FINANIAL LIABILITY INVESTIGATION

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• FINANIAL LIABILITY INVESTIGATION
• OF PROPERTY LOSS

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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

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REFERENCE

• AR 735-5 Policies and Procedures for Property
  Accountability, dated 28 February 2005
• Effective Date 28 March 2005

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OUTLINE

• The New Forms
• Initiation
• Time Constraints
• Preparation
• Types of Authority
• Short Investigation
• Financial Liability Officers (FLO)
  Responsibilities
• Terms

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The New Forms DA Form 7531 (page 12)
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The New Forms DA Form 7531 (page 34)
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The New Forms DD Form 200
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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

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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.

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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

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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)
• Step 4 Notify individual(s) being charges (30
  days)
• Step 5 Provide to FAO/USPFO (1 day)

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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

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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

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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

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TIME CONSTRAINTSSTEP 45 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 officers 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.
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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.

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PREPARATIONInitiator

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

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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.

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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
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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
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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

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TYPES OF AUTHORITYAppointing Authority

• Junior to and designated by approving authority
• LTC or MAJ filling a LTC billet
• Appoints survey officers

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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

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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

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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."
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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)

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AR 15-6 INVESTIGATIONAnnotate on DD 200

• Appointing authority/approving authority may
  direct an investigation according to AR 156
• Line through the words financial liability in
  block 13c
• Inserting "AR 156 investigating" in the row
  immediately above

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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
  command and cannot be delegated.

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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.

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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.

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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.

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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
  persons exclusive use, with or without receipt.

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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 persons 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 persons conduct.

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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.

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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.

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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.

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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

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QUESTIONS