Army Regulation AR 735-5 Property Accountability Policies 22 August 2013

Product Information

Understanding supply procedures, the CSDP, and the inventory process makes the legal review easy. The presence of some of the aforementioned supply documents will significantly aid the SJA in determining if the FLO's findings are legally sufficient. The briefing from the SJA to the FLO covers the following: Personal responsibility obligates a person to exercise reasonable actions to properly care for and keep safe property issued or acquired for a person's exclusive use. Personal responsibility always accompanies the physical possession of property. Financial liability investigations for property loss (FLIPL) often occur during changes of command. When officers are about to take command, they are thrown into the confusing world of supply and the change of hand receipt process. In a perfect world, all runs smoothly; the outgoing hand receipt holder is present, all hand-receipted property is immaculate, and all sub-hand receipt holders are available. When Army property is lost or damaged, financial responsibility can fall upon the Soldier or Civilian to whom the property was issued.

Both FLOs and SJAs need to understand the definitions of several different aspects of Army property, beginning with the types of responsibility. There are five types of responsibility used to determine who is responsible for the loss, destruction, or damage to government property: command, supervisory, direct, custodial, and personal.

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The FLO should include evidence of who is responsible in the FLIPL process. These documents can take the form of relevant primary and sub-hand receipts. The primary hand receipt holder is usually the company commander. Sub-hand receipt holders are responsible for a portion of the commander's hand receipt. This responsibility is further delegable from sub-hand receipt holders to the end users. A LIN is a six-character alphanumeric identification code for generic nomenclature and pertains to the listing line on which the generic nomenclature appears in bulletins and Army equipment authorization documents. LINs treat all NSN items possessing the functional capability expressed by the generic nomenclature collectively. For example, one LIN may cover all mechanics' tool kits, another heavy equipment transports, and a third M4 rifles. PBOs use LINs to identify equipment commanders will inventory during a cyclic inventory. For more information about property accountability, the unit S-4, G-4, and PBO can provide assistance. Army Regulation 735-5, Policies and Procedures for Property Accountability; Army Regulation 710-2, Supply Policy Below the National Level; and Department of the Army Pamphlet 710-2-1, Using Unit Supply System (Manual Procedures), are also good resources. The FLO's resource is Department of the Army Pamphlet 735-5, Property Accountability Procedures and Financial Liability Officer's Guide. INVENTORY RECORDS. Recording every step in the inventory is an essential factor to reduce the possibility of negligence. The paper trail should start on day one of the inventory. Current and future hand receipt holders should bring a tape measure, digital camera, pen, and paper. Using a digital camera creates a photographic record of property, identifies features and serial numbers, and creates evidence that can help defeat a claim of negligence, provided the date-time stamp option is on. Sensitive-item inventories are conducted every month by an NCO or officer. These inventories account for all equipment deemed sensitive on the hand receipt, which is normally everything contained in an arms room to include communications equipment.

Supervisory responsibility obligates supervisors to ensure that property issued to subordinates is properly used and cared for. Supervisory responsibility arises through an assignment to a supervisory position and is not contingent on signed receipts or responsibility statements.

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The purpose of the pen and paper is to record notes about property. The serial number, date of inventory, and any issues must be recorded. This information is used to correct deficiencies through administrative adjustment reports that list the issues and deficiencies identified with property during an inventory.

Before a FLIPL investigation begins, SJAs provide FLOs with a legal briefing. Responsibility and its differing types and applications must be presented in the briefing. The SJA also briefs the FLOs on the different types of property and how to identify the property on a hand receipt. SJAs should remember to brief FLOs on required inventories and how these inventories appear on component hand receipts. Change of command inventories occur when the incoming commander inventories all of the property on the primary hand receipt. During this process, the commander inventories every major end item on the primary hand receipt. All items on component hand receipts, including basic issue items (BII) and components of the end item (COEI), also are inventoried. In addition to counseling sub-hand receipt holders, the unit commander should not sign primary hand receipts until all sub-hand receipt holders have signed their hand receipts. This ensures that all property is assigned and reduces the threats of liability and negligence. Army-issued equipment such as the helmet and pair of boots pictured can result in a Soldier's financial liability if not returned properly. Lost, damaged or stolen Army property can be subject to Financial Liability Investigation of Property Loss, th...Financial Liability Investigation of Property Loss, or FLIPL, is the procedure the Army uses to recover the cost of lost or damaged property. Under Army Regulation 735-5, financial liability ordinarily will not exceed one month?'s base pay. However, in certain cases, such as the loss of personal arms or equipment, or damage to government housing, a Soldier can be held liable for the entire loss.