1. Purpose

2. Background

3. Official Use of Government Property

Department employees shall not use or authorize the use of Government property for other than official purposes.  The prohibition and the penalty for misuse of Government property is: Whoever embezzles, steals, purloins, or knowingly converts to his or her  use or the use of another, or without authority, sells, conveys or disposes of any record, voucher, money, or thing of value of the United States or of any department or agency thereof, or any property made or being made under contract for the United States or any department or agency thereof; or whoever receives, conceals, or retains the same with intent to convert it to his or her use or gain, knowing it to have been embezzled, stolen, purloined or converted shall be fined under this title or imprisoned not more than ten years, or both.  If the value of such property does not exceed the sum of $1,000, the individual shall be fined under this title or imprisoned not more than one year, or both.  The word “value” means face, par, or market value, or cost price, either wholesale or retail, whichever is greater (18 U.S.C. 641).

4. Definitions
   1. Abuse - willful misconduct or deliberate unauthorized use.
   2. Accountability - the obligation to keep records (usually automated) and transactions on quantities of equipment such as identification, location, gain, loss, distribution, transfer, disposal, and balances on hand.
   3. Accountable Property - personal property with an acquisition value of $5,000 or greater and sensitive items without regard to value.  Accountable property shall be identified with a property decal/barcode.
   4. Appointing Official - delegated to the Executive Officer who appoints the Report of Survey Officer and Board of Survey members.  The Appointing Official reviews findings and manages the survey process within the organization.
   5. Board of Survey (BOS) - a panel consisting of three or more members or a Survey Officer appointed by the Appointing Official (delegated to the Executive Officer) to review the Report of Survey investigations of loss, damage or destruction of Government property.  The Board of Survey makes recommendations of financial liability for such property and removal of items from the official property records.
   6. Capital Property - personal property that has a unit acquisition cost of $25,000 or more, including accessories; is a complete unit in itself; and does not lose its identity when in use.  Capital property is identified in all property accounting records and with a property barcode decal affixed.  
   7. Collective Liability - when more than one individual may be liable for the loss, damage, or destruction of Government property.
   8. Culpability - the determination of fault for an act.
   9. Determining Authority - a designated official responsible for making final determinations on Board of Survey recommendations.
   10. Direct Delivery - when property is delivered directly to the customer, who reviews the receiving document for completeness for transaction purposes.
   11. Disposal - the practice of turning-in excess property no longer required by an organization for reutilization or final disposition.
   12. Expendable Property - property which does not meet the definition for accountable property or is property which is consumed in the performance of program mission.  Sometimes referred to as a consumable item.
   13. Financial Liability - the statutory obligation of an individual to reimburse the LDD of Government property.
   14. General Ledger - a fiscal record and the property accounting activity, which is comprised of several accounts that reflect the dollar value of assets.
   15. Government Property - any property loaned, owned, leased, or held in trust by the Government.
   16. Government Vehicle - any motorized vehicle owned or leased by the Government.
   17. Gross Negligence - an extreme departure from the course of action to be expected of a reasonable prudent person, all circumstances being considered.  The act is characterized by a reckless, deliberate, or blatant disregard of foreseeable consequences.
   18. Negligence - the failure to act as a reasonable prudent person would have acted under similar circumstances.  Failure to comply with existing laws, regulations, or procedures may be considered as evidence of negligence.
   19. Physical Inventory - the act of personally observing and counting items, recording the count, and comparing the count with official records for the purpose of reconciliation.
   20. Probable Cause - reasonable grounds for belief.
   21. Proximate Cause - the cause that in a natural and continuous sequence of events unbroken by a new cause produced the loss or damage.  Without this cause, the loss, damage, or destruction would not have occurred.
   22. Purchase Order (PO) - used to place an order for goods or services with a supplier (vendor).
   23. Quality Control (QC) - the inspection, testing, and grading of goods and services to determine whether required standards and specifications have been achieved.
   24. Receive - the practice of physically receiving property and formal acceptance in NBS.
   25. Reconciliation - the procedure by which records in one system are compared to those in another system.  The objective of reconciliation is to compare information between two sources and to determine if it coincides.  If the information does not coincide, the appropriate adjustments are made to the sources.
   26. Report of Survey (ROS) (HHS Form 342) - the document used to record and present findings and recommendations concerning the LDD of Government property to approve corrective actions.  This includes financial recovery and to approve the resulting adjustments to property accountability records.
   27. Report of Survey Officer - appointed to investigate LDD of Government property, and the circumstances involved in the LDD.  A great deal of responsibility is placed on the Report of Survey Officer to conduct a fair, impartial and thorough investigation.
   28. Requirement - an established need which justifies the allocation of resources to achieve a capability to accomplish an objective or task which generated the need.
   29. Responsibility - an obligation for the proper custody, care, and safekeeping of property or funds entrusted to the possession or supervision of an individual.
   30. Sensitive Property - personal property that has a demonstrated susceptibility to loss, misuse, theft or requires special handling.  Despite the lower value, these items must be controlled in the same manner as accountable items, and must be decaled and recorded in the accountable property records in NBS.  Sensitive items include items which could easily be converted to private use.  NIH has designated certain property, valued lower than the current accountability threshold, as sensitive when one or more of the following criteria apply:
       1. There have been demonstrated and repeated instances of loss
       2. There is a possible threat to public health or safety
       3. The items have a strong potential for improper use or resale
       4. The items have personally identifiable information (PII)
       5. The item requires tracking and inventory due to environment impact
   31. Specification - a document which describes the essential and technical requirements for items, materials, or services.  Also contains preserving, packaging, packing, handling, containing hazardous characteristics, and marking requirements.
   32. Willful Misconduct - any intentional wrongful or unlawful act or omission relating to Government property, to include misappropriation of Government property.

5. References

The following statutory provisions establish requirements for agencies to maintain property accountability, establish internal controls and adequate inventory controls, and to provide for proper recordkeeping in the management of personal property.

1. Section 202(b) of the Federal Property and Administrative Services Act of 1949, as amended (40 U.S.C. 483), requires that each executive agency maintain adequate inventory controls and accountability systems for property under its control.
2. Title 31 of the U.S. Code (31 U.S.C. 3512), requires that each executive agency establish and maintain systems of accountability and internal controls designed to provide effective control over and accountability for all property for which it is responsible, including adequate monetary property accountability records.
3. Title 18 of the U.S. Code (18 U.S.C. 641), outlines penalties for embezzlement, theft, etc. of any property or thing of value of the United States, or of any Department or agency thereof.
4. Title 16 of the U.S. Code (16 U.S.C. 18f), establishes requirements for the management and maintenance of items of museum properties.
5. 41 CFR 101-43 - Utilization of Personal Property
6. 41 CFR 102-34, Motor Vehicle Management
7. HHS Logistics Management Manual (LMM)
8. Delegation of Authority, Property: Personal No. 01, Government Motor Vehicles
9. Delegation of Authority, Property: Personal No. 02, Board of Survey Determination
10. NIH Manual Chapter 26101-38, Official Use of Government Motor Vehicles

  F. Roles and Responsibilities

1. Division of Logistics Services

Division of Logistics Services (DLS) is comprised of three major operational branches; Property Management Branch (PMB), Supply Management Branch (SMB), and Transportation Management Branch (TMB).  DLS receives and reviews annual reports of ROS activities and directs changes to policies or procedures to reduce the risk of loss, damage, or destruction of property.

2. Property Management Branch

Property Management Branch (PMB) is responsible for developing property management policies and overseeing the management of NIH personal property.  PMB will:

1. Review the IC ROS process for compliance to related property management policies.
2. Execute a “Final Event” transaction upon receipt of a completed and approved ROS for all accountable property.
3. Review ROS for all capital assets prior to submission to the Determining Authority.
4. Review ROS for all non-capital property with an aggregate value over $500,000 prior to submission to the Determining Authority.

       3.  Responsible Users

Responsible Users are NIH personnel assigned exclusive use of Government property made available for the performance of their official duties, who are responsible for the care and protection of Government property as an obligation inherent to all employed personnel at NIH.  The Responsible User has the responsibility to maintain and manage Government property in their care, and must report the LDD of Government property within five business days of occurrence or discovery to their PCO, PAO, Supervisor or local authority to initiate a Report of Survey (ROS).  If for any reason there is a delay of the reporting timeline for a LDD incident, a letter of lateness must be submitted with the ROS, as an exhibit, to explain the reason for the delay.

4. Property Custodial Officer

A Property Custodial Officer (PCO), appointed by the Executive Officer, must promptly initiate a ROS upon notification by the Responsible User of any LDD of Government property, and submit the ROS to the Property Accountability Officer (PAO). The PCO must initiate a ROS for documented losses resulting from the annual inventory.

5. Property Accountability Officer

A Property Accountability Officer (PAO), appointed by the Executive Officer, is responsible for the management, recording, accounting and reporting of property within the IC.  The PAO’s responsibilities cannot be delegated.  The PAO shall:

1. Provide any information that may have a bearing on the Board of Survey (BOS) hearing in block 5 of the ROS, HHS Form 342, signs and dates the form.  The PAO must forward the ROS with supporting documentation to the Appointing Official.
2. Log and track all ROS to ensure the process is completed within 90 calendar days.
3. Retain documents on all property ROS actions for the period required in accordance with record retention policies.

       6. Property Management Officer

The Property Management Officer (PMO) is an individual responsible for directing an effective personal property system, including; property accountability, inventory, utilization and reutilization, declaration of excess property and disposal for the organization.  The NIH PMO is delegated to the Chief, Property Management Branch, Division of Logistics Services.  PMO responsibilities are further delegated to the OD Executive Officer and the IC Executive Officers of their respective organizations.  (Delegation of Authority No. 03, Property Management Officer).

7. Appointing Official

The Executive Officer serves as the Appointing Official, who appoints the Report of Survey Officer and Board of Survey members.  The Appointing Official may also serve as the Determining Authority for non-capital property with an aggregate value less than $500K.  This authority may not be further delegated.  The Appointing Official shall:

1. Review all submitted ROS and manage the survey process for the organization. 
2. Appoint a Report of Survey Officer and Board of Survey members within 5 days of receiving an initiated HHS Form 342, Report of Survey.
3. Review and accept the BOS recommendations or return the ROS for further review or reconsideration.
4. Forward the BOS recommendations to the Determining Authority or to the Office of General Council (OGC) for legal review if financial liability is assessed.
5. Forward BOS recommendations for all capital assets and non-capital assets with an aggregate value over $500K to PMB for administrative review prior to the Determining Authority approving the accepted BOS recommendations.
6. If financial liability is assessed, informs the individual of pecuniary liability in writing, explains the findings and rights for reconsideration, explains the process to request a reconsideration or submission of additional statements and/or new evidence.
7. Notify supervisory and human resources authorities, financial management and property management personnel of any necessary actions.

8. Determining Authority

1. The Determining Authority is the delegated authority (IC Directors and Deputy Director for Management (DDM)) responsible for making a final determination on BOS recommendations for all capital assets and non-capital assets with an aggregate value over $500K.  This authority may not be re-delegated.  The Determining Authority shall:
   1. Review the BOS recommendations to concur and accept, or non-concur and return the ROS to the BOS for further review.
   2. Coordinate with personnel, property and supervisory authorities to assure that accepted recommendations are executed.
   3. Ensure the copies of all completed and signed ROS documentation with accepted recommended actions for capital assets and non-capital assets with an aggregate value over $500K is provided to the PMB for appropriate property record adjustments.
2. For non-capital assets with an aggregate value less than $500K, the Determining Authority may delegate the Executive Officer (EO) to serve as the Determining Authority.  An EO serving as a PAO cannot serve as the Determining Authority or Appointing Official.  The EO serving as the Determining Authority shall:
   1. Review the BOS recommendations to concur/non-concur.
   2. Forward the ROS packet to the Office of the General Counsel (OGC) for legal review.
   3. Ensure the copies of all completed and signed ROS documentation with accepted recommended actions for non-capital assets with an aggregated value less than $500k is provided to the PMB for appropriate property record adjustments.

9.  Report of Survey Officer (Survey Officer)

A Report of Survey Officer (Survey Officer) is appointed by the Appointing Official to investigate the loss, damage, or destruction of Government property and the circumstances involved.  The Survey Officer may serve as the Chair of the BOS.

1. Appointed Survey Officers must meet the following criteria:
   1. GS-13 and above or Commission Corp Officers (any grade level).
   2. Disinterested Person.
   3. Property personnel are exempt from this appointment (e.g. PAO, PCO, PMB staff).
2. The Survey Officer’s responsibilities include:
   1. Conducting an immediate investigation after appointment received in writing, and consults with Appointing Official and/or PMB for guidance.
   2. Completing a thorough investigation within 30 days; conducts interviews, obtains signed statements, compiles and reviews all evidence/exhibits, scrutinizes all available information to develop findings and recommendations.
   3. Attaching additional exhibits as necessary.  Uses own words to describe how losses occurred, referring to statements and evidence to support findings.
   4. For asset(s) with an acquisition cost less than $1,000, the Survey Officer can make the recommendation to assess financial liability or relieve person(s) of responsibility without convening a BOS.
   5. Notifying the Appointing Official and PAO immediately if the property is discovered during the ROS process.
3. The Survey Officer determines who to interview to obtain statements from all individuals whose testimony may assist in determining the cause of the loss or those individuals who had responsibility for the loss.  The ROS and all attached exhibits or other related material, is provided to the BOS, which may consider interviewing the PAO, the PCO, the accountable user, the supervisors, and other witnesses.  During the interviews, other questions may arise that will require additional interviews with persons already interviewed, or with other persons not originally considered.  

10. Board of Survey

The Board of Survey (BOS) is a panel of three to five members who are appointed by the Appointing Official to review the Report of Survey Officer’s investigation findings and recommendations of the proximate cause of loss, damage, or destruction (LDD) to Government property, to ascertain financial liability if proximate cause was due to negligence or willful misconduct, and to assure due diligence of the survey process.

The appointment of employees to serve on a BOS is based on recommendations of the PAO.  The BOS is convened to ensure a complete and thorough hearing is conducted that examines and verifies all evidence presented, documents findings and makes a determination to assess or relieve financial liability for LDD.

1. The BOS shall consist of three to five members (the Recorder is a non-voting member of the BOS).
2. Based on the completed Survey Officer’s investigation, determines if the reported LDD of Government property was the result of negligence, misconduct or reckless disregard for the property.
3. Makes determination to assess or relief financial liability and/or disciplinary action of individual(s) involved.
4. Provides final ROS recommendations to the Appointing Official for appropriate review and disposition.

11. Office of the General Counsel

The Office of the General Counsel (OGC) is the legal team for HHS, providing representation and legal advice at the NIH.  OGC reviews all BOS findings that recommend individual(s) be assessed pecuniary liability for the LDD of property.  OGC provides a written opinion of pecuniary liability for the initial and subsequent legal reviews.

G.  Polices and Procedures: Personal Property

1. Report of Survey
   1. The Report of Survey (ROS) is an investigation of the loss, damage, or destruction of Government property.  Each IC is responsible to initiate a HHS Form 342, Report of Survey, for all reported LDD of property.  HHS Form 342 is the property accounting document used to adjust an asset record.  A ROS is not punitive in nature; however, administrative and legal actions may be pursued as deemed appropriate as a result of the BOS process. 
   2. A completed HHS Form 342 must be submitted for each item identified as a shortage as a result of the physical inventory.
   3. Upon immediate discovery of LDD of property, HHS Form 342 must be initiated within 5 calendar days and PMB notified.
   4. A ROS for LDD of Government Property shall be initiated for the loss of accountable and/or sensitive property as a result of the following:
      1. Negligence or willful misconduct is suspected as the cause, and the individual does not admit liability and refuses to make voluntary reimbursement to the Government.
      2. The value of the admitted loss, damage, or destruction exceeds the individual’s monthly basic pay.
      3. The loss resulted from a fire, theft, or natural disaster.
   5. Any employee who detects or suspects the loss, damage, or destruction of Government property shall immediately report the incident to their supervisor.  Responsible Users must immediately, or within 5 calendar days upon discovery, report the loss, damage, or destruction of Government property in their care.  As a rule, the user has the most current knowledge of the property’s condition, status, and location.
   6. The IC EO is the Appointing Official, appoints a Survey Officer who shall make a preliminary investigation and report the facts using the ROS.  The Survey Officer must coordinate with the PAO and PCO to ensure all disposal avenues have been fully investigated.
   7. The PAO/PCO and individual accountable user of Government property are responsible for the initial preparation of HHS Form 342 in the event Government property is lost, damaged or destroyed.  The accountable user must completely explain all known facts surrounding the LDD of property in block 4 of the ROS form.  The accountable user must sign and date the form in block 4.
   8. If theft is suspected, the incident should be immediately reported to the appropriate law enforcement authority.  On campus, reports should be submitted to the NIH Police.  Off campus, reports should be submitted to the appropriate local authority.  Users must attach copies of any relevant police reports to the ROS.  Copies of the completed package may be forwarded through the supervisory chain to the responsible PAO/PCO.
   9. If the employee admits liability, a letter of indebtedness is submitted to the Office of Financial Management (OFM), Office of Management (OM), OD.  Note: The amount paid cannot exceed one month of pay for the employee.  The completed collection document is used as supporting documentation to the ROS to retire (Final Event) the property record by PMB.
   10. The ROS investigation for LDD property shall begin immediately upon appointment of the Survey Officer.  The Survey Officer has 30 calendar days to complete the investigation and provide findings and recommendations to the BOS or Appointing Official.  When the investigation is delayed beyond the required processing times, the person responsible for the delay shall prepare a written statement explaining the reason for the delay and attach it to the ROS investigation as an exhibit.  Under normal circumstances, the entire process should not exceed 90 calendar days of total processing time.
   11. Exhibits shall be included with HHS Form 342 as supporting evidence.  Exhibits should add to the understanding of the conclusions and recommendations.  The Survey Officer should add statements from persons having knowledge of the incident which will help someone who has no previous knowledge of the incident, to understand the events of the LDD of Government property.  Examples of exhibits include:
       1. Sworn statements
       2. Copy of Property Record
       3. Copy of Asset history
       4. Property/Loan Pass
       5. Photographs of damage
       6. Repair cost estimates
       7. Police/Incident Reports
   12. The following checklist includes the requirements to complete the Report of Survey before submitting to PMB:

2. ROS Process Timeline
   1. ROS Process timeline for all Capital and Non-Capital assets with aggregated value over $500K (in calendar days):
      • Day 1-5:  HHS Form 342, Report of Survey is initiated and submitted to the Appointing Official within 5 days of reported discovery of LDD.
      • Day 5-10:  Appointing Official has 5 days to appoint a Survey Officer and Board of Survey panel members.
      • Day 10-40:  Survey Officer has 30 days to complete the ROS investigation with a recommendation to the Board of Survey.
      • Day 40-45:  Board of Survey has 5 days to review ROS findings/recommendation of the Survey Officer and forward the ROS packet to the Appointing Official for review.
        1. If no pecuniary liability assessed, the ROS packet is forwarded to PMB for review.  PMB may recommend changes and return the ROS packet to the Appointing Official for corrections if needed.  After corrections, Appointing Official will forward to Determining Authority.  Determining Authority will complete block 8 of HHS Form 342 and forward a copy of the complete ROS packet to PMB for Final Event action
        2. If pecuniary liability is recommended, the ROS packet is forwarded to Appointing Official for review, who forwards the ROS packet to Office of the General Counsel (OGC) for legal review.
      • Day 45-50:  OGC has 5 days to review the ROS packet for a legal opinion.  If corrections are needed, OGC will attach a detailed memorandum stating corrections to the ROS packet and forward the complete ROS Packet to PMB for review. 
      • Day 50-55:  PMB has 5 days for an administrative review.  PMB will attach a detailed memorandum if any corrections to the ROS packet are needed.  PMB will return the ROS packet to the Appointing Official if corrections are needed.  The Appointing Official has 5 days to make corrections, then forward to Determining Authority.  PMB will forward the ROS packet to the Determining Authority if no corrections are needed.
      • Day 55-60:  Determining Authority has 5 days to review the ROS packet recommendations of the Survey Officer/BOS.  If Determining Authority concurs with recommendation, the ROS is completed and forwarded to PMB.  The Appointing Official will present in writing to individual(s) if found financially liable and explain the reconsideration process.
      • Day 60-65:  Employee held financially liable has 5 days to file a request for reconsideration and submit supporting documents to the Appointing Official.  If no reconsideration is filed, the ROS is forwarded to PMB for review.  PMB will forward the ROS packet to the Appointing Official.
      • Day 65-68:  The Appointing Official has 3 days to review employee’s reconsideration.  The Appointing Official will forward the ROS packet to OGC for a subsequent legal review.
      • Day 68-73:  OGC has 5 days to review the employee’s request for reconsideration.  If corrections are needed, OGC will attach a detailed memorandum stating corrections needed to the ROS packet and forward the complete ROS Packet to PMB for review.
      • Day 73-76:  PMB has 3 days to review.  PMB will attach a detailed memorandum if correction is needed.  PMB will forward the ROS packet to the Appointing Official if any corrections are needed.  The Appointing Official has 5 days to make corrections, then forward to Determining Authority.  PMB will forward the ROS packet to the Determining Authority if no corrections are needed.
      • Day 76-79:  The Appointing Official has 3 days to make corrections, then forward to Determining Authority.
      • Day 79-84:  Determining Authority (IC Director) has 4 days to complete HHS Form 342 with signature, forward the financial indebtedness document to Finance for collection from employee, and a copy of the complete ROS packet to Property Management for Final Event (D10).  The original ROS packet will be maintained at the IC PAO level.
      • Day 84-90:  Office of Financial Management (OFM), Office of Management (OM), Office of the Director (OD) has 6 days to process the ROS for financial collection and forward a completed copy of the financial collection document to the IC, liable employee(s) and PMB to complete the ROS process.  The Office of Financial Management will remove the capital asset from the NIH capital ledger.

2. For LDD of Non-Capital assets with aggregated value less than $500K, the Executive Officer may be delegated as the Determining Authority.
   1. The BOS recommendations do not require review by PMB.
   2. A copy of the final ROS packet is provided to PMB with signatures and Determining Authority has approved BOS recommendations for final event (D10) transaction.
   3. If pecuniary liability is assessed on individual(s), the ROS process timeline below is applied (in calendar days):
      • Day 1-5:  HHS Form 342, Report of Survey is initiated and submitted to the Appointing Official to report LDD of accountable assets within 5 days of discovery.
      • Day 5-10:  Appointing Official (IC EO) has 5 days to appoint a Survey Officer and Board of Survey panel members.
      • Day 10-40:  Survey Officer has 30 days to complete the ROS investigation with a recommendation to the Board of Survey.
      • Day 40-45:  Board of Survey has 5 days to review ROS findings and forward the ROS packet to the Determining Authority (IC EO).
        1. If no pecuniary liability assessed.  A complete copy of the ROS packet is provided to PMB for final event (D10) transaction.
        2. If pecuniary liability is assessed, the ROS packet is forwarded to Appointing Official/Determining Authority (IC EO) for review, then forwards the ROS packet to OGC for legal review.
      • Day 45-50:  OGC has 5 days to review the ROS packet for a legal review and returns the ROS to the Determining Authority (IC EO). 
      • Day 50-55:  Determining Authority (IC EO) has 5 days to review ROS recommendations and legal opinion.  The Determining Authority (IC EO) will present the decision of financial liability in writing to individual(s).
      • Day 55-60:  Employee(s) held financially liable has 5 days to file for reconsideration and submit supporting documents.
      • Day 60-65:  Determining Authority(IC EO) has 5 days review the employee’s reconsideration and forward ROS packet to OGC for final legal review.
      • Day 65-75:  OGC has 10 days for final legal review and return ROS packet to the Determining Authority (IC EO).
      • Day 75-85:  Determining Authority (IC EO) has 10 days to sign and complete HHS Form 342, forward the financial indebtedness document to Office for collection from employee, and provide a copy of the completed ROS packet to Property Management for Final Event (D10).  The original ROS packet will be maintained at the IC PAO level.
      • Day 85-90:  Office of Financial Management (OFM), Office of Management (OM), Office of the Director (OD) has 5 days to process the ROS for financial collection and forward a completed copy of the financial collection document to the IC, liable employee(s) and PMB to complete the ROS process.

3. Board of Survey

A Board of Survey (BOS) reviews the Survey Officer’s investigation findings of the circumstances and conditions surrounding the LDD of NIH accountable capital and non-capital assets.  The BOS documents recommended disposition for the loss.  The BOS is convened for the LDD of accountable assets valued over $1,000.  The appointed Survey Officer may make recommendations directly to the Appointing Official on findings for LDD accountable assets less than $1000, without convening a BOS.

1. ICs may pool resources and establish Boards to consider LDD reports from two or more ICs.  To avoid potential conflicts of interest, appointees to the BOS must not be individuals with property management duties (e.g., PAOs and PCOs).  BOS members should be recused from BOS activities when LDD of property is reported by a direct supervisor.
2. To determine whether individuals are held liable or relieved of liability, the facts contributing to the loss must be developed through a thorough investigation of facts and circumstances of the loss, damage or destruction.  The BOS must ensure the facts are fully disclosed, the interests of the Government are fully served, and the rights of the involved individuals are fully protected.
3. The BOS shall hold meetings as required, and all actions will be documented in written minutes.  The minutes will constitute part of the hearing record, to include the statements and exhibits included in the ROS.
4. The BOS is administrative in nature.  The BOS will review the statement in block 4 of HHS Form 342 and any additional attached exhibits.  If during the conduct of the hearing, theft of property or fraud is indicated, the report should be referred to the Inspector General for criminal investigation.
5. If property is recovered during the conduct of the BOS hearing, the BOS will close out the ROS by documenting the fact and notify the PAO and PMB that the survey item was found and the ROS is closed.
6. The BOS will review the findings of the Survey Officer’s investigation.  Findings are the conclusions based on the facts of the circumstances of the loss.  Findings must be supported by evidence contained in block 4 of HHS Form 342 and exhibits attached to the ROS.  Findings are not personal speculation, suspicion, or opinions.
7. The findings and the total cost of LDD value are entered in block 7 of HHS Form 342, and must be complete and thorough to withstand the scrutiny of later reviews by the approval authority and legal advisors.  
8. The BOS determines if negligence or willful misconduct was the proximate cause for the loss, and makes recommendations based upon the findings.
   1. If the findings reveal no negligence or willful misconduct on anyone’s part, a recommendation is made to relieve all persons concerned of financial responsibility.  As an example, the recommendation may read: "Recommend all persons be relieved of financial responsibility and accountability for the loss of property."  This may not preclude the Government from taking other administrative or disciplinary actions against the individual(s) involved.
   2.  If findings reveal the proximate cause for the LDD was due to negligence or willful misconduct on the part of one or more individuals, the BOS shall further account for the negligence.
      1. When an individual’s negligence or act of willful misconduct is the proximate cause for the loss, the individual should be recommended for assessment of financial liability.  An example of the recommendation may read: Recommend (individual's name and grade/status) be held financially liable in the amount of ($ amount).
      2. When more than one person's negligence or act of willful misconduct is the proximate cause for the loss, those persons should be recommended for assessment of collective financial liability.  The term "collective financial liability" is used when more than one individual is found financially liable for a loss.  An example of the recommendation may read: Recommend (individual's name, grade/status and IC) and (identify name, grade/status of others being recommended) be held collectively financially liable in the amount of ($ amount), respectively.
   3. The BOS recommendations should also include recommended disposition of the accounting requirements for any damaged property.  A recommendation to relieve all concerned of financial accountability for damaged items, or a recommendation that financial accountability continue and damaged property be repaired and returned to service are appropriate, depending on the circumstances.
   4. Individuals recommended for charges of financial liability have the right to submit a rebuttal statement or other added evidence, and to have that statement or new evidence attached to the Report of Survey for consideration by the Board of Survey.  A respondent has the right to:
      1. Inspect and copy NIH records relating to the debt.
      2. Seek legal advice.
      3. Request reconsideration and submit a statement and other evidence in rebuttal of the findings and recommendations.
9. BOS recommendations are administrative and advisory, and are not binding upon the Determining Authority.  All supporting documentation and exhibits should be included with the ROS packet submitted to the Determining Authority.
10. The BOS will route all ROS packets for capital assets and non-capital assets with an aggregate value of over $500K through PMB for administrative review.
11. The BOS must determine the actual loss to the Government due to lost or irreparable damaged property through the depreciation method or the joint liability.  When individual(s) are found pecuniary liable, the Survey Officer or BOS will use depreciation for computing charges of an item for lost or irreparable damage property.  This policy requires you to determine the actual value of the property at the time of its loss or destruction.  The preferred method is appraisal of fair market value at the time of the loss.
    1. Depreciation Method – When an appraisal is not feasible and the property is less-than-new condition, the depreciated value will be used. Apply the depreciation value to get the value of the LDD asset on the basis of life expectancy. To compute depreciated value, the Survey Officer starts with the acquisition cost of the property and subtracts the following:
       1. 5% per year of service, to a maximum of 50%, for electronic equipment.
       2. For Capital assets:  Depreciation and amortization are calculated on a straight-line basis, based on the number of days remaining in the asset’s useful life.  NIH capitalizes personal property with a value of $25,000 or more and with a useful life of two years or more.  (Personal Property Cycle Memo, OFM)
       3. For all other property, use 5% per year of service, to a maximum of 75%.  If the time of service cannot be determined, use 25%.
    2. Joint Liability – When a Survey Officer and/or BOS conclude that more than one individual is responsible for the LDD, a recommendation for joint liability is appropriate. Charges are computed as outlined below:
       1. When the actual loss exceeds the combined monthly basic pay for each individual, the maximum amount is charged to each individual employee; maximum amount not to exceed the individual’s one-month base pay.
       2. When the actual loss is less than the combined basic pay of all individuals, compute the charges in proportion of the employee’s monthly base pay.
    3. For damaged property that can be repaired, the loss to the Government is the actual cost of the repairs or the value of the asset at the time of the damage, whichever is less.  The cost of repair consists of the sum of material, labor, overhead, and transportation, minus any salvage or scrap value of replaced parts.
    4. If repair makes the item more valuable than it was before the damage, reduce the amount of the repairs by the amount of the increase in value.
    5. When the Actual Cost of Damage (ACOD) cannot be obtained in a reasonable period of time, an Estimated Cost of Damages (ECOD) may be used. You must state the reason for using the ECOD and the basis on which the estimate was made.
    6. If using an appraisal or the depreciation method is either not possible, or not equitable, you may be able to use the standard rebuild cost to determine loss to the Government.  This method may be used if the asset has been used long enough to warrant overhaul and a standard rebuild cost has been published.  When using this method, subtract the standard rebuild cost, offset by any salvage value.
    7. Salvage value can be used when property has been damaged beyond economical repair.  Credit will be given for salvage or scrap value, plus the depreciated value of repair parts.
12. When an individual is determined pecuniary liable, the individual must pay the actual loss to the Government.  Payment amount is not to exceed the individual’s monthly base pay.  This also applies to the payment of an individual’s share of collective liability when more than one person has been assessed financial liability.

      4. Annual Review of BOS Activities

1. PAOs shall conduct an annual review of all completed IC BOS actions.  As a result of this review, a summary report of IC loss, damage and destruction of Government property shall be submitted to PMB no later than April 15 each year, for the prior calendar year.  The report must include the total number of assets and the total value of loss.
2. PAOs shall continually review and analyze the occurrence of ROS to determine developing trends, such as repeated losses from one location, losses of personal custody items or losses that indicate systemic failures that warrant further analysis and corrective action.  If it is apparent that individual losses indicate a developing trend or that a process or procedure is insufficient, PAOs shall recommend changes to IC procedures and/or policies to IC leadership to ensure adequate controls exist for property management and accountability.
3. Additional NIH policies and procedures may be established to alleviate the occurrence of LDD property if developing trends are evident across ICs.

H. Policies and Procedures: Transportation

1. A Report of Survey (ROS) is initiated when there is evidence of misuse or negligence of a Government vehicle.  A ROS is used to determine liability (if none is admitted) for any loss, damage or destruction of Government vehicle.
2. Employee misuse of a Department vehicle is subject to disciplinary action which may range from a suspension of one (1) month or, up to and including, removal from Government employment (31 U.S.C. 1349). See also Standards of Conduct, 5 CFR 2635.101(a)(11).
3. Responsible User issued motor vehicles are responsible for the safe and proper operation of the vehicle, including:
   1. Performing a pre-operational inspection of the vehicle to assure that all safety equipment (e.g., lights, wipers) are operational and that all fluids are within operating manual requirements.
   2. Locking and securing the vehicle when it is not in use.
   3. Observing traffic and parking regulations (vehicle operators are responsible for any and all fines associated with traffic and parking violations).
   4. Complying with the “Government Vehicle Operator’s Guide to Operating Responsibility, Service Requirements and Emergency Procedures” booklet in the glove compartment of the vehicle.  This booklet contains accident reporting procedures and instructions for paying for fuel and other services or repairs needed.  The employee’s organization reimburses all other incidental expenses (e.g., parking fees, tolls, etc.) through the SF 1164 Claim for Reimbursement for Expenditures on Official Business.
4. Accountable User and Transportation Management Branch, Fleet Management Section
   1. This guide contains the NIH policy and procedures for reporting, reviewing, and reconciling the loss, damage, or destruction of NIH fleet vehicles (both on/off road) and equipment. This includes the roles and responsibilities of Office of Logistics and Acquisition Operations (OLAO), Division of Logistics Services (DLS), NIH Executive Officers, the Transportation Management Branch Fleet Management Section Chief (TMBFMSC), and vehicle operators.  It reiterates the NIH policy and procedures governing use of the agency assigned (Government, leased passenger, and light utility vehicles) and the daily use rental vehicle program.
   2. This guidance applies to all NIH locations, but the procedures described apply only to NIH headquarters in Bethesda, Maryland.  IC management officials will institute local written procedures to enforce these policies for agency assigned vehicles at any NIH facility located outside of the Bethesda/Rockville area.
      1. Make copy of all forms and file.
      2. Forward a copy of the forms to the NIH tort claims office. If accident involves a civilian vehicle, the tort claims office will process accordingly.
      3. Forward a copy of the forms to the NIH Police Department.
      4. Request a Survey Officer be appointed to initiate a preliminary investigation and report the facts using HHS Form 342, ROS, and forward to the PAO. The PAO and individual accountable user of Government vehicles are responsible for the initial preparation of the ROS.
      5. The accountable user must completely explain all known facts surrounding the property damage in block 4 on HHS Form 342, ROS.
      6. PAO shall review the ROS for completeness and add any additional information available, to include any comments derived by the NIH Police Department investigation.
      7. The PAO will forward the ROS to the BOS for final recommendation.
      8. The BOS will send recommendations to the Fleet Management Section, Transportation Management Branch for review and guidance.
      9. Fleet Management Section will send the Government vehicle out for repairs and obtain 3 estimates if damage is over $3000.  If the accident is determined not the fault of the Government operator, NIH will have the vehicle repaired and provide repair costs to OGC Tort Claims office for reimbursement from outside insurance companies.
      10. All other repairs are charged to the IC to whom the vehicle is assigned through the TMB Billing Systems.
      11. All motor vehicle accidents shall be reported to the HHS Fleet Manager, the HHS Office of Facilities Management Safety, and the HHS Office of General Counsel, Claims & Employment Law Branch that result in loss of life or personal injury to:
          1. Passenger(s) in a Federally owned or leased vehicle.
          2. Passenger(s) in a Federal vehicle – Contractor operated.
          3. Passenger(s) in a Federal vehicle – Contractor owned or operated which are deemed Government furnished equipment.
          4. Passenger(s) in one or more vehicles involved in an accident/incident with a Federal vehicle (on-road or off-road).
          5. That results in any property damage to a vehicle and/or other personal or real property at a level equal to or greater than $5,000, as required by the HHS Logistics Management Manual – Property Policy and Procedures, 4.7.1 “Reporting Accidents”.
5. Accident Reporting Procedures
   1. Report all accidents.  Complete Standard Forms 91 and 94 (copy located in glove compartment of all Government vehicles).  Notify the NIH fleet dispatcher, 301-496-3426, immediately.
      1. Call a doctor or an ambulance if someone is injured.
      2. Notify the police.  DO NOT make any statements concerning the responsibility of the collision except to your supervisor or to the Government’s investigating officer.  Do not sign any papers unless required by the police.
      3. Obtain the following information from the other driver(s) involved in the accident:
         1. Name, address, and phone number
         2. Vehicle operator’s driver/permit number and state
         3. Vehicle registration information tag and state
         4. Insurance company (name and address)
         5. Vehicle owner’s name and address
   2. Provide your name, address, place of employment, and the name of your supervisor to the other driver(s) involved in the accident.
   3. Secure the names, address and phone numbers of any witness. When possible have witnesses complete the Standard Form 94 (SF-94), Statement of Witness.
   4. Complete Standard Form 91 (SF-91), Operators Report of Motor Vehicle Accident, at the scene of the accident.  If the form cannot be completed at the accident scene note the necessary information needed to complete the form.
   5. Contact the Chief, FMS at 301-496-3426.
   6. Notify your supervisor.
   7. Prepare Form CA-1, Employees notice of Injury or Occupational Disease.  Deliver all reports and data to your supervisor if you are injured.
   8. Forward complete forms SF-91 and SF-94 to the Chief, FMS as soon as possible.

6.  Additional Procedures

Additional procedures can be found in the NIH Policy Manual 26101-38, Official Use of Government Motor Vehicles, which include:

1. Obtaining a Daily Use Rental Vehicle
2. Returning a Daily Use Rental Vehicle
3. Obtaining an Agency Assigned Vehicle
4. Annual Re-Certification of Agency Assigned Vehicles
5. Obtaining fuel for Agency Assigned Vehicles on Campus
6. Obtaining Unscheduled Repair Service for Agency Assigned Vehicles
7. NIH Vehicle Preventive Maintenance Program
8. Security Procedures for Vehicles