Financial liability investigations for property loss (FLIPL) often occur during changes of command. When officers are about to take command, they are thrown into the confusing world of supply and the change of hand receipt process. In a perfect world, all runs smoothly; the outgoing hand receipt holder is present, all hand-receipted property is immaculate, and all sub-hand receipt holders are available. Most of the evidence compiled should either support or refute a finding of negligence, which takes two forms: simple and gross. Simple negligence is briefly defined as the absence of due care, and gross negligence is an extreme departure from due care. The combination of the command supply discipline program (CSDP) and the use of the Global Combat Support System-Army (GCSS-Army) can help to reduce both types of negligence. 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. Cyclic inventories occur on a monthly basis when elected by the command in place of the annual 100 percent inventory. Ten percent of the total property on the primary hand receipt is inventoried each month (except for two months). This type of inventory should trigger the update of component hand receipts.

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. NSNs are 13-digit numbers for materiel and are listed in technical manuals (TM) and often on property data plates. NSN nomenclature contains the basic noun that describes the property and identifies the make, model, size, and related information to distinguish NSN item types with the same generic nomenclature. A NIIN is the last nine digits of an NSN. Both FLOs and SJAs need to understand the definitions of several different aspects of Army property, beginning with the types of responsibility. There are five types of responsibility used to determine who is responsible for the loss, destruction, or damage to government property: command, supervisory, direct, custodial, and personal. 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.Field exercise inventories should take place within 15 days of the end of an exercise. These inventories should also occur before and after deployments. This inventory should trigger component hand receipt updates.

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. Change of hand receipt holder inventories often occur at the platoon and squad levels. The incoming platoon leader or noncommissioned officer (NCO) inventories all property signed down to them from the commander. The incoming sub-hand receipt holder is responsible for ensuring 100 percent accountability of all items, including BII and COEI. Nonexpendable property includes all non-consumable major end items. Nonexpendable property has an ARC of "N." 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... The FLO should include evidence of who is responsible in the FLIPL process. These documents can take the form of relevant primary and sub-hand receipts. The primary hand receipt holder is usually the company commander. Sub-hand receipt holders are responsible for a portion of the commander's hand receipt. This responsibility is further delegable from sub-hand receipt holders to the end users.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. 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. Understanding supply procedures, the CSDP, and the inventory process makes the legal review easy. The presence of some of the aforementioned supply documents will significantly aid the SJA in determining if the FLO's findings are legally sufficient. The briefing from the SJA to the FLO covers the following: 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. TA-50 is commonly stolen from closets and from cars because it has a high resale value to local pawn shops, so be sure to store TA-50 in a secure location.