Certain basic principles are involved in the receiving of Government property which must be observed when assigning responsibilities of this function. These principles are:
(a) Designation of Receiving Officers.
(1) Inspection and acceptance of property upon receipt, and preparation of receiving reports and documenting receipts for property are the responsibility of property management personnel. The Accountable Officer at each office will designate in writing a receiving official and an appropriate number of alternates. Only these officials are authorized to sign for the receipt of property.
(2) Except for bank card purchase, the receiving official and the purchasing official cannot be the same individual. Refer to the Bank Card Manual for specific details.
(3) The Government employee who signs the receiving report is certifying that the property listed thereon has been received, and the signature serves as the basis for the expenditure of Government funds.
(b) Establishing Initial Accountability for Property. Initial accountability for all equipment, materials, and supplies received by the Government is established by the receiving documents.
(1) Establishing Custody for Property. A Government employee must accept responsibility for all Government property immediately upon receipt. This custody rests with the Accountable Officer, unless properly delegated to another individual. The Property Officer or individual in charge of storehouse operations assumes custody for all property received at the time the receiving report is signed, although the actual receiving work, including preparation and signing of the receiving report, may be accomplished by a representative of the Property Officer.
114S-60.502-70 Single Receiving Station.
A single receiving station should be established at each office where the destination of incoming shipments can be confined to a single location. Where establishment of a single receiving station is not practical because incoming shipments are scheduled for delivery at outlying points, it is recommended that one of the following alternative receiving methods be adopted:
(a) Assignment of Traveling Receiving Officer. Assign a traveling representative of the accountability unit to be responsible for inspecting and receiving property at outlying locations, and for preparing and signing appropriate receiving documents.
(b) Establish Receiving Responsibility With an Individual Permanently Assigned to an Outlying Location. Designate one individual, whose permanent station is at the outlying location, as a "checker" representing the receiving individual. Under this method, the checker performs the duties of inspection, identification, and counting the property and the receiving official completes and signs formal receiving reports/invoices. The checker will be required to forward copies of freight bills, express receipts, packing slips, inspection reports, or other related documents to the receiving officer, in addition to a detailed list showing the quantity and complete description of all items received. Copies of these documents will be filed in support of the formal Receiving Report.
114S-60.502-71 Use of Purchase Order, Form 7-711.
Copies of Purchase Order, Form 7-711, may be used as the receiving report document provided that they are specifically intended to be used in lieu of form 7-760 and contain all the information required by this subpart.
114S-60.502-72 Receiving From Non-Reclamation Sources.
Receipts for property, except those documented by alternate method described in this subpart, will be recorded on Receiving Report, form 7-760 or form 7-760A.
(a) Receiving Report, Form 7-760. The following information will be shown in the proper spaces on the receiving report as indicated below:
(1) Purchase Order Number.
(2) Purchase Order Item Number.
(3) Purchase Order Unit Price. If not shown on the purchase order, the unit price will be estimated in cases involving original new purchases. In case of receipt of property by transfer from another Reclamation office or other Governmental activity, unit prices will be determined in accordance with pricing methods detailed in 114S-60.503-70 below.
(4) Complete and Accurate Description of the Property Received. Include manufacturer's serial numbers and National Stock numbers when available.
(5) Quantity of the Items Actually Received.
(6) Monetary Value of the Property Received. This is the quantity received multiplied by the unit price shown on the receiving report. Any estimated costs of materials and supplies charged to the stores account may later be adjusted in the stores records by the Inventory Cost Adjustment Notice procedure described in 114S-70.7. Adjustment of estimated costs of nonexpendable property recorded in the accountability record is not required.
(7) Transportation Costs Paid to Commercial Carriers by the Government. These costs will be entered on the appropriate line and added to the purchase or transfer price to reflect the total cost of the property. Transportation costs should be distributed equitably to the items contained in the shipment, except that:
(i) Distribution of these charges to individual line items is unnecessary when all items on the receiving report are charged direct to a single feature.
(ii) Where shipment involves one or more large or high cost units or line items of property and one or more relatively small or low cost line items, a proportionate share of the transportation costs need not be added to the small items. The entire amount should be distributed to the larger items.
(8) The Appropriate General Ledger, Cost Authority, or Other Account Number. The account to be charged with the value of the property received.
(9) Nonexpendable Property Classification. All items of nonexpendable property listed on the receiving report will be identified as to proper classification, i.e., capitalized, noncapitalized, or sensitive by inserting the letter "C," "NC," or "S" opposite the respective items. See also 114S-60.4.
(10) Additional Information and Coding. This will usually be required in offices maintaining stores. This data should be shown on the receiving report as necessary to meet local or regional requirements.
(b) Receiving Report, Form 7-760A. Receipts of property documented by use of Receiving Report, Form 7-760A, should be recorded in a manner similar to Form 7-760. When Form 7-760A is used in conjunction with Purchase Order, Form 7-711, it will be prepared with the "Quantity Received" and "Amount" columns left blank to be completed by the receiving individual upon receipt and verification of each shipment.
(c) Cost of Handling Property. Costs incident to unloading, receiving, storing, and issuing Government property will not be added to the purchase price of property acquired. However, the actual cost of unloading, erecting, or assembling and initially preparing equipment for service will be added to the original acquisition cost of the equipment. These costs will be determined by Finance and Accounting Services as a part of the Cost Authority.
114S-60.502-73 Verifying Shipments.
Receiving reports will be checked against the purchase order, contract, and shipping documents to determine that the quantity ordered has been delivered and that the articles received meet the specifications. Articles which require technical identification or inspection will be examined by the receiving clerk in conjunction with other qualified personnel. In those cases where inspection for compliance with specifications is made in accordance with terms of the contract, a copy of inspection reports will be furnished the receiving office and attached to the receiving report. Inspection reports will be signed by all parties making the inspection. The receiving report will bear specific notation where items received are in damaged condition, or differ in quantity or specifications from those ordered. (See also .74 below.)
114S-60.502-74 Partial Shipments.
If verification of a shipment indicates that only part of the items ordered are received, the quantity of those which are received and the date of receipt will be noted on the storehouse copy of the purchase order. The purchase order should then be returned to the current file pending receipt of the undelivered items. In case of partial shipment, a notation "First Partial Shipment," "Second Partial Shipment," etc., as appropriate, will be indicated on all copies of the receiving report. When all items on a purchase order are received, the date received and the initials of the receiving clerk will be noted on the storehouse copy of the purchase order. The purchase order should then be placed in a closed file. In such cases, appropriate notation, e.g., "Final Shipment," will be indicated on all copies of the receiving report.
114S-60.502-75 Overages, Shortages, and Damaged Shipments.
When shipments received are over, short, or damaged, actual receipts will be recorded on the receiving report and taken into the appropriate account at the purchase order unit price, without regard to any damage. Notations as to the condition of the shipping containers and the quantity of the over, short, or damaged items will be made on the face of the receiving report or on an attachment thereto. Its contents, initials, number, and complete record of car seals, if any, will also be made on the receiving report. The circumstances will be reported immediately to the Acquisition/Purchasing Officer by copy of the receiving report, together with any necessary supplemental information.
(a) Noting Damaged and Short Shipments on Government Bill of Lading. If shipment is on Government Bill of Lading, the extent of any damage or shortage will be noted on the space on the reverse provided for that purpose. If an entire shipment is obviously damaged to such an extent as to be worthless or checks short, it should be refused. In such cases, the bill of lading will not be surrendered to the carrier but will be forwarded to the acquisition/purchasing office along with a memorandum reporting the loss or damage.
(b) Storage of Damaged and Over Shipments. Damaged items and overages will be stored separate from other items pending return to the vendor or other settlement.
(c) Documenting the Return of Damaged and Over Shipments to Vendor. If damaged items or over shipments are returned to the vendor, Property Voucher, Form 7-763, will be prepared to list all property so returned. The voucher should be processed and distributed in the usual manner (see FPMR 114S-60.7) and contain the following minimum pertinent information:
(1) A notation to the effect that the items were returned to the vendor;
(2) A reference to correspondence, if any, on which settlement was based;
(3) The number of the receiving report, purchase order, or bill of lading (if any), on which the items were received; and
(4) The same unit price and amount shown on the receiving report on which the property was originally received. (Such amounts will be credited to the stores, equipment, or other account, as appropriate.)
Note: Since the document will be supported by copies of correspondence or other evidence of the reasons for the actions taken, the storekeeper's signature on the Property Voucher will authorize the credit entry to the appropriate records and accounts.
Receiving reports covering property donated to Reclamation will clearly indicate that the property was received by donation. Such property will be recorded in the property records and financial accounts at its appraised or fair market value.
114S-60.502-77 Alternate Methods of Documenting Receipts.
114s-60.502-7701 Use of Purchase Order-Invoice-Voucher, SF-44.
When SF-44 Purchase Order-Invoice-Voucher, is used to make purchases; copy 3 will serve as a receiving report. Copies 3 and 4 of this form will be forwarded to Property Management as soon as possible after each purchase. The same receiving procedures as for Form 7-760 apply to copy 3 of SF-44. Copy 3 will be forwarded to Finance and Accounting Services, and copy 4 filed in the storehouse receiving report file.
114S-60.502-7702 Use of Commercial Shop Repair Order Form.
When automotive or other repairs are obtained from commercial sources, a copy of the commercial shop repair order form may be used as a receiving report in lieu of Form 7-760. If this method of documenting receipts is used, the commercial shop repair order form will be signed by an individual sufficiently familiar with the equipment being repaired to certify that the parts and services listed thereon have been received. Where significant repairs are involved and a copy of the commercial shop repair order is used in lieu of Form 7-1290, Shop Job Order, a copy should also be available for filing in the vehicle or other equipment historical jacket file or annotated in REMMS and retained in accordance with the records retention schedule.
114S-60.502-7703 Use of Fedstrip Receiving Report, GSA Form 1348-1.
While the original order may cover several items, the receiving document is a single-line item release/receipt document.
114S-60.502-7704 Capitalized Equipment Fabricated in Reclamation Shops.
A receiving report will be prepared to cover capitalized equipment or stores items fabricated in Reclamation shops. These reports will make complete reference to the Shop Job Order on which production costs are accumulated. The cost of such equipment will be determined by the total value of labor, materials, and apportioned share of shop overhead expended for the completed product, as reflected on the Shop Job Order. The receiving report will indicate the appropriate cost structure which production costs are to be charged and an accountability record established to cover the equipment in the same manner as for any other acquisition of capitalized equipment.
114S-60.502-7705 Capitalized Equipment Found on Inventory.
Any equipment found on inventory which is not on record and is of a type normally capitalized will be taken into account by a receiving report, prepared in the same manner as for any other acquisition except that a statement "found on inventory" will be shown in lieu of other acquisition reference, and:
(a) If the item can be identified as having been previously dropped from equipment accounts, appropriate reference to the prior Certificate of Loss, Report of Survey, or other relief document will be shown on the face of the receiving report. Such property will be recorded at its original acquisition cost.
(b) If the item is not identifiable with prior records, that fact will be noted together with any pertinent comment or surmise regarding its origin. Such property will be taken up at its appraised or fair market value.
114S-60.502-78 Accounts to be Charged.
114S-60.502-7801 Establishing Charges From the Receiving Report.
All receiving reports will be prepared to show the appropriate Standard General Ledger, cost authority, or other account to be charged with the value of the property received. Receipts will generally be chargeable to one or more of the following general classifications:
(a) Stores Account.
(b) Equipment Accounts.
(c) Cost of Clearing Accounts (direct charge).
Spare parts supplies with major equipment. Spare parts purchased under specifications and contracts along with major power system equipment should be charged directly to the plant account to which the equipment is charged. Quantitative control records will be established as provided in 114S-71.610.
114S-60.502-7802 Charges by Categories.
The following chart summarizes the proper charges for the various categories of equipment, materials, and supplies, and its use is mandatory:
CHARGES FROM RECEIVING REPORT Charge
to
stores
accountCharge
to cost or
clearing
accounts,
as appropriateOptional with
Regional DirectorCharge
to
equipment
accountCharge to
stores
accountCharge to
cost
account1. Materials and supplies stocked for future use by Government forces, exclusive of those in the categories described in 2(a), 4(a), and 6 below.
(See Figure 1.)X 2. Construction materials and supplies purchased for installation by Government forces:
(a) When the feature on which the materials are to be used is known at time of receipt.
X
X(b) When the feature on which the materials are to be used is not known at the time of receipt. X 3. Construction materials and supplies purchased for delivery to and for installation by contractors:
(a) When the feature on which the materials are to be used is known at time of receipt. (See (a) above.)
X(b) When the feature on which the materials are to be used is not known at time of receipt. X 4. Major or more important items of O&M materials, such as transformers, generators, circuit breakers, turbine runners, and similar items:
(a) When acquired for use in connection with specific O&M work, such as improvements to, rehabilitation and betterment of, or replacement for particular units of an identified O&M feature.
X
X
(b) When acquired for use on unspecified O&M work. X 5. Minor purchases of materials and supplies such as repair parts, which are purchased for specific purposes and are to be used immediately upon receipt. (See 3(a) above.) X X 6. Shop stocks and stocks under GSA "low sales" inventory control.
(See FPMR 114S-71.6)X 7. Nonexpendable property to be capitalized in accordance with FPMR 114S-71.4, Appendix A. (Also see 4. above.) X 8. Nonexpendable property not to be capitalized in accordance with FPMR 114S-71.4, Appendix A. (Also see 4. above.) X X 9. Equipment designated in MPS Manual, Appendix F, as expendable. X X Note: Quantitative control records will be established and maintained to cover all materials charged direct to feature costs in accordance with the provisions of 2(a), 3(a), and 4(a), above. 114S-60.503 Documentation of Receipts.
Copy number 1 of Order for Supplies and Services (Form 7-711) will be used as the receiving report for most receipts. Receiving report (Form 7-760) and the continuation (Form 7-760A) may be used when the volume of receipts or the amount of necessary documentation make the preferred form inadvisable. (See 114S-60.502-71 for detailed receiving instructions.)
114S-60.503-70 Establishing Unit Prices for Property Received by Transfer.
Property received by transfer from another Reclamation office or from other governmental activities will be evaluated in accordance with the following subparagraphs, depending on the circumstances. Unit prices arrived at in this manner will be shown on the covering receiving report and, together with any transportation costs involved, subsequently entered in the appropriate stores or equipment records and accounts.
(a) Property received by a transfer from another Reclamation office (nonappropriation transfer basis) without an exchange of funds will be entered on the receiving report at the same price as when it was dropped from the accounts of the transferring office. This price will usually be shown on the available property listing circulated by the disposing office or arrived at after direct negotiation with that office prior to acceptance and physical transfer of the property.
(b) Property received by transfer from another Reclamation office with reimbursement will be entered on the receiving report at the unit price paid for the property.
(c) Property received by transfer from a Government agency outside of Reclamation without an exchange of funds will be entered on the receiving report at its appraised value except as noted in (f) below. The appraised value will be determined by the receiving individual with other qualified personnel, if necessary, taking into consideration factors such as original acquisition cost (estimated if not known), age, present condition, present market value, and the anticipated future useful life of the property.
(d) Property received by transfer with reimbursement from a Government agency outside Reclamation at a transfer price representing something significantly less than its true value will be taken into the records and accounts at its appraised value except as noted in (f) below. The appraised value will be determined as in (c) above. In such cases the receiving reports will show two values, (1) the amount to be paid for the property and (2) the appraised value. The receiving report form should be appropriately modified or footnoted to clearly show these two values. This will serve as a notice to Finance and Accounting Services that the difference between the two amounts is to be processed as a nonappropriation transaction.
(e) Property received by transfer with reimbursement from a Government agency outside Reclamation at a transfer price which approximates its appraised value will be entered on the receiving report at the transfer price.
(f) Property acquired by nonreimbursable activities from a Government agency outside Reclamation will be entered on the receiving report at the price paid for the property in cases involving reimbursement. When funds are not exchanged, a value must still be placed on the property for cost accounting purposes. This value may be that which the transferring agency placed on the property (exclusive of zero value) or a value determined on a reasonable basis giving consideration to all pertinent factors.
114S-60.503-71 Distribution of Receiving Reports.
The original of the receiving report will be forwarded to Finance and Accounting Services, D-7734, within 48 hours of receipt of the shipment, except where shipment meets the following criteria:
(a) Special handling will be given receiving reports involving time discounts.
(b) The original of the receiving report, together with necessary invoices will be forwarded to Finance and Accounting Services, D-7734, within 48 hours after receipt of the shipment or receipt of invoice, whichever is later. Exceptions are allowed for shipments received against blanket purchase agreements, bank card accounts, etc. Contact Finance and Accounting Services, D-7734, for further information.
(1) In these instances a single receiving report may be prepared to document all shipments received during the period specified in the purchase order and the original routed to Finance and Accounting Services at the end of the period.
(c) Receiving reports covering property charged to stores or equipment accounts, or direct to cost or clearing accounts (except those covering property for contract installation) should generally be distributed in accordance with D-7700 directives. The need for copies of the receiving report may vary with individual offices. With the exception of the original, which must be forwarded to Finance and Accounting Services, D-7732, distribution may be modified to suit local requirements but should be kept to the absolute minimum consistent with good management practices.
FPMR-22 - 11/27/95