Property Loss Management

Agenda Property Loss Process (4 Methods) Damage Statements (less than $1000.00) no liability Cash Collection Voucher DD Form 362 Statement of Charges DD Form 362 Financial Liability Investigation of Property Loss (FLIPL) DD Form 200

When a loss occurs….. Make every effort to recover the property….. If property is not recovered, make every attempt to recover cost of the loss property using Statement of Charges/Cash Collection Voucher (DD Form 362) Use DD Form 362 to support dropping property from the property book If responsibility for the loss is in question, initiate a FLIPL If a controlled item is lost, initiate a FLIPL (DD Form 200) NOTE: An AR 15-6 investigation is mandated Initiate FLIPL (DD Form 200) when loss is certain

Indebtedness paid through payroll deduction CASH COLLECTION VOUCHER Statement of Charges/Cash Collection Voucher (DD Form 362) STATEMENT OF CHARGES Indebtedness paid through payroll deduction CASH COLLECTION VOUCHER Indebtedness paid through cash, money order, or cashier check payable to US Treasury ??? CCV – indebtedness recovered via cash, money order, or cashier check SOC – indebtedness recovered via payroll deduction Individual admits liability Amount collected may not exceed individual’s monthly basic pay If amount exceeds individuals monthly basic pay, initiate FLIPL May be applied to active duty personnel, contractors, DAC, US Army Reserve or ARNG, Contractors May be applied to active duty personnel, contractors, DAC, US Army Reserve or ARNG

DD Form 362 Prepare Prepare original & 5 copies **Document # assigned Present for signature DD Form 362 to responsible person Individual charged retains Copy #3 DD Form 362 to PBO Forward copy of PBO retains Copy #4 S1 attaches transmittal letter 9 Processing Statement of Charges or Cash Collection Voucher (DD Form 362) Forward DD Form 362 to Finance & Accounting Office FAO retains Original & Copy #1 DD Form 362; forwards copy to unit FAO processes Returns Copy #2 to unit Unit receives processed copy from FA Unit destroys suspense file copy. Unit files Copy #2 Unit contacts DFAS to ensure DD Form 362 Received & money was collected **Document/Voucher number assigned by person maintaining the document register

Examples of when to initiate a FLIPL 5 Examples of when to initiate a FLIPL An individual does not admit liability or offer to reimburse for loss Change of Primary Hand Receipt Holders (new supply tec) Value exceeds individual monthly base pay Loss or destruction of controlled inventory item (15-6 investigation) Annotated in “Block 3” on DD Form 200 Loss is a recoverable item with code of “D,F,H,or L” Other circumstances outlined in AR 735-5, Para 13-3

Financial Liability Investigation of Property Loss Step #1: Initiation Process Starts with the discovery of the loss (day1) Preliminary search for the missing item(s) Identification of the missing, damaged, or destroyed Item(s) using Army portion of FEDLOG Gather dates and circumstances Prepare DD Form 200 blocks 1, and 3 thru12 Complete the narrative portion After obtaining an inquiry and/or investigation number from the Approving Authority (BDE S4). Get document/voucher number assigned IPBO etc if required (block 17) Provide the investigation of property loss to the appointing authority Step #1 15 days allowed from date loss is discovered (letter of lateness if 15 days is exceeded)

Step #2 Investigation Process Begins after the document/ voucher number is assigned & the Investigation of property loss is provided to the appointing authority Investigating officer appointed, if appropriate Review the property records Obtain statements Ascertain the facts Determine the proximate cause Calculate the amount of the loss Make recommendation If financial liability Is recommended, notify the individuals). Consider respondents rebuttal statement Review by the appointing authority Decision by the appointing authority Provide to the approving authority Step #2 55 days Allowed from date loss is discovered

Step #3 75 days allowed from date loss is discovered Step #3 Adjudication Process Starts upon receipt of the Investigation of property loss by the approving authority, from the appointing authority Approving authority assigns the inquiry/ investigation number (block 2) Review by the approving authority SJA Review (When assessment of financial liability is recommended) Decision by the approving authority HQDA G4 authorizes Colonels (O-6) and GS15 to delegate their approval authority to LTCs (O-5) for FLIPLs with a dollar value less than $5,000.00, (The exception will not apply to COMSEC and/or Sensitive items losses). Step #3 75 days allowed from date loss is discovered

Step #4 Notify individual (Recommended Liability) Must notify individual being charged by certified mail Individuals have 7 calendar days from the date of receipt to reply with a rebuttal statement /evidence Individuals in the same country, but unavailable, have 15 calendar days to submit a rebuttal/evidence Individuals who are unavailable, and in a country different than the financial liability officer, have 30 calendar days to submit a rebuttal/evidence (AR 735-5 chapter 13-35 b.) Note 1: Time used to notify the respondent of the Investigating officer’s recommendation to assess financial liability is not counted against the time constrains for step 2 Note 2: Time used to notify the respondent of the approving authority's decision to assess financial liability is not counted against the time constrains in step 3 Note 3: After rebuttal received, Approving Authority reviews and takes any new evidence into consideration – makes final determination and sends for legal review

Next Steps Step 5: Provide to FAO/USPFO for collection Step 6: FAO/USPFO acknowledges receipt CONTRACTORS WILL HAVE DIFFERENT CIRCUMSTANCES The Commander can offer a Cash Collection Voucher/Statement of Charges (DA FORM 362). In accordance with AR 735-5, Chapter 12, Table 12-2, a contractor that admits liability can pay any amount using a Cash Collection Voucher/Statement of Charges. However, if the Contractor doesn’t feel he should be charged, then the Commander must initiate a Financial Liability Investigation of Property Loss. The FLIPL will be processed and submitted to the Approving Authority. The Approving Authority will forward the documentation to the contracting officer that is monitoring the service contract. The Approving Authority CANNOT hold a contractor liable for loss BUT can make an recommendation to hold them liable for damage or destruction of government property, only the contracting officer who monitors the contract can find them liable AR735-5 Chapter 13-20 c. After he/she has conducted their investigation. The contracting officer must submit back in writing his/her findings to the Approving Authority.

Initiate FLIPL Process 6 Initiate FLIPL Process Initiate on discovery of loss/damage/ destruction of property Conduct a preliminary search for missing item(s) Identify items thru FEDLOG or PBO Gather dates, situation of loss, damage, destruction Prepare DD Form 200/ DA Form 7531 Obtain an investigation number from your Brigade S4/Maintains FLIPL Register DA Form 1659 Obtain document voucher/ number from accountable PBO Submit to appointing authority within 15 days Initiation process must be completed within 15 days of discovery of loss

Labeling Exhibits Label alphabetically at the bottom of the statement/ 8 Labeling Exhibits Label alphabetically at the bottom of the statement/ certificate, followed by date, dollar amount, & organization Exhibit A , FLIPL 4 April 2005,$375.00, Augusta State University SROTC. EXAMPLE See AR 735-5 chapter 13-10 5d

Obtaining a Document Number Accountable PBO's action on a FLIPL 9 Obtaining a Document Number Accountable PBO's action on a FLIPL Complete blocks 17a through 17f, assigning a document or voucher number to any initiated financial liability investigation of property loss when received from the initiator except: For damaged property When the lost or destroyed property is on another accountable PBO’s records

12 Preparation of DA Form 7531 When a DD Form 200 is required to investigate the loss of Government property, a DA Form 7531 will be attached and used as a checklist for tracking events

Preparation of DA Form 7531 (AR 735-5 Figure 13-3) 10 Preparation of DA Form 7531 (AR 735-5 Figure 13-3) Completed checklist as events occur DA 7531 is a 4 page document. Only page 1, section B will be completed by the initiator Completed by initiator Blocks 1 and 3-11 completed by initiator

Preparation of DA Form 7531(AR 735-5 Figure 13-3) 11 Preparation of DA Form 7531(AR 735-5 Figure 13-3) Follow the instruction in section (B) of DA Form 7531. Form spells out exactly what is required

Preparation of DD Form 200

Preparation of DD Form 200, Jul 2009 ( AR735-5 13-10 Figure 13-4) Blocks 1-11 The Initiator prepares blocks 1 and 3 thru 11 of DD form 200. Block 2 will be completed by Brigade S-4 Block 12 Block 12 will be entered by the PMS Block 13 The Appointing Authority (Brigade Commander) will enter this block Block 14 The Approving Authority will enter in this block

Preparation of DD Form 200 DD Form 200 BLOCK 2. BLOCK 3. BLOCK 1. Enter the date the loss was discovered or the date of the incident that caused the loss Leave blank, the approving authority (Brigade) will enter the inquiry investigation number when received Enter the date the FLIPL was prepared BLOCK 4 Enter the national stock number (NSN), manufacturer's part number, management control number (LIN) or other identification numbers, of the item(s) described in block 5 BLOCK 5 BLOCK 6 BLOCK 8 Enter the number of items lost, damaged or destroyed and the unit of issue Enter the nomenclature of the item(s) lost damaged or destroyed. If the items are nonstandard, give a description accurate enough for identification Enter the total cost of all property identified in block 5 BLOCK 7 Enter the price as shown in FEDLOG in effect at the time of the loss

Preparation of DD Form 200 Place an X in the appropriate box identifying whether the property was lost, damaged or destroyed BLOCK 9 Enter a complete and accurate statement of the facts in the case, including the date and place of the incident. Show all persons directly concerned by name and grade. BLOCK 11b. BLOCK 11c Enter the individual's name that completed blocks 1 and 3 through 10 Enter the telephone number of the individual identified in block 11 b BLOCK 10 Initiators (commanders or accountable officers) and when appropriate the investigating officer enters what actions have been initiated or what action they recommend be taken to preclude further losses of the types identified in this investigation BLOCK 11a. BLOCK 11d. BLOCK 11e (Unit Designation, Office Symbol, Base, State/Country, Zip Code). Enter the organizational address of the individual who completed blocks 1 and 3 through 10 The individual identified in block 11 b enters his or her signature Enter the date block11 d is signed

Preparation of DD Form 200 BLOCK 12b RESPONSIBLE OFFICER (PROPERTY RECORD ITEMS) For losses of property at the using unit level, check responsible officer Rationale for the determination made in block 12a and recommendations. BLOCK 12d BLOCK 12e Enter the full name, grade and position, of responsible officer or the reviewing authority as appropriate Enter the telephone number of the responsible officer BLOCK 12a The responsible officer checks the 'yes• or 'no' block indicating whether negligence or abuse is evident or suspected BLOCK 12g BLOCK 12c BLOCK 12f Enter the date block "f" is signed Enter the organizational address of the responsible officer or the reviewing authority as appropriate The responsible officer or the reviewing authority as appropriate enters their signature

Summary Accounting for lost, damaged or destroyed property Methods for accountability Types of forms Property not returned or other losses to government property (Serious Incident Report required?) Recover the property or DD Form 362 Property returned or cash collected, no FLIPL necessary FLIPL within 15 DAYS of discovery of loss or occurrence