IUS Procedures - Business Processes

As an IUS manager, the business processes used will need to be documented and published within your Component. The primary areas we have focused on are some of the basics. You may need to supplement these based on the needs of your organization.

Purchasing

IUS may be acquired from a commercial source, developed, transferred from another Component, or modified or customized from commercial sources. When purchasing IUS, you should ensure your purchase is approved for use by your agency. This may be a security review or certification for use from your network management organization. Through this and all other stages, you must maintain key supporting documentation (KSD) to support audit readiness and accountability. KSD may include program memoranda, contracts, invoices, decision memoranda, or other appropriate documents that support the executed actions.

Development

Development of IUS can take many forms, such as customizing a commercial product, enhancements, or starting from scratch. Development of IUS goes through multiple stages, from planning through deployment. Each stage will have different financial treatments, and should be planned so that your program development information will support the correct accounting applications. The following table describes the stages and how to treat your financial transactions.

Project PhaseTaskTreatment
Concept Planning, Planning and RequirementsProject EvaluationExpense
Concept TestingExpense
Evaluation of AlternativesExpense
Project ApprovalExpense
Design, Development and Testing, ImplementationDesignCapitalize
CodingCapitalize
Installation to HardwareCapitalize
Project personnel costsCapitalize
TestingCapitalize
Quality Assurance testingCapitalize
DocumentationCapitalize
General and admin costsAllocate
Data conversion softwareExpense
Operations & Maintenance, DispositionTrainingExpense
Data conversionHelp Desk
EnhancementsCase by case evaluation
Maintenance, Bug fixExpense

Deployment

IUS may have many levels of deployment, based on how it is acquired. Commercial products, with an appropriate security approval, can be deployed quickly. Developed IUS may be deployed in stages, based upon the point of development. There can be soft deployments to a small area of users, phased deployments based on the software development models, and many other variations. It is important to note full deployment has occurred if your IUS is a capital asset. This is typically the Full Deployment Decision (for MAIS) or program equivalent.

Inventory

At a minimum, all IUS is required to be inventoried annually with a minimum of a 98% accuracy rate to support accountability and financial audit readiness mandates. The IUS APSR or management system provides the basis for the inventory population and may consist of either network scans (inventory by exception) or physical verification. The methodology of inventory procedures should be documented within the agency’s inventory plan and contain supporting documents such as network scan logs, screen shots, etc. to support existence verification of the IUS in use. For license based IUS only, the end of year “true-up” of usage between the license issuer and end users may be utilized as the approved inventory methodology.

Disposal

IUS that has become obsolete or no longer required will be disposed of in accordance with the terms outlined within the contract. For IUS requiring return to vendor, the network manager should certify that all of the IUS has been removed from the network and the Contracting Officer would certify in writing all disposal terms within the contract have been met. The Accountable Property Officer will utilize the certifications as authorization to remove the IUS from the APSR as a disposal.

IUS that does not require vendor return should document and follow a disposal method for either DLA Dispositions or appropriate destruction. Supporting document should include but not limited to certifications by network administrators and/or Program Managers that the IUS has been appropriately destroyed or appropriate disposition documentation signed by DLA Disposition Services.


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