2008 News and Events

DoD Directs Use of Activity-based Depreciation for Military Equipment (December 2008)
A Department of Defense (DoD) memorandum jointly signed on 26 November 2008 by the Office of the Under Secretary of Defense for Acquisition, Technology and Logistics (OUSD (AT&L)) and the Office of the Under Secretary of Defense (Comptroller) (OUSD (C)) is changing the way the Department depreciates military equipment. Based on the results of a Military Equipment Useful Life study jointly initiated by OUSD (AT&L) and OUSD (C) this memorandum directs a switch from straight-line, time-based depreciation practices to activity-based depreciation for military equipment impacted by changes in operational tempo (OPTEMPO). Activity-based depreciation recognizes changes in asset values resulting from fluctuations in usage, which provides the Department with two significant benefits:

DoD Financial Management Regulation (FMR) Volume 4, Chapter 6 has been updated to allow use of activity-based depreciation for military equipment. Modifications to the Capital Asset Management System-Military Equipment (CAMS-ME) to allow for activity-based depreciation are also underway.

The memo advises Services and Agencies of primary changes to business rules pertaining to the switch to activity-based depreciation as related to data and operational system requirements. Specifically, the memo:

“The Changin’ Program and Business Financial Managers Roles” (September 2008)
“To borrow a line from singer-songwriter Bob Dylan, ‘The times, they are a-changin’,’ and so are the roles of some key people in the acquisition community—specifically the program manager and the business financial manager.”

This is the opening paragraph of a feature article in the September-October issue of Defense AT&L magazine directly addressing the new responsibilities placed upon program managers (PM) and business financial manager (BFM) within the Department of Defense (DoD) as a result of the Military Equipment Valuation and Accountability (MEVA) initiative. The article is written by Mr. Ric Sylvester, Former Deputy Director of Acquisition Resources and Analysis for Property and Equipment Policy in the Office of the Under Secretary of Defense for Acquisition, Technology and Logistics.

The article details new and permanent changes to PM and BFM business operations to enable proper visibility, oversight and execution of financial management and accountability requirements for the property managed by the program. In addition to the discussion of the new PM and BFM roles, the article outlines some of the new laws, regulations and policies that are the driving force behind these changes and underscores their importance in providing senior leaders better information upon which to make critical investment decisions.

Management Assertion for Military Equipment – REVISED FY2008 Attestation Process and Requirements (August 2008)
OUSD (AT&L) Property and Equipment Policy office has published a substantial revision to the FY2008 Attestation Process and Requirements published earlier this year. This document updates essential information and revises dates for Component-level attestation requirements for FY2008.

Changes to the FY2008 Attestation Process and Requirements document include a reordering of the attestation process steps; more detailed instructions on accessing necessary information and reports from the CAMS-ME portal; and changes to critical dates on the timeline for completion of the attestation process.

The revised FY2008 Attestation Process and Requirements web page describes the data available and how to access that data from the CAMS-ME portal for each individual program; explains how the attestation process will flow; and provides new dates for completion of all actions necessary to enable Components to complete the attestation process.

Management Assertion for Military Equipment – FY2008 Attestation Process and Requirements (May 2008)
OUSD (AT&L) Property and Equipment Policy office has published the FY2008 Attestation Process and Requirements, which varies markedly from FY2006 and FY2007 processes. This document provides essential information and critical dates for Component-level attestation requirements for FY2008. The publication of the new process parallels the Capital Asset Management System-Military Equipment (CAMS-ME) Spiral 2.1A software release, scheduled for release on June 5, 2008, which provides significantly improved capabilities to users.

The FY2008 Attestation Process and Requirements web page describes the data that will now be provided to Components via the CAMS-ME portal for each individual program; an explanation of how the attestation process will flow; and the timeline for completion of all actions necessary to enable Components to complete the attestation process.

CAMS-ME Spiral 2.1A Released (May 2008)
The Capital Asset Management System-Military Equipment (CAMS-ME) Spiral 2.1A software was released on June 5, 2008. CAMS-ME users now have increased functionality and more user-friendly enhancements as part of the planned spiral development of the system. CAMS-ME is used to maintain and update military equipment valuation data at the enterprise-level to enable accurate calculation of military equipment values.

Changes resulting from the release of Spiral 2.1A include:

CAMS-ME users will receive separate instructions telling them how to take full advantage of these new capabilities.

Fiscal and Physical Accountability and Management of DoD Equipment course (CLM047) now available (May 2008)
The new Fiscal and Physical Accountability and Management of DoD Equipment course—Continuous Learning Module, CLM047—is now available through the Defense Acquisition University (DAU) Continuous Learning Center. The course is available for all Department of Defense (DoD) personnel who play a crucial role in acquiring, accounting for, managing and controlling government equipment—both for the warfighter and for the American taxpayer.

The course presents the DoD “accounting” and “accountability” approach to the equipment management life cycle and introduces essential tools available to assist you in the management of government equipment in DoD. We encourage Program Managers, Procurement Contracting Officers, Business/Financial Management Analysts, Item Managers, Accountable Property Officers, property custodians, accounting and financial managers, and all others whose job includes fiscal and/or physical accountability of DoD equipment to take the Fiscal and Physical Accountability and Management of DoD Equipment course.

Browse through or register for the course at the DAU Continuous Learning Center. (Hint: To locate the course quickly, click on the “CLM” tab, type the word “Fiscal” in the “keywords” search field and click on the “Search” button.) Registration is needed to take the course for credit, but is not required to browse the course. (Hint: Follow instructions at the top of the browser to register.)

Environmental Liabilities Quick Reference Tool Now Available (March 2008)
A new Environmental Liabilities Quick Reference Tool is now available on the Training & Tools tab that will make it easier to determine the presence of environmental liabilities in Department of Defense (DoD) equipment. The Quick Reference Tool provides program management office (PMO) acquisition and financial management professionals engaged in the acquisition of DoD Equipment with detailed instructions that walk through this process and provide some helpful hints along the way.

The new tool makes it easier to identify environmental liabilities for general and/or military equipment and shows the correct way to report those liabilities on financial statements. The tool asks a series of questions that guide the end user to determine the “Proper Financial Accounting Treatment for Environmental Liabilities in DoD Equipment.”

This tool must be used even if you believe the cleanup costs for HAZMAT are immaterial costs. Follow the instructions to use it.

“Military Equipment Valuation – How Do We Deal with OPTEMPO?” (February 2008)
On February 26, 2008, Mr. Richard K. Sylvester, Former Deputy Director, Acquisition Resources & Analysis for Property & Equipment (P&E) Policy, Office of the Under Secretary of Defense (Acquisition, Technology and Logistics) (OUSD(AT&L)) gave a live Webcast interview on the topic of “Military Equipment Valuation – How Do We Deal with OPTEMPO?”

Mr. Sylvester discussed how we can better determine when to replace military equipment worn out faster than expected from sustained operational use in a combat environment. He also offered thoughts on how to determine more realistic values for this equipment, such as, for example, an Up Armored HMMWV that has been forward deployed for two years.

To access the archived version of the webcast interview from the Defense Acquisition University (DAU) website, please click here.

Click here to access the “Military Equipment Valuation – How Do We Deal with OPTEMPO?” presentation.

Click here to access questions and answers on the effects of OPTEMPO on the useful life of military equipment.

CAMS-ME Spiral A Released (January 2008)
The Capital Asset Management System-Military Equipment (CAMS-ME) Spiral A software has been released. CAMS-ME users are now enjoying increased functionality and more user-friendly enhancements that are part of the planned spiral development of the system. CAMS-ME is used to maintain and update military equipment valuation data at the enterprise-level to enable accurate calculation of military equipment values.

New capabilities available with the release of Spiral A include:

CAMS-ME users will receive separate instructions telling them how to take full advantage of these new capabilities.

Release of CAMS-ME Spiral A software now enables Components to transition from using the CAMS-ME Portal for asset status updates to a more efficient automated update process using the Item Unique Identification (IUID) Registry. The Accountability Transition Plan outlines a step-by-step procedure intended to provide for a smooth and efficient changeover to the new process for all military equipment programs.

Military Equipment Valuation Contractor Acquired Property Business Rule Now Available (January 2008)
The new Military Equipment Valuation Contractor Acquired Property Business Rule was developed in response to questions and issues raised by the DoD Components regarding financial accounting and property accountability for Contractor Acquired Property (CAP). The rule states that while title passes to DoD when the property is obtained by the contractor, the property will not be recorded on DoD financial statements (as other than construction in process) or in accountability systems until the property is delivered to DoD. This business rule will be incorporated into the DoD Financial Management Regulation.

Go to the Reference Library web page to view all of the Military Equipment Valuation Business Rules.