Internal Use Software (IUS) Accountability

IUS Definition

Software is a subset of General Property, Plant, and Equipment that due to its nature as intangible personal property has its own set of accountability and financial reporting requirements. For accountability and accounting purposes, software can generally fall into two categories 1) Software that is used for internal purposes such as business operations and 2) software that is used for external purposes such as selling to clients. Since DoD generally does not develop or acquire software for the purposes of selling or marketing to external parties the focus of this section will be on Internal Use Software (IUS). In general terms, IUS is a class of assets that consists of software and applications that are used in day to day business and not created or acquired with the intent to sell the asset. IUS can be acquired in a number of different ways, from which the purchase of Commercial Off the Shelf (COTS), development of the software by a contractor, development of software by government, and modification of acquired COTS products are the most common. The DoD Instruction for Accountability of IUS, DoDI 5000.76, outlines the requirements for accountability of IUS and defines IUS as software that is:

Why do we need to account for IUS?

The requirements to account for IUS are derived from DoDI 5000.76 which lays out the accountability requirements for the DoD. The financial accounting requirements are laid out in FMR Volume 4 Chapter 6. Additional applicable laws and regulations are cited within each of these documents as further source materials.

Why should we account for IUS?

While there are a myriad of laws, regulations, policies, and procedures that tell you what you’re required to do for IUS they do not tell you why it is a good reason to account for IUS. As information technology has become increasingly integrated and relied upon in day to day work activities the software that sustains and runs the business operations are extremely valuable assets. Gaining and maintaining accountability of these important assets is important as it assists the DoD acquisition, management, and operations in decision making by providing an up to date inventory of DoD assets.

5000.76 - DoD Instruction for the Accountability of DoD IUS

DoDI 5000.76 is the official DoD instruction which lays out the DoD requirements for the accountability of IUS owned by the DoD. The requirements touch upon several areas of property accountability and include the assignment of roles and responsibilities for the management and accountability of IUS, accountability system requirements for IUS asset records, and specific accountability requirements for various software types. 5000.76 is complemented by FMR Volume 4 Chapter 6 which lays out the accounting requirements for IUS. Many of the accountability requirements laid out in 5000.76 support the fulfillment of the accounting requirements.

IUS Decision Tree

A decision tree has been developed to assist you in determining how to determine if your software is IUS. A text only copy is available. Please contact us if you are still uncertain how to classify your software.

IUS Decision Tree


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