FINANCIAL LIABILITY INVESTIGATION OF PROPERTYL LOSS

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FINANCIAL LIABILITY INVESTIGATION OF PROPERTYL
LOSS
1LT BRETT CARICO
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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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Agenda

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

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The New FormsDA Form 7531 (page 12)
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The New FormsDA Form 7531 (page 34)
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The New FormsDD 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

• Army Reserve processing time lines
• Initiation process (date of the discovery of the
  loss until the date the FLIPL (Investigation/Inqui
  ry) Number is assigned by the approving
  authority)
• Maximum of 75 days allowed during initiation
  process (see para 13-6(b) and figure 13-1 and
  13-2, AR 735-5)
• Total processing days (from the date of the
  discovery of the loss until the date FLIPL is
  approved by approving authority max 240 days
  (see figure 13-1 and 13-2, AR 735-5)

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TIME CONTRAINTS

• Timeline is essential for an accurate
  investigation
• Persons 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 (75 Days)
• Step 2 Investigation and Recommendation (85
  Days)
• Step 3 End of the adjudication process (80 Days)
• Total Processing Time (240 days)
• Step 4 Notify individual(s) being charges (30
  days)
• Step 5 Provide to FAO/USPFO (1 day)

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Preparation

• DD Form 200 (FLIPL) - Circumstances reflected in
  block 9 must consist of the following
• What happened identify all persons involved by
  name, grade and organization
• When it happened a brief description of
  person(s) involvement and actions
• Where it happened - location must be specific,
  country, state, city or street address, if
  available
• How it happened

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Preparation

• Checklist and Tracking Document for Financial
  Liability Investigations of Property Loss (DA
  Form 7531)
• The initiator (normally this will be the Hand
  Receipt Holder or Accountable Officer) must
  complete block 1, Section A and Section B (blocks
  1 through 11) of DA Form 7531
• Attach DA Form 7531 to the FLIPL

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Types of Authority

• Approving authority/appointing authority
• Approving authority must be O-6 as a minimum (per
  HQ DA message 28 Jun 06)
• Approving authority may delegate an O-5 as
  appointing authority
• No person may act as an appointing or approving
  authority that has had personal or accountability
  responsibility for the property listed on the
  FLIPL at the time the property was lost, damaged
  or destroyed (see para 13-18, AR 735-5)

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Types of Authority

• The approving authority
• Maintains the Financial Liability Investigation
  of Property Loss Register on PAAD Report and
  assigns the investigation number
• Once FLIPL is approved, approving authority
  retains original FLIPL on file (see para 13-40,
  AR 735-5)

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Short Investigation

• The approving authority/appointing authority
• Decides if further investigation is required
• When no further investigation is required,
  process a short FLIPL (see para 13-22 and 13-23,
  AR 735-5)
• When further investigation is required, appoint a
  financial liability officer (FLO) (see para
  13-24, AR 735-5)

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Short Investigation

• 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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Financial Liability Officers (FLO)
Responsibilities

• 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
• Fault
• Proximate cause
• Loss (including damage and destruction)

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Financial Liability Officers (FLO)
Responsibilities

• The approving authority/appointing authority must
  either concur or nonconcur with the FLOs
  recommendation
• If financial liability is approved, the
  individual must be notified of this decision and
  must be advised of his/her right to request
  reconsideration
• Request for reconsideration must be based on
  legal error (see para 13-42, AR 735-5)
• When approving authority does not reverse his/her
  original decision, request for reconsideration
  becomes an appeal (see para 13-43 and 13-44, AR
  735-5)
• Appeal authority must be a command level above
  the approving authority (see para 13-52, AR 735-5)

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PAAD

• HQ, USARC requires that all MSCs and DRUs report
  Property Accountability Adjustment Data (PAAD
  Report) quarterly. This data should be analyzed
  to determine
• Located O\ESC_HQ\G4\PAAD_mdb
• FLIPL REPORTS LOCATED O\ESC_HQ\G4\FLIPL

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QUESTIONS??