finanial liability investigation of property loss

FINANIAL LIABILITY INVESTIGATION

OF PROPERTY LOSS

PURPOSE

To provide the updated command guidance on the change to AR 735-5 as it pertains to replacement of the Report of Survey(RoS) with the Financial Liability Investigation of Property Loss(FLIPL).

Documents the circumstances of Loss, Damage, Destruction(LDD)

Serves as/supports adjusting the accountability record

Documents charge/relief Financial Liability(FL) to an individual or entity

REFERENCE

AR 735-5 Policies and Procedures for Property Accountability, dated 28 February 2005

Effective Date: 28 March 2005

OUTLINE

The New Forms Initiation Time Constraints Preparation Types of Authority Short Investigation Financial Liability Officer’s (FLO) Responsibilities Terms

The New Forms DA Form 7531 (page 1&2)

The New Forms DA Form 7531 (page 3&4)

The New Forms DD Form 200

INITIATION

Individual Does Not Admit Liability Change of Accountable Officers Value Exceeds Individual Monthly Base Pay Government Quarters Bulk Petroleum Loss Exceeds $500.00 Loss of public fund or other negotiable instrument Required by higher authority or DA regulation Directed by an IAR approving authority LDD involves a GSA Vehicle Loss is a recoverable item with code of “D,F,H,or L” Fire, theft or natural disaster losses

INITIATIONWith AR 15-6 Paragraph 13-25 discusses the relationship between an

AR 15-6 investigation and a IPL LDD of controlled inventory items (AR 15-6) Mandatory per AR 190-11, app E (AR 15-6) Loss or destruction of small arms ammunition

Stock record level. Ref AR 190-11, app E on what quantities require IAR or AR 15-6.

Property book level. Ref AR 190-11, app E on what quantities require AR 15-6.

TIME CONTRAINTS

Timeline is essential for an accurate investigation Person(s) responsible for delay makes written

statement explaining reason for the delay Letter of lateness becomes an exhibit

DATE OF DISCOVERY

IPL IS APPROVED

TOTAL PROCESSING TIME

TIME CONTRAINTSTime Segments Step 1: Initial Process (15 Days) Step 2: Investigation and Recommendation (40

Days) Step 3: End of the adjudication process (20 Days)

Total Processing Time: (75 days) (75 days) Step 4: Notify individual(s) being charges (30 days) Step 5: Provide to FAO/USPFO (1 day)

TIME CONSTRAINTSSTEP 1- Initiation (w/Appointing Auth.)

Starts with discovery of the loss Preliminary search for the missing item(s) Identification of the LDD item(s) using FEDLOG Gather dates and circumstances Initiation of IoPL, DD Form 200 Complete the narrative portion Get document/voucher number assigned Provide the IoPL to the appointing authority

End of Step 1: 15 Days Active Duty

TIME CONSTRAINTSSTEP 2: Investigation and Recommendation Starts when IPL provided to the appointing authority.

Investigation officer appointed if appropriate Review the property records Obtain statements Ascertain the facts Determine the proximate cause Calculate amount of loss Make recommendation If FL is recommended, notify individual(s) Consider respondent's rebuttal statement Review and decision by the appointing authority Provide to the approving authority

End of Step 2: 40 Days Active Army

TIME CONSTRAINTSSTEP 3: Adjudication

Starts upon receipt of IPL by the approving authority. Approving authority assigns the inquiry/investigation number Reviewed by the approving authority JAG review (When assessment of FL is sought) Decision by the approving authority

End of Step 3: 20 Days Active Army Cumulative Days: 75 Days Active Army

TIME CONSTRAINTSSTEP 4&5: Notification/IoPL to FAO

Step 4: Notify individual(s) being charged 30 Days Active Army

Step 5: Provide to FAO/USPFO for collection 1 Day Active Army

Note 1: Time used to notify the respondent of the investigating officer’s recommendation to assess financial liability in not counted against the time constraints for step 2.

Note 2: Time used to notify the respondent of the approving authorities decision to assess financial liability in not counted against the time constraints for step 3.

PREPARATION

When it becomes known that there will be a requirement to prepare a DD Form 200 to investigate the loss of Government property, a Checklist and Tracking Document for FLIPL will be prepared with elements in part A completed as events occur.

When the DD Form 200 is prepared it will be attached to DA Form 7531 that will be used as a checklist and for tracking events as they occur.

PREPARATIONInitiator

Follow the instruction in section (B) of DA Form 7531. The form spells out exactly what is required.

PREPARATIONTypes of Exhibits DA Form 2823 (Sworn Statement)

Electronic signature may be used when elec. produced. Certificate (Plain Bond Paper) Military Police Report Photographs Hand Receipts/Extracts from TMs/Regulations Estimated Cost of Damage (ECOD)

Must have ECOD to initiate IPL. LEASED equipment, clock starts from receipt of ECOD.

PREPARATIONLabeling Exhibits Lettered alphabetically at the bottom of the

statement/certificate, followed with the date, amount, and organization as shown on the face of the FLIPL.

EXAMPLE

Exhibit A , IPL 10-05 , 4 April 2005, $375.00, HHC USASOC.

PREPARATIONDistribution Forward Original and copies to S-4

Review document for clerical errors Provide tracking number to FLIPL

Acquire Signature and Document number from Accountable Officer

S-4 will forward to approving authority/appointing authority

Note: Damaged property (ECOD) does not receive a document number

TYPES OF AUTHORITYApproving Authority LTC or above Delegation must be in writing Has authority to appoint survey officer Has authority to approve report Responsible for overseeing whole process Ensures time constraints are followed Must avoid any conflict of interest Ensures that survey officers are briefed

TYPES OF AUTHORITYAppointing Authority Junior to and designated by approving authority LTC or MAJ filling a LTC billet Appoints survey officers

TYPES OF AUTHORITYAppeal Authority Senior to and appoints the approving authority May not also act as the approving authority Reviews requests for reconsideration when the

approving authority denies relief Decisions are final

SHORT IPL

Eliminates the need for a FLO Enough information is present for a face

value decision by the Approving Authority May relieve from or assess FL

SHORT IPLRelief from Responsibility When approving authority determines there is no

evidence of negligence or willful misconduct, they may recommend relief from responsibility by- Complete blocks 14b – 14h Place relief statement in block 14b:

“I have reviewed the information contained in blocks 9 and 10. No further investigation is required. I do not suspect negligence, or willful misconduct. I relieve all concerned from financial liability for the property listed in blocks 4 through 6."

FLO RESPONSIBILITY

Determine the cause and value of LDD Gov. property

Determine if assessment of FL is warranted Conduct an impartial investigation Have understanding of terms:

Responsibility Culpability Proximate cause Loss (including damage and destruction)

AR 15-6 INVESTIGATIONAnnotate on DD 200 Appointing authority/approving authority may direct

an investigation according to AR 15–6 Line through the words financial liability in block 13c Inserting "AR 15–6 investigating" in the row

immediately above

TERMSResponsibility Command responsibility- The obligation of a

commander to ensure all Government property within his or her command is properly used and cared for, and that proper custody, safekeeping and disposition of Government property are provided. Command responsibility is inherent in commandis inherent in command and cannot be delegated.

TERMSResponsibility (cont.) Supervisory responsibility- The obligation of a

supervisor to ensure all Government property issued to, or used by his or her subordinates, is properly used and cared for, and that proper custody, safekeeping and disposition of the property are provided. It is inherent in all supervisory positions and is not contingent upon signed receipts or responsibility statements.

TERMSResponsibility (cont.) Direct responsibility- The obligation of a person to

ensure all Government property for which he or she has receipted is properly used and cared for, and that proper custody, safekeeping and disposition are provided. Direct responsibility results from assignment as an accountable officer, receipt of formal written delegation, or acceptance of the property on hand receipt from an accountable officer.

TERMSResponsibility (cont.) Custodial responsibility- The obligation of an

individual for property in storage awaiting issue or turn-in to exercise reasonable and prudent actions to properly care for, and ensure proper custody, safekeeping and disposition of the property are provided. Custodial responsibility results from assignment as a supply sergeant, supply custodian, supply clerk, or warehouse person. Personnel with custodial responsibility are rated by and answerable directly to the accountable officer or the individual having direct responsibility for the property.

TERMSResponsibility (cont.) Personal responsibility- The obligation of a person

to exercise reasonable and prudent actions to properly use, care for, safeguard and dispose of all Government property in his or her physical possession. It applies to all Government property issued for, acquired for, or converted to a person’s exclusive use, with or without receipt.

TERMSCulpability Culpability- A determination of fault. Before a

person can be held financially liable, the findings must show that he or she, through negligence or willful misconduct, violated a particular duty involving the care for the property. Whether the person’s actions or omissions constitute negligence depends on the circumstances of each case. Negligence under some circumstances may not reflect negligence under other circumstances. Therefore, all facts must be fully considered when determining the reasonableness of a person’s conduct.

TERMSProximate Cause Proximate Cause- The cause, which in a natural

and continuous sequence of events unbroken by a new cause produced the loss or damage. Without this cause, the loss or damage would not have occurred. It is further defined as the primary moving cause, or the predominate cause, from which the loss or damage followed as a natural, direct, and immediate consequence.

TERMSLoss Loss- Loss of, damage to, or destruction of property

of the U.S. Government under control of the Army. Includes loss from Government accountability. Property is considered lost when it cannot be accounted for by the person responsible for it.

TERMSDamaged/Destroyed Damaged- A condition that impairs either the value or use of

an article; may occur in varying degrees. Property may be damaged in appearance or in expected useful life without rendering it unserviceable or less useful. Damage also shows partial unserviceability. Usually implies that damage is the result of some act or omission.

Destroyed- Action or omission that renders property completely useless. Damage to the point of complete loss of identity or beyond the prospect of future restoration is considered to be ‘destruction.’

SUMMARY

The only real changes to the process are the forms and terminology used.

The requirements remain the same Reasons for initiation Time constraints Process Terms

QUESTIONS