R 071908Z SEP 12

ALCGFINANCE 031/12
SUBJ: INTERIM REPAIRABLE SPARES RECLASSIFICATION POLICY
A. COMDTINST M7100.3 (SERIES), FINANCIAL RESOURCE MANAGEMENT MANUAL
B. COMDTINST M7100.4 (SERIES), FINANCIAL RESOURCE MANAGEMENT MANUAL
PROCEDURES
C. DELEGATION OF AUTHORITY TO ISSUE INTERIM FINANCIAL MANAGEMENT
POLICY AND PROCEDURES, CFO MEMO DTD 09 FEB 2011
D. REPAIRABLE SPARES RECLASSIFICATION POLICY CG-8C MEMO DTD 31 AUGUST
2012
1. PURPOSE: THIS MESSAGE PROVIDES INTERIM COAST GUARD POLICY
REGARDING THE RECLASSIFICATION OF REPAIRABLE SPARES FROM PLANT,
PROPERTY, AND EQUIPMENT TO OPERATING MATERIAL AND SUPPLIES.
2. BACKGROUND: REFERENCES (A) AND (B) CONTAIN FINANCIAL POLICY AND
PROCEDURES GOVERNING THE CLASSIFICATION OF REPAIRABLE SPARES AS PLANT
PROPERTY AND EQUIPMENT. IN 2011, THE COAST GUARD CONDUCTED AN
ANALYSIS OF THE FEDERAL ACCOUNTING STANDARDS ADVISORY BOARD
INTERPRETATION 7 - ITEMS HELD FOR REMANUFACTURE TO DETERMINE THE
IMPACT THAT INTERPRETATION 7 WOULD HAVE ON EXISTING POLICIES AND
PROCEDURES FOR ACCOUNTING FOR REPAIRABLE SPARES. AS A RESULT OF THIS
ANALYSIS, THE COAST GUARD DECIDED TO CHANGE ITS CURRENT POLICIES AND
PROCEDURES ASSOCIATED WITH ACCOUNTING FOR REPAIRABLE SPARES,
RECLASSIFYING ALL REPAIRABLE SPARES FROM PLANT, PROPERTY, AND
EQUIPMENT TO OPERATING MATERIAL AND SUPPLIES.
3. INTERIM POLICY: REFERENCE (A) IS THE COAST GUARDS FINANCIAL
MANAGEMENT POLICY. REFERENCE (B) IS THE COAST GUARDS FINANCIAL
MANAGEMENT PROCEDURE. REFERENCE (C) IS DELEGATED AUTHORITY FROM THE
CFO TO THE COMPTROLLER TO ISSUE INTERIM FINANCIAL MANAGEMENT POLICY
AND PROCEDURES. REFERENCE (D) IS AN INTERIM REPAIRABLE SPARES
RECLASSIFICATION POLICY REQUIRING ALL REPAIRABLE SPARES TO BE
RECLASSIFIED FROM PLANT, PROPERTY, AND EQUIPMENT TO OPERATING
MATERIAL AND SUPPLIES.
4. ACTION: REFERENCE (D) IS HEREBY ISSUED UNDER CFO TECHNICAL
AUTHORITY. IT IS EFFECTIVE IMMEDIATELY AND SUPERSEDES POLICY AND
PROCEDURES REGARDING THE CLASSIFICATION OF REPAIRABLE SPARES AS PLANT
PROPERTY AND EQUIPMENT CONTAINED IN REFERENCES (A) AND (B). ALL COAST
GUARD OFFICES CHARGED WITH THE MANAGEMENT OF REPAIRABLE SPARES SHALL
ADHERE TO REFERENCE (D). PAPER DISTRIBUTION OF THIS INTERIM POLICY
WILL NOT BE MADE. REFERENCE (D) CAN BE ACCESSED ELECTRONICALLY IN THE
INTERIM POLICY FOLDER LOCATED ON THE COMMANDANT (CG-84) PORTAL SITE
AT HTTPS://CGPORTAL.USCG.MIL/CTL/18L3TXK.
5. REFERENCE (D) WILL REMAIN IN EFFECT UNTIL FURTHER NOTICE.
6. FOR QUESTIONS REGARDING THIS POLICY PLEASE CONTACT COMDT (CG-843)
JOHN NICHOLSON, 202-372-3667, JOHN.P.NICHOLSON(AT)USCG.MIL.
7. MS. M. SHERIDAN, COMPTROLLER AND DIRECTOR OF FINANCIAL OPERATIONS
SENDS.
8. INTERNET RELEASE AUTHORIZED.