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

Product Information

Command responsibility obligates unit commanders to ensure the property in their command is properly used, cared for, and kept safe. Commanders cannot delegate command responsibility. UPDATED PUBLICATIONS. The supply section should have the most recent TMs and supply catalog publications on hand during the inventory. To find the most recent publications, the supply section looks at the primary hand receipt, obtains the relevant NSN, NIIN, or LIN for the property, and looks them up in GCSS-Army. The commander and supply section should maintain copies of all property-related actions in both their offices and residences and keep this documentation for at least two years after a change of hand receipt holder inventory. Direct responsibility obligates a person to ensure property they signed for is properly used, cared for, and kept safe.

The FLO's job is to determine if negligence is involved, who caused the property loss, and the amount of the loss," explained Daniel Haws, attorney-advisor, Administrative Law Division, Staff Judge Advocate Office. "If the FLO recommends liability against a Soldier, that individual has seven days to submit a rebuttal explaining why the liability is not appropriate based on the standards for FLIPL." 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. Counseling sub-hand receipt holders in writing reduces the possibility of sub-hand receipt holder negligence. Before sub-hand receipt holders sign for property, the commander needs to provide them with a written counseling. The expectations of the commander should be clear and provide guidance about CSDP, inventory procedures and basic supply accountability. This written counseling statement serves as a training aid by passing along best practices to junior leaders. 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...Property often has components, which require component hand receipts for accountability. Copies of these hand receipts are available from the unit's supply section, property book office (PBO), or the primary, sub, and end-user hand receipt holders. FLOs should ask for hand receipts from the unit's supply section before reaching out to other parties. 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. 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.

All BII and COEI should be laid out according to its TM, supply catalog, or respective item listing. In the event there are similar end items, all component layouts occur simultaneously. Only inventories for items that can be physically touched occur; relying on the word of another person is not a legal defense to negligence. 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.The FLO must include evidence that an inventory occurred properly or improperly. The FLO should obtain a copy of the change of command inventory schedule. The FLO must also obtain a copy of the relevant component listings for any lost, missing, or damaged equipment. However, the most important evidence the FLO must obtain is anything developed by the hand receipt holders during the inventory process. These documents include all relevant administrative adjustment reports and any photographic evidence.

Durable property is usually not on a commander's primary hand receipt and is often a component of an end item. Durable property may be part of a sets, kits and outfits (SKO) listing or a part of the NSN system. An example of durable property is hand tools. Durable property has an ARC of "D."Follow your unit's inventory and supply procedures. The supply policies are there to prevent property from getting lost.

If the Soldier does not contest liability they may voluntarily sign a Department of Defense Form 362, or Statement of Charges/Cash Collection Voucher. While DD Form 362 is an admission of liability for the lost or damaged property and an agreement to pay for it, the Army uses FLIPLs in situations where responsibility for the loss is in question, or where the amount to be charged is in dispute. Commanders must conduct inventories for changes of command, changes of hand receipt holder, cyclic accountability, sensitive-item accountability, and when units conduct field exercises or deploy. Not conducting required inventories increases the likelihood of a finding of negligence due to poor accountability. 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. 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.

Record Details for AR 735-5

Inventory schedules must cover inventories of all property on every hand receipt and any property not currently on a hand receipt. The commander is usually responsible for at least two primary hand receipts: the unit property book and installation property book property. There may also be central issue facility, department of public works, or training and support center hand receipts. 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.