Accountability and Responsibility (4400.201)

Stewardship PP&E

A category of PP&E which consists of tangible assets classified as either heritage assets or stewardship land.

General PP&E characteristics

(1) It could be used for alternative purposes (e.g., by other DoD or federal programs, state or local governments, or nongovernmental entities), but it is used to produce goods or services, or to support the mission of the entity; or (2) It is used in business-type activities; or (3) It is used by entities in activities whose costs can be compared to those of other entities performing similar activities (e.g., federal hospital services in comparison to commercial hospitals).

Three main categories of all accountable property

1 PP&E, 2 OM&S, and 3 inventory.

Approving Authority

A Marine Corps officer or DoD civilian employee authorized to appoint investigating officers (i.e., financial liability officers), and approve or disapproved investigations of property loss (i.e., FLIPL). The approving authority also may act as the appointing authority or designate an appointing authority in writing (see appointing authority responsibilities in paragraph 0206). By virtue of command, the CO (0-5 level) at most Marine Corps units is both the approving authority and the appointing authority for FLIPLs arising within their command or under their supervision. Reference (b) prescribes detailed policy and guidance for approving and appointing authorities. The approving authority's responsibilities may be delegated; however, the delegations must be in writing.

Assets Under Capital Lease

A lease agreement conveys the use of an asset or part of an asset (such as part of a building) from one entity, the lessor, to another, the lessee, for a specified period of time in return for rent or other compensation. Leases meeting the criteria for a capital lease transfer substantially, all the benefits and risks of ownership from the lessor to the lessee.

Real Property

A type of general PP&E which includes land, the rights to land, and improvements to land (i.e., facilities). It includes equipment affixed and built into a facility as an integral part of the facility (such as heating systems), but not movable equipment (e.g., plant equipment, industrial equipment, buoys). In many instances, this term is synonymous with real estate. Examples include ground stations, test facilities, and aircraft hangars.

Military Equipment (ME)

A type of general equipment and includes weapon systems that can be used directly by the Armed Forces to carry out battlefield missions. The Marine Corps will assign a Table of Authorized Material Control Number to all ME. Marine Corps examples include: combat vehicles, tanks, artillery and crew serve weapons. ME also includes Marine Corps procured research and development equipment (e.g., prototypes, test gear, Engineering Development Models).

Accountable Property System of Record (APSR)

Accountability of Marine Corps property will be maintained in the following approved APSRs (See Chapter 4 within this Volume for detailed information): 1. Defense Property Accountability System (DPAS). 2. Global Combat Support System - Marine Corps (GCSS-MC). 3. Stock Control System (SCS). 4. Ordnance Information System - Marine Corps (OIS-MC) 5. Defense Medical Logistics Standard Support Automated Information System (DMLSS AIS).

Contractor Prohibitions

Although contractors perform valuable services, they are prohibited from performing certain functions. Specifically, contractors may not execute those functions that are "inherently governmental functions." An inherently governmental function is an activity that is so intimately related to the public interest as to mandate performance by federal employees. Per references (b), (l) and (m); an inherently governmental function includes activities that require either the exercise of discretion in applying government authority, or the making of value judgments in making decisions for the government."

Accountable Property System of Record (APSR)

An APSR is a government system used to control and manage accountable property records. It is an "official" record-keeping system used to manage all nonexpendable and other specially designated property issued to an activity, in accordance with reference (n). To be considered an APSR, the system must be able to perform property management functions capturing all lifecycle events affecting the assets. The APSR must be integrated with the core financial system(s) and must maintain an auditable record of all lifecycle events. Individual property records must be maintained for each asset managed in the APSR. The Deputy Commandant, Installations and Logistics, as the Marine Corps enterprise ground equipment manager and logistics portfolio manager, has approved use of the APSRs listed in the paragraphs below to ensure accurate accountability and management of property and resources.

Responsible Individual (RI)

An RI is any person appointed in writing by an RO/property custodian to have custodial responsibility for property in their possession. RIs (i.e., military, DoD civilians, government contractors) are directly responsible for the physical custody, accountability, and safekeeping of accountable property under their control.

Responsible Officer (RO)/property custodian

An RO/property custodian is an individual appointed in writing by the AO, who accepts custodial responsibility for property, typically by signing a hand-receipt. The RO is directly responsible for the physical custody of accountable property under their control. COs/AOs appoint ROs via an appointment letter to manage property within the command.

Appointing Authority

An appointing authority is a Marine Corps officer or DoD civilian employee designated in writing by the approving authority. The approving authority will normally be senior to the appointing authority. The approving authority also may act as the appointing authority. The appointing authority appoints financial liability officers, if required; approves or disapproves the recommendations of the supply officer or financial liability officer; and recommends actions to the approving authority if required. The appointing authority is normally senior to the supply officer and financial liability officer.

Supply officer/accountable property officer (APO)

An individual who, based on his or her training, knowledge, and experience in property management, accountability, and control procedures, is appointed by proper authority to establish and maintain an organization's accountable property records, systems, and/or financial records, in connection with property, irrespective of whether the property is in the individual's possession. This includes the requirement for maintaining a complete trail of all transactions, suitable for audit, and the ability to implement and adhere to associated internal controls. Within most Marine Corps organizations, the term "accountable property officer" is synonymous with the term "supply officer." Although most consumer level supply accounts have a supply officer assigned to execute supply administration and property accounting functions for the command, unique organizations like Marine Corps Logistics Command (MARCORLOGCOM) and Marine Corps Systems Command may appoint APOs to manage various supply accounts for the command. In all cases, the CO/AO shall designate, in writing, a supply officer/APO to perform supply and financial management functions for the command. Delegation of accounting responsibilities to the supply officer/APO does not relieve the CO/AO of accountability.

General PP&E

Any property, plant and equipment used in providing goods or services.

United States Navy Regulations

As part of the Department of the Navy (DON), the United States Marine Corps is subject to the statutory requirements set forth in the United States Navy Regulations.

Heritage Assets

Assets of historical or natural significance; cultural, educational, or artistic importance; or possess significant architectural characteristics. They are expected to be preserved in museums or registered with the Naval Historical Center or the National Museum of the Marine Corps.

Specific Roles and Responsibilities

CMC- provides policies/procedures CO/AO- command authority Commanding General/Commander- appoints as appropriate

Relief from Custodial Responsibility

COs/AOs provide relief from custodial responsibility after reviewing and approving the following: Documents or computer records (i.e., KSDs) showing the turn-in or transfer of items to another custodian. Approved reports (i.e., KSDs) that prove the disposition of, or relief from responsibility for items that have become unusable due to damage, loss, deterioration, obsolescence, or destruction. Approved inventory adjustments, or a prescribed document (i.e., KSD) to adjust the accountable property records incidental to the loss of property.

Operating Material & Supplies (OM&S)

Consists of tangible property to be consumed in normal operations. OM&S shall be categorized as: held for use; held in reserve for future use; held for repair; or excess, unserviceable and obsolete. Excluded are (a) goods that have been acquired for use in constructing real property, (b) stockpile materials, and (c) inventory held for sale. Reparables and consumables that are not for sale are considered OM&S.

Construction in Progress

Construction in Progress (CIP) is an accounting term referring to the temporary classification of assets under construction. While under construction, costs of new construction and facility improvement projects are accumulated in CIP accounts.

Functions Performed by Contractors

Contractors can perform certain functions in support of the AO or supply officer when those functions are performed in accordance with the criteria defined by the government. These functions must be mandatory requirements, requiring no personal judgment or discretion on the part of the contractor. When performed in support of the AO or the supply officer, the following functions can be performed by contractors: Stock control and property control operations Materiel management operations in support of self-service supply centers, central issue facilities or consolidated storage programs, clothing initial issue points, and reparable issue points to include: Preparing catalogs. Receiving operations (does not include government certification of acceptance which authorizes payment for goods received from commercial vendors or contractors). Storage operations. Issue operations. Data conversions, files, document control, and organizing inventory adjustments. Item management, materiel management, and similar accounting functions.

Closely Associated Functions

Contractors can perform these under close supervision.

Marine Corps Contractors

Contractors provide a wide variety of useful services that help agencies accomplish their missions. Agencies use service contracts to acquire special knowledge and skills not available in the government, obtain cost-effective services, or obtain temporary or intermittent services. Marine Corps activities will ensure compliance with the following policy regarding contractor roles and responsibilities for managing general property, plant and equipment to include government furnished equipment and material in the possession of contractors.

Defense Property Accountability System (DPAS)

DPAS is a web-based DoD property management system. It is the APSR for over 20 DoD agencies and military services. The program is administered by the Office of the Under Secretary of Defense (SECDEF) for Acquisition, Technology and Logistics, a branch of the Office of the SECDEF.

Global Combat Support System Marine Corps (GCSS-MC)

GCSS-MC provides a single point of entry for all requests for products and services, integrating data and providing greater access to near-real-time, accurate information up and down the logistics chain. With greater asset visibility and improved access to timely, reliable information, commanders can make faster, better-informed decisions. Key performance objectives are reduced customer wait time, improved logistics response time, and decreased dependence on forward-positioned stocks. Within GCSS-MC, the Installed Base and perpetual inventories are the accountable records (rather than internal reports that can be extracted such as the Mechanized Allowance List or Consolidated Memorandum Receipts. Key features of GCSS-MC include:

Managing Contractor Functions

In certain cases, contractors may be required to perform functions that are generally not considered to be inherently governmental but are closely associated with the performance of inherently governmental functions. Per reference (m), when functions that generally are not considered to be inherently governmental approach being in that category because of the nature of the function, agencies must give special consideration to using federal employees to perform those functions. If contractors are used to perform such work, agencies must give special management attention to contractor's activities to guard against their expansion into inherently governmental functions. The proper identification of inherently governmental functions and closely associated functions is the first step for meeting these requirements. Section 5-1 and Appendix B of reference (m) provide guidelines and definitions.

Fiscal/budget & Accounting Officer

In the absence of a comptroller, the CO/AO shall designate in writing, via an appointment letter and a DD Form 577, "Appointment/Termination Record - Authorized Signature," a fiscal/budget & accounting officer to perform financial management functions for the command. In most organizations, fiscal/budget & accounting officer duties are inherent to the supply officer/APO billet.

Internal Use Software

Internal use software includes application and operating system programs, procedures, rules, and any associated documentation pertaining to the operation of a computer system or program that is used for operational or other internal use. Normally, software is an integral part of an overall system having interrelationships between software, hardware, personnel, procedures, controls, and data.

General roles and responsibilities

It is DoD and Marine Corps policy that all military, civilian and contractor personnel will operate and maintain government systems, equipment, and supplies in the best possible condition, in constant readiness, and in the absolute minimum quantities necessary to accomplish assigned tasks.

Stewardship Land

Land and land rights owned by the federal government but not acquired for or in connection with items of general PP&E. Examples of stewardship land include land used as forests and parks, and land used for wildlife and grazing.

Leasehold Improvements

Leasehold improvements are defined as improvements to leased property. When leasehold improvements meet or exceed DoD capitalization criteria, such improvements shall be capitalized and amortized for the remainder of the lease period or 20 years, whichever is less.

Oversight of Contractor Functions

Limit, guide, and set ranges for contractor conduct. Take appropriate steps to avoid or mitigate conflicts of interest by conducting pre-award contract reviews to ensure that contractor performance is in accordance with objective standards and contract specifications.

Inventory

Materiel, titled to the U.S. Government, held for sale or issue, held for repair, or held pending transfer to disposal. This definition covers the same population of items as the definition for inventory in Chapter 4 "Inventory and Related Property," of Volume 4 of reference (b). Inventory does not include tangible personal property to be consumed in normal operations, OM&S as defined by Volume 4 of reference (b).

ordnance information system - marine corps (OIS-MC)

OIS-MC is the accountable system designated by Program Manager Ammo, as the Marine Corps Inventory Control Point, to manage Class V(W) ammunition. The system processes requisitions, issues, redistributions, asset and procurement data, and provides the capability to plan, procure, position, and distribute ammunition, encompassing the pre and post-production ammunition lifecycle.

Inherently Governmental Functions

Only Government staff can perform.

Closely Associated Functions List

Performing budget preparation activities such as workload modeling, fact finding, efficiency studies, and cost analysis. Providing support for developing policies, including drafting documents and conducting analyses, feasibility studies, and strategy options. Support acquisition activities such as conducting market research, developing inputs for governmental cost estimates, drafting Statements of Work, and other pre-award contract documents. Disseminating information regarding agency policies or regulations, such as conducting agency training courses. Providing technical advice in the provision of inspection services.

Key Supporting Documents

Personnel having custodial responsibility for the management of property must maintain key supporting documents that provide evidence of ongoing management and internal controls to account for property.

Functions NOT Performed by Contractors

Procurement management. Certifying the acceptance of goods received from commercial vendors or contractors, which authorizes the payment for goods received. Preliminary and final approval authority for discretionary actions such as determining requirements. Preliminary and final approval authority for inventory gain or loss adjustment transactions for property. Authorizing disposal actions for property.

KSD's include, but are not limited to...

Properly documented and itemized physical inventories taken at required intervals. Copies of each document or computer record that confirms the acquisition or movement of property. Certificates of transfer between responsible/accountable personnel.

Lost, damaged, or destroyed government property

Property management responsibility includes the determination or assessment of pecuniary liability for the loss, damage, or destruction of government property resulting from negligence, willful misconduct or deliberate unauthorized use.

General Equipment

Property of any kind (i.e., general PP&E) except real property (land and improvements to facilities). It has an expected useful life of two or more years; is not intended for sale in the ordinary course of business; does not ordinarily lose its identity or becomes a component part of another article; and is available for the use of the reporting entity for its intended purpose. It may be tangible, having physical existence, or intangible, having no physical existence, such as copyrights, patents, or securities. General equipment is synonymous with "Personal Property."

PP&E

Property, Plant, and Equipment

Legal Foundation Overview

Public Law Navy Regs Marine Corps Manual (MARCORMAN) Accountability and Responsibility Requisition Authority

custodial responsibility

RIs having custodial responsibility may be held liable for the loss, damage, or destruction of property caused by willful misconduct, deliberate unauthorized use, or negligence in the use, care, custody, or safeguard of the property.

Requisition Authority Background

Requisition authority is that authority vested in someone to expend real appropriated dollars. Before the advent of a mechanized supply system (e.g., SASSY or GCSS-MC), expenditure of appropriated dollars started with the creation of a document number in a log book, usually maintained by a supply officer. That document number had unit identification and financial information attached to it that enabled the expenditure of appropriated dollars. The owner of that document number (i.e., a commander) was accountable and liable for the obligation of appropriated dollars created by the processing of that document number. The authority to create this obligation is requisition authority.

Stock Control System (SCS)

SCS is used by MARCORLOGCOM to account for end items positioned in support of the approved acquisition objective for war reserve, depot maintenance float allowances, and headquarters- approved excesses. It is also used to account for inventory and OM&S positioned at MARCORLOGCOM and in Defense Logistics Agency (DLA) distribution depots for the Marine Corps. It provides enhanced processing of property transactions and management information. The high-level functional areas contained in the SCS are asset-management functions consisting of requisitioning, item technical data, inventory management, due-in/receipts, materiel returns (excess), ME and secondary item management, depot support, disposal, reclamation, and miscellaneous supporting functions; distribution functions; and financial accounting functions.

Supply Resource Managers

Supply Resource Managers must be appointed in writing by the CO/AO via an appointment letter and a DD Form 577. Although the responsibility for oversight of financial management belongs to the comptroller or a fiscal/budget & accounting Officer, supply resource managers receive authorized funds on behalf of the CO/AO as a resource to accomplish and execute their assigned missions. In most organizations, supply resource manager duties are inherent to the supply officer/APO billet. In some situations, the CO/AO may allocate funds to support a given function which is subsequently administered by a staff officer who has primary cognizance over the function supported (e.g., facilities office may oversee facilities requisitions, or the consolidated administration office may oversee temporary additional duty (TAD) and local travel etc.). In these scenarios, the staff officer will be appointed by the CO/AO as a fund holder responsible for coordinating execution and reconciliation of funds with the supply resource manager. Responsibility on behalf of the CO/AO for overall supply resource management is entrusted to the supply officer/APO.

Certifying Officer

The CO/AO will appoint the supply officer/APO as the certifying officer in writing via an appointment letter and a DD Form 577. Certifying officers should be a supervisor with knowledge of the subject matter for which assigned, background or experience in preparation of vouchers for payment, knowledge of appropriations and other funds and accounting classifications, and knowledge of the payment process (e.g., availability of funds and location of designated paying and accounting offices).

defense medical logistics standard support automated information system (DMLSS AIS)

The DMLSS AIS is the primary support system for all military logistics functions associated with managing medical supplies and equipment. The DMLSS AIS achieves integration and interoperates with other standard DoD systems such as DFAS and DLA. Other DMLSS AIS interfaces include military theater medical information systems, other medical and non-medical AIS systems, as well as financial, procurement, and military wholesale logistics systems.

Public Law - United States Code (U.S.C.)

The U.S.C. is the codification by subject matter of the general and permanent laws of the United States. The U.S.C. was first published in 1926. The next main edition was published in 1934, and subsequent main editions have been published every six years since 1934. In between editions, annual cumulative supplements are published in order to present the most current information. It is divided by broad subjects into 51 titles and published by the Office of the Law Revision Counsel of the U.S. House of Representatives. Title 10, U.S.C. (reference (i)) outlines the role of the armed forces.

Other Property

The following types of property are considered general PP&E and are included within the "other" category.

Accountability and Responsibility

The foundation for a commander's responsibilities relative to the accountability of equipment and property charged to them is found in reference (i) Subtitle A, Part IV provides this framework in two chapters.

Requisition Authority Definition

The lawful authority to obligate appropriated funds whereby accountability and liability for such obligation can be attached to an individual delegated by the CMC to perform such obligations. This delegation is conferred upon COs as defined by the MARCORMAN. Requisition authority is inherent to commands/activities with the Table of Organization (T/O) mission to submit and process financial transactions to fill requirements, and to manage both the fiscal and supply responsibilities inherent to the full life cycle of the transactions and the goods/services procured by them (i.e., from creation of a request through to closing/retirement/disposal). Commands charged with this mission must also possess the T/O structure necessary to perform these functions. A supply officer or civilian equivalent (position description must include designation as a property and funds manager) with appropriate supporting supply staff are authorized to submit requisitions on behalf of these commands to obligate appropriated funds, unless stated otherwise in the most current MCBul 5400 or mission statement. The following activities typify commands that require requisition authority: Supply operations, purchasing, acquisition, creation of orders for TAD, and labor (to include time keeping).

Legal and Administrative responsibilities

The legal and administrative responsibilities of property control are inherent at all levels of command. As a Service Component, the legal foundation for property control is established as a matter of public law and is further defined by statutory regulations. This publication outlines the duties and responsibilities of commanders, directors, supervisors and those directly responsible for the proper stewardship and management of property in the possession of the Marine Corps. See the Legal Foundation Overview in Appendix A for more information.

Responsibilities of AO/SUPPO

The responsibilities of the AO and supply officer as an individual and as a position cannot be contracted and should be removed from supporting contracting documents before solicitation.

Administrative Fund Control

The responsibility for administrative fund control cannot be performed by a contractor and must be retained by the government. In the area of supply management, the contractor can process all required paperwork, less funds obligation documents, which must be done by a government employee (fund manager, contracting officer, credit card holder, etc.) designated as responsible for funds control. The contractor can also process such documents as Reports for Survey and adjustments to stock levels; however, approval authority must remain with the government (AO and supply officer). In all cases, the administrative control of funds must be retained by the government since contractors or their employees cannot be held responsible for violations of the United States Code (U.S.C.)

Supply AIS Administrator

The role of the supply AIS administrator is inherent within the supply officer/APO billet and must be identified in the appointment of the supply officer/supply resource manager by the CO/AO. As the supply officer/supply resource manager is responsible for overall supply administrative functions and funding execution for the command, he/she must maintain controls for access to systems that are used to obligate the activity's appropriations or alter its accountable/custodial records and balances.

Unique Command Organizations

There are chain-of-command peculiarities associated with certain command elements such as a regiment or special-purpose/contingency Marine Air-Ground Task Force. The regimental commander, major subordinate command, Marine Expeditionary Force, or Marine Force general officer has the authority to appoint the most appropriate officer as the AO in these instances of particular commands (e.g., Headquarters Company/Battery Commander). If the AO in this case is prohibited from performing certain duties associated with supply procedures (i.e., does not have convening authority for JAGMAN investigations), the action will be referred to the next higher level in the chain of command which has the appropriate authority (e.g., Regimental CO).

What is one reason that would prohibit an AO from performing duties associated with supply procedures?

They do not have convening authority for Judge Advocate General Manual (JAGMAN) investigations.

Discretionary Authority

Those functions of the AO and supply officer that involve the exercise of substantive discretionary authority in determining the government's requirements and controlling government assets cannot be performed by a contractor and must be retained by the government.

Requisition Authority Application

To be appointed with requisition authority, it is not enough that someone is able to expend appropriated dollars, but there must also be a mechanism in place whereby the goods/services for which these funds were expended are tracked in a lifecycle management process (i.e., generation of requirement all the way through to disposal). By law, someone has to be held accountable for the obligation of appropriated funds (more specifically, the over-obligation of funds). Similarly, this same person has the responsibility to physically account for the supplies and equipment that are bought with appropriated funds. This mission is delegated down by the CMC to COs through the issuance of orders and through Tables of Organization and Equipment over which someone is appointed as the AO. The distinction on who can serve as an AO hinges upon court-martial and non- judicial punishment (NJP) authority, because the AO needs to be able to adjudicate matters relative to any loss, damage, or theft of government property over which he/she is charged.

Requisition Authority Principles

To ensure proper authority is associated with the management and use of public resources (e.g., appropriations, materiel, equipment, etc.) associated to and enabled by the use of a requisitioning DoD Activity Address Code.

Garrison Mobile Equipment (GME)

Used to perform transportation and automotive maintenance functions at Marine Corps installations. Commercially available GME includes passenger vehicles, cargo vehicles, non- tactical material handling equipment, engineer equipment, and railway rolling stock.

Garrison Property

Used to provide general government services or goods in the support of end item development, maintenance, storage, and/or to support the operations of a Marine Corps installation and its tenant activities. Garrison property includes, but is not limited to, office equipment, automated data processing equipment, industrial plant equipment, training equipment, special tooling, and special test equipment.

MARCORMAN

While the United States Navy Regulations apply to the Marine Corps, 10 U.S.C., Section 6012 also makes provision for "Additional regulations for Marine Corps." Accordingly, the Commandant, as a member of the Joint Chiefs of Staff, is also responsible for promulgating these additional statutory regulations, in consonance with United States Navy Regulations, as prescribed by 10 U.S.C., for how the Marine Corps operates as a part of the DON. To that end, the CMC publishes the MARCORMAN, in accordance with United States Navy Regulations, for the instruction and guidance of all persons in the DON in matters concerning the Marine Corps.