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1 AD-A279 459 DOD 0 Department of DefenseAccounting and Reporting forGovernment Property Lost,Damaged or DestroyedIr DTICM arch 199194-14938 Office of the Deputy Comptroller(Management Systems)94 5 18 040 OFFICE OF THE COMPTROLLER OF THE DEPARTMENT OF DEFENSEWASHINGTON. DC 20301-1100(Management Systems)FOREWORDThis Manual is issued under the authority of Title 10, United States Code,Section 137; DoD Directive , "Comptroller of the Department ofDefense," May 24, 1988; and is authorized by DoD Instruction ,"Guidance for Accounting and Reporting of Government Property, Lost, Damaged,or Destroyed," May 16, 1977. Its purpose is to prescribe uniform policy andprocedures for investigating and assessing liability for loss, damage, anddestruction of Government , "Department of Defense Accounting and Reporting of GovernmentProperty Lost, Damaged, or Destroyed," May 1977, is hereby Manual applies to the Office of the Secretary of Defense (OSD); theMilitary Departments (including theic National Guard and Reserve components);the Chairman, Joint Chiefs of Staff and Joint Staff; the Unified andSpecified Comnds; the Defense Agencies; and activities administrativelysupported by VHS (hereafter referred to collecti/ely as "DoD Components").

2 This Manual is effective immediately and is mandatory for use by all DoDComponents. Exceptions to this Manual are not authorized without priorapproval of the Defense Finance and Accounting Service. Forward copies ofimplementing documents to the Defense Finance and Accounting Service forreview within 30 days of the Chief, General Funds Division, Defense Finance and AccountingService, on (703) 697-0456 or AUTOVON 227-0456 about any questions related tothe Manual. Forward written questions or recommendations for changes to theManual through appropriate channels to:Chief, General Funds DivisionDefense Finance and Accounting ServiceWashington, 20376-5001 This Manual and formal changes, thereto, will be distributed to DoD Componentactivities by the Distributions Division, Defense Logistics AgencyAdministrative Support Center, Alexandria, VA 22304-6100.

3 Other FederalAgencies and the public may obtain copies for a fee from the same telephone number at the center is (202) 274-6011 or AUTOVON TuckerDeputy Comptroller(Management Systems)TABLE OF CONTENTSPageFOREWORD ..TABLE OF CONTENTS .i .. iiREFERENCES ..e ivDEFINITIONS ..* vCHAPTER 1. INTRODUCTIONS ection A. Purpose .. * B. Policy ..1-1 Section C. Responsibilities ..1-2 CHAPTER 2. PROCEDURES TO ACCOUNT FOR LOST, DAMAGED, OR DESTROYEDGOVERNMENT PROPERTYS ection A. Purpose .* ..* ..*..*.. 2-1 Section B. Minimum Requirements .. 2-1 Section C. Initiation of Inquiries .. 2-1 Section D. Voluntary Payments .. 2-3 Section E. Review .. 2-3 Section F. Financial Liability Officer Investigations.

4 2-3 Section G. Financial Liability Board .0 .0 .. 2-3 Section H. Determination of Financial Loss o ..2-3 Section I. Notification and Examination ..0 ..0..2-4 CHAPTER 3. APPROVING AND APPOINTING AUTHORITYS ection A. Purpose ..o..3-1 Section B. Duties and Responsibilities ..o ..3-1 Section C. Summary .o ..3-3 CHAPTER 4. FINANCIAL LIABILITY OFFICER QUALIFICATIONS AND RESPONSIBILITIESS ection A. Purpose .o ..*..4-1 Section B. Criteria .0 .. 4-1 Section C. Financial Liability Officer Qualifications .. 4-1 Section D. Financial Liability Officer Responsibilities andDuties ..* &.. 0.. 4-2 CHAPTER 5. PURPOSE, APPOINTMENT, COMPOSITION, AND FUNCTIONS OF AFINANCIAL LIABILITY BOARDS ection A. Purpose.

5 E..a ..5-1 Section B. Appointment and Composition o ..5-1 Section C. Functions ..* ..o ..5-1 Section D. Final Action by the Financial Liability Board ..5-2iiCHAPTER 6. PREPARATION OF DD FORM 200 Section A. Purpose ..6-ISection B. Instructions for Preparation .. 6-1 CHAPTER 7. GOVERNMENT HOUSING LIABILITYS ection A. Purpose ..* .a.. 7-1 Section B. Policy ..7-1 CHAPTER 8. SUPPLY SYSTEM MATERIALS ection A. Purpose .. 8-1 Section B. Inventory ..0 0 ..8-1 Section C. Resolved Inventory Losses .. 8-2 Section D. Unresolved Inventory Losses That Do NotMeet the Criteria for an Investigation ..8-2 Section E. Unresolved Inventory Losses -CausativeResearch Indicates No Personal Responsibility ..8-2 Section F.

6 Unresolved Inventory Losses -Causative ResearchIndicates Evidence of Personal Responsibility ..8-3 Section C. Criteria for an Investigation .. 8-3 Section H. Procedures for an Investigation ..8-3 CHAPTER 9. PETROLEUM PRODUCTSS ection A. Purpose .. 9-1 Section B. Loss Expectancy ..0Q-1 Section C. Intransit Losses .. 9-1 Section D. Operating Losses .. 9-1 Section E. Determinable Losses .. 9-1iii* REFERENCES(a) DoD Directive , "Internal Management Control Program," April 4, 1987(b) Title 37, United States Code, Section 1007, "Deductions from pay"(c) AFR 400-54/AR 735-11-2/DLAR ,"Reporting of Item and Packaging Discrepancies," October 1, 1986(d) AFR 67-7/AR 12-12/DLAR , "ProcessingDiscrepancy Reports Against Foreign Military Sales Shipments," April 12,(e) AFR 75-18/AR 55-38 DLAR ,"Reporting of Transportation Discrepancies in Shipments," March 15, 1984(f) Title 10, United States Code, Chapter 47, "Uniform Code of Military Justice(UCMJ)," and Section 2775, "Liability of Members for Damages to FamilyHousing, Equipment, and Furnishings"(g)

7 DoD , "DoD Housing Management," June 1988, authorized by DoDDirective , July 20, 1989(h) DoD Instruction , "Collection of Indebtedness Due the United States,"March 13, 1985(i) DoD Instruction , "Physical Inventory Control for DoD Supply SystemMaterial," June 30, 1987(j) DoD , "Department of Defense Accounting Manual," October 1983,authorized by DoD Instruction , October 22, 1981(k) DoD , "Military Standard Transaction Reporting and AccountingProcedures (MILSTRAP)," May 1987, authorized by DoD Directive ,November 18, 1983(1) DoD , "Management of Bulk Petroleum Products, Storage, andDistribution Facilities," July 1988, authorized by DoD Directive ,November 18, 1983 Accesion ForNTIS CRA&IDTIC TABU nannounced I'Justifiction.

8 By..TDitt ibution IAvailability CodesAvail and I orDist SpecialivDEFINITIONS1. Abuse. Willful misconduct or deliberate unauthorized Accountability. The obligation imposed by law, lawful order, or regulationon an officer or other person for keeping an accurate record of property,documents, or funds. The person having this obligation may or may not haveactual possession of the property, documents, or Accountable Officer. An individual appointed by proper authority whomaintains item and/or financial records in connection with Government property,irrespective of whether the property is in his or her possession for useor storage, or is in the possession of others to whom it has been officiallyentrusted for use or for care and Acquisition Cost.

9 Consists of the amount paid for the property, less bothtrade and cash discounts, plus the transportation Appointing Authority. An individual designated in writing by the approvingauthority. The approving authoriry may act as the appointing authority. Theappointing authority appoints financial liability officers, if required;approves or disapproves the recommendations of the responsible officer,reviewing authority, or financial liability officer; and recommends actions tothe approving authority. The appointing authority is normally senior to theresponsible officer, reviewing authority, accountable officer, and financial' liability Approving Authority. The approving authority makes determinations toeither relieve involved individuals from responsibility and/or accountabilityor approve assessment of financial liability.

10 The approving authority may actas the appointing authority or designate an appointing authority in Component regulaeions shall designate who may serve as the appointingauthority. The approving authority is normally senior to the Collective Liability. Where more than one individual may be liable for adebt, both collectively or Commander. An individual vested with command authority in a DoD Controlled Inventory Items. Those items designated as having character-istics which require that they be identified, accounted for, secured, segre-gated, or handled in a special manner to ensure their safekeeping andintegrity. Controlled inventory items in descending order of the degree ofcontrol normally exercised are:a.