FINANCIAL MANAGEMENT POLICY MANUAL

issuance of SECNAVINST 7040.6 and OPNAVINST 11010.20.
(Change 60)
075361 PERSONAL PROPERTY EQUIPMENT
1. SCOPE.
This paragraph provides guidance for funding personal property
equipment not installed or built-in as an integral part of a facility
construction project financed by a military construction appropriation.
See paragraph 075382 for guidance on installed equipment
2. DEFINITIONS
a. Personal Property.
Personal property includes both accessory equipment and furnishings
that are movable in nature and not affixed as an integral part of a real
property facility. Personal property also includes specialized
equipment (production, processing, medical, technical, training,
servicing, and research, development, test, and evaluation (RDT&E)
equipment) that, although not readily movable in nature, is necessary
for a specified function in a real property facility. Personal property
includes industrial plant equipment and ancillary equipment in support
of end items of personal property.
b. Collateral Equipment Initial Outfitting.
Collateral equipment initial outfitting is the first provision of personal
property equipment and furnishings for a facility construction project
financed by a military construction appropriation. These items are
financed as either expenses or investments based on the criteria in
paragraph 075001.
c. Work required to support the installation of personal property
equipment in an existing facility, such as the installation of false floors
or platforms, prefabricated clean rooms, electromagnetic shielding,
installation mountings or secondary utility work necessary to connect
the equipment, will be considered an integral part of the equipment
costs. As such, the costs are either expense or investment, as long as
the modifications do not include structural changes to the building. If
the modifications include structural changes, they will be considered
investment costs and budgeted in construction.
d. Family Housing.
Initial outfitting of family housing with kitchen equipment, shades,
carpeting, etc., is considered a construction cost funded from family
housing construction.
Financial Management Policy
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