Property Accountability Property Accountability Policies

Preparing to load PDF file. please wait...

0 of 0
100%
Property Accountability Property Accountability Policies

Transcript Of Property Accountability Property Accountability Policies

Army Regulation 735–5
Property Accountability
Property Accountability Policies
Headquarters Department of the Army Washington, DC 9 November 2016
UNCLASSIFIED

SUMMARY of CHANGE
AR 735–5 Property Accountability Policies
This expedite revision, dated 9 November 2016--
o Updates approving authority policy for assessing a final loss of $100,000 or greater, or loss of a controlled item (para 13-17a(3)).
o Adds policy that permits officers in the grade of O-6 with promotable status and O-6 officers assigned as the deputy commander to the commanding general, to sign DD Form 200 on behalf of the commanding general (paras 13-17a(4) and 13-17a(5).
o Updates the authority for discrepancies incidental to shipment of property by common or contractor carrier (para 16-2).

Headquarters Department of the Army Washington, DC 9 November 2016

*Army Regulation 735–5
Effective 9 December 2016

Property Accountability

Property Accountability Policies

History. This publication is an expedite revision. The portions affected by this expedite revision are listed in the summary of change.
Summary. This regulation provides basic policies for accounting for Army property and accounting for lost, damaged, or destroyed Army property.
Applicability. This regulation applies to the Active Army, the Army National Guard/Army National Guard of the United States, and the U.S. Army Reserve, unless otherwise stated. During mobilization, the

proponent may modify chapters and policies contained in this regulation.
Proponent and exception authority. The proponent of this regulation is the Deputy Chief of Staff, G–4. The proponent has the authority to approve exceptions or waivers to this regulation that are consistent with controlling law and regulations. The proponent may delegate this approval authority, in writing, to a division chief within the proponent agency or a direct reporting unit or field operating agency of the proponent agency in the grade of colonel or the civilian equivalent. Activities may request a waiver to this regulation by providing justification that includes a full analysis of the expected benefits and must include formal review by the activity’s senior legal officer. All waiver requests will be endorsed by the commander or senior leader of the requesting activity and forwarded through their higher headquarters to the policy proponent. Refer to AR 25–30 for specific guidance.
Army internal control process. This regulation contains internal control provisions in accordance with AR 11–2 and identifies key internal controls that must be evaluated (see appendix D).

Supplementation. Supplementation of this regulation and establishment of command and local forms are prohibited without prior approval from the Deputy Chief of Staff, G–4 (DALO–SUS), 500 Army Pentagon, Washington, DC 20310–0500.
Suggested improvements. Users are invited to send comments and suggested improvements on DA Form 2028 (Recommended Changes to Publications and Blank Forms) directly to the Deputy Chief of Staff, G–4 (DALO–SUS), 500 Army Pentagon, Washington, DC 20310–0500.
Distribution. Distribution of this publication is made in electronic media only and is intended for command levels C, D, and E for the Active Army, the Army National Guard/Army National Guard of the United States, and the U.S. Army Reserve.

Contents (Listed by paragraph and page number)
Chapter 1 Introduction, page 1 Purpose • 1–1, page 1 References • 1–2, page 1 Explanation of abbreviations and terms • 1–3, page 1 Responsibilities • 1–4, page 1 Statutory and Department of Defense provisions • 1–5, page 1 Internal management controls • 1–6, page 1 Civil-funded property • 1–7, page 2
Chapter 2 Property Accounting Requirements, page 2

*This publication supersedes AR 735–5, dated 10 May 2013.

AR 735–5 • 9 November 2016

i

UNCLASSIFIED

Contents—Continued
Section I Basic Principles, page 2 General requirements • 2–1, page 2 Accounting for Army property • 2–2, page 2 Centralized accounting • 2–3, page 3 Other Service storage of Army property • 2–4, page 3 Army property in possession of contractors • 2–5, page 3 Inventories of personal property • 2–6, page 4
Section II Accountability and Responsibility, page 5 Accountability • 2–7, page 5 Responsibility • 2–8, page 5 Relationship between accountability and responsibility • 2–9, page 6
Section III Accountable Officer, page 8 Appointment of an accountable officer • 2–10, page 8 Contractibility of the accountable officer • 2–11, page 9 Duties of accountable officers • 2–12, page 9 Property book accounts • 2–13, page 10 Stock record accounts • 2–14, page 10 Stock record account serial number • 2–15, page 10 Sales accounts • 2–16, page 10
Chapter 3 Army Property and Non-Army Property, page 11 Army property • 3–1, page 11 Non-Army property • 3–2, page 11 Liability of the Army for property on loan from other activities • 3–3, page 11
Chapter 4 Real Property, Capital Equipment, and Other Nonexpendable Supplies, page 11
Section I Real Property, page 11 General requirements and references • 4–1, page 11 Real property • 4–2, page 11 Real property accountable officer • 4–3, page 12 Property records • 4–4, page 12 Real property at contractor site • 4–5, page 12
Section II Personal Property Relocatable Buildings and/or Facilities, page 12 Overview • 4–6, page 12 General policy • 4–7, page 13 Procedures • 4–8, page 14 Management of relocatable buildings and/or facilities • 4–9, page 15 Relocatable buildings and/or facilities used as temporary real property in lieu of permanent real property • 4–10,
page 16
Section III Capital Equipment and Other Nonexpendable Supplies, page 16 General accounting and reporting policy • 4–11, page 16 Valuation • 4–12, page 16 Capital equipment • 4–13, page 16

ii

AR 735–5 • 9 November 2016

Contents—Continued
Capital equipment at contractor site • 4–14, page 17 Other nonexpendable supplies • 4–15, page 17 Organizational historical artifacts • 4–16, page 17
Chapter 5 Transfer of Accounts, page 17 General transfer of accountability policy • 5–1, page 17 Change of stock record officers • 5–2, page 17 Inactivating a stock record account • 5–3, page 17 Other transfers of accountability • 5–4, page 20 Emergency transfers of accountability • 5–5, page 21 Change of station • 5–6, page 21 Equipment of prisoners • 5–7, page 21 Equipment of hospitalized personnel • 5–8, page 21 Property impounded or held as evidence • 5–9, page 21
Chapter 6 Receipt, Shipment, and Issue of Property, page 22 General requirements • 6–1, page 22 Property receipt, shipment, and issue • 6–2, page 22 Receiving property directly from a vendor • 6–3, page 22 Processing of receiving reports by the stock record officer • 6–4, page 22 Property accountability for discrepancies in shipment • 6–5, page 23
Chapter 7 Nonexpendable, Expendable, and Durable Property, page 23 General accounting requirements • 7–1, page 23 Nonexpendable property • 7–2, page 23 Accounting for nonexpendable property • 7–3, page 23 Durable property • 7–4, page 24 Accounting for durable property • 7–5, page 24 Expendable property • 7–6, page 24 Accounting for expendable property • 7–7, page 25
Chapter 8 Deviations From and Waivers to Property Accounting Policy and Procedures, page 26 General requirements • 8–1, page 26 Deviations • 8–2, page 26 Waivers • 8–3, page 26 Final approving authority • 8–4, page 27 Requests for waivers • 8–5, page 27 Appointment of a board of officers • 8–6, page 27 Preparation of the report of proceedings • 8–7, page 27
Chapter 9 Offer and Payment of Rewards for the Recovery of Lost Army Property, page 28 General requirements • 9–1, page 28 Approval or disapproval of rewards • 9–2, page 29 Payment of rewards • 9–3, page 29 Announcement of rewards • 9–4, page 29 Funds • 9–5, page 29
Chapter 10 Loans, Bonding, and Other Accounting Procedures, page 30

AR 735–5 • 9 November 2016

iii

Contents—Continued
Section I Loans and Bonding, page 30 Loans • 10–1, page 30 Legal bonds • 10–2, page 30 Reserve Officers’ Training Corps or National Defense Cadet Corps bonding • 10–3, page 30 Junior Reserve Officers’ Training Corps bonding and/or insurance • 10–4, page 31
Section II Other Accounting Procedures, page 32 Financial inventory accounting • 10–5, page 32 Summary accounting • 10–6, page 32 Contractor-operated property accounts • 10–7, page 32
Chapter 11 Command Supply Discipline Program, page 32
Section I Introduction, page 32 General information • 11–1, page 32 Purpose • 11–2, page 33 Terms • 11–3, page 33 Roles • 11–4, page 33
Section II Program Guidance, page 34 Intent • 11–5, page 34 Implementation procedures • 11–6, page 34 Monitoring • 11–7, page 35
Chapter 12 Methods of Obtaining Relief from Responsibility for Property, page 35 General actions to protect Government property • 12–1, page 35 Actions to take when individuals admit negligence • 12–2, page 42 DD Form 362 • 12–3, page 44
Chapter 13 Financial Liability Investigations of Property Loss, page 51
Section I General, page 51 Financial liability investigation of property loss versus the report of survey system • 13–1, page 51 Purpose of a financial liability investigation of property loss • 13–2, page 51 Mandatory initiation of a financial liability investigation of property loss • 13–3, page 51 Related financial liability investigations of property loss • 13–4, page 52 Chain of command for processing financial liability investigations of property loss • 13–5, page 52 Time constraints for processing financial liability investigations of property loss • 13–6, page 52 Initiator of financial liability investigations of property loss • 13–7, page 52 Time constraints for initiation of financial liability investigations of property loss • 13–8, page 52 Basic requirements for DD Form 200 • 13–9, page 53 Preparation requirements for DD Form 200 • 13–10, page 60 Responsible officer and/or reviewing authority • 13–11, page 80 Time constraints for actions by the responsible officer and/or reviewing authority • 13–12, page 80 Distribution • 13–13, page 80 Disposition of damaged property • 13–14, page 80

iv

AR 735–5 • 9 November 2016

Contents—Continued

Section II Accountable officer, page 81 Accountable officer’s action on a financial liability investigation of property loss • 13–15, page 81 Distribution of financial ability investigations of property loss by the accountable officer immediately after the
document number or voucher number is assigned • 13–16, page 81

Section III Approving Authority and/or Appointing Authority, page 81 Criteria • 13–17, page 81 Conflict of interest • 13–18, page 82 Processing steps for appointing authority and/or approving authority • 13–19, page 83 Supervising the financial liability investigation of property loss system • 13–20, page 86 Initial review by the appointing authority or the approving authority • 13–21, page 87

Section IV Processing Financial Liability Investigations of Property Loss by the Approving Authority or Appointing Authority
Without Appointing a Financial Liability Officer, page 87 Decision by the approving authority without further investigation • 13–22, page 87 Recommendation by the appointing authority without further investigation • 13–23, page 88

Section V Appointment of the Financial Liability Officer or AR 15–6 Investigating Officer, page 89 Review of the DD Form 200 to determine if a financial liability officer or AR 15–6 investigating officer is necessary
• 13–24, page 89 Use of an AR 15–6 investigation • 13–25, page 90 Financial liability officer • 13–26, page 91 Financial liability officer qualifications • 13–27, page 91 Time constraints for conducting the investigation by the financial liability officer • 13–28, page 92 Financial liability officer’s responsibilities • 13–29, page 93 Relief of financial liability officer • 13–30, page 94

Section VI Conducting a Financial Liability Investigation of Property Loss by the Financial Liability Officer, page 94 Conducting the investigation • 13–31, page 94 Financial liability officer’s findings and recommendations • 13–32, page 95

Section VII Actions After Financial Liability Officer’s Recommendation, page 97 Financial liability not recommended • 13–33, page 97 Financial liability recommended • 13–34, page 97 Submission of individual rebuttal statement • 13–35, page 99

Section VIII Review of Financial Liability Officer’s Findings and Recommendations by
page 99 Appointing authority’s review of financial liability investigations of property Appointing authority’s decision • 13–37, page 100

a Designated Appointing loss • 13–36, page 99

Authority,

Section IX Review by Approval Authority, page 100 Legal review of a financial liability investigation of property loss • 13–38, page 100 Legal review of a financial liability investigation of property loss • 13–39, page 101 Approving authority’s action after review of DD Form 200 • 13–40, page 101 Liability limits • 13–41, page 103

AR 735–5 • 9 November 2016

v

Contents—Continued
Section X Notice to Respondents on Assessment of Financial Liability, page 104 Respondent’s rights • 13–42, page 104 Respondent’s actions • 13–43, page 110 Requests for reconsideration • 13–44, page 111 Requests for a hearing (civilian employees only) • 13–45, page 111 Remission or cancellation of indebtedness (enlisted personnel only) • 13–46, page 112 Requests for extension of the collection period • 13–47, page 112 Submitting an application DD Form 149 to the Army Board for Correction of Military Records • 13–48, page 112 Reopening, correcting, amending, or canceling financial liability investigations of property loss • 13–49, page 115 Actions resulting from reopening a financial liability investigation of property loss • 13–50, page 116
Section I Appeal Authority’s Review of Requests for Reconsideration, page 116 Information regarding requests for reconsideration • 13–51, page 116 Appeal authority • 13–52, page 116
Chapter 14 Special Procedures, page 118
Section I Exceptions to Policy Contained in Chapter 13, page 118 General • 14–1, page 118 Financial liability investigations of property loss listing property carried on accountable records of an installation
other than where located • 14–2, page 118 Financial liability investigations of property loss pertaining to inactivated installations, activities, or organizations
• 14–3, page 118
Section II Special Rules during Unique Events, page 118 Discrepancies involving persons carried on the rolls, but not present • 14–4, page 118 Losses incident to taking part in Joint exercises and operations • 14–5, page 119 Approval authority for property issued to a unit during major training exercises • 14–6, page 119 Property ordered to be abandoned • 14–7, page 119 Disassembled or cannibalized major items, kits, or assemblies • 14–8, page 123 Property determined to be unsafe for further use or storage because of age • 14–9, page 123 Destruction of contaminated clothing and equipment • 14–10, page 123 Property unlawfully detained by civilians • 14–11, page 123 Liability of nonappropriated fund activities • 14–12, page 123 Accounting for lost, damaged, destroyed, or stolen Government furnished property with contractors • 14–13,
page 124 Accounting for recovered property previously listed on a financial liability investigation of property loss • 14–14,
page 124
Section III Accounting for Other Losses or Damage, page 125 Aircraft accidents • 14–15, page 125 Army National Guard loaned property • 14–16, page 125 DD Form 1544 and money collected as payment for meals in a dining facility • 14–17, page 125 Damaged property • 14–18, page 128 Losses of durable hand tools and components of sets, kits, and outfits at the using unit level when negligence or
willful misconduct is not suspected • 14–19, page 130 Losses of durable and expendable items other than hand tools, components of sets, kits, and outfits, or organizational
clothing and individual equipment • 14–20, page 131 Government provided property • 14–21, page 131 Government quarters and furnishings • 14–22, page 131

vi

AR 735–5 • 9 November 2016

Contents—Continued
Keys • 14–23, page 132 Losses in laundries • 14–24, page 132 Leased property • 14–25, page 132 Marine casualties • 14–26, page 132 Personal clothing and organizational clothing and individual equipment • 14–27, page 132 Nonexpendable property consumed in use • 14–28, page 133 Public funds and other negotiable instruments • 14–29, page 133 Subsistence accounting variances • 14–30, page 133 Unserviceable supplies in depot storage • 14–31, page 133 Vehicular accidents • 14–32, page 134
Section IV Inventory Adjustment Reports, page 134 Inventory discrepancies at a central issue facility • 14–33, page 134 Inventory discrepancies at a stock record account • 14–34, page 135
Section V Joint Service Environment, page 136 Accounting for lost, damaged, or destroyed property in a Joint Service environment • 14–35, page 136 Reciprocal agreement between the Army and Air Force for financial liability investigations of property loss • 14–36,
page 138
Chapter 15 Accounting for Losses of National Stock (Army Materiel Command Installations Only), page 138 General information • 15–1, page 138 Policy • 15–2, page 138 Procedures • 15–3, page 140
Chapter 16 Discrepancies Incident to Shipment of Property by Common or Contractor Carrier, page 147
Section I Introduction, page 147 General • 16–1, page 147 Authority • 16–2, page 147 Scope • 16–3, page 147 Property accountability for discrepancies • 16–4, page 147 Actions to be taken upon discovery of discrepancies in shipment • 16–5, page 148 Step 1–Discovery of discrepancies • 16–6, page 148 Step 2–Classification of discrepancies • 16–7, page 148 Discrepancy tolerance in receiving shipments of coal and petroleum products • 16–8, page 149
Section II Reporting and Adjusting Transportation Discrepancies, page 149 Step 3–DD Form 361 shipments on prepaid commercial bill of ladings • 16–9, page 149 Step 3–Free-on-board origin shipments from vendors on a Government bill of lading • 16–10, page 149 Step 3–Free-on-board origin for conversion to a Government bill of lading • 16–11, page 150 Step 3–Shipments from the Army Stock Fund • 16–12, page 150 Step 3–Shipments from the Defense Logistics Agency • 16–13, page 150 Step 3–Shipments from the General Services Administration • 16–14, page 150 Step 3–Responsibility at Army depots • 16–15, page 150 Step 3–Responsibility at installations, depots, and terminals • 16–16, page 150 Step 3–Responsibility at ocean terminals for overseas shipments • 16–17, page 150 Step 3–Responsibility at aerial ports or air freight terminals • 16–18, page 150 Step 3–Responsibility for shipments to commercial warehouses • 16–19, page 150 Step 3–Shipments between Army and other Government agencies • 16–20, page 150

AR 735–5 • 9 November 2016

vii

Contents—Continued

Step 3–Shipments to nonmilitary activities • 16–21, page 150 Step 3–Shipments to the American Red Cross • 16–22, page 151 Step 3–Army property damaged or destroyed before reaching intended destination in continental United
• 16–23, page 151 Step 3–Inactivated installations • 16–24, page 151 Step 3–Time limitation • 16–25, page 151 Step 3–Number of copies required • 16–26, page 152 Step 4–Transmittal for financial liability investigation of property loss purposes by receiving transportation
• 16–27, page 152 Step 4–Shipments from the Army Stock Fund • 16–28, page 152 Step 4–Shipments from the Defense Logistics Agency • 16–29, page 152 Step 4–Shipments from the General Services Administration • 16–30, page 152 Step 4–Designation of appointing and approving authority • 16–31, page 152 Step 4–Investigation of discrepancy general instructions • 16–32, page 152 Step 4–Examination by appointing and approving authority • 16–33, page 152 Step 4–Action by financial liability officer • 16–34, page 152 Step 4–Disposition of damaged property • 16–35, page 153 Step 5–Review and approval by appointing and approving authority • 16–36, page 153 Step 5–Review and approval for installation commander • 16–37, page 153 Step 6–General distribution • 16–38, page 154 Step 6–Distribution of the Army Stock Fund • 16–39, page 154 Step 6–Distribution of shipments from the Defense Logistics Agency • 16–40, page 155 Step 6–Distribution of shipments from the General Services Administration • 16–41, page 155 Step 7–Action of shipping officer • 16–42, page 155 Discrepancies involving contract freight handlers • 16–43, page 155 Discrepancies in shipments by parcel post and Government delivery vehicles • 16–44, page 155 Shipments by ocean commercial carriers • 16–45, page 155 Discrepancies in shipments received by overseas ports of debarkation • 16–46, page 155 Discrepancies in domestic intercoastal shipments • 16–47, page 156 Shipment of authorized baggage and household goods • 16–48, page 156 Receipt of property previously reported lost or short • 16–50, page 157 Discrepancies in container shipments • 16–51, page 157

States officer

Section III Reporting and Adjusting Supply Discrepancies, page 157 Step 4–Initiating an SF 364 • 16–52, page 157 Step 4–Conducting investigations and preparing SF 364 • 16–53, page 158 Step 5–Approval of SF 364 of consignee installation commanders • 16–54, page 158 Step 6–Distribution of forms • 16–55, page 158 Action activity requests • 16–56, page 158
Appendixes
A. References, page 163
B. Computing the Actual Loss to the Government when property is Lost, Damaged, or Destroyed, page 169
C. Loaned Army National Guard Property, page 171
D. Internal Control Evaluation, page 172
Table List

Table 9–1: Rewards, page 28 Table 12–1: Property record adjustments for damaged property, page 37 Table 12–2: Property record adjustments for lost property, page 37 Table 12–3: Method of computing financial charges against a single respondent (dollar amounts shown in this table
are for example purposes only), page 42

viii

AR 735–5 • 9 November 2016
PropertyLiability InvestigationsLiability InvestigationAuthorityArmy