1. FINANIAL LIABILITY INVESTIGATION
OF PROPERTY LOSS

2. PURPOSE
To provide the updated command guidance on the change to AR 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

3. REFERENCE
AR Policies and Procedures for Property Accountability, dated 28 February 2005
Effective Date: 28 March 2005

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

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

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

7. The New Forms DD Form 200

8. 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

9. INITIATION With AR 15-6
Paragraph discusses the relationship between an
AR 15-6 investigation and a IPL
LDD of controlled inventory items (AR 15-6)
Mandatory per AR , app E (AR 15-6)
Loss or destruction of small arms ammunition
Stock record level. Ref AR , app E on what quantities require IAR or AR 15-6.
Property book level. Ref AR , app E on what quantities require AR 15-6.

10. 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

11. TIME CONTRAINTS Time 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)

12. TIME CONSTRAINTS STEP 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

13. TIME CONSTRAINTS STEP 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

14. TIME CONSTRAINTS STEP 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

15. TIME CONSTRAINTS STEP 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.

16. 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.

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

18. PREPARATION Types 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.

19. PREPARATION Labeling 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 , 4 April 2005, $375.00, HHC USASOC.

20. PREPARATION Distribution
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

21. TYPES OF AUTHORITY Approving 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

22. TYPES OF AUTHORITY Appointing Authority
Junior to and designated by approving authority
LTC or MAJ filling a LTC billet
Appoints survey officers

23. TYPES OF AUTHORITY Appeal 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

24. 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

25. SHORT IPL Relief 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."

26. 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)

27. AR 15-6 INVESTIGATION Annotate 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

28. TERMS Responsibility
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.

29. TERMS Responsibility (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.

30. TERMS Responsibility (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.

31. TERMS Responsibility (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.

32. TERMS Responsibility (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.

33. TERMS Culpability
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.

34. TERMS Proximate 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.

35. TERMS Loss
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.

36. TERMS Damaged/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.’

37. 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

38. QUESTIONS