Evan M. FitzGerald was a Quartermaster Officer and a platoon leader, support operations officer, and executive officer, assigned to the Regimental Support Squadron, 11th Armored Cavalry Regiment at Fort Irwin. He is now a practicing attorney and holds a J.D. from the University of Massachusetts School of Law, and an LL.M. in Transnational Law from Temple University. 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. Financial Liability Investigation of Property Loss, or FLIPL, is the procedure the Army uses to recover the cost of lost or damaged property. Under Army Regulation 735-5, financial liability ordinarily will not exceed one month?'s base pay. However, in certain cases, such as the loss of personal arms or equipment, or damage to government housing, a Soldier can be held liable for the entire loss. 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. 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:

A LIN is a six-character alphanumeric identification code for generic nomenclature and pertains to the listing line on which the generic nomenclature appears in bulletins and Army equipment authorization documents. LINs treat all NSN items possessing the functional capability expressed by the generic nomenclature collectively. For example, one LIN may cover all mechanics' tool kits, another heavy equipment transports, and a third M4 rifles. PBOs use LINs to identify equipment commanders will inventory during a cyclic inventory.Follow your unit's inventory and supply procedures. The supply policies are there to prevent property from getting lost. The commander and supply section should maintain copies of all property-related actions in both their offices and residences and keep this documentation for at least two years after a change of hand receipt holder inventory. Durable property is usually not on a commander's primary hand receipt and is often a component of an end item. Durable property may be part of a sets, kits and outfits (SKO) listing or a part of the NSN system. An example of durable property is hand tools. Durable property has an ARC of "D."

All BII and COEI should be laid out according to its TM, supply catalog, or respective item listing. In the event there are similar end items, all component layouts occur simultaneously. Only inventories for items that can be physically touched occur; relying on the word of another person is not a legal defense to negligence.

Record Details for ARMY DIR 2018-07-18

Nonexpendable property includes all non-consumable major end items. Nonexpendable property has an ARC of "N."

Next, the appointing authority forwards the FLIPL, along with their recommendation, to the approving authority, usually a colonel or above. The approving authority approves or disapproves the recommendation to assess liability, but before making the decision, he or she receives a legal opinion that the findings and recommendations are legally sufficient and that the FLIPL was completed in accordance with AR 735-5. The purpose of the pen and paper is to record notes about property. The serial number, date of inventory, and any issues must be recorded. This information is used to correct deficiencies through administrative adjustment reports that list the issues and deficiencies identified with property during an inventory. 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. When you get a hand receipt, do not lose it; the hand receipt is the piece of paper that tells the unit not just what you have, but also what you do not have.In addition to counseling sub-hand receipt holders, the unit commander should not sign primary hand receipts until all sub-hand receipt holders have signed their hand receipts. This ensures that all property is assigned and reduces the threats of liability and negligence. 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. 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. 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. Direct responsibility obligates a person to ensure property they signed for is properly used, cared for, and kept safe.

The FLO's job is to determine if negligence is involved, who caused the property loss, and the amount of the loss," explained Daniel Haws, attorney-advisor, Administrative Law Division, Staff Judge Advocate Office. "If the FLO recommends liability against a Soldier, that individual has seven days to submit a rebuttal explaining why the liability is not appropriate based on the standards for FLIPL."

Record Details for AR 735-5

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. Expendable property loses its identity through its use. Expendable property requires accountability only if it is authorized by a modified table of organization and equipment or table of distribution and allowances. All other expendable property generally is considered as consumed in use. An example of consumed in use expendable property is masking tape. Conversely, all munitions require accountability on property book records. Expendable property has an ARC of "X." 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.