AFMAN23-110V2PT2CH22.pdf

CHAPTER 22

EQUIPMENT MANAGEMENT

Section 22A—EQUIPMENT ACCOUNTABILITYOFFICE CONCEPT

22.1. Chapter Summary. This chapter contains procedures, policies, and documents for the manage-ment of equipment under the USAF integrated logistics systems whenever SBSS is used, for both organi-zationally owned budget code 9 equipment and for AFEMS reportable organizational equipment.

Methods of developing and using equipment allowances, authorizations, accountable records, reports, and related management products are also set forth.

NOTE: Most supply personnel will find that only isolated sections of this chapter bear directly on their responsibilities. Even so, familiarity with Section 22A and Section 22B is encouraged, and a reading of other parts of the chapter will provide you with an idea of how the various parts of the Supply System fit together. For bases with contracted supply functions the contractor acts as both the LRS EAO and GLSC

EME/AFVESA.

22.2. Conflicting Procedures. You should use this chapter in conjunction with applicable procedures in other chapters and volumes of this manual. If procedures specified in other volumes conflict with proce-dures described in this volume, you should follow the procedures in this volume until the discrepancies are resolved. Air Force policy governing AFEMS is contained in volume 4, part 1.

22.3. Overview. This section explains the Equipment Accountability Office (LRS EAO) concept. Spe-cific roles and responsibilities are outlined for LRS EAO, Global Logistic Support Center Equipment Management (GLSC EME)/Air Force Vehicle Equipment Support Agency (AFVESA) and MAJCOM Command Equipment Management Office (CEMO) personnel.

22.3.1. LRS EAO. The LRS EAO’s responsibilities are to ensure accountability of in-use equipment is properly maintained, equipment custodians are properly conducting their duties, and squadron com-manders are provided feedback on the maintenance of accountability of the equipment issued to their squadrons. This does not include vehicles, which will remain with the Registered Equipment Man-agement Section (REMS). The LRS EAO will assist unit property custodians with equipment issues, perform base level equipment management functions, and perform scheduled organizational visits.

The LRS EAO will:

22.3.1.1. Conduct organizational visits. Schedule annual organizational visits to ensure custodi-ans are adequately performing their accountability responsibilities. During the scheduled visit, perform the following and document the results to the applicable squadron commander (responsi-ble officer) with recommendations for corrective action:

22.3.1.1.1. Accountability of capital assets. Verify accountability of all capital equipment assets (assets valued over $100,000) and ensure documentation is available to support valua-tion. Additionally, ensure AFEMS in-use serialized asset records are updated accordingly.

22.3.1.1.2. Accountability of nuclear related equipment assets. Verify accountability of nuclear related equipment assets. Nuclear related assets are identified by Materiel Manage-ment Aggregation Codes (MMAC) CM, NB and WK.

22.3.1.1.3. Verify accountability of communication security (COMSEC) equipment. COM- SEC equipment items are defined as equipment and components used to secure official com- 22–1

AFMAN 23-110 Volume 2 Part 2, Chapter 22 munications. These items are identified with Serialized Report Code (SRC) C, and/or are coded with MMAC CA, CK, CO, or CY.

22.3.1.1.4. Accountability of remaining equipment assets. Spot check a random 10 percent sample (per account) of the organization’s remaining accountable assets to ensure availability.

22.3.1.1.5. Accountability of pilferable assets. Ensure the unit has a process to account for pilferable items purchased with the government purchase card (digital cameras, projection equipment, etc.) either through the use of the R-15 or a locally developed product. Validate EAID type assets are not added to R-15 or locally developed product. Verify the unit’s policy/ process and document effectiveness.

22.3.1.1.6. Written report. Provide the responsible officer and the responsible officer’s group and wing commanders with a written status report signed by the LRS commander. This report will provide responsible officers with strengths, findings, and observations. Findings mean the unit does not comply with written instruction. Observations are suggested areas of improvement. For example, a unit complies with written instruction but LRS EAO personnel suggest a better or easier way to accomplish the task. This report will suspense responsible officers to correct discrepancies within 30 calendar days of the report date.

22.3.1.1.7. Review the responsible officer’s replies to noted discrepancies to determine if actions taken appropriately correct the deficiencies. If discrepancies are not resolved within 30 calendar days, notify the LRS commander and the responsible officer’s group and wing commanders, in writing, of actions taken.

22.3.1.1.8. Schedule effectiveness. Measure schedule effectiveness to ensure custodial visits are completed annually. Schedule effectiveness will be reported to the LRS commander monthly during how-goes-it or equivalent briefing.

22.3.1.1.9. Waivers. MAJCOMs are authorized to modify these instructions for wings with contracted or Most Efficient Organization (MEO) Logistics Readiness Squadrons if organiza-tional visits will significantly increase the cost of current contracts or MEO manpower until such contracts are due to be competed or renewed. Each such unit will provide their MAJ- COM/A4R with a waiver request that includes reason(s) they cannot comply, their proposed alternate method to ensure equipment accountability and a projected get well date. MAJ- COMs will approve such waivers on case-by-case basis. MAJCOMs/wings will add associ-ated LRS EAO tasks to contracts as they are competed or renewed.

22.3.1.2. Deployment. Attend base deployment concept briefings to identify organizations deploying/transferring equipment.

22.3.1.2.1. Deployment Review Listing. Request Equipment/WRM Deployment Review Listings (1RB581) through the GLSC EME/AFVESA/RPS or utilize pre-built deployment packages through AFEMS.

22.3.1.2.2. Identification of equipment (transfer/deploy). Ensure deploying custodians iden-tify equipment to be transferred to the gaining LRS or identify equipment to be placed in deployed status.

22.3.1.2.3. Actions at deployed location. Ensure custodians understand what actions they are required to take upon arrival at the deployed location.

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22.3.1.2.4. Forward documentation. Forward the transfer documentation to the GLSC EME/ AFVESA for processing.

22.3.1.2.5. Deployment/Return processing. Process necessary Equipment Deployment/ Return (TRIC: 1ED) transactions.

22.3.1.3. Training. Ensure Block III Training (AFEMS CBT and supplemental) is conducted for all custodians and Block IV Training for deploying custodians (primary and alternate). Addition-ally, LRS EAO personnel will conduct supplemental Block III training. Supplemental training guide will be provided by MAJCOM CEMO.

22.3.1.3.1. Custodian/Responsible Officer responsibilities. Ensure custodians/responsible officers are aware of their responsibilities for the control of government property as identified in AFI 23-111. Ensure they understand the methods for relief of accountability of property under their control, such as transfer, turn-in or documentation required for items lost, damaged or destroyed.

22.3.1.3.2. New squadron commander briefings. Conduct briefings for new squadron com-manders relative to their duties as responsible officers for the safe guarding and control of government property issued to or purchased by their organizations.

22.3.1.4. Air Force Equipment Management System (AFEMS) processing. Update base level AFEMS data, such as Chief Financial Officer Data, Organization Configuration Data and Equip-ment Custodian Profile Data.

22.3.1.4.1. Identity change requests. Process all Identity Change (TRIC: FER) requests.

22.3.1.4.2. Intercustody Receipts/Transfers. Process Intercustody Receipts/Transfers (TRIC:

FET).

22.3.1.4.3. Equipment Action Requests (AF Form 601/TACR). At GLSC EME/AFVESA discretion, LRS EAO will either process Equipment Action Requests (AF Form 601) using the AFEMS Transaction Allowance Change Request (TACR) option or validate and forward AF Forms 601 to the GLSC EME/AFVESA for processing. The GLSC EME/AFVESA will then process AF Forms 601 using the AFEMS TACR option. NOTE: Equipment custodians will retain authority to process TACR in AFEMS. For MAJCOMS not serviced by GLSC EME/AFVESA, the MAJCOM CEMO will perform the role of the GLSC EME/AFVESA.

22.3.1.4.4. Movement of equipment. Ensure all information involving the movement of equipment, to include MAJCOM approved (until GLSC EME/AFVESA becomes approval authority) Redistribution Orders (RDOs), EAID Accountability Transfers (TRIC: 1ET) and Equipment Receipts (TRIC: FED) is forwarded the GLSC EME/AFVESA for processing.

NOTE: LRS EAO will verify redistributed/transferred equipment is received at the gaining LRS/ Expeditionary LRS (ELRS) and ensure documentation matches the information of the asset received. Then, the LRS EAO will forward required FED information to the GLSC EME/AFVESA for processing. GLSC EME/AFVESA will only accept notification from the applicable LRS EAO. AFRC/CEMO will coordinate/approve all transfers until GLSC EME/ AFVESA resolves AFRC/ANG transfer protocols.

22.3.1.4.5. Expeditionary EAO (EEAO). EEAO personnel will work with deployed custodi-ans to ensure that all transferred equipment has been received and located prior to forwarding FED transactions to the GLSC EME/AFVESA. FEDs should be processed within 10 days after unit bed down.

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22.3.2. GLSC EME/AFVESA. The GLSC EME/AFVESA’s primary responsibility is to ensure SBSS and AFEMS databank accuracy. GLSC EME/AFVESA tasks include:

22.3.2.1. Correct out of balance conditions. Correct equipment out of balance conditions using the Equipment Out of Balance Listing (Q10).

22.3.2.2. AFEMS rejects/variances. Manage AFEMS rejects/variances (except vehicles).

22.3.2.3. Allowance Source Code Listing reviews. Conduct Allowance Source Code Listing (Q09) reviews and notify LRS EAO/custodian of necessary corrective actions.

22.3.2.4. Initial issue/replacement of equipment. Process requests for initial issue/replacement equipment.

22.3.2.5. EAID accountability transfers/receipts. Process EAID Accountability Transfers (TRICs: 1ET and FME) and Equipment Receipts (TRIC: FED). NOTE: FEDs will only be pro-cessed when asset accountability is verified by the applicable LRS EAO.

22.3.2.6. Incoming transfer notification. Notify gaining LRS/ELRS EAO of incoming equip-ment to ensure proper receipt of assets. Notification should include NSN, document number, quantity, TCN (if available), etc.

22.3.2.7. Tracking of deployments/transfers. Coordinate with losing and gaining EAOs to track all deployments/transfers until received by gaining base. Once assets are received by gaining base, GLSC EME/AFVESA will process FED to complete transfer of accountability. NOTE:

FEDs will only be processed when asset accountability is verified by the applicable LRS EAO.

22.3.3. MAJCOM CEMO responsibilities. For MAJCOMs not supported by GLSC EME/ AFVESA, the MAJCOM CEMO is the Equipment Review Authorization Activity (ERAA) and will provide guidance and oversight to GLSC EME/AFVESA and LRS EAOs based on their specific roles and responsibilities.

Section 22B—AIR FORCE EQUIPMENT MANAGEMENT SYSTEM (AFEMS).

22.4. Overview. The AFEMS provides AF equipment managers with uniform ways of handling equip-ment in all commands. It specifies procedures for virtually all aspects of equipment handling and record keeping. On a daily basis, managers can authorize, account for, and report on the distribution of equip-ment on hand. In the long run, the system allows equipment managers to determine the kinds of equip-ment needed for different missions. These records help form a basis for budgeting and purchasing programs for the Air Force.

22.5. AFEMS (C001) Information.

22.5.1. The AFEMS designation is C001. Primary site for the AFEMS (C001) is Wright-Patterson AFB OH. The following information is pertinent to the AFEMS (C001):

22.5.2. Capabilities. The AFEMS (C001) is a relational database management system that provides worldwide online visibility of requirements and asset data; online capabilities to update selected information; recommends allowance changes and challenges EMCs; provides automated SBSS update transactions; initiates redistribution actions and provides redistribution orders for vehicles and excess base-funded assets; online visibility of allowance data; email notices to advise equipment managers of changes and required actions, and calculates and reports depreciation for capitalized assets in accordance with Statements of Federal Financial Accounting Standards (SFFAS) No. 6 22–4

(Chief Financial Officer Data). Detailed capabilities of the AFEMS (C001) are outlined in volume 4, part 2, chapter 3, and the AFEMS HELP screens.

22.5.3. Functions. The AFEMS (C001) will provide the users with ten functions (five on the classi-fied system) after successfully logging on to the AFEMS (C001). These functions provide the users with the capability to view data in different media, output data to printers, transfer data to files, receive CBI training, input data online, and manipulate data to satisfy unique user needs. The AFEMS HELP screens provide detailed log on/log off procedures, an explanation of each function, and how to use the functions. The AFEMS (C001) provides an explanation of each predefined query/ transaction to include its purpose, data element definitions, and value through its help options.

Table 22.1. AFEMS.

22.5.4. AFEMS Modernization Changes. The modernization of the AFEMS (C001) has changed some aspects of equipment management for the LRS EAO and GLSC EME/AFVESA. Even though these new capabilities are described throughout this manual, you will have to use the AFEMS (C001) HELP screens which provide detailed instructions for using the various system options. The follow-ing are highlights of functions available with the AFEMS (C001):

22.5.4.1. The web based AFEMS is the single point of entry for the below listed transactions.

Except for vehicles (201 details with a vehicle registration number and/or equipment code “L or V”), SPRAM (activity code “D”), and organizationally managed equipment items (modified 201 details with activity code “P”), the below listed transactions must be input first in AFEMS. If the transactions are entered successfully in AFEMS, AFEMS will generate and transmit images of the transactions to the SBSS for processing. A reject will occur whenever an attempt is made to man-ually process these TRICs in the SBSS before they are input in AFEMS. The GLSC EME/ AFVESA will be responsible for clearing AFEMS rejects/variances excluding registered equip-ment (REMS). For GLSC EME/AFVESA it’s important that Nuclear Ordnance Commodity Management (NCOM) be included in the exclusion Vehicles, SPRAM, and organizationally man-aged equipment transactions will continue to be processed in SBSS.

FUNCTION SYSTEM REFERRED TO AS

Data Transaction - Class/ Unclass AFEMS Facility Data Transaction Email Class/ Unclass Email Facility Email Ad Hoc Query Class/ Unclass Ad Hoc Query Ad Hoc Report Class/ Unclass Ad Hoc Query Online Documents - Unclass N/A Output Products - Class/ Unclass Output Products File Transfer - Unclass N/A Training Unclass N/A 22–5

Table 22.2. AFEMS Transactions.

22.5.4.1.1. AFEMS provides a cross-reference of SBSS transactions to the corresponding AFEMS screens through on-line help and search facilities. In addition, AFEMS provides intuitive navigation with drop down menus and interactive error detection. After transactions are successfully entered in AFEMS, images will be generated and transmitted to the SBSS for processing. Upon successful SBSS processing, the appropriate interface image will be trans-mitted to AFEMS for input.

22.5.4.1.2. AFEMS Inbound and Outbound files will be processed at least six times a day.

For information concerning AFEMS flag numbers 1 and 2, see volume 2, part 4, chapter 2.

22.5.4.1.3. If an SBSS reject occurs upon receipt of an AFEMS inbound image, correct the reject condition in SBSS and then resubmit the transaction from the AFEMS suspense screen.

If the suspense file has been deleted, the transaction must be re-accomplished through the AFEMS terminal. Suspense records are cleared upon receipt and successful processing of the transaction images received from the SBSS. AFEMS will automatically retransmit images of the transactions to the SBSS at the fourth and seventh day after input. Suspense records will be deleted on the eleventh day.

22.5.4.2. The on-line web based AFEMS address is https://www.afems.wpafb.af.mil/ and the AFEMS SPO homepage address is https://www.ilspo.wpafb.af.mil/e-EM/.

22.5.4.3. Online allowance change request for recommending changes to allowance standards and obtaining approval for authorization changes which require approval above wing/base level.

22.5.4.4. Email notices to advise the LRS EAO and GLSC EME/AFVESA of such things as allowance changes, allowance change request status, population of CFO data such as serial num-ber, unit acquisition date, etc.

22.5.4.5. Online requests to change Equipment Management Codes (EMC). EMC definition:

EMCs, which are distributed in SNUD, identify what equipment a base must account for and what kind of reporting (if any) is required. Although the EMC appears on the item record in the low order position of the ERRCD, it is not part of any ERRCD unit cost, or source of supply. Follow-ing are the five categories of EMC:

TRIC TYPE TRANSACTION

1ED Equipment Deployment/Return Single selection 1ETT Equipment Accountability Transfer Single Selection 1ETX EAID Accountability Termination Single Selection FCIL (Type1) EAID/In-use Detail Load FCIC (Types1 and 4) EAID/In-Use/ Detail Change FCIC-MER (Type 3) EAID/In-Use/ Detail Change FCID (Type 1) EAID/In-Use/ Detail/Change/Delete FEC Terminate EAID Accounting FEDE Equipment/WRM Packages Receipt Transfer FER EAID/In-Use Identity Change FET EAID/In-Use Inter-Custody Receipt Transfer 22–6

Table 22.3. Equipment Management Codes.

22.5.4.6. Base-funded equipment excess list.

22.5.5. AFEMS User Access. All personnel assigned to the Logistics Readiness Squadron Com-mander (LRS/CC) or Accountable Officer who need access to the AFEMS (C001) will complete an AFEMS Access Request to obtain an AFEMS (C001) user ID and passwords. A sample of the AFEMS Access Request and instructions on how to fill this form out can be found in part 13, chapter 8, or the AFEMS web site https://www.ilspo.wpafb.af.mil/e-EM/. This access request is sent to the LRS/CC or Accountable Officer through your immediate supervisor. The LRS/CC or Accountable Officer completes part III and forwards it to the AFEMS PMO through your MAJCOM CEMO.

22.5.6. Standard Log On. Enter the following information once reaching the AFEMS (C001) envi-ronment. See Attachment 22B-2 for quick reference list.

22.5.6.1. AFEMS (C001) Initiation Screen. This screen contains the date/time group in the upper right-hand corner and the prompt for initiating the AFEMS (C001) log on sequence. Key in AWPAFEMS in the enter code field in the lower left-hand corner of the screen and press the ENTER key.

22.5.6.2. AFEMS (C001) Log On Screen. Input your user ID and password (use tab key to navi-gate between user ID and password) and press the ENTER key.

22.5.6.3. AFEMS (C001) Informational Message Display. This screen provides user account information, such as the number of log on attempts made (count field) and the date and time of the last log on (last-used). Check these values to determine if any unauthorized access attempts were made and contact the local security representative if you believe unauthorized access has occurred. Press the ENTER key after checking these values.

22.5.6.4. AFEMS (C001) Main Menu. This screen lists the processing options available through the AFEMS (C001). Choose the desired option and input the corresponding number next to the system prompt (upper left-hand corner).

22.6. AFEMS Management.

22.6.1. At each MAJCOM, a CEMO is established. The following paragraphs contain a brief over-view of the system.

EMC REQUIREMENTS

1 No in-use details required; no reporting.

2 Item coded EMC 1 in the cataloging systems for which

MAJCOM has directed or approved the maintenance of EMC 2 will be assigned only at base level and will constitute an override of EMC 1; in-use details required; overlay reporting, asset reporting, and/or serial number reporting may apply.

3 In-use details required; overlay reporting.

4 In-use details required; asset reporting.

5 In-use details required; serial number reporting.

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22.6.2. CEMO. CEMO personnel are responsible for equipment programs for the command. They issue equipment authorizations and allowances based on war and peacetime needs of all AF units.

They redistribute base funded items and conduct inspections to see that base-level management pro-cedures are being carried out effectively.

22.6.3. Standardized Equipment. The CEMO or LRS EAO and GLSC EME/AFVESA offices regu-larly review, validate, and report equipment requirements for approval by the Equipment Review Approval Authority. Through these reports and other activities, CEMO offices help to establish stan-dard wartime and peacetime equipment requirements for the different AF units.

22.6.4. LRS CC or Accountable Officer. The LRS CC or Accountable Officer at each AF base has base level management responsibilities. The LRS CC or Accountable Officer conduct equipment inventories, keep records, authorize use and redistribution of equipment, and carry out related base management actions. They are responsible for management of expendable items as specified by this volume.

22.6.5. Mobility Equipment Authorizations. See volume 4, part 1, chapter 4, for specific mobility equipment procedures.

22.6.6. War Plans Additive Requirement Report (WPARR) See chapter 26, section 26D and AFI 25- 101 for specific WPARR procedures.

22.7. Management Objectives.

22.7.1. The overall objective of AFEMS is to achieve organizational readiness within reasonable budgetary limits. This requires a common basis of understanding at all echelons, positive manage-ment, and intensive planning (specific responsibilities are outlined in chapter 2). Specifically, the objectives are these:

22.7.2. To meet the requirements of the Base Supply System as outlined in chapter 1 and the USAF Equipment Management System as outlined in volume 4, part 1.

22.7.3. To validate and authorize all AF equipment items and prepare and record issues and turn-ins.

22.7.4. To account for equipment through custody receipts and due-in/due-out detail records.

22.7.5. To record authorization data and in-use/in-place asset data on official (EAID) in-use detail records.

22.7.6. To provide equipment support of other base accountable activities including those authorized under activity code P (non-EAID equipment items).

22.7.7. To manage on-base redistribution to prevent excessive accumulation of equipment. The objective is to maintain a system where assets are procured based on valid requirements.

22.7.8. To acquire equipment necessary for operational readiness and ensure that equipment authori-zations are in accordance with AFI 25-101 and MAJCOM-directed equipment specifications.

22.8. Scope of Equipment Managed Under AFEMS.

22.8.1. Most nonexpendable and some expendable items in the WRM Allowances, Low Speed Vehi-cles (LSV), Other Government Motor Vehicle Conveyances (OGMVC) (with the exception of the LSVs and OGMVCs purchased with NAF Funding), IBAs and Plates are subject to EAID accounting procedures. However, the items in the following list are not, subject to EAID accounting:

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22.8.2. Medical and non medical items (except registration number controlled vehicles and non med-ical centrally procured equipment items) required in medical facilities.

22.8.3. Printing plant equipment programmed according to DODD 5330.3, AF Sup 1 to DODD 5330.3, and DODI 5330.1.

22.8.4. Items authorized and accounted for on Personal Clothing Records (AF Form 657, Female Airman, and AF Form 658, Male Airman).

22.8.5. Real Property accounted for according to AFI 32-9005.

22.8.6. Equipment furnished to individual Military Affiliate Radio System (MARS) members according to AFI 33-106 and items obtained from surplus.

NOTE: Equipment provided to the BASE MARS station will be accounted for in AFEMS.

22.8.7. Information systems processing equipment, (see AFI 33-112).

22.8.8. Nonappropriated fund property.

22.8.9. MRSP.

22.8.10. Museum exhibits and AF historical property, and MAJCOM and USAF orientation group displays and exhibits. See Section 22L for exceptions.

22.8.11. Equipment procured from reimbursable DRMO funds.

22.8.12. Only WRM 463L system pallets, nets, and associated tie-down equipment will be managed in AFEMS. Operational 463L pallets and nets will not be managed in AFEMS.

22.8.13. All items with an EMC 1, except mobility, WRM, and EMC 1 items when either the pre-ferred or substitute item is other than EMC 1.

22.8.14. OSI investigative equipment which must be obtained through FX4203 to preclude compro-mise of an investigation in progress, when approved by the AFOSI Director of Logistics or a desig-nated representative.

22.8.15. Aircraft (including gliders, gyroplanes, helicopters, sailplanes, etc.), rockets and guided missiles.

22.8.16. Engine transportation trailers, trucks, adapters accounted for as described in AFI 21-104, and not in allowance standards.

22.8.17. Fixed Ground Communications-Electronics (C-E) equipment which is a component of a fixed ground C-E end item.

22.8.18. All base funded, budget code 9 LMRs and associated peripheral components.

22.9. Equipment Items Not Requiring Authorized/In-Use Detail Records.

22.9.1. EMC Equipment Requiring EAID Accounting. Equipment items that do not require autho-rized/in-use detail records are assigned EMC 1. EMC 1 equipment is included in allowance standards but as a general rule is not subject to EAID accounting. EMC 1 equipment that DOES require EAID accounting includes the following items:

22.9.1.1. Mobility items (use code A). The MAJCOMs have the option to waive this requirement for NF1 items stored in mobility bags.

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22.9.1.2. WRM (use code D).

22.9.1.3. WRM joint use (use code C).

22.9.1.4. Weapons (controlled item code N).

22.9.1.5. EMC 1 equipment items that are related to a substitute or a preferred item that is not EMC 1. Relationship in this case is by document number since EMC items are assigned without regard to ISG relationship.

22.10. Accountability of Equipment Assets Purchased with the Government-wide Purchase Card.

22.10.1. For equipment items (Budget Code 9) equal to or under the micro-purchase threshold, accountability is the responsibility of the unit commander. Unit commanders must establish a locally devised program that provides visibility and audit trail capability. This may include use of hand receipts and spreadsheets.

22.10.2. For Equipment Items (Budget Code 9) over the $2,500 micro-purchase threshold purchased on existing contracts with the GPC, accountability records must be established through the LRS EAO or GLSC EME/AFVESA. Equipment custodians must contact the LRS EAO immediately upon receipt of the asset. Medical activities must also coordinate purchases through the Base Medical Equipment Office. (See AFI 64-117, Air Force Government-wide Purchase Card Program) for addi-tion information.

22.11. Processing of EMC 1 Equipment.

22.11.1. Identification. An Equipment Management Exception Flag (EMEF) is used to identify authorized/in-use detail records for EMC 1 equipment. The EMEFs are defined in chapter 3. Once an EMEF is added to the authorized/in-use detail record, it is listed as REM-EMC-FLAG, and main-tained under program control based on indicative data changes or use code changes.

22.11.2. Reclassification. Sometimes a change will occur that reclassifies an item as EMC 1. When this occurs, program control will detect the authorized/in-use detail record that should be deleted. At this point, an EMEF will be assigned and an 093 management notice is provided. FEC inputs must be used to delete authorized/in-use detail records. But if a MAJCOM directive requires an authorized/ in-use detail record of an EMC 1 item, then the EMEF will be changed from Z to 9. For most man-agement products, authorized/in-use detail records will reflect the EMEF. (For details of FEC pro-cessing, see Section 22F.)

22.12. AFEMS Reports. AFEMS reports and associated audit and reconciliation products in Section 22H and in volume 4, part 2, chapter 3.

22.13. Document Processing Time. Maximum time limits for processing equipment transaction are at local discretion except where specifically stated elsewhere.

22.14. Isolated/Off-Base Activities. When a parent CEMO determines that an element is too large or isolated for designated Supply custodians to control, a separate Equipment Management System may be established and operated under the provisions of volume 4, part 1, chapter 5.

22.15. Storing Equipment Prior to Activation. In some cases, equipment may be received as many as 180 days prior to the time it is scheduled for use. Conversion dates of new weapons or facilities may also 22–10 create situations where equipment may be on-hand before it is needed. Such equipment will be issued to the person in charge of the warehouse or to a custodian designated to receive it. The equipment must be recorded on authorized/in-use records. The records must cite the applicable ASC, the organization, the command code, and the organizational identity of the element(s) authorized to receive the equipment.

22.16. Statements of Federal Financial Accounting Standards (SFFAS) No. 6, and Accountability of Equipment, IAW the Chief Financial Officer (CFO) Act of 1990.

22.16.1. Assets. Statement of Federal Financial Accounting Standards (SFFAS) No. 6 outlines capi-talization and depreciation of general property, plant, and equipment (PP&E). General PP&E con-sists of real property (such as land and buildings) and personal property (equipment and vehicles).

General PP&E includes working capital fund and general fund assets. Personal property is accounted for on supply detail records and appears on the Custodian Authorization/Custody Receipt List (CA/

CRL).

22.16.2. According to SFFAS No. 6, any CA/CRL asset that meets the following criteria must be capitalized, depreciated, and reported on the annual financial statements:

22.16.2.1. Estimated useful life of two years or more.

22.16.2.2. Not intended for sale in the ordinary course of business.

22.16.2.3. Intended to be used by the Air Force or available for use by the Air Force.

22.16.2.4. Original acquisition cost equal to or greater than the defined capitalization threshold (currently $100,000).

NOTE: For assets meeting the capitalization threshold, see Table 22.4. for applicable "must fill fields” in AFEMS DCFI screen.

22.16.3. If the combined cost of the components comprising a system exceeds $100,000, the personal property must be capitalized and depreciated. For example, a bench mockup consists of dedicated equipment or components linked together to be used in the performance of a particular service or function toward achieving a particular mission. These systems shall be capitalized and depreciated when (taking their components as a whole) their cost equals or exceeds the DOD capitalization threshold, and they have an expected useful life of two or more years.

22.16.4. If the General PP&E acquisition costs do not meet the requirements for capitalization above, it is not considered a system and is therefore not reported on annual financial statements. Instead, we consider this an expensed item.

22.16.5. Depreciation. Depreciation for capitalized assets is calculated in AFEMS and is based on a straight-line depreciation method over a ten-year life for equipment and a five-year life for vehicles.

Depreciation is based on unique asset identification which, for the Air Force, is by serial number (See Section 22B).

22.16.6. SFFAS No. 6 states that property systems maintaining accountable records for general PP&E must contain the following data on each individual asset for as long as the asset remains in the custody of the Air Force:

22.16.6.1. History of asset activity (transaction-based, including additions and deletions). The AFEMS accomplishes this.

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22.16.6.2. File Maintenance. Documentation for all PP&E transactions should be kept in physi-cal files throughout the life of the asset (e.g., invoices for purchased assets). Extra care should be taken to keep documentation related to the asset. This is a custodian responsibility.

22.16.6.3. Original acquisition cost (what depreciation is based on). Original acquisition cost includes all costs incurred to bring general PP&E to a form and location suitable for its intended use (e.g., amounts paid to vendors, transportation to point of initial use, handling and storage costs, interest costs paid, and direct and indirect production costs). Usually found on accompany-ing invoice.

22.16.6.3.1. If historical cost information for existing general PP&E is not available, it should be valued/recorded at estimated fair market value. The estimates should be based on the costs of similar assets at the time of acquisition, or the current costs of similar assets discounted since the time of acquisition (i.e., by deflating current costs to costs at the time of acquisition by the general price index). Contact the manufacturer to assist in obtaining this data.

22.16.6.3.2. General PP&E transferred from other federal entities should be recorded at the transferring entity’s net book value, or if the transferring entity’s net book is not provided by the transferor, general PP&E is recorded at the fair market value at the time of transfer. For example, if the Navy transfers an asset to the Air Force, attempt to obtain the net book value (original acquisition cost less accumulated depreciation) from the Navy. If this information is not available, contact the manufacturer or use other means such as contacting GLSC EME/ AFVESA or the item manager to obtain the estimated fair market value of the asset for input into the acquisition cost field in AFEMS. This information should be maintained for year-end reporting of gains.

22.16.6.4. Capital leases. Capital leases mainly apply to vehicles, but are not limited to vehicles.

Capital leases substantially transfer all the benefits and risks of ownership to the lessee. To be classified as a capital lease (as opposed to an operating lease), the lease must meet one of the fol-lowing criteria:

22.16.6.4.1. The lease transfers ownership of the property to the lessee by the end of the lease term.

22.16.6.4.2. The lease contains an option to purchase the leased property at a bargain price.

22.16.6.4.3. The lease term is equal to or greater than 75 percent of the estimated economic life of the leased property.

22.16.6.4.4. The present value of rental and other minimum lease payments, excluding that portion of the payments representing executory cost, equals or exceeds 90 percent of the fair value of the leased property.

22.16.6.4.5. The last two criteria are not applicable when the beginning of the lease term falls within the last 25 percent of the total estimated economic life of the leased property. If a lease does not meet one of the above four criteria then it should be classified as an operating lease.

Operating leases of PP&E are leases in which the entity does not assume the risks of owner-ship of the PP&E. Multi-year service contracts and multi-year purchase contracts for expend-able commodities are not capital leases.

22.16.6.4.6. A capital lease should be recorded at the lower of either the net present value of minimum lease payments, excluding that portion of the payments representing executory costs such as insurance, maintenance, and taxes paid to the lessor, or the fair market value of 22–12 leased property at the inception of the lease. Capital leases should be depreciated over the life of the lease or the depreciation term, whichever is shorter.

22.16.6.5. Property in the custody of contractors (government-furnished equipment, (GFE)) should be recorded as individual PP&E assets.

22.16.6.6. Improvements. PP&E enhancements that either extend the useful life of existing gen-eral PP&E or enlarge/improve its capacity are classified as improvements. These do not include repair and maintenance activities. Improvements mainly apply to vehicles.

22.16.6.6.1. Improvements greater than the capitalization threshold ($100,000) should be capitalized as an asset.

22.16.6.7. Leasehold improvements. “Leasehold improvements” are used to record the value of improvements to leased property. As a general rule, most improvements to leased facilities shall be treated as a current operating expense. However, leasehold improvements that meet or exceed the DOD capitalization criteria above shall be capitalized and depreciated over the term of the lease.

22.16.6.8. Original acquisition (in service) date (another factor in calculating depreciation):

22.16.6.8.1. General PP&E should be recorded when the title passes to the Air Force. Nor-mally the item manager maintains this data based on a contract number.

22.16.6.8.2. General PP&E acquired under a capital lease should be recorded as an asset at lease inception.

22.16.6.8.3. For constructed assets (local manufacture) that meet the capitalization require-ments, the “acquisition date” should be the date that the asset is placed in service.

22.16.6.9. Serial number (unique item identification). When practical, labels provided by LRS EAO should be affixed to equipment items on the custodian's account. This is mandatory for cap-italized assets. Most capitalized assets contain an identaplate that reflects the manufacturer's serial number. If no serial number can be found, the custodian should contact GLSC EME/ AFVESA for assignment of a number. If GLSC EME/AFVESA provides a locally assigned serial number to a capital asset, the custodian must engrave the serial number on the asset where it is visible. The custodian should advise the LRS EAO when replacement labels are required. When no serial number is found, GLSC EME/AFVESA will assign a serial number for the custodian.

GLSC EME/AFVESA must maintain a central log for all serial numbers assigned to the custo-dian. GLSC EME/AFVESA will assign a 13-position serial numbers as follows:

Table 22.4. Serial Numbers.

22.16.6.10. Contract, Purchase Order, or other Procurement Item Identification number should be entered.

POSITIONS SERIAL NUMBER DATA

Positions 1-4 Base SRAN Positions 5-11 Four digit calendar year, three digit Julian date Positions 12, 13 Two digit number beginning with 01 each day 22–13

22.16.6.11. Disposal date. General PP&E should be removed from the asset accounts along with associated accumulated depreciation or amortization in the period of disposal, retirement, or removal from service. This occurs automatically in AFEMS upon asset removal.

22.16.6.12. Disposal and transfer. The difference between the net book value of the general PP&E and the amount realized (nothing) should be recorded as a loss in the period that the gen-eral PP&E is disposed of, retired, or removed from service. Loss information will be provided for year-end reporting. AFEMS will capture this data upon processing of disposals and transfers.

22.16.6.13. Useful life. The useful life for AFEMS PP&E is ten years for equipment assets and five years for vehicles.

Section 22C—EQUIPMENT ALLOWANCES AND AUTHORIZATIONS.

22.17. Overview. This section explains the equipment allowance standards, online AFEMS (C001) capa-bilities, and procedures used by the AFEMS (C001) to equip each organization to accomplish its mission.

This section provides general information about ISG, nonexpendable items, end items, basis of issue (BOI), published allowance standards, and allowance changes. It also explains how to prepare and pro-cess allowance change requests. Finally, it describes configuration data.

NOTE: Air Force policy establishes equipment allowance standards; each AF organization should be authorized only the equipment needed. The LRS/CC or Accountable Officer insures effective use of equipment for maximum readiness and capability at minimum cost. LRS/CC or Accountable Officer assures that authorizations are valid to meet the minimum needs of each organization.

22.18. Allowance Documents.

22.18.1. Equipment allowance standards describe the items and quantities of equipment required to perform the missions and duties of AF organizations and individual specialists. The first three posi-tions of the allowance identification is the ASC. Allowance standards provide information about AF equipment and ensure uniform equipment for similar functions. Equipment authorizations are allow-ances converted to quantities of items for a unit. Use authorized in-use detail records as the authority for what may be acquired and retained under the AFEMS.

22.18.2. Allowance Standards. The AFEMS (C001) provides allowance information online to all users. The web address for online allowance information is https://www.afems.wpafb.af.mil. Allow-ances are established by end item and mission application, with the capability to compute maximum allowance quantities by organization. The AFEMS (C001):

22.18.2.1. Allows users online query capabilities to determine maximum quantities allowed for item(s) for a given organization's mission.

22.18.2.2. Validates all base authorizations to ensure they do not exceed maximum allowances.

22.18.2.3. Requests allowance standard hard copy reports using the online query allowance stan-dard inquiry (TINQ). The results are output to the AFEMS (C001) output product facilities.

22.18.2.4. Provides allowance changes to all effected users through email notices.

22.18.2.5. Identifies in-use substitutes with questionable suitability for the preferred item.

22.18.3. Substitutions. On hand centrally managed equipment, within the same Interchangeability and Substitution (I&S) Group as an allowance standard (AS) prescribed item, will be satisfactorily 22–14 substituted (Item Code “S”) to the AS prescribed item. Substitutes not in the same I&S group but having a D043 “X” File Relationship Code of “I” (Interchangeable) or “S” (Suitable Substitute) may also be substituted as Item Code S. On hand assets not I&S grouped or having the appropriate “X” file relationship may be substituted as unsatisfactory (Item Code “U”), when applied to shortages for an AS prescribed item. When the unsatisfactory substitute is a same/like item and satisfies the requirement for the AS prescribed item, an AF Form 86 will be initiated. Submit the form, through the LRS Customer Service Element (if not supported by the GLSC), requesting I&S grouping to the AS prescribed item and submit an allowance change request stating that the on-hand item satisfies mission requirements for the AS item. Upon approval of the request, the allowance manager will establish an allowance for the substitute item with a Basis of Issue (BOI) indicator “V” (Variance Narrative). In AFEMS, the “Narrative BOI Info” section of the allowance standard will note the unsatisfactory relationship to the AS item. NOTE: Allowances with a BOI indicator “V” are for information purposes only and will not be used for authorizations, initial issues or replacements.

When the substitute does not satisfy mission requirements, no allowance or AF Form 86 actions will be taken. The AS prime NSN will be requisitioned and the unsatisfactory substitute will be turned in upon receipt or placed in excess until status is rectified.

22.18.3.1. I&S Grouped Item Substitutions. Items in the same Interchangeability and Substitute (I&S) Group with relationship codes M or I may be freely substituted to satisfy authorized needs for an item. Additionally, if determined suitable for use locally, items listed in D043 as condi-tional substitutes (relationship code S), may be substituted for authorized item shortages. Use item code S to indicate these substitutions.

22.18.3.2. Non-I&S Grouped Item Substitutions. Procedures for documenting the use of items that are not I&S grouped depend upon whether the item fully satisfies mission requirements as stated in the allowance standard.

22.18.3.2.1. Satisfactory Substitutions. In cases where non-I&S grouped items fully satisfy the mission requirements of items listed in allowance standards, equipment custodians will submit 1) an AF Form 86 requesting I&S grouping, and 2) an AF Form 601 allowance change request stating the in-use item fully satisfies the mission requirements of the NSN listed in the allowance standard. Upon approval of the allowance change request, and pending the update of the I&S relationship code in D043, the allowance manager will establish an allowance for the substitute item with a Basis of Issue indicator of V, noting the unsatisfactory I&S relation-ship.

22.18.3.2.2. Unsatisfactory Substitutions. In cases where non-I&S grouped in-use items do not fully satisfy mission requirements, a requisition will be initiated for the Prime NSN in the allowance standard. Upon receipt of the requisitioned item, the unsatisfactory substitute item will be turned in for disposition or redistribution.

22.18.4. Other Relevant Documents. Certain documents may be used to request changes in allow-ance and authorization but are NOT allowance standards or authorization documents for acquiring or retaining EAID equipment.

22.18.4.1. The following are NOT equipment allowance or authorization documents, but they can be used as justification to request changes:

22.18.4.1.1. Regulations, manuals, instructions, and other numbered administrative rules.

22.18.4.1.2. Technical orders.

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22.18.4.1.3. Operations orders, plans, etc.

22.18.4.1.4. Messages, letters (except those from the Department of the Air Force, HQ USAF, and HQ AFMC for this particular purpose), oral instructions, etc.

22.18.4.1.5. AFI 25-201 agreements.

22.18.4.2. Before publishing the documents above, the personnel publishing them must coordi-nate with the AFEMS (C001) allowance manager if the documents require additional equipment or equipment in excess of existing allowances.

22.18.5. Approval. The allowance standard manager is responsible for the final review and approval of items of organizational and individual equipment, quantities and basis of issue in allowance stan-dards, and for nonroutine requests. (For medical and nonmedical items required in medical facilities.)

Only HQ USAF approves USAF controlled items, for WRM items; AFMC controls all other items.

22.19. Allowance Standard Items.

22.19.1. Master Item. Allowance standards normally list the master item in the ISG. All prime authorization records should reflect the stock number prescribed in the allowance standard. A prime NSN should not be substituted for another prime. If another prime meets your requirement, submit a TACR through AFEMS to get it added to the appropriate allowance.

22.19.2. Nonexpendable Items. Generally, only nonexpendable items will be listed in allowance standards. (Expendable items may be listed for the user's information.) Personnel may request quan-tities of expendable items that exceed the basis of issue in applicable allowance standards, except for specialized tools, personal retention and survival items, components of bench sets, and WRM. EMC 1 items are normally excluded from EAID accountable records, but may be included in allowance standards. Base Equipment Management Sections may change EMC 1 items to EMC 2 when the MAJCOM approves or directs this designation.

22.19.3. End Items. Except in unusual circumstances approved by USAF, allowances of end items are not included in allowance standards for standby, backup. Spare parts used to maintain, repair, or assemble end items are not listed in most allowance standards.

22.19.3.1. Additional equipment for mission requirements is authorized for Life Support IAW AFI 11-301, Vol. 1 in order to minimize aircraft down time. HQ USAF approval is not required when additional equipment has been identified during allowance standard reviews between the depot and MAJCOMS.

22.20. Allowance Standards - Issue and Control.

22.20.1. Basis of Issue (BOI). The BOI in allowance standards is normally the maximum quantity for a nonexpendable item which may be authorized if properly substantiated by workload, use data, or other adequate justification. When possible, allowances are stated in flexible terms so they can be easily applied to specific situations. Hold authorizations to the minimum essential and do not exceed allowances except under the conditions specified below. See Note below.

22.20.1.1. BOI Funded (Budget Code 9) Equipment. BOI found in base and shop support allow-ance standards are advisory only and are not restricted to the identified users. These BOIs may be used by any organization identified as an authorized user according to the end item, mission appli-cation, and mission exception, and the requirement deemed necessary by the organizational com-mander. This policy excludes allowances in ASC 016 (Parts C, D, F, G, and H); governing 22–16 weapons systems; depot support; controlled items; mobility and WRM equipment; special ASCs (041, 048, etc.); items which require SAF A, C, T, or U; and allowances requiring approval above wing/ base level (IAW chapter 3, table 3A1.46.).

NOTE: The commander is authorized to exceed the BOI in weapons system support allowance standards if the prime authorization is base funded (budget code 9). It does not apply if the prime authorization is centrally procured. This does not remove the requirement for commanders to meet mandatory authoriza-tions.