings. In IRS, the Property and Asset Management Program oversees the management of all non-Information Technology personal property assets, and administers the program in compliance with the law and regulations referenced above. Information Technology assets are managed by Information Technology (IT) and their program requirements are addressed in IRM 2.14.1.  (11-24-2014)
Roles and Responsibilities

  1. The Property and Asset Management program requires the participation of several employees within FMSS to ensure the separation of duties, the safeguarding of property, and the protection of employees from any appearance of bias or misappropriation of government assets. In IRS, responsibilities referenced in the Federal Management Regulations are generally assigned as follows:

    1. Property Officer - the FMSS Section Chief with responsibility for the property inventory and the Property and Asset Management Program in their designated territory.


      Many of the analysis or investigative responsibilities in property management may be delegated from the Property Officer to FMSS Property Consultants. However, approval action is required by the management official or section chief over the Property and Asset Management Program.

    2. Custodial Officer - the management official accountable for federal personal property in the building or office. Depending upon the location, this may be the FMSS Section Chief (the Property Officer), or in smaller offices it may be the Senior Commissioner's Representative, or the Administrative Officer.

    3. Survey Officer - the government official appointed to investigate any loss to the government. Usually this assignment is given to the Property Officer, but for incidents that occur in outlying offices, it may be given to another management official.

    4. Approving Authority - the FMSS Territory Manager is usually the approving authority for survey investigations related to lost or damaged property.  (11-24-2014)
Utilization of Personal Property

  1. IRM 1.14.3, Furniture and Equipment Standards, and the National Workspace Standards , are used to determine the assignment and use of personal property within IRS.

  2. All employees of IRS are responsible for proper care and protection of property they use or control. Any employee witnessing a violation of this responsibility should report it to his/her immediate supervisor or custodial officer. Employees may be held liable for willful negligence resulting in damage or destruction to government property ( IRM, Report of Survey-Initiating Survey Action).

  3. Supervisors will notify custodial officers when property becomes excess because of unfilled vacancies or work program changes. Such property should be reassigned to achieve maximum use.

  4. Maximum use of equipment also depends upon an effective maintenance and repair program. Maintenance agreements are to be used only when they cost less than other types of service calls or unusual circumstances justify their use (IRM, Maintenance, Repair, and Rehabilitation).

  5. Property officers will weigh costs of repairs and preventive maintenance agreements against the value of the property and its expected remaining usefulness. Repair records on individual items of property are useful in decisions between repair and replacement of property. For repairs to office equipment, individual machine repair records listing the cause and cost of each repair should be maintained.  (11-24-2014)
Large-Scale Furniture Procurement

  1. FMSS Territory offices should annually determine their requirements for office furniture. Consolidated requests submitted to meet servicewide needs may permit a negotiated contract resulting in substantial savings. Anticipated growth should be considered in determining property requirements, as well as replacement needs from wear and tear.

  2. For common use items such as chairs, desks, systems or modular furniture, it may prove advantageous to negotiate a servicewide contract through FMSS Headquarters.  (11-24-2014)
Acquisition of Personal Property

  1. The internal redistribution of property among offices is essential to gaining further use of excess property. Excess property available from other IRS offices or federal agencies may satisfy the needs of the receiving office at little, if any, cost.  (11-24-2014)
Transfer from other IRS Offices

  1. IRS offices have first choice of service-owned excess property through the circulation of excess property lists among territories. Property Officers who maintain well-planned, long-range requirements find this method of acquisition advantageous. However, before requesting transfers from other IRS offices, consider transportation costs as well as age, condition, rehabilitation costs, degree, and duration of need of the item.  (11-24-2014)
Transfer from other Agencies

  1. Property that is excess to other agencies can be an important acquisition source for Property Officers. Property transferred from other agencies should be carefully selected. It should not only satisfy a bona fide need but should also be acceptable in age, condition, and costs of alteration and transportation.

  2. Regulations governing transfer of excess property are found in FMR 102-36, Disposition of Excess Personal Property.

  3. Standard Form 122 (SF-122), Transfer Order, Excess Personal Property, is used to record the acquisition or transfer of excess property from other federal agencies or within Treasury bureaus.  (11-24-2014)
Purchase or Lease Determinations

  1. Before initiating equipment or furniture acquisitions, consider:

    1. Length of time the property is to be used, including extent of use,

    2. Financial and other advantages of all types and makes available,

    3. Lease cost and purchase options,

    4. Costs of purchase and installation,

    5. Technological or environmental improvements,

    6. Cost comparisons used to support lease versus purchase, and,

    7. Other pertinent facts in support of the acquisition.

  2. Sources of acquisition through purchase or lease and other procurement criteria are outlined in FPMR 101-25 and FAR Subpart 7.4.

  3. Property which can be purchased should not be rented or leased if purchasing would be more economical. Sometimes a "lease/purchase " agreement is advantageous. FMSS Territory offices may enter into such agreements subject to the responsibilities and limitations outlined in FAR Subpart 7.4, Equipment Lease or Purchase.

  4. IRS must use General Services Administration (GSA) Federal Supply Service contracts as the first source of supply to obtain required items, in lieu of procuring similar items from other sources, if the required purpose can be served.  (11-24-2014)
Forfeiture of Seized Assets

  1. Duly authorized Internal Revenue Law Enforcement Officers may seize property for forfeiture to the United States when the property is used, or intended for use, in violation of the Internal Revenue Code and certain other Federal Statutes. Under some circumstances, this property may be assigned to IRS if it is suitable for government use and a need exists. Forfeiture of seized property is reported on Form 1570, Declaration of Forfeiture, since this form is used as a source document for bringing the property into use.


    Property seized and forfeited for delinquent taxes is not included. The Compliance Division disposes of such property through established procedures within IRS and through an Interagency Agreement. IRS does not bid on such property.  (11-24-2014)
Disposition of Foreign Gifts, Decorations and Unconditional (In-Kind) Gifts

  1. In accordance with FMR part 102-42 and Treasury Directive (TD) 61-04, government employees are responsible for following guidelines established for the acceptance of gifts offered by foreign governments. The following outlines procedures to follow when a gift is accepted, and does not reiterate the restrictions in the regulations cited above.

  2. In accordance with Delegation Order 1-24, as revised, the FMSS Associate Director, Operations MidAtlantic, is the official designated to evaluate and dispose of foreign gifts and decorations tendered to IRS employees. The designated official who receives and evaluates the gifts maintains an incoming gift log that shows the determined value of the gift.

  3. Definitions used in these instructions are consistent with TD 61-04 and can be found therein.

  4. Procedures for reporting tangible foreign gifts require that an employee who has accepted a tangible gift shall within 30 days, relinquish it to the designated official for evaluation. The employee shall file a statement with the designated official that will include the following information for each tangible gift received:

    1. Name and position of employee,

    2. Brief description of gift and circumstances justifying acceptance,

    3. Identity, if known, of the foreign government and name and position of person who presented the gift, and

    4. Date of acceptance of the gift.

  5. If an employee receives a gift of travel or related expenses, he/she shall submit a statement to their designated official within 20 days of the travel. The statement shall be formatted as in paragraph (4) above. This requirement applies only to travel taking place entirely outside the United States and not accepted by IRS in advance of the trip.  (11-24-2014)
Disposition of the Gift

  1. The Designated Official is responsible for evaluating and disposing of tangible gifts in accordance with TD 61-04.

  2. The FMSS Associate Director, Operations MidAtlantic, is the designated official for receiving, evaluating, and requesting acceptance from Treasury, through FMSS Headquarters, Management and Administration, of Foreign Gifts and unconditional (in-kind) gifts, Delegation Order 1-24.

  3. When the value determination of a tangible gift is more than minimal value or if a travel expense, the designated official shall forward to FMSS Headquarters, Management and Administration, within (10) days, written documentation that includes:

    1. The employee's statement,

    2. Value determination of the gift,

    3. Whether the gift was returned to the donor,

    4. Retained for official use, or

    5. Placed in safe storage pending instructions from GSA.


      The gift should not be forwarded.

  4. In addition, each year by January 10th, FMSS Headquarters, Management and Administration, prepares a consolidated list of gifts received in excess of the minimal value and all travel-related expenses for the preceding year and forwards the list to the Director, Office of Asset Management, Department of the Treasury.

  5. Decorations may be accepted, worn, or displayed by an employee with the approval of the Secretary of the Treasury. If not approved, decorations shall be deposited with the designated official within 60 days of acceptance. The designated official will dispose of decorations as prescribed in the Treasury Directive.  (11-24-2014)
Acceptance of Unconditional (In-Kind) Gifts

  1. In accordance with FMR 102-36.415(c) and the Gift Authority Statute 31 United States Code 321(d), government employees are responsible for following guidelines for the acceptance of unconditional (in-kind) gifts and bequests which aid and facilitate the work of the Department. These instructions outline procedures for accepting an unconditional (in-kind) gift.

  2. Unconditional (in-kind) gifts are defined as both personal and real property (including bequests of money and proceeds from sales of other property received as gifts), which are used for aiding or facilitating the work of the Department of Treasury (e.g. donations of furniture or equipment from public sources requested to be used for a specific purpose or willing of real property to the Department of the Treasury). Unconditional (in-kind) gifts are not to be confused with foreign gifts or decorations, which are outlined in IRM

  3. Whenever a potential donor approaches an employee with the possibility of a gift to the Department of the Treasury, the employee should notify his/her supervisor in writing, and the supervisor should refer the matter to the designated official. If the gift is in the employee's possession, the employee shall relinquish the gift to the designated official. The employee shall file a statement with the designated official and include the following information for each gift offered or received:

    1. Description of the unconditional (in-kind) gift, including date received;

    2. Value of the gift, including method and source of appraisal;

    3. Name of the donor;

    4. Location of the gift, including specific building address and room number, and description of its use; and

    5. Any other available documentation concerning the gift, including its acceptance on behalf of the Department of the Treasury.

  4. The designated official forwards the statement to the FMSS Headquarters, Management and Administration, within ten (10) days of receipt from the employee. The gift should not be forwarded.

  5. Within five (5) days of receipt of the statement from the designated official, Management and Administration will forward the statement to the Department of the Treasury.

  6. The Assistant Secretary of Treasury (Management) may accept or reject the offer in accordance with TD 61-09.

  7. Treasury will notify the designated official whether the gift is accepted or rejected within 15 days. If the gift is rejected and the FMSS Territory office is in receipt of the gift, the gift and a copy of the rejection letter shall be returned to the donor.

  8. Gifts or bequests that are offered and approved as unconditional (in-kind) shall be received and held by the designated official. If the gifts are of such a nature as to be unusable or no longer required by the receiving agency, they are to be reported to GSA as excess property under FMR 102-36.210 through 102-36.240. If gifts are sold, the funds are credited to the Treasury Gifts and Bequests Fund account. In these instances, the Property Officer forwards a copy of the documentation to the FMSS Finance organization.

  9. The Property Officer is accountable for the gift in the same manner as all other government property acquired from other authorized sources. Gifts meeting the reporting criteria of personal property valued at $5,000 or more will be entered into the Knowledge/Incident Problem Service Asset Management (KISAM) system as purchased property and recorded at their fair market value.

  10. A complete inventory list of all unconditional (in-kind) gifts accepted, regardless of value, shall be submitted after the end of each fiscal year, not later than October 11th to FMSS Headquarters, Management and Administration. The required data shall be submitted by memorandum containing the information cited in paragraph 4 above.  (11-24-2014)
Accountability, Control, Records, and Reports

  1. Under federal regulations, each agency must establish quantitative and monetary controls over its personal property.  (11-24-2014)

  1. KISAM provides a complete integration of perpetual inventory accounts with the general ledger accounts to meet these requirements.

  2. Property inventory coordinators shall take physical inventories of non-expendable property at regular intervals.  (11-24-2014)
Control Responsibilities

  1. Property and Custodial Officers control all property and safeguard it from loss, breakage, or undue deterioration until the property is moved, on proper authority, from their jurisdiction.

  2. All IRS Property Passes and Custody Cards are obsolete and no longer required.

  3. Criminal Investigation Headquarters is responsible for control of investigative equipment. IRM 9.10.1, Criminal Investigation Management Information System (CIMIS), identifies investigative equipment, defines responsibilities, and sets forth procedures for the Investigative Equipment Program.

  4. Property will remain in the office to which it is assigned unless the Property Officer authorizes its removal.

  5. IRS will use personally-owned property only if:

    1. Authorized by IRS or Treasury regulations or written agreements, approved in writing by the appropriate Property Officer, or

    2. Required because of an emergency. If authorized and used, property owned by individuals, employees or others, may be serviced and repaired at government expense. However, this provision does not include service or repairs for personally-owned firearms or vehicles.  (11-24-2014)
Demonstration and Test of Equipment or Tangible Items Owned by Private Contractors

  1. Demonstrations and tests of equipment or other tangible items with a commercial vendor must be prearranged through the Contracting Officer in addition to the Property Officer. Prior approval of the Property Officer must be obtained to make sure that any property provided for demonstration or test is cleared to enter or exit the building.

  2. When equipment or tangible items are to be left for demonstrations or tests, the Contracting Officer notifies the Property Officer and provides the vendor, in writing, the dates of the demonstration or test and when the equipment or tangible items are to be removed. The letter will emphasize that IRS assumes no responsibility for damage or loss of equipment unless such loss or damage is caused by the negligence of IRS employees. Guidelines for Testing Equipment are contained in IRM of this IRM.

  3. Full consideration should be given to establishing rental agreements in lieu of free use of vendors' equipment. Such agreements should define the government's liability should damage occur because of IRS employee negligence. Coordination with Procurement staff should assure that all necessary terms and conditions are included in the rental agreements.

  4. Under no circumstances should a vendor who provides free use of equipment be given any indication that the IRS will commit to a future procurement or that the IRS endorses the product.  (11-24-2014)
Rented or Leased Property

  1. Property shall be rented or leased only when it is economically feasible or cost beneficial.

  2. FMSS Headquarters notification is required on all proposed rentals or leases of property, other than Information Technology (IT) and peripheral equipment, when the annual cost exceeds $100,000.

  3. When submitting notification to FMSS Headquarters on rental or lease of property, furnish the following information:

    1. The purpose for which property will be used,

    2. The number of months required and rental/lease costs, and

    3. Savings, if any, that may result.

  4. Each Property Officer will maintain capitalized rented or leased property under his/her jurisdiction on KISAM.  (11-24-2014)
Flexiplace Furniture

  1. Property provided to Flexiplace employees is governed by an agreement with NTEU, which currently allows occupational flexiplace employees to receive one file cabinet for their home use. Instructions for ordering Flexiplace Furniture are provided in IRM 1.14.2, Supply Purchasing Program.  (11-24-2014)
Control of Portable Personal Property

  1. Employees will not remove property from IRS offices except for conducting official business. The property must be returned to the office as soon as practical.

  2. The employee (recipient) is responsible for the property while it is in his/her possession.

  3. If the Custodial Officer is someone other than the supervisor, the employee must notify the Custodial Officer when transferring or terminating employment. Such notification will enable the Custodial Officer to ensure that any property assigned or loaned to the employee has been returned.  (11-24-2014)
Temporary Removal of Property from IRS Offices

  1. IRS personal property may be removed temporarily from the premises for:

    • Official use by an IRS employee

    • Loan to another government agency

    • Repairs  (11-24-2014)
Borrowed or Loaned Property

  1. Borrowing or loaning personal property must have prior approval of the local Property Officer or supervisor.

  2. Removal of property requires the approval of the local Property Officer.  (11-24-2014)
Temporary Loan of Property to/from Another Government Agency

  1. Property may be temporarily loaned to or borrowed from another government agency when prior approval is obtained from the local Property Officer.

  2. The Property Officer prepares SF-122, on all property loaned to another agency. Procedures to prepare the SF-122 are as follows:

    1. The Property Officer prepares an original and four (4) copies, forwarding the original and three (3) copies to the Custodial Officer and retaining one copy in a pending file.

    2. The Property Officer notes on SF-122 that the transaction is a "loan" to prevent confusion with other SF-122 forms prepared to record permanent transfers between IRS offices.

    3. The Custodial Officer arranges for release of the property, enters the necessary shipping information on the SF-122, retains one (1) copy, and forwards the original and two (2) copies to the borrowing agency, requesting the agency to sign and return the original and one (1) copy to the Property Officer.

    4. When it is returned, the Property Officer retains the signed form in a Loaned Property file. The pending file copy is then stored in the Custodial Officer's location file.

    5. One (1) copy of the completed loan document is forwarded for appropriate action to the local KISAM Inventory Coordinator for notation in KISAM.

    6. When the property is returned to the loaning office, the Custodial Officer sends the signed original to the borrowing agency and notes the date of return on the pending copy in the Custodial Officer's location file.

    7. A copy of the form is provided to the Property Officer, and the KISAM Inventory Coordinator for appropriate action.

  3. When equipment is temporarily borrowed from another agency, any documents the lending agency provides are filed in a Borrowed Property file in FMSS. The Custodial Officer files copies of the documents in his/her location file for the office using the equipment. Copies are also provided to the KISAM Inventory Coordinator.

  4. Any expense involved in transporting the property is assumed by the receiving office.  (11-24-2014)
Transfer and Receipt of Property

  1. FMSS Property Officers may transfer property to or from other IRS offices or government agencies.

  2. Where possible, the Property Officer should give priority to the following factors before making a transfer:

    1. Requests from other IRS offices,

    2. Requests from other Treasury bureaus, and

    3. Transportation costs (to be paid by receiving offices).

  3. Under Executive Order 12999, the Computers for Learning Program allows government agencies and the private sector to transfer surplus computers and related computer peripheral equipment to schools and educational nonprofit organizations. Special consideration is to be given to those with the greatest need (those located in a Federal empowerment zone or enterprise community). Further information is available at http://www.computers.fed.gov/public/aboutProg.asp.

  4. Standard Form 122, Transfer Order, Excess Personal Property , is used to authorize, and document transfers of property between property offices, to other bureaus in the department, to schools, and to other federal agencies. It may also be used for transfers of property between IRS offices, but its use for this requirement is optional. Each SF-122 report shall be sequentially numbered. The number will begin with TR, for Transfer Order, the FMSS Territory office code, an office indicator (optional), the two digit fiscal year, and a three digit serial number, beginning with number 001 for the first report each fiscal year.



  5. If the office elects to use the SF-122 for transfers between IRS Property Officers:

    1. The transferring Property Officer prepares an original and four (4) copies of SF-122, forwarding the original and two (2) copies to the receiving Property Officer, keeping one (1) copy in a suspense file, and providing one (1) copy to the local KISAM Inventory Coordinator.

    2. The receiving Property Officer signs all copies, returning the original copy to the transferring Property Officer, keeping one copy for his/her file, and providing one (1) copy to the local KISAM Inventory Coordinator.

    3. Upon return of the signed original, the transferring Property Officer attaches the copy to the suspense file copy and maintains them in his/her file.

  6. For transfers between other Treasury bureaus and federal agencies:

    1. The local Property Officer coordinates transfers with other agencies or offices.

    2. When property is transferred between federal agencies, the SF-122 is prepared by the receiving office. However, when property is transferred to state or other non-federal agencies through the Computers for Learning Program the losing office should prepare SF-122. This does not apply to other donations to non-federal agencies.

    3. One (1) copy of the SF-122 is provided to the local KISAM Inventory Coordinator for appropriate action.

  7. Prior to transfer or disposal of any printing equipment, approval by the National Office Multimedia Production Division is required.  (11-24-2014)
Transfer of IT Equipment between IRS Offices

  1. Transfers of computers and peripheral equipment between IRS offices is coordinated between the IT Asset Inventory Personnel and the FMSS Territory office. The releasing FMSS office is responsible for:

    1. Providing notification of transfer date, type, and quantity of equipment, whether owned or rented, packing information, method of shipment to the receiving IRS office, and preparing the SF-122, if the form is used for the transfer;

    2. Notifying the vendor, at least 30 days prior to the transfer, if it involves rented equipment;

    3. Proper packing of the equipment for shipment. It is best if the manufacturer packs the equipment, especially leased equipment. If this cannot be arranged, the shipping office may either obtain packing instructions from the manufacturer and prepare the equipment for shipping or hire a competent packer to perform the task.

  2. When transferring IT equipment between IRS offices, the local FMSS Property Officer at the shipping and receiving locations should notify the KISAM Inventory Coordinators.  (11-24-2014)

  1. Records are to be established and maintained under the appropriate property headings as prescribed in these instructions and other related regulations. The General Records Schedule IRM 1.15.3, contains records disposal and retirement instructions. The primary records schedules that cover Property Management (General Records Schedules 3 and 4) are referenced in Document 12829 General Records Schedule, Catalog number 54713E.  (11-24-2014)
Knowledge, Incident/Problem Service Asset Management (KISAM), General Provisions - System Description

  1. KISAM is the main IRS inventory system and is a subsidiary account to the general ledger for managing personal property. Through KISAM, each piece of inventory can be tracked from the procurement process through placement, and later disposal. This Section deals specifically with the inventory tracking through KISAM for non-IT assets only. Inventory of IT assets is discussed in IRM 2.14.1, and is managed by Information Technology (IT).

  2. KISAM provides a real-time centralized database of all non-IT personal property that meets the IRS inventory threshold. Non-IT assets inventoried on KISAM are those assets with an acquisition cost of $5,000 or more, all high-risk designated property with an acquisition cost of $1,000 or more, all leased property, and all motor vehicles owned and leased, other than those investigative motor vehicles controlled by Criminal Investigation.

  3. KISAM utilizes either a graphical user interface (GUI) or Windows, or a character user interface (CUI) or text mode. Data fields are used for entering, processing, and retrieving data. The database resides on the KISAM host system, located at the National Office Command Center (NOCC).

  4. In the Asset Center Management mode of KISAM, a user can:

    1. Process all basic property accountability actions relating to all types of non-IT property. Actions include Add, Update, Dispose, and Transfer of records;

    2. Electronically transfer asset records from one IRS office to another;

    3. Audit all critical property management actions through the use of transaction history, including tracking the full life cycle of non-IT property assets. Track acceptance testing for any test equipment and automatically compute pass/fail performance dates;

    4. Associate maintenance contract and maintenance cost data to assets; and

    5. View and download standard Asset Management reports data for printing.

  5. KISAM maintains property data on personal property assets. The database contains information about capitalized non-IT assets; IRS owned, leased, and GSA assigned motor vehicles. Property items are controlled on the database by barcodes, including GSA assigned, IRS owned and commercially leased motor vehicles.

  6. KISAM uses barcode labels, laser scanners, and personal and laptop computers during program operations. Asset data can be input directly into the PC by a communications link and software package. Property assets requiring control are barcoded with a unique barcode number and entered into the KISAM system by property technicians in local offices. The exception is systems furniture which is barcoded with one barcode for each workstation instead of each component. Adjusting entries on KISAM are made, as needed, by property technicians either directly through keyboard entry or through scanning guns. As new items are acquired, copies of source documents are forwarded by Procurement to the local FMSS office for notification of future delivery. When the items are received, they are barcoded and either put into use or placed in storage for later use.

  7. All offices are required to conduct an annual inventory of required assets meeting IRS threshold. As part of the inventory, offices are required to reconcile all missing and misplaced assets with the KISAM database.  (11-24-2014)
Access Authority/Restrictions – General

  1. Each FMSS Territory Office has access to the database for its assigned posts of duty.

  2. Each FMSS Territory Office system is permitted as many lower level (read and write permission) users as required.

  3. System access to KISAM is controlled by MITS at the National Office level. The FMSS Headquarters KISAM Coordinator has no authority to provide passwords and access permission required by local users, but will request them on behalf of the FMSS Territory users.

  4. Passwords for access to KISAM must be obtained from the National Office MITS Security Administrator through the FMSS Headquarters KISAM Coordinator.

  5. Users are required to complete an Online Form 5081, Authorized Information System (AIS) – User Registration/Change Request, and forward it online to the FMSS Headquarters KISAM Coordinator.

  6. The FMSS Headquarters KISAM Coordinator has access to the entire agency-wide database for review and generating agency-wide reports.  (05-08-2012)
Separation of Duties

  1. To ensure that the property management duties and functions are appropriately separated, no employee shall be responsible for two or more of the following duties:

    1. Acquiring property,

    2. Receiving property, or

    3. Inventorying property onto KISAM.  (05-08-2012)
KISAM Database – Creating/Uploading

  1. Data collection for KISAM is accomplished on the local system in two ways:

    1. Specific data can be collected by and stored, in the scanner gun and uploaded to the PC through a data communications link.

    2. Data can be entered directly into the PC through the keyboard.

  2. Detailed instructions for operating KISAM and creating/updating the database can be found in IRM 2.14.1, Information Technology Asset Management.

  3. Input to the system should be done on a timely basis to ensure that all data on the system reflects the current status of all assets.

  4. New assets should be input into the system when received and no later than ten business days after receipt at the loading dock or warehouse.

  5. Transfers of assets from one location and/or organization within an office can also be completed with the scanner gun or at the PC. If the scanner is used, the system is not updated until the scanner is uploaded to the PC. All scanner uploads should take place within one day, or as soon as possible, after the completion of all transactions.

  6. Disposition of excess property should be recorded within KISAM as soon as possible but no later than ten business days after the assets have been physically removed from the control of the disposing office.

  7. All data fields on the inventory record should be correct and reflect the most current information on all assets.  (05-08-2012)
Useful Life Standards

  1. The useful life of an asset is the average number of years an asset is considered usable before its value is fully depreciated. Estimates of useful life consider factors such as physical wear and tear and technological changes that bear on the economic usefulness of the asset. The useful life of assets by category is as follows:

    Category Useful Life
    Investigative Equipment 6 Years
    Office Equipment (non-IT) 10 Years
    IT Equipment 3 Years
    Conventional Furniture 8 Years
    Systems Furniture 10 Years
  2. The GSA Motor Vehicle Replacement Standards are the minimum periods GSA prescribes for retaining vehicles, and they are as follows:

    Vehicle Category Fuel Type Years/Miles
    Passenger Vehicles Gasoline or AFV 3 years and 36,000 miles
    4 years and 24,000 miles
    5 years and any miles
    Any years and 75,000 miles
    Hybrid 5 years and any miles
    Light Trucks, 4 x 2 (< 12,500 lbs.) Non-Diesel 7 years or 65,000 miles
    Diesel 8 years or 150,000 miles
    Hybrid 7 years and any miles
    Light Trucks, 4 x 4 (< 12,500 lbs.) Non-Diesel 7 years or 60,000 miles
    Diesel 8 years or 150,000 miles
    Hybrid 7 years and any miles
    Medium Trucks, 4 x 2 or 4 x 4 (12,500 to 23,999 lbs.) Non-Diesel 10 years or 100,000 miles
    Diesel 10 years or 150,000 miles
    Heavy Trucks, 4 x 2, 4 x 4, 6 x 4 or 6 x 6 (> 24,000 lbs.) Non-Diesel 12 years or 100,000 miles
    Diesel 12 years or 250,000 miles  (11-24-2014)
Replacement Standards

  1. Minimum replacement standards should be met by any office trying to replace property. Replacement standards for motor vehicles are prescribed in FMR 102-34.270. In general, all other property meets replacement criteria if it is no longer usable or economical to repair. The Useful Life standards listed above, other than motor vehicles, have been set by IRS.

  2. KISAM defines assets as eligible for replacement based upon two factors: condition and/or the replacement standards. Condition codes used within KISAM are those set forth in FMR 102-36.240, "What are the disposal condition codes?" The prescribed condition codes are listed below:

    Code Definition
    1 New Property which is in new condition or unused condition and can be used immediately without modification or repairs.
    4 Usable. Property which shows some wear, but can be used without significant repair.
    7 Repairable. Property which is unusable in its current condition but can be economically repaired.
    X Salvage. Property which has value in excess of its basic material content, but repair or rehabilitation is impractical and/or uneconomical.
    S Scrap. Property which has no value except for its basic material content.  (11-24-2014)
Disposition of Property

  1. Assets are not considered disposed of on KISAM until they are physically removed from IRS premises through the disposal process.


    Disposed property inventory records are not deleted from the system immediately. They remain in a disposed status on KISAM until archived. Disposal records must be maintained for three years for oversight review.  (11-24-2014)
Disposition of Property - Transfer

  1. Transfer of property within an office's administrative jurisdiction can be performed on the scanner gun or on the PC. The transfer function allows offices to transfer assets from one location to another.

  2. Procedures for transfer of property between IRS administrative jurisdictions and other Federal agencies require the use of Standard Form 122, and are set forth in IRM, Disposition of Personal Property.  (11-24-2014)
Disposition of Property - Excess

  1. All property declared excess to the needs of a reporting function is disposed according to the procedures outlined in this IRM. Assets not inventoried on KISAM are excessed according to procedures outlined in IRM, Disposition of Personal Property, or in IRM 2.14.1, Information Technology Management.

  2. The KISAM Coordinator is responsible for ensuring that the correct barcodes and disposal codes are entered for each asset during the disposal process. The IRS Disposal Codes and associated source documents are listed in Exhibit 1.14.4-2. More detailed information can be obtained on the IT/UNS Asset Management IRM Policies and Procedures website: http://uns.web.irs.gov/AMGMT/Policies_and_Procedures.htm Note: Use of SF-122 Transfer Order is required for all transfers of IT equipment. Reports of Survey Form 1933) should only be used to document lost, stolen, missing or damaged property, or when exercising your Abandonment/Destruction (A/D) authority under FMR 102-36 and IRM The disposal of ‘Scrap’ furniture (if not transferred to another agency or public body) is included under your (A/D) Authority and, as such, would still require a Form 1933. Disposals of excess FEA require use of a SF-122 Transfer Order. Proper Completion of Personal Property Source Documents is critical for audit purposes.  (11-24-2014)
General Ledger Property Control Accounts

  1. While there is no direct connection of KISAM to the General Ledger Property Control Account, entries to KISAM and the general ledger must include similar source document information, e.g. purchase orders, transfer receipts, excess document numbers, or any other document reference that creates an increase in the dollar amount or quantity of property charged to an individual office.

  2. Where the useful life of property has been extended or the capacity to render service has been increased because of additions, replacements, alterations, or rehabilitation, the acquisition cost of the property shall be updated to reflect the additional cost of these services.

  3. Source documents must contain sufficient data to distinguish non-expendable assets from materials and supplies. In addition, source documents must disclose the cost, standard price, or current fair market value at which the property is to be recorded.  (11-24-2014)
Submission Requirements

  1. All employees involved in either an acquisition or disposal of property are responsible for forwarding copies of source documents to the appropriate functions as listed below:

    • Source documents for all furniture, non-IT equipment, and Criminal Investigation's non-sensitive equipment should be forwarded to the local FMSS Territory office.

    • Source documents for sensitive electronic surveillance equipment, weapons, and law enforcement-type vehicles owned by Criminal Investigation should be forwarded to National Office Criminal Investigation, for input into CIMIS. IRM 9.10.1, Criminal Investigation Management Information System (CIMIS), identifies investigative equipment, defines responsibilities, and sets forth procedures for the Investigative Equipment Program.  (11-24-2014)
Physical Inventories

  1. Physical inventories of non-expendable personal property shall be taken at regular intervals by the Property Officer and/or his/her designated representative and the results reconciled with KISAM inventory records. The frequency for conducting and reconciling the KISAM inventory has been set by IRS management as once a year.

  2. The principle purpose of taking physical inventories is to verify the existence of property recorded in the accounting records and, by observation or otherwise, determine the reliability of the results and update the records, as needed.  (11-24-2014)
Procedures – Requirements

  1. IRS is required to establish and maintain appropriate internal controls and accountability systems over all assets, particularly those items that are sensitive to theft. To comply with these requirements, all non-expendable property assets that meet the IRS established threshold are required to be maintained on KISAM and inventoried once a year.

  2. This encompasses non-IT assets with a cost of $5,000 or greater, all non-IT high-risk designated property with a cost of $1,000 or greater, all leased non-IT property, and all motor vehicles owned and leased, other than those investigative motor vehicles controlled by Criminal Investigation. Items controlled at these levels include:

    • Furniture and non-IT equipment

    • Leased furniture and equipment, and

    • Motor vehicles  (11-24-2014)
Furniture and Non-IT Equipment – General

  1. In addition to standard IRS furniture and equipment, KISAM also records and inventories furniture and equipment assigned to and/or used by agency-operated Fitness Centers and Child Care Centers, when the assets have been purchased by IRS, when IRS pays for general maintenance, and the assets meet IRS threshold requirements.

  2. Assets located in "joint use" facilities are inventoried on KISAM only if the responsibility for repair and replacement falls on IRS.

  3. Food service equipment and building systems equipment, e.g. refrigerators, steam tables, chillers, furnaces, etc., and any other equipment bought with funds under the delegated site authority budget are not inventoried on KISAM.  (11-24-2014)
Leased Furniture and Equipment

  1. All furniture and equipment assets acquired on a lease greater than 90 days are entered on KISAM.

  2. The monthly lease cost is entered in the monthly lease cost field.

  3. All assets acquired under a lease-purchase contract will be inventoried on KISAM.

  4. If the option to purchase is exercised, the acquisition method is changed to "Purchase " for the buyout. The acquisition date remains as originally entered at the beginning of the lease to allow for an accurate depreciated value.

  5. When the option to purchase is exercised, the acquisition cost will be determined by including the total amount paid on the lease from the original acquisition date plus any buy-out amount paid.  (11-24-2014)
Motor Vehicles – General

  1. The inventory of administrative vehicles owned or leased by IRS is conducted and maintained on KISAM by FMSS personnel.

  2. The inventory of law enforcement-type vehicles owned by Criminal Investigation is conducted and maintained by National Office Criminal Investigation on CIMIS.

  3. All other motor vehicles acquired on a commercial or GSA lease greater than 90 days are entered on KISAM.

  4. All motor vehicles are inventoried on KISAM with a barcode. The tag number and vehicle identification number are also recorded for further identification.

  5. See IRM 1.14.7 for the requirements of the Motor Vehicle Program.  (11-24-2014)
Seized/Forfeited Assets – General

  1. Assets seized/forfeited and placed into official use by a function in IRS are to be inventoried on KISAM or CIMIS as described below.

  2. Any seized/forfeited property retained by Criminal Investigation and used for investigative purposes must be reported to National Office Criminal Investigation for entry on CIMIS.

  3. Any other assets, except as discussed above, which are forfeited and place into official use by Criminal Investigation are to be reported to the local FMSS Territory office for input to the KISAM database.

  4. Form 1570, Declaration of Forfeiture, is prepared by the Chief, Criminal Investigation and must be provided as the source document for all administrative forfeitures placed in official use. The following data must be included on/with the Form 1570:

    • Acquisition date (Date Form 1570 was signed),

    • Acquisition cost,

    • Brief description of asset, and

    • Location of asset (Business Unit).

  5. A copy of Form 1570, and a memorandum advising of placement into official use from the Chief, Criminal Investigation is used to notify the local FMSS Territory office and Information Systems office of administrative forfeitures. For judicial forfeitures, a copy of the Order of Forfeiture and a transmittal memorandum from the Chief, Criminal Investigation, are to be used.

  6. The acquisition cost of seized assets should be based on the current market value of the asset.

  7. Disposal of all seized/forfeited assets that have been inventoried on KISAM are to be conducted according to guidelines set forth in IRM, Disposition of Personal Property.  (11-24-2014)
Barcode Labeling – General

  1. Barcode labels are to be affixed to all assets entered on KISAM.

  2. Barcode labels are scanned during subsequent inventories to associate property on hand with the existing database.

  3. Within KISAM, the barcode label is the key identifier. There can be no duplicates. To avoid duplication, field offices are not allowed to purchase labels independently without prior permission from the FMSS Headquarters KISAM Coordinator. FMSS Headquarters will maintain a stock of barcode labels for Agency-wide distribution. Local procedures may be developed and documented to ensure all labels are:

    1. Easily accessible for scanning during subsequent inventories,

    2. Minimally susceptible to mutilation or destruction during normal use,

    3. Not overly prominent to the eye so as to detract from the general appearance of the office, and

    4. In a standard location for each category of property.

  4. If the KISAM barcode label is destroyed or mutilated after the record has been entered onto KISAM, a new barcode label must be assigned to the asset. Replacement of the barcode will automatically update the property database and will leave a history record of the old barcode for administrative oversight.  (11-24-2014)
Reconciliation – General

  1. Reconciliation takes place during the recurring inventory cycle. Physical inventories of non-expendable property shall include property in use, in reserve storage, and property in storage awaiting disposal actions. The frequency of taking and reconciling physical inventories, as determined by IRS, is once a year.

  2. Reconciliation is the process of matching information gathered at the time of inventory with that recorded in the inventory system. Usually the scanner gun is used to scan the barcodes on inventory assets.

  3. When collection of data is complete, it is uploaded to KISAM through a personal computer and matched against the database.

  4. All reconciling entries should be made to the inventory record, or reports of survey completed on missing and lost assets, within 30 days after the physical inventory is complete.

  5. Assets that are required to be inventoried which are found without barcodes during the recurring inventory process shall be entered on the KISAM system within ten days after returning to the office.  (11-24-2014)
Quality Assurance – Management Reviews

  1. Periodic reviews by local management officials are necessary to ensure that KISAM data is timely and accurately reported.

  2. Local management shall also ensure that physical inventories are properly conducted in accordance with these guidelines. Ongoing reviews during the conduct of inventories and of subsequent transactions shall be accomplished to ensure that:

    1. All assets subject to inventory control and entry on KISAM are properly counted;

    2. Source document data is present on all assets purchased after Fiscal Year 1989;

    3. Barcode labels are properly used and affixed to property assets; and

    4. No areas such as storerooms, off-site locations or warehouses are overlooked during the inventories.

  3. Periodic management reviews shall also be accomplished to ensure that:

    1. Updated transactions such as disposals, transfers, and other modifications are reflected on the system, and

    2. Errors are promptly corrected.

  4. At the end of each recurring inventory cycle, all FMSS Territory offices are to submit to the Associate Director, Management and Administration, FMSS Headquarters, a statement certifying the recurring inventory is accurate and complete, according to all guidelines and requirements in this IRM.  (11-24-2014)
FMSS Headquarters Assistance – General

  1. Local FMSS KISAM Coordinators should contact the FMSS Headquarters KISAM Coordinator when they require assistance in meeting inventory deadlines, to report any questions or problems with the laser scanner or KISAM software, and with questions or problems concerning standard operating procedures.

  2. The Information Technology Support Desk should be contacted. Call the Operations Support Customer Assistance Line at 1-866-743-5748, to report all problems with the KISAM database and system failures. The Support Desk should also be contacted for assistance when the FMSS Headquarters KISAM Coordinator cannot resolve a system related problem.  (11-24-2014)
KISAM System Output

  1. The system is designed to produce a variety of reports compiled from the data input from each individual property record. Reports are generated through the query filter within KISAM and query results are exported down to the user's computer. Data is imported into secondary software, such as Microsoft Excel or Word for user created reports.  (11-24-2014)
Report of Survey - Initiating Survey Action

  1. Employee -- detects loss or damage of Government property and immediately reports to his/her supervisor.

  2. Supervisor -- promptly reports loss or damage to the Custodial Officer and the Property Officer.

  3. Custodial or Property Officer -- Prepares Form 1933, Report of Survey. If there is criminal activity suspected, they notify the appropriate security and investigative officials and forward the Form 1933 to Treasury Inspector General for Tax Administration (TIGTA) with an information copy to the local FMSS Office. Upon receipt of Investigative Reports or Return Statements from TIGTA, the Custodial Officer or Property Officer notifies and provides the FMSS KISAM Coordinator with the final signed Form 1933, supporting documentation, and all investigative documents. The Report of Survey and copies of all supporting documents are retained in the Accident File in the FMSS Property records.

  4. Custodial/Property Officer -- If there is no criminal activity or an ongoing investigation, the Custodial/Property Officer conducts a preliminary survey and associates his/her findings in writing with the Form 1933 and forwards it to the Approving Authority. For damaged property, the report is prepared only after he/she has:

    • Inspected the damaged property;

    • Assessed the property's value through the help of technically qualified persons (either government employees or commercial representatives);

    • Obtained an estimate or repair costs; and

    • Determined the feasibility of having the property repaired.

  5. If the Custodial Officer, not the Property Officer, conducts the preliminary survey and the Property Officer determines that additional review of circumstances is needed, the Property Officer shall undertake a more detailed investigation. All available information, including accurate identification of the Government property to be surveyed and all prior actions taken, is recorded on Form 1933, Report of Survey (original and four copies).

    1. In damage cases, the Property Officer reports on, or attaches to the form, all detailed information received from the Custodial Officer and will also enter a depreciation estimate from the acquisition cost.

    2. If theft is suspected in a loss, the Property Officer notifies TIGTA, building security, the GSA building manager if appropriate, and the local police.

    3. In all cases of loss, the Property Officer ascertains the validity of the loss by checking such related records as outstanding repair service orders, records of loans to other Government agencies, and transfer orders. He/she may also review purchase order files for serial numbers of items traded-in and circulate a list of serial numbers and descriptions to other officers.

    4. If an employee admits losing, damaging, or destroying property and volunteers repayment, the Property Officer will obtain such an agreement in writing. When the employee has submitted the written statement, the Property Officer sends the originals of Form 1933 and the written statement to the Approving Authority. Copies of each are retained in the local FMSS Territory office, sent to the Beckley Finance Center for collection, and to the involved employee and their supervisor. Copies should also be kept in the Report of Survey file and the appropriate property office file.

  6. Approving Authority - reviews all information contained in the Report of Survey/Accident File and determines if any further action is required. If no further action is required, signs and dates the survey. If additional action is required, forwards the survey to the Survey Officer for follow up action.  (11-24-2014)
Survey Action

  1. All investigations performed by the Property Officer or the Survey Officer include:

    1. An examination of damaged property,

    2. A thorough review of information on acquisition cost, depreciation, repair or replacement estimates, and salvage or sales value,

    3. Interviews with employees having knowledge of the incident,

    4. A statement of the amount of loss to the government,

    5. A statement of the cause of the loss,

    6. A statement of who was responsible for the loss, and

    7. Consideration of any previous instances of negligence, improper use, misuse, or destruction, and consideration of actions taken by the person involved to improve or correct the circumstances that caused the situation being investigated.

  2. Before the Survey Officer determines financial liability or recommends consideration of disciplinary action against an employee, the employee must be notified in writing so that he/she may request a hearing or submit a written statement of circumstances in his/her behalf.

  3. The Survey Officer may impose recommendations of financial liability or consideration of disciplinary action only when there is evidence that gross negligence or willful disregard of regulations was the proximate cause of the loss. Financial liability against an individual is the actual amount of loss to the Government. This amount is the difference between the value of the property immediately before its loss, theft, damage or destruction and its value immediately after. The liability amount is determined as follows:

    1. If the property is damaged and repairable and the cost of repairs is less than the depreciated value of the property, the amount is the cost of repairs;

    2. If the property is damaged and is not repairable, or the cost of repairs exceeds the depreciated value of the property, or the property is destroyed, the amount is the depreciated value of the property minus any salvage or scrap value.

    3. If the property is lost or stolen, the amount is the depreciated value of the property.

  4. Depreciation may be figured by applying the following rates to each category:

    Property Category Useful Life Daily Rate
    Furniture 8 Years .0003425
    Office Equipment 10 Years .0002740
    IT Equipment 3 Years .0009132
    Investigative Equipment 6 Years .0004566
    Motor Vehicle Category Fuel Type Years/Miles Daily Rate
    Passenger Vehicles Gasoline or AFV 3 years and 36,000 miles .0009132
    4 years and 24,000 miles .0006849
    5 years and any miles .0005479
    Any years and 75,000 miles Fully Depreciated
    Hybrid 5 years and any miles .0005479
    Light Trucks, 4 x 2 (< 12,500 lbs.) Non-Diesel 7 years or 65,000 miles .0003914
    Diesel 8 years or 150,000 miles .0003425
    Hybrid 7 years and any miles .0003914
    Light Trucks, 4 x 4 (< 12,500 lbs.) Non-Diesel 7 years or 60,000 miles .0003914
    Diesel 8 years or 150,000 miles .0003425
    Hybrid 7 years and any miles .0003914
    Medium Trucks, 4 x 2 or 4 x 4 (12,500 to 23,999 lbs.) Non-Diesel 10 years or 100,000 miles .0002740
    Diesel 10 years or 150,000 miles .0002740
    Heavy Trucks, 4 x 2, 4 x 4, 6 x 4 or 6 x 6 (> 24,000 lbs.) Non-Diesel 12 years or 100,000 miles .000228311
    Diesel 12 years or 250,000 miles .000228311
  5. Asset age is calculated by counting the number of days from the Acquisition Date until the Loss Date.

  6. Select appropriate Category. Multiply Category's Daily Rate by the asset's age (in total days) times the asset's original acquisition cost. This produces the total depreciation of the asset. Subtract the total depreciation from the original acquisition cost. The resulting figure is the total depreciated value of the asset. The following example calculates the current depreciated value of an Office Equipment asset that was purchased on January 1, 1999, for $600, and lost on May 15, 2002.

    Rate   Age   Acq. Cost   Dep. Amount Dep. Value
    .0002761 x 1230 x $600 = $203.76 $396.24
  7. The Property Officer is authorized to request any information or records needed to arrive at a recommendation.  (11-24-2014)
Completion of Survey Action

  1. The Survey Officer reports findings and makes survey recommendations on Form 1933 or on an attached memorandum. All copies of Form 1933 are signed by the Survey Officer and forwarded to the Approving Authority for review and approval.

  2. The Approving Authority reviews the recommendations and signs as the final approver or returns the document to the Survey Officer with comments for follow up action.  (11-24-2014)
Damage to Automobiles

  1. The IRM 1.14.7, Motor Vehicle Management sets forth procedures for investigating automobile accidents. Instead of conducting a separate investigation, the Survey Officer reviews the documents contained in the accident report and associated documents in the file and makes a recommendation based on information developed from the review.

  2. Damage to IRS-owned or commercially-leased motor vehicles for which a repair estimate of less than $1,500 has been obtained will not be surveyed unless the Property Officer has reason to believe from the accident report that the loss may have been caused by improper operation or willful misconduct. Any damage estimated to cost more than $1,500 to repair a vehicle is cause for a survey action.

  3. A Report of Survey investigation is conducted for damage in excess of $1,500 to GSA vehicles driven by IRS employees when:

    1. GSA has assessed IRS for the repair cost, and

    2. IRS has determined that damage is not the result of negligence or willful act of a third party (person other than IRS employee).  (11-24-2014)
Approving Action Procedures

  1. Upon receiving the completed Form 1933 from the Survey Officer, the Approving Authority personally reviews the entire file, giving particular attention to:

    1. adequacy of the investigation

    2. clarity and validity of findings and recommendations,

    3. application of appropriate criteria in recommendations, and

    4. statements of persons cited for financial responsibility or against whom a recommendation for consideration of disciplinary action has been taken.

  2. If available information is not sufficient to evaluate the recommendation satisfactorily, the Approving Authority may request more data from the Property Officer.

  3. After careful consideration of all facts, recommendations, and any extenuating circumstances, the Approving Authority either concurs and approves the recommendations or disapproves and furnishes written instructions for disposition of the survey.

  4. In either case, the Approving Authority signs the original and all copies of Form 1933 and returns them to the originating Property Officer.

  5. Upon receipt of the Form 1933, the Property Officer adjusts the records and files the original documents in the appropriate property file.

  6. When financial liability is involved, the Property Officer sends one copy to the concerned employee and one copy to the Beckley Finance Center for collection.

  7. When consideration of disciplinary action is recommended, the Property Officer sends one copy to the concerned employee and one copy, through channels, to the employee's supervisor.  (11-24-2014)
Appeal of Findings

  1. Property (excluding investigative equipment):

    1. Bargaining Unit employees who are judged to have exercised gross negligence with financial responsibility may appeal through their union grievance and arbitration procedures.

    2. Non-Bargaining Unit employees who are judged to have exercised gross negligence with financial responsibility may appeal in writing to their Area Director or Business Unit Head.

  2. Investigative Equipment -- Criminal Investigation Employees judged as exercising gross negligence with financial responsibility for investigative equipment may appeal in writing to the Chief, Criminal Investigation.

  3. All appeals are routed through the Approving Authority who signed the Form 1933, Report of Survey.

  4. Employees judged as exercising gross negligence may be subject to disciplinary or adverse actions. Such actions, if taken, are processed in accordance with IRM 6.751, Discipline and Disciplinary Actions, and IRM 6.752, Disciplinary Suspensions and Adverse Actions.  (11-24-2014)
Disposal of Property

  1. If the approving authority directs the Property Officer to dispose of surveyed property, the Property Officer makes such disposition in accordance with provisions in this IRM. All disposal or collection documents are cross-referenced to Form 1933, Report of Survey.  (11-24-2014)
Preparing the Report of Survey Form 1933

  1. Complete the fields in the Form 1933, Report of Survey, as follows:

    Field Description
    Date of Loss Enter the date that the asset was reported damaged or stolen, or the date that the item was discovered to be missing.
    Report Number Enter the IRS Report Number. Reports of Survey should begin with "RS" .
    Report Date Date the Report of Survey was prepared.
    Line Item No. Enter consecutive numbers for all line items in the report beginning with "0001" for the first line item on the first page.
    Bldg. No. Enter the six digit GSA Building Number.
    Condition Code Enter the single digit code for the condition of the asset. It is important that this column correctly reflects the condition of the asset at the time of the reported loss.
      Manufacturer e.g., Canon
      Type of Equipment e.g., Movie Camera
      Model Number e.g., VC-30A
      Bar Code e.g., AB00123456
      Serial Number e.g., WDK5A1234
    Gov. Acq. Date Date the asset was acquired.
    Gov. Acq. Cost Purchase price or monthly lease cost.
    Qty/Unit Number of units listed on the line item.
    Total Cost Gov Acq Cost multiplied by the number of units.
    Depreciated Value Amount asset has depreciated at the date of loss.
    Amount of Damage Actual loss resulting from the damage.
    Tot. Amt. of Loss Total loss including loss in fair market value.
    Line Item(s) Total number of line items.
    Inventory Asset(s) Total number of assets reported on the form. This figure is derived by adding up the "Qty/Unit" column.
    Totals Totals for each of the dollar value columns.
    Written Determination/ Justification A complete description for the circumstances surrounding the loss of the assets. Provide names, dates and locations when possible.
    Circumstances Check one and only one of the boxes provided for the type of loss.
    Signatures If IT equipment, insert in the upper signature blocks the name and title of the appropriate inventory technician and approving official responsible for the IT equipment, in preparation for their signatures. Insert in the lower two signature blocks, the name and title of the appropriate FMSS Property Officer and FMSS Approving Official reviewing the disposal action, in preparation for their signatures. If non-IT equipment, use only the lower two signature blocks and insert the name and title of the appropriate FMSS Property Officer and FMSS Approving Official reviewing the disposal action, in preparation for their signatures. The upper two signature blocks are not used for non-IT equipment.
    Date Insert date the appropriate personnel signed the form.
    Phone Number Insert phone number of appropriate inventory and approving personnel.
  2. Copies of Form 1933, Report of Survey and the continuation sheet may be found on the Electronic Publishing website http://publish.no.irs.gov/.  (11-24-2014)
Disposition of Personal Property

  1. Background – The Federal Property and Administrative Services Act of 1949 delegated authority to the General Services Administration to prescribe regulations governing the management of property in the federal government. One phase of this property management relates to the disposition of property no longer required by an agency. FMR 102–35, sets forth procedures which are followed by all IRS Property Officers, as supplemented by this IRM.

  2. IRS property may be removed from the premises for the following authorized purposes:

    • Repairs,

    • Loans,

    • Temporary and permanent transfers,

    • Donations,

    • Sales,

    • Salvage, and

    • Scrap.

  3. Detailed procedures covering removal of IRS property for repairs, loans, and transfers are covered in IRM Instructions that cover assets inventoried in KISAM are found in IRM

  4. This IRM covers the procedures to be followed from the point the Property Officer determines that an item is no longer needed through the final disposition of that item.

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