Property Accountability CW2 Mandee L. Mintz 4 th Brigade Property - - PowerPoint PPT Presentation

Property Accountability

CW2 Mandee L. Mintz 4th Brigade Property Book Officer

Agenda

• Fundamentals of Property Accountability
• Assigning Responsibility
• Accountability & Inventory Basics
• Obtaining Relief from Responsibility
• Material & Equipment Lifecycle
• Open Forum & Questions
• Closing Remarks

Fundamentals of Property Accountability

PBO and Unit Supply Level

• Accountability is the obligation of a person to keep records of property,

documents, or funds. These records show identification data, gains, losses, dues-in, dues-out, and balances on hand or in use

• It is an obligation officially assigned to a specific person and may not be

delegated

• Financial liability can be assessed against any person who fails, through

negligence or misconduct, to perform those duties and where such failure is the proximate cause of a loss to the U.S. Government

Accountability

Ref: AR 735-5, Para 2-7 & 2-9

4

Accountable Officer

The accountable officer is a person officially appointed on orders to maintain a formal set of accounting records of property or funds. This person may or may not have physical possession of the property or funds The three types of accountable officers are:

• (1) Transportation officer. The transportation officer is accountable for property

entrusted to him or her for shipment

• (2) Stock record officer. The stock record officer is accountable for supplies

being held for issue from time of receipt until issued, shipped, or dropped from accountability

• (3) Property book officer. The property book officer is accountable for property

at the using unit level on receipt and until subsequently turned in, used (consumed) for authorized purposes, or dropped from accountability. (Hand receipt holders are not accountable officers.)

Ref: AR 735-5, Para 13-13

5

Appointment-PBO

An accountable officer will be appointed in writing

• The appointing authority will be the commander or the head of the activity for

whom the property records are being maintained An accountable officer may be —

• (1) Any DOD commissioned officer or warrant officer. (Army National Guard

(ARNG) officers must be Federally recognized.)

• (2) A DOD civilian employee, if determined by the appointing official to be

properly qualified.

• (3) A DOD enlisted person, in the grade of sergeant or above, when

appointment is approved by the MACOM commander, the major subordinate command commander, or the head of a HQDA agency, when personnel cited in (1) or (2) above are not available

6

Ref: AR 735-5, Para 2-10

• Responsibility is the obligation of an individual to ensure Government property

and funds entrusted to his or her possession, command, or supervision are properly used and cared for, and that proper custody, safekeeping, and disposition are provided (School Instructors & Professors of Military Science)

• The specific type of responsibility depends on the relationship of the person to

the property (Command, Direct, Supervisory, Custodial, Personal)

• Financial liability can be assessed against any person who fails, through

negligence or misconduct, to perform those duties and where such failure is the proximate cause of a loss to the U.S. Government

Responsibility

Ref: AR 735-5, Para 2-8

7

• Command
• Supervisory
• Custodial
• Direct
• Personal

Types Of Responsibility

8

COMMAND RESPONSIBILITY Responsibility for all property within their command SUPERVISORY RESPONSIBILITY Responsibility for all property in the possession of personnel under their supervision CUSTODIAL RESPONSIBILITY Supply Sergeant, supply Clerk, or warehouse person responsible for property in storage awaiting issue or Turn-in DIRECT RESPONSIBILITY Responsibility for all property For which receipted PHRH Responsibility for property in their possession PERSONAL RESPONSIBILITY Responsibility for property in their possession Division Squad Individual Company, Troop, Battery

• r Detachment

Platoon Section Brigade Or Regiment Battalion Or Squadron

• Obligation of a commander to ensure all Government property within his
• r her command is properly used and cared for, and that proper custody,

safekeeping, and disposition are provided

• Inherent in command
• Cannot be delegated

Command Responsibility

Ref: AR 735-5, Para 2-8

9

• 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 are provided

• It is inherent in all supervisory positions
• Cannot be delegated

Supervisory Responsibility

Ref: AR 735-5, Para 2-8

10

• 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.

• Results from signing for the property

Direct Responsibility

Ref: AR 735-5, Para 2-8

11

• 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

• Results from assignment as a supply sergeant, supply custodian, supply

clerk, or warehouse person

Custodial Responsibility

Ref: AR 735-5, Para 2-8

12

Personal Responsibility

Ref: AR 735-5, Para 2-8

13

• The obligation of a person to exercise reasonable and prudent actions to

properly use, care for, safeguard and dispose of all Government property issued for, acquired for, or converted to a person’s exclusive use, with or without receipt

Who has responsibility? Depends Upon the relationship between people and the property under their control

Assigning Responsibility

Ref: AR 710-2, Para 2-10

14

Assigning Responsibility

Perform Basic Property Accountability

Hand Receipt/Sub Hand Receipt

List of end items or durable/expendable items that are issued to unit personnel

• The signature establishes direct responsibility
• Use DA Form 2062 Hand Receipt/Annex Number to

record the hand receipt of property items.

• Use a DA Form 3161 for issue of items not requiring

hand receipt (office supplies, insignia, patches etc.)

• Can also be used as a temporary hand receipt
• Used to turn-in property to Supply, issue equipment after SHR

establishment

• Sub-hand receipts should not exceed from the Primary

Hand Receipt Holder (PHRH), to the supervisor, to the user.

• Property cannot be sub-hand receipted from laterally or

externally.

Primary Hand Receipt/Sub Hand Receipt

Signature Block

Primary Hand Receipt/Sub Hand Receipt

Header Data Basic Data MPO = Military Planning Object (LIN/Nomenclature) NSN = National Stock Number (LIN Model)

Header Information is listed underneath Header Data in White Space

SerNo/RegNo/Lot No = serial, registration, lot information

UI Unit of Issue CIIC Controlled Inventory Item Code DLA Date of Last Action OH QTY On Hand Quantity

Lists Authorization

Component Hand Receipt

• The component hand receipt is the record of

responsibility for items listed on it

• It is also the record that validates all

component shortages less expendable consumable between the primary hand receipt holder and the “user;” therefore, hand receipt annexes are not required

• Use a component hand receipt when issuing

an SKO or end item with components

• Keep component hand receipts current. Do

this by posting changes as they occur or by using change documents

19

Ref: DA PAM 710-2-1, Para 6-1

Component Hand Receipt

• List of components missing from an end item
• Hand receipt annexes are prepared at the level where the document registers

are kept

• The person responsible for keeping document registers is the PBO,

Commander, or S-4

• Prepare hand receipt annexes in two copies

Hand Receipt (Shortage/Component) Annexes

Ref: DA PAM 710-2-1, Para 5-3 & 6-1

21

Commander/supervisor ensures property

• Accounting is complete and accurate.
• Is on-hand and serviceable.
• Is safeguarded.
• Table 2-2

Evaluations, Inspections, & Inventories

Ref: AR 710-2, Para 2-12 & Table 2-2

22

Change Of Primary Hand Receipt Holder (PHRH) Inventory

When the hand receipt holder is replaced, all property listed on hand receipts will be inventoried by the incoming and outgoing PHRH

• Thirty days will be allotted to conduct the joint inventory
• Maximum of two extensions (15 days each) may be granted by next higher

commander

• Utilize most current supply catalogs, components lists, technical manuals, and
• ther related publications are used during the inventory
• Check all items to make sure the item and their description on the unit property

book or hand receipt match. Make a list of any differences

Ref: DA PAM 710-2-1, Para 9-3

23

Change Of Primary Hand Receipt Holder (PHRH) Inventory (Cont)

• Make a visual check of the condition of the property. Make a list of any

damaged equipment

• Count all items listed on the hand receipt. Make a list of any overages or

shortages

• Check end items for completeness. Use the proper Technical Manual (TM) or

Supply Catalog (SC) to identify components

• Check the serial number on the item with that recorded on the hand receipt.

Make a list of any serial number differences

• If items are in maintenance, make sure the maintenance request is valid.

Check all open maintenance requests with the supporting maintenance facility

Ref: DA PAM 710-2-1, Para 9-3

24

Annual/Cyclic Inventory

• An annual one hundred percent of all property assigned to the organization

will be conducted

• A cyclic inventory may be performed in lieu of the annual officer inventory when

the property book is kept at other than the unit level and the PBO requires it

• Conduct cyclic inventories monthly, quarterly, or semiannually
• Inventory about 10 percent of the property book items monthly, 25 percent

quarterly, or 50 percent semiannually

• Check end items for completeness. Use the proper TM or SC to identify

components

• Check the serial number on the item with the serial number recorded on the

hand or subhand receipt

Ref: DA PAM 710-2-1, Para 9-6

25

Sensitive Items Inventory

• Sensitive items and unclassified CCI will be inventoried quarterly
• Sensitive items and CCI are identified with a Controlled Item Inventory Code

(CIIC) of 1-9, $, N, P, Q, R, or Y (Night Vision Devices)

• The CIIC is shown in the Army Master Data File (AMDF) and also on your hand

receipt

• The responsible officer must notify hand or sub hand receipt holders when the

items are to be inventoried; inventory all items with a CIIC, of 1-9, $, N, P, Q, R, or Y (Night Vision Devices)

• Check end items for completeness. Use the proper TM or SC to identify

components

• Check the serial number on the item with the serial number recorded on the

record of responsibility

Ref: DA PAM 710-2-1, Para 9-9

26

Weapons and Ammunition Inventories

• Inventory of weapons by serial number is conducted monthly (USAR and

ARNG quarterly)

• Conducted by the responsible officer or an NCO, warrant officer,

commissioned officer, or DOD civilian appointed by the responsible officer

• The same person won’t conduct this inventory in consecutive months, nor can

the armorer

• Compare the serial number of the weapons with those listed on the property

book, hand or subhand receipt, as appropriate

• Record the results of the inventory on a memorandum or automated listing

provided by the PBO

• The responsible officer reports discrepancies to the PBO

Ref: DA PAM 710-2-1, Para 9-10

27

Accountability & Inventory Basics

Inventorying and Accounting for your Property

Types of Inventory

• Quarterly Cyclic Reports
• Quarterly Sensitive Item/CIIC

Inventory

• Change of Responsible Officer

Inventory (PHR) 100%

• 100% Inventory (Post Exercise)
• Command Directed Inventory
• Change of Sub-hand Receipt Holder

Primary Hand Receipt View Inventory Report View Commander’s Memorandum

• f Inventory

Inventory Reports

Inventory Reports

Property Accountability Starts Here!

4TH Brigade ROTC, US Army Cadet Command

Execute a Proper Inventory

Sub-Hand Receipt Holders Ensure:

• Layout Equipment IAW TM
• r prescribed layout.
• Layout plan should be the

same for each piece of equipment

• Equipment Visibility
• Equipment Should be clean
• Layout should be on-time

Property Accountability Starts Here!

4TH Brigade ROTC, US Army Cadet Command

Execute a Proper Inventory

• PHRH & SHR’s will:
• Verify the serviceability and

cleanliness of the equipment

• Verify make, model, nsn, serial

number, registration number through physical inspection of equipment and PHRH/Component Listing

• Identify shortages by annotating
• n the component listing
• PHRH verifies equipment on main

hand receipt / Inventory Report

Property Accountability Starts Here!

4TH Brigade ROTC, US Army Cadet Command

Verify Data

• Ensure that Information on

PHR Matches the Equipment. Ensure if equipment has a Data Plate, information is accurately reflected.

• Serial Number matches the

equipment (GCSS-Army Created Serial numbers will not be on Equipment)

• **GCSS-Army Created

Numbers with a Serial Number Profile of GA09 are not serial number required but tie equipment to an equipment record for maintenance purposes

• If Equipment does not have s

serial number but required one based on profile, it will be locally created in GCSS-Army

Property Accountability Starts Here!

4TH Brigade ROTC, US Army Cadet Command

Reconcile Shortages & Adjustments

• Verify your inventories

conducted

• Indicated shortages on

shortage annexes/component listing/reports

• Highlight using green,

red, amber to indicate completions (green), missing items (red) and items requiring correction (AAR’s)

• Submit Discrepancies to

PBO daily with appropriate documents (AAR’s).

• PBO conducts minor

adjustments daily and reconciles with Commander

Commander

Property Accountability Starts Here!

4TH Brigade ROTC, US Army Cadet Command

Final PHR Review

1) Supply Techs/ Instructors/Cadets should have PHRH Shortages Completed 2) Supply Techs/ Instructors/Cadets should have all SHR’s Complete (with signatures) 3) Commanders should review their cumulative Inventory record with a fresh copy of the PHRH; all SHR’s; Shortage Annexes/Component Listings 4) Verify All Corrections were complete, SHR Binders are Complete and Validate shortages in the SHR binder with Commanders Shortage Annex Binder; Sign each Shortage Annex in the Master Binder as it is validated. 5) Prepare Assumption of Command Orders/Appointment Orders; DA 1687 Signature Card; AAR Memorandum; TM Memorandum; Schedule PHRH Signing with PBO

Property Accountability Starts Here!

4TH Brigade ROTC, US Army Cadet Command

Under the Final Review, review your cumulative inventory record with a new copy of the PHRH. Ensure all Administrative Actions were complete: AAR’s, DA 362’s, DD 200, etc. Ensure all items were inventoried. Review CDR’s SHR in GCSS-

• Army. Is there anything on it? Why?

Review All SHR’s and ensure all equipment is signed to SHR then to user level.

Final Review

Property Accountability Starts Here!

4TH Brigade ROTC, US Army Cadet Command

• PHRH Signing will be coordinated prior to assumption of position
• Schedule Inventory Signing with PBO
• Bring: Assumption of Command Orders, DA 1687, AAR Memo, TM

Listing Memo; PBUSE Roles Request MFR; Master Shortage Annex Binder.

• Review of Monthly Reporting Requirements & Sign

Change of PHRH Inventory

Supply Techs should establish a continuity binder that has the following:

• Tab A:

Inventory Schedule

• Tab B:

Copy of the PHRH

• Tab C:

Copy of Sub Hand Receipt Listing & Sub Hand Receipts

• Tab D:

Copy of the Unit Level Asset Visibility Report

• Tab E:

Copy of Unit Level Document Control Register (DCR)

• Tab F:

Copy of PBO Memorandums for Record

• Tab H:

Copy of Hot Issues, OPORD’s anything else required

• Tab I:

Other Stuff (Contacts, etc)

Supplemental Training Note: Binders should be updated as required, or every 6 months

Property Accountability Binder

Obtaining Relief from Responsibility

Financial Liability Investigation of Property Loss

General Actions

• Administrative action taken for causes of other than fair wear and tear
• Obtain relief from property responsibility by the following actions:

 MEMO to adjust losses of organizational clothing and individual equipment due to contamination and losses of durable hand tools.(Para14-10b, 14-19)  Cash sale provisions (Para12-2b)  DD Form 362 (Statement of Charges/Cash Collection Voucher,Para12-3)  DD Form 200 (Financial Liability Investigation of Property Loss, Chapter 13)  Board action according to AR 15-6 used in conjunction with DD Form 200

Ref: AR 735-5, Para 12-1, Pg 31

41

Statement Of Charges/Cash Collection Voucher (DD Form 362)

• Individual admits liability and offers cash payment or agrees to payroll

deduction to settle the charge of financial liability

• The charge does not exceed the monthly basic pay of the individual being

charged

• There is not a mandatory requirement for either a financial liability investigation
• f property loss or an AR 15-6 investigation per paragraph 13-3 or 13-25 of this

regulation

Ref: AR 735-5, Para 12-3

42

Financial Liability Investigations Of Property Loss

• A financial liability investigation of property loss documents the circumstances

concerning the LDD of Government property and serves as, or supports a voucher for adjusting the property from accountable records. It also documents a charge of financial liability assessed against an individual or entity, or provides for the relief from financial liability

Ref: AR 735-5, Para 13-2

43

Financial Liability Investigation Of Property Loss (Cont)

• Initiate and process a financial liability investigation of property loss to account

for lost, damaged, or destroyed U.S. Government property when one or more of the situations listed below exist

• Twelve situations that require a mandatory initiation
• Normally initiated by the hand receipt holder, but if that person is not available

the person with the most knowledge of the incident will serve as the initiator

Ref: AR 735-5, Para 13-3 & 13-7

44

Time Constraints For Processing

• Active Army: Under normal circumstances, do not exceed 75 calendar days

total processing time. Initiation Time: NLT 15 Calendar Days

• Army Reserve: Under normal circumstances, do not exceed 240 calendar days

total processing time. Initiation Time: NLT 75 Calendar Days

• ARNG: Under normal circumstances, do not exceed 150 calendar days total

processing time. Initiation Time: NLT 45 Calendar Days

Ref: AR 735-5, Para 13-6

45

• Will be prepared when it becomes known that a loss of Government property

has occurred

• When 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

Ref: AR 735-5, Para 13-9

46

Basic Requirements

Time Constraints

• Active Army: Will forward financial liability investigations of property loss to the

appointing/ approving authority within 15 calendar days following the date of the discovery of the loss.

• USAR: Within 75 calendar days following the date of the discovery of the loss
• ARNG: Within 45 calendar days following the date of the discovery of the loss

Ref: AR 735-5, Para 13-14

47

Approving Authority

• The approving authority is defined as an Army officer, or DA civilian

employee authorized to appoint a survey officer and to approve reports of survey “by authority of the Secretary of the Army.”

• Active Army and USAR. Army officers in command positions in the grade
• f lieutenant colonel or above, DA civilian employees in supervisory

positions in the grade of GS–14 or above, chiefs of HQDA staff agencies, and MACOM commanders

• ARNG. Commanders in the grade of colonel (federally recognized)

Ref: AR 735-5, Para 13-17

48

Appointing Authority

• When the approving authority is retained at the Colonel or above level, or at

the GS–15 or above level, the approving authority may designate individuals to act as appointing authorities

• Lieutenant colonel or major filling a lieutenant colonel billet
• U.S. DOD civilian employee of equivalent grade of lieutenant colonel or above,

that is, GS–13 or above, or GS–12 filling a GS–13 position on the personnel authorization document

• Within AMC, a major serving as a commander of a depot activity not co-located

with its next higher headquarters

Ref: AR 735-5, Para 13-17

49

Financial Liability Officer

• An individual appointed to investigate the circumstances, and make findings

and recommendations relating to the LDD of Government property listed on an financial liability investigation of property loss

Ref: AR 735-5, Para 13-26

50

Qualifications

• The financial liability officer must be an Army commissioned or warrant officer;

an Army noncommissioned officer in the grade of sergeant first class (SFC) or above; civilian employee GS–7 or above, or a wage leader (WL) or wage supervisor (WS) employee

• Appoint only those individuals as financial liability officer who are senior to

individual(s) subject to potential financial liability. Table 13-1

• No person may act as the investigating officer who is personally responsible for,
• r is in any way directly interested in the property listed on the financial liability

investigation of property loss

Ref: AR 735-5, Para 13-27

51

Responsibilities

• A financial liability officer’s responsibility is to determine the cause and value of

the LDD of Government property listed on the financial liability investigation of property loss, and to determine if assessment of financial liability is warranted. Before you begin the investigation know these terms:  Responsibility  Culpability  Proximate cause  Loss

Ref: AR 735-5, Para 13-29

52

Findings & Recommendations

• A finding is a conclusion reached by the financial liability officer during his or

her investigation of the facts and circumstances surrounding the LDD of Government property. Findings are supported by evidence

• After recording the findings, the financial liability officer must develop a logical

recommendation(s) based on his or her findings

Ref: AR 735-5, Para 13-32

53

Respondent’s Rebuttal Statement

• Individual who receives hand delivered financial liability investigation of

property loss packet – Has 7 calendar days from date of receipt

• Unavailable, but in the same country - 15 calendar days from the date of

mailing

• Unavailable, but in a different country - 30 calendar days from the date of

mailing

Ref: AR 735-5, Para 13-35

54

Liability Limits

• When negligence or willful misconduct are shown to be the proximate cause

for a loss, the following individuals will be assessed the full amount of the Government’s loss:  Accountable Officers, Contractors, Non-appropriated fund activities, Persons losing public funds, Soldiers losing personal arms or equipment, Government quarters damage, Individuals not federally employed.

• In all other cases, the amount equal to one month’s basic pay at the time of the

loss, or the actual amount of the loss to the Government, whichever is less, may be assessed.

Ref: AR 735-5, Para 13-41

55

Liability Limits

• The approval authority may reduce in whole or in part the amount of the

individual’s financial liability

• For ARNG and USAR personnel, 1 month’s basic pay refers to the amount that

would be received by the soldier if on active duty

• For DOD civilian employees, financial liability for losses of Government

property is limited to 1/12 of their annual pay.

Ref: AR 735-5, Para 13-41

56

Requests for Reconsideration

• Will be submitted to the approving authority that acted on the financial

liability investigation of property loss

• An individual may request reconsideration only one time.

Ref: AR 735-5, Para 13-51

57

Computing the Actual Loss

• Actual value at the time of the loss or damage may be computed in one of three

ways

• Fair Market Value -The preferred method of fixing the value of property at

the time of loss or damage is by a qualified technician’s two-step appraisal of its fair market value

• Depreciated value – The value at the time of the loss or destruction may be

computed by subtracting depreciation from the current AMDF

• Standard Rebuild Cost – The value of the loss or damage may be

computed by subtracting the standard rebuild cost plus any salvage value from the current AMDF contained on FEDLOG price for the item

• Depreciation is not deducted on loss or damage to new property
• Small arms are not depreciated

58

Ref: AR 735-5, Appendix B

Damage Statement

• Damaged property (excluding OCIE) - If negligence or willful misconduct was

not involved, a statement signed by the unit commander or the TDA activity chief will be attached to the maintenance request or the turn-in document stating the cause of the damage

• Damaged OCIE - Unit commanders or their designated representative are

authorized to approve damage statements for damaged OCIE when preliminary investigation by the unit commander or the soldier’s chain of command (such as squad leader, platoon sergeant/leader, or first sergeant) reveals the damage

• ccurred while being used conducting official Government business and neither

negligence nor willful misconduct was involved

Ref: AR 735-5, Para 14-18

59

Loss Of Durable Hand Tools

• Using unit commanders /PHRH’s are authorized to adjust losses of

durable hand tools up to $500 per incident when the losses did not occur from negligence or misconduct

• Summarized quarterly (adjustment documents will be attached to the

summary) and forwarded to the financial liability investigation of property loss approving authority for review

• The approving authority’s review will validate the absence of abuse to

this adjustment method Ref: AR 735-5, Para 14-19

60

FLIPL Elements

Material & Equipment Lifecycle

Requisition, Lifecycle, Excess Management

Requisition of Supplies & Equipment

• Non-expendable Equipment
• Authorization Documents (TDA, CTA, BOIP)
• Durable/Expendable Equipment
• No Formal Accounting Requirements
• Maintained by Commander/Activity by authority of the PBO
• Unit Level Accounting
• Local Purchase
• Required Formal Accounting/Unit Level Accounting Determination by PBO
• Fedmall
• MRE’s / Some Fedmall Items require Formal Accounting

Document Control Register

• Requisitions are placed on a Document Control Register
• Maintained by PBO Designation
• Orders
• Local Purchase / GPC Request
• Fedmall
• Receipting for Equipment
• Goods Receipt
• DD 250

Lifecycle / Excess Management

• Automations Lifecycle Replacement
• Damaged Equipment Replacement
• Request Turn-in of Excess through PBO
• Request Turn-In through PBO
• Disposition Instructions
• Dispose of Equipment IAW Instructions
• DLA (DRMO)
• Unit Level Demilitarization
• Supporting SSA/LRC

Open Forum & Closing Remarks

67

QUESTIONS

Closing Remarks