ASTM_E_2221_-_02.pdf

Designation:E 2221 02Standard Practice forAdministrative Control of Property1This standard is issued under the fixed designation E 2221;the number immediately following the designation indicates the year oforiginal adoption or,in the case of revision,the year of last revision.A number in parentheses indicates the year of last reapproval.Asuperscript epsilon(e)indicates an editorial change since the last revision or reapproval.1.Scope1.1 This practice covers the management of administra-tively controlled movable,durable property.1.2 Generally,organizations should establish and maintaincontrol of such property inventories in a manner that will strikea balance between the costs of control and the risks ofsustaining incidents of lost damaged or destroyed property.1.3 The creation and maintenance of cost effective propertymanagement systems is of vital concern,and the costs ofinventory control used to identify and locate property should becontinually assessed against the physical inventory results.1.4 The cost effective and timely identification and locationof property assets is a critical economic factor in the success ofany organization.2.Referenced Documents2.1 ASTM Standards:E 2131 Practice for Assessing Loss,Damage,or Destruc-tion of Property2E 2132 Practice for Physical Inventory of Durable,Move-able Property2E 2135 Terminology for Property and Asset Management22.2Other Document:The NPMA Standard Property Book,First Edition,July19993.Terminology3.1 DefinitionsAs used in this section,the term durableand moveable property and property are synonymous.3.1.1 administratively controlled propertythe property as-sets that are controlled at the discretion of asset managersmanaging the inventories of individual operational units.3.1.2 physical inventorythe verification of the existence,location,and quantity of property items.The process mayinvolve verifying additional property information.3.1.3 property managementa monitoring and controlfunction,charged with assuring that organizational processesrelate to the lifecycle management of property support organi-zation objectives,represent sound business practice,and arecompliant with applicable standards,policies,regulations,andcontractual requirements.3.1.4 property recordsinformation retained for managingproperty.3.1.5 sensitive items(property)items for which,regard-less of value,there is a reasonable need for extraordinarysecurity,accountability and control.For example:firearms,portable photographic equipment,binoculars,personal digitalassistants,portable power tools,portable communicationequipment,portable computers,and controlled pharmaceuti-cals and substances.4.Significance and Use4.1 Aphysical inventory is a form of an assessment or audit.While inventories can take many forms,organizations shouldensure that the information resulting from the inventory has avalue to the organization,which is at least equal to,if not inexcess of,the costs of conducting the inventory.4.2 Inventories involve significant time to plan,execute andreconcile,involve significant property staff,and disrupt mis-sion operations.4.3 Effective property control techniques are critical toreduce or eliminate the impact of lost,damaged and destroyedproperty and to ensure compliance with accepted practicesconcerning property accounting.4.4 The following results should be achieved as the result ofan inventory:4.4.1 Verification that property on record is on-hand in thephysical location assigned,in the proper custodial area inserviceable condition,and is assigned an organization identi-fication control number.4.4.2 Identification of unrecorded property so that it can bereconciled to property and financial records and assigned forreuse.4.4.3 Location and identification of missing items.4.4.4 Reconciliation of custodial,accountable property,andfinancial records for miscoded,missing or items in need ofrepair.1This practice is under the jurisdiction of ASTM Committee E53 on PropertyManagement Systems and is the direct responsibility of Subcommittee E53.01 onProcess Management.Current edition approved July 10,2002.Published July 2002.2Annual Book of ASTM Standards,Vol 04.12.1Copyright ASTM International,100 Barr Harbor Drive,PO Box C700,West Conshohocken,PA 19428-2959,United States.4.5 Positive inventory results when measured in accordancewith Practice E 2132 are a key measure of the overall healthand effectiveness of a property control system.5.Procedure5.1 All property should have been entered into the formalaccountable records and inventories are to be performed inaccordance with the administrative control thresholds of theorganization.5.2 Inventories of administratively controlled and sensitiveproperty should be conducted periodically in accordance Prac-tice E 2132.The inventory cycle should be based upon soundbusiness practice as well as an evaluation of the value added bythe timing of the each inventory.5.3 Inventories should be performed by personnel other thanthe custodians of the property and inve