1. Property Loss Management

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

3. 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

4. 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

5. 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

6. Examples of when to initiate a FLIPL5
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

7. 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)

8. 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

9. 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

10. 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 chapter 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

11. 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 c. After he/she has conducted their investigation. The contracting officer must submit back in writing his/her findings to the Approving Authority.

12. Initiate FLIPL Process6
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

13. 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 chapter d

14. Obtaining a Document Number Accountable PBO's action on a FLIPL9
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

15. 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

16. Preparation of DA Form 7531 (AR 735-5 Figure 13-3)10
Preparation of DA Form 7531 (AR 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

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

18. Preparation of DD Form 200

19. 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

20. 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

21. 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

22. 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

23. 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