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UNITED STATES ARMY INTELLIGENCE AND SECURITY COMMAND
ARLINGTON HALL STATION
ARLINGTON, VIRGINIA 22212-5000
HEPt-V TO
ATTENTION OW
1AL0G-FM
13 MAR 1986
SUBJECT:
Special Mission Funds - Property Accountability
<f(p
Commander
902d Military Intelligence Group
ATTN:
IAGPA-C0
Fort Georgp'G. Meade, MD
20755-5910
1 •
(C)
As a result
of
the FY84 Department
of
the Army Inspector General inspec-
tion of procurement,
the Vice Chief of Staff Army (VCSA) directed an investiga-
tion under the provisions
of AR 15-6 concerning the disbursements
of Special
Mission Funds
(SMF) made by the INSCOM Special Finance and Accounting Office in
support
of approximately 39
separate operational projects.
As
a result of this
investigation, MACOMs/Heads
of Agencies have been tasked to identify/verify equip-
ment,
supplies,
and services purchased with SMF in support of
the operational
projects designated by the INSCOM 15-6 Investigation Team.
2.
(C)
Attached as enclosure
1, you will find instructions which prescribe the
objectives and procedures
to be utilized in accounting for property and services
procured for project CENTER LANE.
Enclosure
2 provides documentation which
identifies
those goods and services.
3.
(C)
Request you take steps
to ensure property accountability,
as
stipulated
in Enclosure
1,
is initiated and
that an initial status report addressing what
action has been taken for each voucher referred for action be submitted to this
HQ NLT
31 March 1986.
This report
(using
the 0DCSL0G control voucher number)
will include:
a.
Nonexpendable property
($ value)
on hand and accounted for.
Indicate
the ODCSLOG control voucher number(s)
In this group.
b.
Services
($ value)
are valid and no further action required.
Indicate
the ODCSLOG control voucher number(s)
in this group.
c.
Expendable supplies
($ value) properly obtained and consumed in use.
Indicate
the ODCSLOG control voucher number(s)
in this group.
d.
Nonexpendable property
($ value) missing and
a Report of Survey initiated
on (date).
Indicate the ODCSLOG control voucher number(s)
in this group.
e.
15-6 Investigation initiated.
Indicate the ODCSLOG control voucher number(s)
in this group.
PAM 380-6
Approved For Release 20
^Sf^clil-pDTISe-ooyssRooi 5001 1 0041 -0
IALOG-FM
SUBJECT:
Special Mission Funds
- Property Accountability
f.
Possible fraud
- referred
to CID on
(date).
Indicate
the ODCSLOG
control number (s)
in this group.
g.
For the interim report only,
identify those services and property which
no determinations have been made.
Indicate the ODCSLOG control voucher number (s)
in this
group.
4.
(C)
A final report will be submitted not later than
9 May 1986 and
should contain a verification that property accountability has been established
or appropriate adjustment action has occurred.
The final report will contain
copies
of approved Reports
of Survey and completed investigations
(less exhibits).
Services,
if investigated due
to the appearance of being excessive,
only require
a verification in writing that
the service purchased was received, mission essen—
tial and an operational necessity.
The final report will be in the same format
as paragraph 3 a-f above.
5.
(U)
Request your POC contact Major D.
A. Hunter, Logistics Management Officer,
AV 923-5338/4407
for immediate coordination.
All reports will be forwarded to
USAINSCOM,
ATTN:
IALOG-FM,
Ft. Meade, MD 20755.
FOR THE COMMANDER:
Approved For Release 2001/04/^2
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Approved For Release 2001/04/02
:
Jp96-00788R001 5001 1 0041 -0
SUBJECT:
Instructions
for Accountability of Equipment and Services
Purchased with Special Mission Funds
,
1.
Objectives.
Objectives of
the SMF Property Accountability Project
are:
a.
Identify equipment,
supplies,
and services purchased with SMF in
support
of operational projects designated by the INSCOM AR 15-6 Investigation
Team.
b.
Develop guidelines
for use in establishing what materiel and services
identified in 2a above must be accounted for and
thus require inventory and
assumption of accountability or investigation and relief from accountability.
c.
Physically locate property which meets
the established criteria and
establish property book accountability,
or determine that
the property is
missing and take appropriate actions
to obtain relief via Report of Survey,
or other actions
in AR 735-11.
d.
Identify instances
of suspected fraud, waste,
and abuse and, where
appropriate,
initiate further investigation through CID.
2.
Procedures.
Upon receipt
of documentation from USAINSCOM,
INSCOM units/
activities will take all actions necessary
to establish accountability IAW
AR 710-2
or AR 381-143
(C).
a.
Vouchers will be individually reviewed
to identify property requiring
accountability in accordance with policy in the regulations cited above.
Specifically,
the following guidance criteria will be utilized
to determine
which items of property or services will be inventoried and accounted
for
or verified.
(1)
Nonexpendable Equipment.
This
is property not consumed
in use
with a cost
of
$50 or greater and retains
its original identity during the
period of use.
Examples are vehicles,
weapons,
radios,
and other end items.
These items require formal property book accountability and INSCOM units/
activities will be required
to account
for all nonexpendables which cost
$50 or more.
(2)
Expendable Equipment.
This
is property consumed in use,
or
property that
loses
its
identity in use,
and all items not consumed in use
with
a unit price
of
less than $50.
Examples are office supplies,
repair
parts,
and supplies
consumed in maintenance and upkeep such as paint,
oil,
and cleaning materials.
No formal accountability for these items
is
required
at
the user level.
INSCOM units/activities will not be required
to account
for expendables.
Approved For Release 2001/04/02
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Approved For Release 20
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(3)
Durable.
This
is property
that
is not consume in use costs
less
than $50,
does not require property book accountability,
but because
of
its unique characteristics requires hand receipt control when issued
to
the user.
Hand tools are an example of durable
items.
INSCOM units/activities
will not be required
to account
for durable items.
(4)
Commercial Items.
By applying the criteria outlined above.
INSCOM units /activities will be able
to determine if they have to account for
commercial items.
As an example,
a commercial tape recorder would be classified
as nonexpendable and would require accountability actions.
The Army Master
Data File
(AMDF)
reveals
a similar item, Recorder Reproducer:
Sound, which has
an Army Recoverability Code
(ARC)
of nonexpendable.
This code would be applied
against
the commercial item.
If a similar items was not located
in the AMDF,
the criteria of not consumed in use,
retains
its original identity during the
period of use,
and unit cost exceeds
$50,
all would apply.
The commercial
tape recorder would therefore,
be classified as nonexepndable and the INSCOM
units/activities would have to account for
it.
b.
Once property which must be accounted for has been identified,
a review
of accountable records will be conducted to ensure property has been entered
on the records and accountability established.
A physical inventory must be
conducted.
When property cannot be located an investigation will be conducted
under the provisions
of AR 15-6 or AR 735-11.
Pecuniary liability will be
assessed,
as necessary.
c.
Services will be addressed separately.
Examples of services are
commercial vehicle repairs,
site retails,
air charters,
etc.
Generally,
services will be treated as mission essential for valid operational requirements.
INSCOM units/activities are not required
to verify services unless
the
expenditure appears
to be fradulent,
irregular,
or violates what would appear
to be reasonable to the average person.
If an INSCOM unit/activity pursues
a service,
a validation is required
to show that
the service has been received,
was mission essential,
and satisfied a valid operational requirement.
If
It
appears
that
a claimant received payment for a service which was
not approved,
the INSCOM unit/activity should refer the action to CID
as
a potential fraud
case.
d.
Suspected fraud,
theft,
or abuse will be referred to CID for further
Investigations and criminal prosecution if warranted.
Approved For Release 2001/^W^i>^A^y96|Q0788R001 5001 10041-0
1 w;
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Approved For Release 20&W^0ik lCIA-RDP96-OO788ROO1 5001 10041-0
GOODS
&
SERVICES
LISTING
PROJECT:
CENTER
LANE
USALEA
VOUCHER
D AT E
1-s-l
Jan
OTHER
P URCHASES
$ 8
, 000.00
I
Approved For Release 2A^04/A£4.QIA-RDP96-00788R001 5001 10041-0