Property Accountability

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 Campaign on
Property Accountability
“Re-establish and reinforce a culture of good
supply discipline and property accountability
practices across the Army at every level”

The Campaign on Property Accountability reinforces

command emphasis on supply discipline and
property accountability at all levels.

210/10 EXORD 259-10 Campaign on Property Accountability

234/10 Army Wide Campaign on Property Accountability
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 Accountability and
Responsibility for Property

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 Accountability
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.

“All property (including historical artifacts, art, flags,

organizational property, and associated items) acquired by
the Army from any source, whether bought, scrounged,
donated, and so forth, must be accounted for as prescribed
by [AR 735-5] and other appropriate Army regulations
(ARs).” - AR 735-5 Policies and Procedures for Property
Accountability

AR 735-5, 2-2a & 2-7 UNCLASSIFIED

 Responsibility
The obligation of an individual to ensure Government
property and funds entrusted in his/her possession,
command or supervision are properly used and cared for
and that
proper custody, safekeeping, and disposition are provided.

There are five types of responsibility:

Command
Supervisory
Direct
Custodial
Personal

AR 735-5, 2-8
Everyone is responsible for Government Property!
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 Types of Responsibility XX
DIVISION

X
COMMAND
Brigade or CUSTODIAL
RESPONSIBILITY
Regiment RESPONSIBILITY
Responsibility
for all property II Supply sergeant, supply,
within their custodian, supply clerk,
Battalion or
command. or warehouse person –
Squadron
responsibility for
I property in storage
Company, awaiting issue or turn-in.
Troop, Battery
or Detachment

…
DIRECT RESPONSIBILITY
Platoon Responsibility for all property within
SUPERVISORY
their command.
RESPONSIBILITY
Responsibility for
..
PRIMARY HAND RECEIPT HOLDER
all property in Section
Responsibility for property accepted
possession of
on hand receipt from accountable
personnel under . officer.
their supervision.
Squad

PERSONAL RESPONSIBILITY
Individual Responsibility for property in
their possession.

AR 735-5, 2-8 and Fig. 2-1 UNCLASSIFIED

 Types of Responsibility XX
DIVISION

X
COMMAND
Brigade or CUSTODIAL
RESPONSIBILITY
Regiment RESPONSIBILITY
Responsibility
for all property II Supply sergeant, supply,
within their custodian, supply clerk,
Battalion or
command. or warehouse person –
Squadron
responsibility for
I property in storage
Company, awaiting issue or turn-in.
Troop, Battery
or Detachment

…
DIRECT RESPONSIBILITY
Platoon Responsibility for all property within
SUPERVISORY
their command.
RESPONSIBILITY
Responsibility for
..
PRIMARY HAND RECEIPT HOLDER
all property in Section
Responsibility for property accepted
possession of
on hand receipt from accountable
personnel under . officer.
their supervision.
Squad

PERSONAL RESPONSIBILITY
Individual Responsibility for property in
their possession.

AR 735-5, 2-8 and Fig. 2-1 UNCLASSIFIED

 Command Responsibility
The obligation of a commander to ensure all Government property
within his or her command is properly used and cared for, and that
proper custody, safekeeping, and disposition are provided.
• Inherent in command and cannot be delegated
• Assumed by assignment to a command position at any level
• Includes
– Ensuring the security of all property of the command, whether
in use or in storage.

– Observing subordinates to ensure their activities contribute to

the proper custody, care, use, safekeeping, and disposition of
all property within the command.

– Enforcing all security, safety, and accounting requirements.

AR 735-5, 2-8(1), 2-8(2) UNCLASSIFIED

– Taking administrative or disciplinary measures when necessary. 8
 Supervisory Responsibility
The 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.

• Inherent in all supervisory positions and cannot be delegated

• Not contingent upon signed receipts or responsibility statements
• Assumed by assignment to a specific position and includes:
– Providing proper guidance and direction
– Enforcing all security, safety, and accounting requirements
– Maintaining a supervisory climate that will facilitate and ensure the
proper care and use of Government property

AR 735-5, 2-8(1), 2-8(2) UNCLASSIFIED 9

 Direct Responsibility
The obligation of a person to ensure that all government property
for which he or she has receipted for is properly used and cared
for and that proper custody and safe keeping and disposition
are provided.

• Formal assignment of responsibility

• Has custody of but not necessarily possession or use of property
• Assumed by:
– Assignment as an accountable officer
– Receipt of formal written delegation
– Accepting property on hand receipt from accountable officer

AR 735-5, 2-8(3), 2-8(4), 2-8(5) UNCLASSIFIED 10

 Custodial Responsibility
The obligation of an individual to ensure proper use and care and
that proper custody and safe keeping and disposition are
provided for assets in storage awaiting issue, turn-in.
• Assumed by assignment as warehouse person, or supply
sergeant/custodian/clerk

• Rated by and answerable directly to accountable officer or

individual with Direct Responsibility for property

• Responsibilities:
– Ensure adequate security of all property within storage area
– Observe subordinates actions related to property
– Enforce all safety, security, and accounting requirements
– When unable to enforce, report problems to immediate supervisor

AR 735-5, 2-8(3), 2-8(4), 2-8(5) UNCLASSIFIED 11

 Personal Responsibility

The obligation of a person to exercise responsible and prudent

actions to properly use, care for, safeguard and dispose of all
government property in his or her possession.

• Not contingent upon signed receipt of responsible individual

• Always accompanies physical possession of property

AR 735-5, 2-8(3), 2-8(4), 2-8(5) UNCLASSIFIED 12

Classifying Property

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 Categories of Army Property
Property is categorized for financial accounting and reporting
purposes as real property or personal property.

Real Property: Land, buildings, utilities, structures. Includes

improvements and equipment affixed to, built in, or non-
moveable. Requires garrison commander to appoint Real
Property Accountable Officer.

Personal Property: Personal property is made up of capital

equipment and other nonexpendable supplies, (collectively
called nonconsumable supplies), and all consumable
supplies (not to be confused with Personal Civilian
Clothing/Property).
AR 735-5: 2-2b UNCLASSIFIED 14
 Army Property
Property is categorized for financial accounting and reporting purposes as real
property or personal property.

Real Personal

AR 735-5: 2-2b UNCLASSIFIED 15

 Real Property
• Land
• Buildings
• Structures
• Utilities

AR 735-5: 4-2 UNCLASSIFIED

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 Personal Property
Anything that is not Real Property:
• Capital equipment and other nonexpendable supplies
(collectively called nonconsumable supplies)
• All consumable supplies
• Does not include Personal Civilian Property (personal effects)

AR 735-5: 2-2b UNCLASSIFIED

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 Classification of
Personal Property
Nonexpendable Property (N): Not consumed in use and retains its
original identity during the period of use. Requires Formal
property book accounting.

Durable Property (D): Not consumed in use, does not require

property book accountability, but because of its unique
characteristics requires control when issued to the user. Requires
accounting by hand receipt.

Expendable Property (X): Property that is consumed in use, or loses

its identity in use. No Formal system of accounting is required;
however government property must be protected from fraud,
waste and abuse.

AR 735-5, 2-2d, 7-1a, 7-3, 7-4, 7-5 UNCLASSIFIED 18

 Classification of
Personal Property
• All Army property, except real property, will be
classified for property accounting purposes as:
– Expendable (ARC – X)
– Durable (ARC – D)
– Nonexpendable (ARC – N)

AR 735-5: 2-2, 7-1 UNCLASSIFIED

 Expendable
• Consumed in use, or loses its identity in use

• Does not require formal accounting, but use should be tracked

• When expendable tools are issued to the user, issues will be

controlled and responsibility assigned by using hand receipt,
component hand receipt, tool room, or tool crib procedures

AR 710-2: Gloss.; AR 735-5:7-5 UNCLASSIFIED

 Durable
• Not consumed in use
• Does not require property book accountability

• Requires control when issued to the user

• Must be controlled through the use of tool room sign-out logs,
or DA Form 2062 Hand Receipts
• Must be accounted for IAW AR 735-5 when lost or damaged

AR 710-2: Gloss.; AR 735-5:7-5 UNCLASSIFIED

 Nonexpendable
• Nonexpendable property is personal property that is not
consumed in use and retains its original identity during the period
of use

• Nonexpendable property requires formal (Property Book)

accountability throughout the life of the item

AR 710-2: Gloss.; AR 735-5:7-5 UNCLASSIFIED

Assigning Responsibility

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 Records Of Responsibility
• Property Books (DA Form 3328 or PBUSE records)
• Hand Receipt (DA Form 2062 or PBUSE Primary Hand Receipt)
• Sub-hand receipts (DA Form 2062)
– Component Hand Receipt
– Hand Receipt Annex
• Temporary Hand Receipts (DA Form 3161)
• Equipment receipts (DA Form 3749)
• Change Documents (DA Form 3161)

DA Pam 710-2-1: 5-1 UNCLASSIFIED

 Accountable Records
for Personal Property
Organizational Property Book – Record of property issued under an MTOE or
deployable TDA authorization document and all CTA property that deploys
with the unit. Property items that are mission-related to all TOE units
Army-wide are considered organizational property.

Installation Property Book – Record of non deployable property issued to a

unit under the authority of a CTA or other HQDA approved authorization
document, except expendable items and personal clothing.

AR 71-32, Glossary UNCLASSIFIED 25

 Organization Property
• Property the unit will take to the field or on a deployment

• Required by the MTOE

AR 710-2: 2-5 UNCLASSIFIED

 Installation Property
Property the unit will not take to the field or on a deployment.

AR 710-2: 2-5 UNCLASSIFIED

 PBUSE
(Property Book Unit Supply-Enhanced)

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 PBUSE Overview
• Army’s System of Record for Property Accountability
• Web-based, no data on unit’s “PBUSE Box”
• Provides asset visibility data to Army logistics info systems
• Property Book level for property accountability
• Unit Level for supply functions, property management

• Staff roles allow read-only access

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 PBUSE Primary
Hand Receipt (PHR)

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 PBUSE Primary
Hand Receipt (PHR)
• PHR is a “Hand Receipt” from PBO, not “The Property Book”

• Listing of nonexpendable equipment issued to Primary Hand Receipt

Holder (PHRH)

• Equivalent to DA Form 2062 Hand Receipt with manual property books on

DA Form 3328 (legacy, unusual to have)

• PHRH assumes Direct Responsibility with signature

• PHR is divided by Property Book Identification Code (PBIC)

– Loosely coincides with Class of Supply (PBIC 2=Class 2 OCIE)
– May look like “separate” hand receipts for each PBIC

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 Sub-Hand Receipts
• List of property book or durable items that are issued to unit
personnel

• Signature establishes direct responsibility

• Use DA Form 2062 Hand Receipt/Annex Number to record the issue

of property book and durable items (or PBUSE automated form)

• No restriction on number of times property can be sub-hand

receipted. Normally should not exceed from the Commander, to the
supervisor, to the user

DA Pam 710-2-1: 5-3 UNCLASSIFIED

 Sub-Hand Receipts

Manual DA Form 2062

DA Pam 710-2-1: 5-3 UNCLASSIFIED
 Sub-Hand Receipts

PBUSE Generated Sub-hand Receipt

DA Pam 710-2-1: 5-3 UNCLASSIFIED
 Component Hand Receipt
• Record of responsibility for items listed on it

• Record that validates all component shortages (less

expendable consumable) between the primary hand receipt
holder and the “user;” shortage 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

DA Pam 710-2-1: 6-1 UNCLASSIFIED 35

Component Hand Receipt

Manual DA Form 2062 Component Hand Receipt

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Component Hand Receipt

PBUSE Generated Component Hand Receipt

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 Hand Receipt (Shortage) Annexes
DA Form 2062

• 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

(nonexpendable), Commander or S-4 (durable and expendable)

• Person validating annexes must ensure action was taken to account

for shortages before validating (turned in, charged individual, etc.)

DA Pam 710-2-1: 5-3, 6-1 UNCLASSIFIED 38

 Hand Receipt (Shortage) Annexes
Lists components that are missing from an end item

Validating official
initials, accepting
responsibility to
order shortages
and relieving HR
holder of
responsibility.

MUST ensure
proper action was
taken to account
for or document
the reason for
shortage!

DA Pam 710-2-1: 5-6, 6-1 UNCLASSIFIED

 Temporary Hand Receipts
(DA Form 3161)
• Hand receipt holders of one unit will not loan items to members of another unit
unless approval is first obtained from the appropriate authority

• Used when property is issued or loaned for periods up to 30 calendar days

• Review the temporary hand receipt file daily to find if any are due to expire shortly

• Within 5 days prior to expiration of the temporary hand receipt, notify the hand
receipt holder and arrange for return of the property not later than the expiration
date

• If the person still needs the property, issue it using hand receipt procedures

DA Pam 710-2-1: 5-4 UNCLASSIFIED 40

 Equipment Receipts
DA Form 3749
• Property issued to the same person on a recurring basis –
weapons, protective gas masks, night vision devices, etc.
• 24 hour limit when used for weapons

DA Pam 710-2-1: 5-6 UNCLASSIFIED 41

 Change Documents
• Used to keep hand and sub-hand receipts current

• Use DA Form 3161 as a change document

• Post change documents to hand or sub-hand receipts; At least

every 6 months or before the change of hand or sub-hand
receipt holders.

DA Pam 710-2-1: 5-3 UNCLASSIFIED 42

Financial Liability Investigations of
Property Loss
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 FLIPL
• Documents the circumstances concerning the loss, damage, or
destruction (LDD) of Government property

• Serves as, or supports a voucher for adjusting the property

from accountable records

• Documents a charge of financial liability assessed against an

individual or entity, or provides for the relief from financial
liability

• Will be prepared when it becomes known that LDD of

Government property has occurred
AR 735-5: 13-2 UNCLASSIFIED
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 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

AR 735-5: 13-2 UNCLASSIFIED

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 Approving Authority
An Army officer, or DA civilian employee authorized to appoint a
financial liability officer and to approve financial liability
investigations of property loss.

• Active Army and USAR. Army officers in command positions in the

grade of Colonel or above, DA civilian employees in supervisory
positions in the grade of GS–14 or above, chiefs of HQDA staff
agencies, and ACOM commanders

• ARNG. Commanders in the grade of Colonel (Federally recognized)

• For LDD exceeding $100,000 or involving a sensitive item, the first

General Officer or civilian SES becomes the Approving Authority

AR 735-5: 13-17 UNCLASSIFIED

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 Appointing Authority
An officer or civilian employee designated by the approving authority with responsibility
for appointing financial liability officers.

• 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

AR 735-5: 13-17 UNCLASSIFIED

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 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

AR 735-5: 13-26 UNCLASSIFIED

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 Qualifications
• 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

• Must be senior to individual(s) subject to potential financial liability

• May not be personally responsible for, or in any way directly

interested in the property listed on the financial liability investigation
of property loss

AR 735-5: 13-27 UNCLASSIFIED

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 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.
• Responsibility
• Culpability
• Proximate cause
• Loss

Ref: AR 735-5, Para 13-29

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 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:UNCLASSIFIED
AR 735-5, Para 13-32
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 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

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 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

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 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

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 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

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 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 occurred while being used
conducting official Government business and neither negligence nor
willful misconduct was involved

Ref: AR 735-5, Para 14-18

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56
Questions/Comments

UNCLASSIFIED