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This chapter prescribes the policy and procedures for accounting for proceeds received from the sale of USGS personal property and motor vehicles.
OPR: Office of Administrative Policy and Service/Office of Accounting and Financial Management
Instruction: New SM Chapter.
1. Purpose. This chapter prescribes the policy and procedures for accounting for proceeds received from the sale of USGS personal property and motor vehicles.
2. Authority. The application of proceeds from the sale of personal property is provided in 41 CFR 102-38 and 39.
3. Applicability. The exchange/sale authority applies to all property except for property prohibited as listed in 41 CFR 102-39.45. Replacement of Personal Property pursuant to the Exchange Sale Authority must be in accordance with Federal Management Regulations (FMR) Part 102-38 and 39.
A. Available Period. The period during which the proceeds from the sale of property are available for offset of the acquisition cost of replacement property. Funds are available during the fiscal year they are received by the USGS plus one fiscal year thereafter.
B. Available personal property. Property that property no longer required by the USGS and available for screening by other Department of the Interior activities. "Available" property is not excess until after it is screened within the Department.
C. Excess property. Excess personal property means any personal property under the control of any Federal agency (i.e. the Department of the Interior in its entirety) that is no longer required for that agency's needs, as determined by the agency head or designee.
D. Exchange. Replace property by trade or trade-in with the supplier of replacement property.
E. Exchange/sale. Exchange or sell non-excess, non-surplus property and apply the exchange allowance or proceeds of the sale in whole or in part payment for the acquisition of similar property.
F. Exchange/sale property. Property that is not available, excess, or surplus excess to the needs of the USGS, but which is eligible for replacement, and exchanged or sold in order to apply the exchange allowance or proceeds from the sale in whole or in part payment for replacement with a similar item.
G. Personal property. Any property owned by the USGS, excluding real property.
H. Proceeds. Funds received from the sale of property.
I. Real property. Real property is any interest in land, together with improvements, structures and fixtures, appurtenances, and improvements of any kind located thereon. The term “real” should be associated with realty, land, or something attached thereto.
J. Replacement property. Property acquired to be used in the place of property that is still needed but no longer adequately performs the tasks for which it is used.
K. Similar item. Where the acquired and replaced items 1) are identical, 2) are designed/constructed for the same purpose, or 3) fall within a single Federal Supply Schedule (FSC) group eligible for exchange/sale.
L. Surplus property. Excess property not required for the needs of any Federal agency, as determined by the General Services Administration (GSA).
M. Working Capital Fund property. Property purchased from a component of the USGS Working Capital Fund (WCF).
A. Property that is required for USGS purposes, but which needs to be replaced, may be sold and the proceeds from the sale applied to reduce the cost of similar replacement property, subject to the following:
(1) The number of items acquired as replacement(s) must equal the number of items sold unless the item(s) perform all or substantially all of the tasks for which the items sold would otherwise be used (i.e. where one replacement vehicle would be used for the work currently being accomplished by using two vehicles to be traded-in).
(2) Proceeds may not be applied to the purchase of property that is an addition to the property inventory, vehicle fleet, etc.
(3) Property that is to be offered for sale and that has not been identified as exchange/sale property is surplus property. Proceeds from the sale of surplus property or proceeds from property sold for scrap or salvage, will be deposited into the U.S. Treasury as miscellaneous receipts and will not be available for offset or crediting to a USGS account.
(4) The proceeds from the sale of property considered exchange/sale property, including WCF exchange/sale property, are posted to a “proceeds” suspense account by the Office of Accounting and Financial Management (OAFM), Receivables Management Section (RMS), and remain available to offset an equivalent amount of the original acquisition cost of replacement property. Proceeds are only available to offset the acquisition cost of replacement property during the “available period” which is the balance of the fiscal year during which the funds are posted plus all of the following fiscal year. Proceeds not applied during the available period will be credited to the U.S. Treasury as a miscellaneous receipt.
B. Pursuant to FMR Part 102-39.30 the exchange/sale authority should not be used if the exchange allowance or estimated sales proceeds for the property will be unreasonably low. Although the FMR does not define what is “unreasonably low”, the sale of property should be cost effective, meaning the anticipated proceeds from the sale will at least exceed the total cost to the USGS in documenting and processing the sale.
6. Procedures. The following procedures are provided to ensure that proceeds received for sold property are posted correctly:
A. Property items for sale are submitted to the Property Management Branch (PMB) or the regional Property Management office via form SF-120, Report of Excess Personal Property, or SF-126, Report of Personal Property for Sale. The SF-120 or SF-126 for the sale of WCF property is to indicate that the property is WCF. In accordance with PMB procedures, the SF-120 or SF-126 for all property will indicate if the property listed is to be sold as exchange/sale property with the proceeds to be used to offset the cost of replacement property, if the property is WCF reimbursable (non exchange/sale), or if the property is excess (no reimbursement).
B. Items that are Reimbursable, Exchange Sale or Excess must each be coded uniquely when posted to GSAXcess. This information must be annotated on the original SF-120/SF-126. If the record is posted incorrectly to GSAXcess, it will adversely affect how GSA will handle the proceeds.
C. In order to certify that property is approved for sale as exchange/sale property, one of the following statements must be included in the body of the SF-120 or SF-126, and signed by the Custodial Property Officer (CPO):
(1) “There is a continuing need for the listed equipment. The equipment has become uneconomical to operate/maintain, meets applicable replacement standards in accordance with 41 CFR 101-25.4, and qualifies for exchange in accordance with 41 CFR 102-39.”
______________________________________CPO Name and Signature Date
(2) “There is a continuing need for the listed equipment. The listed equipment lacks features/capabilities to perform the function for which it is intended, meets any applicable replacement standards in accordance with 41 CFR 101-25.4, and qualifies for exchange in
D. If the generating office needs to wait until replacement equipment is received before they can sell their equipment, the approval to sell the equipment needs to be accomplished in advance (either an SF-126 or a memorandum clearly annotated, “DO NOT SELL UNTIL REPLACEMENT IS RECEIVED”) with a copy attached to the requisition. When the replaced equipment is ready to be reported for sale, a copy of the prior approval should be attached to a new SF-120/SF-126 clearly annotated, “READY FOR IMMEDIATE SALE”.
E. Replacement Vehicles.
(1) PMB will complete the electronic vehicle requisition initiated by USGS ordering offices via GSA’s website. If the requisition is for a replacement vehicle, PMB will ensure that the requisition includes the replaced vehicle’s USGS Tag number and Vehicle Identification Number (VIN) and USGS account number.
(2) PMB will provide a copy of the completed requisition for replacement vehicles to OAFM-RMS.
(3) OAFM-RMS will record the vehicle in their log of replaced vehicles.
(4) The SF-120 of SF-126 (or attached documentation) should annotate the order number of the replacement.
F. Other Replacement Personal Property.
(1) The ordering office will notate on form DI-1, Requisition, if the property ordered is replacement property, and include the Fixed Asset number (if applicable) of the property being replaced. (2) The ordering office will attach the completed, approved form SF-120 or SF-126 to the requisition or include a statement that approval has been received (see Chapter 4, paragraph 5.A. of the USGS Property Management Handbook 408-2-H at http://www.usgs.gov/usgs-manual/handbook/hb/408-2-h.html#c45a ).
(3) The servicing acquisition office will process the requisition for the replacement property and provide a copy of each purchase order issued for replacement property to the PMB or the regional Property Management office with a copy of the SF-120 or SF-126. When replaced property is purchased via credit card instead of purchase order, the credit card purchase invoice is to be provided.
(4) The PMB or regional Property Management office will record and forward a copy of the purchase order with copies of the SF-120 or SF-126 to RMS to record property in their log of replaced property other than vehicles.
G. Collections. The processing of proceeds collected from the sale of USGS property is as follows:
(1) OAFM-RMS will process the documents received from the sale of property and post the collection to the “proceeds” suspense account (Fund 14F3845). The proceeds from the sale of replaced vehicles will be recorded according to the tag number and VIN number of the replaced vehicles. The proceeds from the sale of other property will be maintained according to the Fixed Asset number (if applicable) of the replaced property. Proceeds received for property without a Fixed Asset number will be tracked by the Serial Number.
(2) OAFM-RMS will notify the office selling the property when proceeds are received on property submitted for sale.
(3) OAFM-RMS will review each collection of proceeds as received to determine if the sold property is exchange/sale property. OAFM-RMS will post the proceeds from the sale of replaced property from suspense to the account number charged to purchase the replacement property. The posting will reference the motor vehicle purchase order number (MVO number) of the replacement vehicle or the purchase order number (PO) of the replacement property, or the serial number if the sold property does not have a Fixed Asset number.
(4) The sale of replaced property can occur either before or after the replacement property has been ordered and/or received. The proceeds will be subsequently credited to the account number charged with the obligation/expenditure of the replacement property. Proceeds from the sale of property not identified for replacement will be credited to the U.S. Treasury as miscellaneous receipts.
(5) OAFM-RMS will provide quarterly information to the Fiscal Service Offices identifying proceeds that remain unapplied as of the end of each quarter. Offices should also review their FFS report #268 report to ensure that credits for the sale of replaced property were applied properly.
______________________________________ 3/10/06 Karen D. Baker Acting Associate Director for Administrative Policy and Services