FINANCIAL LIABILITY INVESTIGATION OF PROPERTYL LOSS 1LT BRETT CARICO

2 The Army Reserve – “THE WAY AHEAD” 1LT CARICO, G-4, (317) As of: 18 SEP 08 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 The Army Reserve – “THE WAY AHEAD” 1LT CARICO, G-4, (317) As of: 18 SEP 08 REFERENCE  AR Policies and Procedures for Property Accountability, dated 28 February 2005 Effective Date: 28 March 2005

4 The Army Reserve – “THE WAY AHEAD” 1LT CARICO, G-4, (317) As of: 18 SEP 08 Agenda  The New Forms  Initiation  Time Constraints  Preparation  Types of Authority  Short Investigation  Financial Liability Officer’s (FLO) Responsibilities

5 The Army Reserve – “THE WAY AHEAD” 1LT CARICO, G-4, (317) As of: 18 SEP 08 The New Forms DA Form 7531 (page 1&2)

6 The Army Reserve – “THE WAY AHEAD” 1LT CARICO, G-4, (317) As of: 18 SEP 08 The New Forms DA Form 7531 (page 3&4)

7 The Army Reserve – “THE WAY AHEAD” 1LT CARICO, G-4, (317) As of: 18 SEP 08 The New Forms DD Form 200

8 The Army Reserve – “THE WAY AHEAD” 1LT CARICO, G-4, (317) As of: 18 SEP 08 INITIATION  Individual Does Not Admit Liability  Change of Accountable Officers  Value Exceeds Individual Monthly Base Pay  Government Quarters  Bulk Petroleum Loss Exceeds $  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 The Army Reserve – “THE WAY AHEAD” 1LT CARICO, G-4, (317) As of: 18 SEP 08 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  Property book level. Ref AR , app E on what quantities require AR 15-6.

10 The Army Reserve – “THE WAY AHEAD” 1LT CARICO, G-4, (317) As of: 18 SEP 08 TIME CONTRAINTS  Army Reserve processing time lines Initiation process (date of the discovery of the loss until the date the FLIPL (Investigation/Inquiry) 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)

11 The Army Reserve – “THE WAY AHEAD” 1LT CARICO, G-4, (317) As of: 18 SEP 08 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 DATE OF DISCOVERY IPL IS APPROVED TOTAL PROCESSING TIME

12 The Army Reserve – “THE WAY AHEAD” 1LT CARICO, G-4, (317) As of: 18 SEP 08 TIME CONTRAINTS Time Segments  Step 1: Initial Process (75 Days)  Step 2: Investigation and Recommendation (85 Days)  Step 3: End of the adjudication process (80 Days) (240 days) Total Processing Time: (240 days)  Step 4: Notify individual(s) being charges (30 days)  Step 5: Provide to FAO/USPFO (1 day)

13 The Army Reserve – “THE WAY AHEAD” 1LT CARICO, G-4, (317) As of: 18 SEP 08 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

14 The Army Reserve – “THE WAY AHEAD” 1LT CARICO, G-4, (317) As of: 18 SEP 08 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

15 The Army Reserve – “THE WAY AHEAD” 1LT CARICO, G-4, (317) As of: 18 SEP 08 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)

16 The Army Reserve – “THE WAY AHEAD” 1LT CARICO, G-4, (317) As of: 18 SEP 08 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)

17 The Army Reserve – “THE WAY AHEAD” 1LT CARICO, G-4, (317) As of: 18 SEP 08 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 and 13-23, AR 735-5)  When further investigation is required, appoint a financial liability officer (FLO) (see para 13-24, AR 735-5)

18 The Army Reserve – “THE WAY AHEAD” 1LT CARICO, G-4, (317) As of: 18 SEP 08 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."

19 The Army Reserve – “THE WAY AHEAD” 1LT CARICO, G-4, (317) As of: 18 SEP 08 Financial Liability Officer’s (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)

20 The Army Reserve – “THE WAY AHEAD” 1LT CARICO, G-4, (317) As of: 18 SEP 08 Financial Liability Officer’s (FLO) Responsibilities  The approving authority/appointing authority must either concur or nonconcur with the FLO’s 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 and 13-44, AR 735-5)  Appeal authority: must be a command level above the approving authority (see para 13-52, AR 735-5)

21 The Army Reserve – “THE WAY AHEAD” 1LT CARICO, G-4, (317) As of: 18 SEP 08 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

22 The Army Reserve – “THE WAY AHEAD” 1LT CARICO, G-4, (317) As of: 18 SEP 08 QUESTIONS??