The federal government owns nearly $2 trillion worth of personal property. This includes things like:
- Computers and technology
- Office furniture
- Specialized scientific equipment
- Industrial machinery
- Other tools and items
What agencies must do
Two main laws tell agencies how to handle these items:
- The Federal Personal Property Management Act of 2018 [PDF] (Public Law 115-419)
Agencies must:- Set capitalization and accountability thresholds: Decide when an item should be tracked.
- Check inventories:
- Every year: Review and check inventory of capitalized property to find items they no longer need (excess).
- Regularly: Review and check inventory of accountable property to find items they no longer need (excess).
- The Reuse Excess Property Act (Public Law 118-99)
Agencies must:- Share reuse guidance:
- Put their guidance for reusing government surplus items on their public website.
- Send a copy of this guidance to the General Services Administration (GSA).
- Send an updated copy to GSA whenever the guidance changes.
- Report non-federal recipients: Send an annual report to GSA listing non-federal groups that received surplus property (Non-Federal Recipients Report).
- Interagency cooperation: Requires the Interagency Committee on Property Management (ICPM) to publish the working group’s recommendations to encourage the use of surplus property.
Why this management is necessary
Properly managing personal property prevents waste, theft, and misuse (i.e. fraud). To achieve this, every agency must:
- Set up internal controls.
- Follow policies and procedures.
Tip: OMB Circular A-123, Management’s Responsibility for Internal Control, provides guidance on setting up these internal controls.
What happens when agencies do not manage property well?
If agencies do not efficiently track and get rid of items they do not need, it increases government costs and wastes the potential value of that unused property.
The Federal Personal Property Act of 2018 explains how agencies should manage:
Questions? Contact Ask Personal Property