R 121835Z FEB 10 ALCOAST 075/10 COMDTNOTE 4500 SUBJ: CG-WIDE PHYSICAL INVENTORY OF CAPITALIZED PERSONAL PROPERTY - WARNING ORDER FOR MARCH 2010 A. COMDT COGARD WASHINGTON DC 231947Z JUL 09/ALCGFINANCE 020/09 1. IAW REF A, THE SECOND CG-WIDE CAPITALIZED PERSONAL PROPERTY PHYSICAL IVENTORY WILL COMMENCE 08 MAR 10. BASED ON FIELD INPUT WE HAVE REFINED OUR INVENTORY PROCEDURES SO THAT THEY ARE MORE CLEAR, AND ADDRESS ISSUES DISCOVERED DURING THE SEPTEMBER 2009 INVENTORY, SUCH AS SUB-UNITS WITH/WITHOUT UNIQUE OPFACS, HOW TO HANDLE SCANNED INVENTORY PACKAGES OF GREATER SIZE, AND MANY OTHER ISSUES. THIS CONTINUOUS IMPROVEMENT IS BOTH AN ENCOURAGING SIGN OF A BETTER CG-WIDE UNDERSTANDING OF WHAT IT TAKES TO BECOME CFO- COMPLIANT IN THE REALM OF PERSONAL PROPERTY, AND ALSO DEMONSTRATES OUR ABILITY TO CAPTURE BEST PRACTICES AT ALL LEVELS OF THE CG. 2. OUR ONGOING GOAL IS TO ENSURE THAT ALL OF OUR PERSONAL PROPERTY IS ACCOUNTED FOR IN A CFO-COMPLIANT FASHION PRIOR TO THE SEPTEMBER 2010 ANNUAL INVENTORY. THE 2010 INVENTORIES ARE FOCUSED ON OUR VESSELS, AIRCRAFT, AND SMALL BOATS. WE MUST HAVE ALL OF THESE ASSETS RECORDED IN OUR ORACLE FIXED ASSET MODULE (FAM) WHICH MUST IN TURN MATCH THE SUBSIDIARY SYSTEM USED BY THE UNIT FOR OPERATIONAL AND/OR MAINTENANCE PURPOSES SUCH AS ALMIS, AOPS, ETC. AS AN ORGANIZATION THAT DEPENDS ON OPERATIONAL ASSETS TO PERFORM OUR MISSIONS, IT IS IMPERATIVE THAT WE CAN ACCOUNT FOR EVERY ONE OF OUR OPERATIONAL ASSETS IN ALL SYSTEMS, AT ALL TIMES. UNITS SHOULD ANTICIPATE THAT THE UPCOMING MARCH INVENTORY WILL BE MORE RIGOROUS THAN THE SEPTEMBER 2009 INVENTORY. ALL REQUIRED ASSET CHARACTERISTICS MUST BE VERIFIED IN ORACLE, AND ALL NECESSARY CHANGES TO THE UNIT RECORD MUST BE IDENTIFIED WITHIN THE UNITS COVER MEMO. AS RECORD ERRORS ARE IDENTIFIED AND CORRECTED, SUCCESSIVE INVENTORIES SHOULD TAKE LESS TIME AND REQUIRE FEWER CORRECTIONS. 3. DEFINITION: CAPITALIZED PERSONAL PROPERTY IS DEFINED AS VESSELS, AIRCRAFT, SMALL BOATS, ELECTRONICS SYSTEMS, ELECTRONICS STAND ALONE, ELECTRONICS TEST EQUIPMENT, VEHICLES, GENERAL PURPOSE PROPERTY AND INTERNAL-USE SOFTWARE MEETING COAST GUARD CAPITALIZATION THRESHOLDS. IT CAN ALSO INCLUDE FORKLIFTS, BOAT LIFTS, CRANES, YELLOW GEAR, ETC. CAPITALIZATION THRESHOLDS CHANGE OVER TIME AND VARY BY ASSET CATEGORY. REFER TO REF A FOR DETAILS. NON-CAPITALIZED PERSONAL PROPERTY GENERALLY INCLUDES ITEMS SUCH AS COMPUTERS, OTHER CONSUMER ELECTRONICS AND MOST HIGHLY PILFERABLE ITEMS. 4. RESPONSIBILITIES: A. COMMANDING OFFICERS: ARE RESPONSIBLE FOR CERTIFYING BY MEMORANDUM THE EXISTENCE AND COMPLETENESS OF CAPITALIZED PERSONAL PROPERTY ASSETS FOR THEIR UNIT. EXAMPLES OF REQUIRED REPORTS, INCLUDING A SAMPLE MEMORANDUM FOR THE CERTIFICATION PACKAGE, WILL BE PROVIDED AS DESCRIBED IN PARAGRAPH 6. B. ACCOUNTABLE PROPERTY OFFICERS (APOS): HAVE OVERALL RESPONSIBILITY FOR THE EXECUTION AND MANAGEMENT OF THE PHYSICAL INVENTORIES AT THE UNIT. C. FIELD UNITS: RESPONSIBLE FOR VERIFYING EXISTENCE AND COMPLETENESS OF CAPITALIZED ASSETS AND SUBMITTING COMPLETED INVENTORY PACKAGE TO COMMANDING OFFICERS FOR SIGNATURE AND FORWARDING TO COMDT (CG-842). D. CHAINS OF COMMAND: RESPONSIBLE FOR ENSURING THAT ALL SUBORDINATE UNITS HAVE AN OPFAC REGISTERED IN ORACLE FIXED ASSETS MODULE PRIOR TO THE COMMENCEMENT OF THE INVENTORY, AND THAT ALL SUBORDINATE UNITS SUBMIT THEIR INVENTORY PACKAGES BY THE BELOW DEADLINE. E. CG PROGRAMS: RESPONSIBLE FOR ENSURING THAT ALL ASSETS THEY MANAGE AS A PROGRAM (I.E. VESSELS BY COMDT (CG-751), AIRCRAFT BY COMDT (CG-41), SMALL BOATS BY COMDT (CG-731), ETC.) ARE REVIEWED PERIODICALLY. THIS REVIEW IS TO ENSURE THAT ALL ASSETS THAT EXIST IN THE RECORD ARE IN THE FIELD, AND THAT ALL ASSETS THAT EXIST IN THE FIELD ARE IN THE RECORD. WHEN IDENTIFIED, ALL DISCREPANCIES MUST BE PURSUED WITH THE UNIT, ASSET MANAGER (I.E. BOAT MANAGER, VEHICLE MANAGER, ETC.), COMDT (CG-842), AND CG FINCEN UNTIL RESOLUTION. 5. TIMELINE FOR CG-WIDE CAPITALIZED PERSONAL PROPERTY PHYSICAL INVENTORY. A. NEW CAPITALIZED PERSONAL PROPERTY PHYSICAL INVENTORY PROCEDURES PUBLISHED VIA ALCOAST OOA 01 MAR 10. B. 08-19 MARCH 2010: APOS CONDUCT CG-WIDE PERFORM PHYSICAL INVENTORIES OF 100 PERCENT OF CAPITALIZED PERSONAL PROPERTY. APOS PROVIDE GUIDANCE AND OVERSEE THE EXECUTION OF THE PHYSICAL INVENTORY COUNT TEAM FOLLOWING THE STEPS OUTLINED IN THE PROCEDURE. ALL UNITS MUST SUBMIT THE UNITS FINAL PHYSICAL INVENTORY CERTIFICATION PACKAGE USING THE NEW PHYSICAL INVENTORY PROCEDURE NLT 19 MARCH. UNITS MUST READ AND FOLLOW THE PROCEDURES IN ORDER TO KEEP RESUBMISSIONS TO A MINIMUM, AND TO ENSURE THAT THE UNITS FINAL SUBMISSION IS RECEIVED BY THE 19 MARCH DEADLINE. C. 20 MARCH - 31 MAY 2010: ERRORS IDENTIFIED DURING MARCH INVENTORY CORRECTED IN ORACLE FIXED ASSET MODULE (FAM) BY CG FINCEN. INVENTORY PROCEDURES UPDATED TO REFLECT LESSONS LEARNED. D. SEPTEMBER 2010: PERFORM AUDITED CG-WIDE CAPITALIZED PERSONAL PROPERTY PHYSICAL INVENTORY. 6. TO ASSIST UNITS IN THE EXECUTION OF THE CAPITALIZED PROPERTY PHYSICAL INVENTORY, THE COMDT (CG-842) CG PORTAL SITE WILL REMAIN YOUR ONE-STOP SHOP FOR ALL YOUR PHYSICAL INVENTORY NEEDS. THE PORTAL INCLUDES ALL DOCUMENTS NECESSARY TO FACILITATE AN INVENTORY INCLUDING: POLICY, PROCEDURES, FREQUENTLY ASKED QUESTIONS, JOB AIDS, TEMPLATES, BEST PRACTICES, ETC. TO PREPARE FOR THE UPCOMING MARCH PHYSICAL INVENTORY. COMMANDING OFFICERS, OFFICERS-IN-CHARGE, UNIT-LEVEL SUPERVISORS, AND APOS ARE DIRECTED TO REVIEW THE PORTAL SITE WHICH CAN BE ACCESSED BY TYPING (QUOTE)CAPITALIZED PROPERTY PHYSICAL INVENTORY(UNQUOTE) INTO THE (QUOTE)SEARCH PLACES(UNQUOTE) BAR ON THE LEFT MENU OF THE CG PORTAL OR BY TYPING (QUOTE) HTTPS://CGPORTAL.USCG.MIL/LOTUS/MYQUICKR/2009-CAPITALIZED-PROPERTY- PHYSICAL-INVENTORY/ (UNQUOTE) IN LOWER-CASE LETTERS INTO YOUR BROWSER. AN OUTLOOK E-MAIL INBOX HAS BEEN CREATED FOR THE SUBMISSION OF INVENTORY PACKAGES, THE REPORTING OF DISCREPANCIES AND TO REQUEST E-MAIL VERSIONS OF THE PROCEDURES FOR THOSE UNITS WITHOUT CG PORTAL ACCESS. THE E-MAIL ADDRESS IS (QUOTE)CAP-PHY- INV(UNQUOTE), WHICH CAN BE TYPED DIRECTLY INTO THE TO BLOCK ON A SWIII OUTLOOK ACCOUNT. SWIII OUTLOOK ACCOUNT. 7. WE HAVE SEEN FIRST HAND THE PRIDE AND PROFESSIONALISM OUR UNITS HAVE SHOWN IN ORDER FOR THE CG TO GAIN BETTER ACCOUNTABILITY OVER OUR ASSETS. THE SEPTEMBER INVENTORY INTRODUCED THE CG TO NEW, MORE RIGOROUS PROCEDURES AND IDENTIFIED THE DISCREPANCIES IN OUR RECORD KEEPING. THE MARCH INVENTORY WILL BE AN OPPORTUNITY FOR THE FIELD TO VALIDATE OUR PROCESSES AND HOLD CGHQ ACCOUNTABLE FOR THE CORRECTING THOSE RECORD DISCREPANCIES IDENTIFIED IN SEPTEMBER 2009. THERE WILL BE A FINAL INVENTORY IN SEPTEMBER 2010 THAT WILL SERVE AS A FINAL TEST OF OUR IMPROVED PROCEDURES AND RECORD KEEPING, ALLOWING US TO CLEAR ONE MORE HURDLE IN THE EFFORT TO PASS OUR FINANCIAL AUDIT. EVENTUALLY, FUTURE SEPTEMBER INVENTORY PROCEDURES WILL INVOLVE A MIX OF STATISTICAL SAMPLING AND WALL-TO-WALL INVENTORIES AS REQUIRED, THUS LESSENING THE DEMANDS ON THE UNIT. POCS: LCDR ROBERT.E.HART(AT)USCG.MIL AND LT JARED.S.TRUSZ(AT) USCG.MIL. 8. RELEASED BY RDML K. A. TAYLOR, ASSISTANT COMMANDANT FOR RESOURCES/CHIEF FINANCIAL OFFICER. 9. INTERNET RELEASE AUTHORIZED.