BOP Program Statement 8562.01 § 7

acquire excess and surplus property without exchange of funds

when the transferring agency does not require reimbursement.

Such property that has an original acquisition cost of $10,000 or

more is to be appraised by a Board of Survey within five days of

receipt to determine the fair market value.

a. Fixed Assets. The appraised value assigned, including

restoration, installation and transportation should result in a

fair market value for a similar item. All items appraised with a

fair market value greater than $10,000 must be approved by the

Controller and must be capitalized in accordance with the Program

Statement on Machinery and Equipment (Fixed Assets). If the

appraised fair market value of such equipment is less than

$10,000, any related acquisition cost is to be charged to an

appropriate expense account.

PS 8562.01

1/18/2000

Page 5

b. Raw Materials & Supplies (RM&S). Line item appraisals are

to be based upon original acquisition value as noted on the

surplus property listing, GSA Disposal Condition Code (Attachment

A) and the extent of modification required to adapt the item to

FPI needs. Considering all these factors, the property is to be

appraised at fair market value. The primary purpose is to

provide a realistic appraisal so that production costs are not

distorted by an under or over valuation of raw material costs.

• Upon approval of a survey action by the AW(I&E)/SOI,

the appraised amount is to be debited to RM&S, Account

1511, and credited to Donated Property, 3220.

• The stock items are to be entered into the Management

Control System (MCS) Inventory module.

• Freight costs of obtaining donated property are to be

expensed as incurred and not added to the appraised

value.

c. Recycling Operations. Donated items used in recycling

operations that must undergo significant processing before being

usable are not assigned a value and hence, not reviewed by a

Board of Survey. These items may include computers and computer

peripheral equipment, laser cartridges, and other items that

normally have little or no value without extensive work being

done.