THE UNIVERSITY OF THE ARMY
1775
THE UNIVERSITY OF THE ARMY
Headquarters
Department of the Army
Washington, DC
10 March 2024
*Army Regulation 735–5
Effective 10 April 2024

Property Accountability
Relief of Responsibility and Accountability

By Order of the Secretary of the Army:

RANDY A. GEORGE
General, United States Army
Chief of Staff

Official:

MARK F. AVERILL
Administrative Assistant to the
Secretary of the Army

History. This publication is a major revision. The portions affected by this major revision are listed in the summary of change.

Authorities. The authorities for this regulation are 5 USCUSCUnited States Code 5514, 10 USCUSCUnited States Code 10503, 32 USCUSCUnited States Code 708, 32 USCUSCUnited States Code 710, 37 USCUSCUnited States Code 1007, DoD 7000.14–R, and FARFARFederal Acquisition Regulation 45.

Applicability. This regulation applies to the Regular Army, the Army National Guard/Army National Guard of the United States, and the U.S. Army Reserve, unless otherwise stated. During mobilization, the proponent may modify chapters and policies contained in this regulation.

Proponent and exception authority. The proponent of this regulation is the Deputy Chief of Staff, G–4. The proponent has the authority to approve exceptions or waivers to this regulation that are consistent with controlling law and regulations. The proponent may delegate this approval authority, in writing, to a division chief within the proponent agency or a direct reporting unit or field operating agency of the proponent agency in the grade of colonel or the civilian equivalent. Activities may request a waiver to this regulation by providing justification that includes a full analysis of the expected benefits and must include formal review by the activity's senior legal officer. All waiver requests will be endorsed by the commander or senior leader of the requesting activity and forwarded through their higher headquarters to the policy proponent. Refer to AR 25–30 for specific requirements.

Army internal control process. This regulation contains internal control provisions in accordance with AR 11–2 and identifies key internal controls that must be evaluated (see appendix D).

Suggested improvements. Users are invited to send comments and suggested improvements on DA FormDA FormDepartment of the Army form 2028 (Recommended Changes to Publications and Blank Forms) directly to the Deputy Chief of Staff, G–4 (DALO–SPE), 500 Army Pentagon, Washington, DC 20310–0500 or via email at usarmy.pentagon.hqda-dcs-g-4.mesg.dcs-g44s-sup@army.mil.

Distribution. This regulation is available in electronic media only and is intended for the Regular Army, the Army National Guard/Army National Guard of the United States, and the U.S. Army Reserve.

*This publication supersedes AR 735-5, dated 9 November 2016 and DA PamDA PamDepartment of the Army Pamphlets 735-5, dated 23 March 2016.
AR 735–5 • 10 March 2024
UNCLASSIFIED

Damaged, or Destroyed

The hard copy forms prescribed in this chapter are completed electronically when a digital ver-sion is published (see https://armypubs.army.mil/ for DA Forms, https://www.esd.whs.mil/direc-tives/forms/for DD Forms, and https://www.gsa.gov/reference/forms for SF Forms). Forms with-out a digital version may be completed manually on paper. Online application-based equivalents of forms are approved by the proponent of this regulation and are completed electronically per the application’s EUM.

Acceptance at destination Assumption of title to property by the Department of the Army at the specified delivery point. This term corresponds, generally, to the commercial term free on board (FOB) destination.

Acceptance at origin Assumption of title to property by DA at the point of shipment. This term corresponds, generally, to the commercial term FOB origin. It does not imply that payment was made at the time title passed to the Army nor does it necessarily mean that the Government, by assumption of title, forfeited the right to reject any article not conforming to contract specifications.

Accountability The obligation imposed by law, lawful order, or regulation on an officer or other person for keeping an ac- curate record of property, documents, or funds. Includes identification data, gains, losses, dues-in, dues- out and balances on hand or in use. The person having this obligation may or may not have actual pos- session of the property, documents, or funds.

Accountable property officer An APOAPOAccountable property officer is an individual who, possesses training, knowledge, and experience in property management, accountability, and control procedures. An APOAPOAccountable property officer is appointed in writing as described in this paragraph to maintain an organization’s accountable property records, systems, or financial records, in connection with government property, irrespective of whether the property is in the individual's possession. APOs are ap- pointed to serve different roles depending on the type of organization and mission— Working Capital Funds and/or General Funds. The SRO assumes Direct Responsibility and retains ac- countability for property upon receipt until issued, shipped, or dropped from accountability. This type of APOAPOAccountable property officer is typically appointed in supply support activities, warehouses, distribution, and inventory facilities at wholesale, intermediate, and retail levels, type of APOAPOAccountable property officer is typically appointed in modification table of organization and equipment (MTOEMTOEModification table of organization and equipment), TDATDATables of distribution and allowances, and Joint table of allowances organizations to account for property issued to the using unit level, hand re- ceipted to primary hand receipt holders (PHRHs). This may include deployable and/or fixed based equip- ment used to operate stock record account (SRA) activities and facilities, but is separate from all SRAs. The PBO assumes Direct Responsibility upon receipt of property, transfers Direct Responsibility when property is issued to PHRHs, but retains accountability of the property until subsequently turned in, used (consumed) for authorized purposes, or dropped from accountability. PBO, SRO, and transportation officer due to unique mission requirements. Examples include materiel de- veloper facilities operating under the General Fund, or prepositioned stock facilities maintaining equip- ment for issue and return to support training and mission requirements.

Accountable property system of record The government system used to control and manage accountable property records. APSR is a subset of existing organizational processes related to the life-cycle management of property that is integrated with the core financial system. The APSR may also control and manage accountability records. All APSRs and property accounting procedures must comply with item unique identification requirements per AR 700 – 145 and serialized item management requirements per AR 710 – 3. APSRs are evaluated for compli- ance with the requirements of the Federal Information System Controls Audit Manual or Statement on Standards for Attestation Engagements No. 18 at least annually.

Appeal authority An Army officer designated to take final action on requests for reconsideration when the financial liability investigation of property loss approving authority denies relief of financial responsibility to a respondent, and to act on requests for remission of cancellation of indebtedness. Appeal authority action is by author- ity of the Secretary of the Army. Normally, the appeal authority will be the next higher commander above the approving authority, in the chain of command.

Appointing authority An officer or civilian employee designated in writing by the approving authority with responsibility for ap- pointing financial liability officers; reviewing the financial liability officer’s findings and recommendations; and providing their concurrence or nonconcurrence to the approving authority of the financial liability of- ficer’s findings and recommendations. The appointing authority is normally under the command of, or on the staff of the approving authority. An appointing authority must be in the grade of lieutenant colonel or above, or be a General Schedule (GS)–13 or above (for exceptions, see this regulation).

Approving authority An Army officer or Department of the Army civilian employee authorized to appoint financial liability offic- ers and to approve FLIPLs. An approving authority must be in the grade of lieutenant colonel or above, or be a GS – 14 or above, in a supervisory position. The approving authority is normally senior to the appoint- ing authority.

Army property All property under DA control, except property accounted for as owned by an nonappropriated fund activ- ity. “Government property” and “Army property” are used synonymously with “property.”

Asset listing It is an asset visibility listing of Government-furnished property (GFP) used by contractors but managed by an APOAPOAccountable property officer. This listing will provide all the pertinent information needed to track the authorized GFP equipment minus an on hand quantity.

Audit trail Documentation supporting debit and credit entries on accounting records from the time property is brought into the Army inventory with a source document, until the property is dropped from accountability.

Bill of lading Includes Government bills of lading issued by the Army and commercial bills of lading for transportation services administered by the Army. (For exception of FOB origin shipment, see this regulation.)

Capital equipment Personal property of a capital nature classified nonexpendable in an Army supply manual, or that would be so classified if included in an Army supply manual or catalog.

Capital nature Property that has all or most of the following characteristics:

Causative research An investigation of discrepancies (that is, gains and losses) consisting of a complete review of all transac- tions, as a minimum. Transactions will include the following supporting documentation occurring since the last completed inventory; the last location reconciliation that included quantity; or back one year, which- ever is the most recent. These include catalog change actions, shipment discrepancies or not posted or rejected documentation. crepancies to eliminate repetitive errors. Causative research ends either when the cause is found or after review of transactions back to the last inventory, last audit match, inventory, or immediately preceding the last audit match, when there have been no conclusive findings.

Checking–in (tally–in) operation An operation performed by a receiving clerk, normally under the supervision of the transportation officer or the receiving property officer. Includes removing items from a carrier’s vehicle and conducting a visual inspection to decide the condition of the packages and loose pieces in a shipment. Checking-in may be performed under other supervision, or at a later time, because of emergency conditions; however, it will not be confused with the ’storage’ operation. Storage operation involves the opening of undamaged pack- ages after delivery to a customer, user, or warehouse.

Collective liability Where more than one individual is held financially liable for a loss, both collectively and individually.

Command responsibility The obligation of a commander to ensure all GP within his or her command is properly used and cared for, and that proper custody and safekeeping of GP is provided. Command responsibility is inherent in command and cannot be delegated. It is evidenced by assignment to a command position at any level and includes: a . Ensuring the security of all property of the command, whether in use or in storage. b . Observing subordinates to ensure their activities contribute to the proper custody, care, use, and safe- keeping of all property within the command. c . Enforcing all security, safety, and accounting requirements. d . When necessary, taking administrative or disciplinary measures.

Concealed shortage or damage Shortage in, or damage to the contents of an original container or package detected after delivery. This damage or shortage is contrasted with visible damages or shortages in the number of packages involved, readily noticeable at the time of delivery.

Concurrent negligence – Negligence by more than one person acting independently. Can cause liability to accrue to more than one individual.

Consumable supplies Supplies consumed in use, such as ammunition, fuel, cleaning and preserving materials, surgical dress- ings, and drugs, or supplies that lose their separate identity in use, such as repair parts and building ma- terials.

Contracting officer A person who is currently a contracting officer with authority to enter into and administer contracts. The person may be a contracting officer either by virtue of position or by appointment under procedures pre- scribed by the Defense Federal Acquisition Regulation Supplement. This person may make determina- tions and findings for contracts or for any part of such authority. In the ARNGARNGArmy National Guard, a contracting officer may be the USPFO, or an ARNGARNGArmy National Guard technician who has been appointed as contracting officer by the CNGBCNGBChief, National Guard Bureau with au- thority to enter into and administer contracts.

Contractor A Government contractor is a private company that produces goods or services under contract for the Government.

Contractor acquired property Any property acquired, fabricated, or otherwise provided by the contractor for performing a contract, and to which the Government has title. Contractor acquired property that is subsequently delivered and ac- cepted by the Government for use on the same or another contract is considered GFP.

Controlled inventory items Those items designated as having characteristics requiring they be identified, accounted for, secured, segregated, or handled in a special manner to ensure their safekeeping and integrity. Controlled inventory items in descending order of the degree of control normally exercised are: devices in the Army Enterprise Material Master (AEMM, see DA PamDA PamDepartment of the Army Pamphlets 708 – 2.) tions. therefore, especially subject to theft. An item with a CIIC of : “7,” “M,” and “W” does not require an AR 15– 6 investigation if an item is lost or damaged unless directed by the command. Examples are binoculars, projectors, cigarettes, pagers, handheld two-way radios, cameras, tapes, laptop computers, cell phones, palm devices, or recorders. (See CIICs in the AEMM, per DA PamDA PamDepartment of the Army Pamphlets 708 – 2.)

Culpability A determination of fault. Before a person can be held financially liable, the findings must show that they, through negligence or willful misconduct, violated a particular duty involving the care for the property. Whether the person’s actions or omissions constitute negligence depends on the circumstances of each case. Negligence under some circumstances may not reflect negligence under other circumstances. Therefore, all facts must be fully considered when determining the reasonableness of a person’s conduct: a . The person’s age, experience, physical condition, and special qualifications. b . The type of responsibility the person had toward the property. c . The type and nature of the property. d . The nature, complexity, level of danger, or urgency of the ongoing activity at the time of the loss. e . The adequacy of supervisory measures or guidance for property control. f . The feasibility of maintaining close supervision over the property given the complexity of the organiza- tion or activity supervised.

Damage A condition that impairs either the value or use of an article; may occur in varying degrees. Property may be damaged in appearance or in expected useful life without rendering it unserviceable or less useful. Damage also shows partial unserviceability. Usually implies that damage is the result of some act or omission.

DD FormDD FormDepartment of Defense form 200 An instrument for recording circumstances concerning loss or damage of Army property. It serves as or supports a voucher for dropping articles from property records on which they are listed. It also serves to determine any question of responsibility (financial or otherwise) for absence or condition of the articles.

Deliberate unauthorized use Willful or intentional use without right, permit, or authority.

Destroyed Equipment damaged to the point of complete loss of identity or beyond the prospect of future restoration. Major weapon systems, systems with classified components and sensitive items will not be considered destroyed without a technical inspection of the residue.

Detail accounting Method of accounting that requires each transaction to be separately recorded and uniquely identified by a voucher or document number in the records, including adjustment of balances each time. Opposite of summary accounting, whereby several transactions may be shown as one without any unique identifica- tion.

Digital signature The product of an asymmetric cryptographic system that is created when the owner of the private signing key uses that key to create a unique mark (the signature) on an electronic document or file. Like a written signature, the purpose of a digital signature is to guarantee the identity of the individual.

Direct responsibility Obligation of a person to ensure all GP for which he or she has receipted is properly used and cared for, and that proper custody and safekeeping are provided. Direct responsibility results from assignment as an APOAPOAccountable property officer, receipt of formal written delegation, or acceptance of the property on hand receipt from an APOAPOAccountable property officer and assignment is in writing.

Discrepancies Disagreement between quantities or condition of property on hand and that required to be on hand, as shown by the accountable record of the property. It is usually a disagreement between quantities or con- dition of property actually received in a shipment and that recorded on the shipping document. This type of discrepancy generally is referred to as a “discrepancy incident to shipment.” Another form of discrep- ancy occurs when a disagreement exists between a stock record balance and the result of a physical count or inventory. shown on the authorized (supply) shipping document; for example, General Services Administration or DD FormDD FormDepartment of Defense form 1348 – 1A. A shipping-type (item) shortage or overage is not evident on delivery; it is discovered when the article of freight as described on the transportation document is opened and the contents do not agree with the supply shipping documents. ments are not required, nor are claims filed against carriers in amounts of $50 or less. Exceptions are nar- cotics, drugs, and sensitive and classified materiel. required to adjust property accountability and determine liability for discrepancies in shipment as defined above. volving loss or damage, and to report other transportation-type discrepancies. DD FormDD FormDepartment of Defense form 361 is authorized for use in lieu of a DD FormDD FormDepartment of Defense form 200 to support claims against carriers and contractors or vendors, including adjustment of inventory and financial accounting records, as proper, when dollar value involved is $50 or more. report and adjust supply discrepancies. (See chapter 14 section III for an example of how a report of dis- crepancy condition could develop into a FLIPL.) consignee, in the condition originally billed, all of the packages or loose pieces of property listed on the Government bill of lading or other transportation documents (for example, commercial bill of lading, mani- fest, load list, freight warrant). The shortage, overage, or damage is termed a transportation-type discrep- ancy. Transportation-type discrepancies reportable on DD FormDD FormDepartment of Defense form 361 may be the fault of the carrier, ship- per, vendor or contractor, container consolidation point, or transshipping activities. Overages and short- ages within commercial or Government-owned (or -leased) shipping containers, military-owned demount- able containers, major support command containers, roll-on/roll-off trailers, or container expresses with seals intact, missing, or broken are included in this term.

Durable item An item of Army property coded with an accounting requirement code (ARC) of “D” in the AEMM (DA PamDA PamDepartment of the Army Pamphlets 708 – 2.) Durable items do not require property book accountability after issue from the SRA, but do require hand receipt control for hand tools. Commercial and fabricated items similar to items coded ARC “D” (see DA PamDA PamDepartment of the Army Pamphlets 708 – 1 and DA PamDA PamDepartment of the Army Pamphlets 708 – 2.) are considered durable items. Other items coded durable will be monitored by the commander or activity supervisor.

Electronic signature A generic term encompassing both noncryptographic and cryptographic methods of authenticating iden- tity. Noncryptographic methods include personal identification number (PIN) or password, smart card, dig- itized signature, and biometrics. Cryptographic methods include shared symmetric key cryptography and public or private key (asymmetric) cryptography—digital signatures.

Equipment Articles needed to outfit an individual or organization. Clothing, tools, utensils, vehicles, weapons, and similar items are articles of equipment. It is synonymous with “supplies” and “materiel.”

Expendable items An item of Army property coded with an ARC of “X” in the AEMM (see DA PamDA PamDepartment of the Army Pamphlets 708 – 2.) Expendable items require no formal accountability after issue from a SRA. Commercial and fabricated items similar to items coded ARC “X” (see DA PamDA PamDepartment of the Army Pamphlets 708 – 1 and DA PamDA PamDepartment of the Army Pamphlets 708 – 2.) are considered expendable items.

Fair wear and tear Loss or impairment of appearance, effectiveness, worth, or utility of an item that has occurred solely be- cause of normal and customary use of the item for its intended purpose.

Federal Acquisition Regulation This system consists of sets of regulations issued by agencies of the Federal Government of the United States to govern what is called the “acquisition process;” this is the process through which the Govern- ment purchases (“acquires”) goods and services. That process consists of three phases: The FARFARFederal Acquisition Regulation System regulates the activities of Government personnel in carrying out that process. It does not regulate the purchasing activities of private sector firms, except to the extent those parts of it are in- corporated into Government solicitations and contracts by reference.

Fiduciary record This record is a listing of GFP equipment being accounted for and used by contractors to perform their designated work or mission.

Final action Action taken at the financial liability investigation of property loss approval/appeal authority level.

Financial accounting Maintaining accounting records in terms of dollars, without regard for the quantity of items.

Financial inventory accounting Act of establishing and maintaining accounts in both monetary and quantitative terms for material, sup- plies, and equipment held as stock on records of property accountability in the Army supply system world- wide.

Financial liability The statutory obligation of an individual to reimburse the Government for lost, damaged, or destroyed Government property as a result of negligence or abuse.

Financial liability investigation of property loss An instrument for recording circumstances concerning loss, damage, destruction or theft (LDDT) of Army property. It serves as, or supports, a voucher to adjust property records on which the property is listed. It also serves to determine any question of responsibility (financial or otherwise) for absence or condition of the articles.

Fixed base property Nondeployable property issued to a unit under authority of a common table of allowance (CTA) or other Headquarters, Department of the Army (HQDA)-approved or National Guard Bureau authorization docu- ments, except expendable items and personal clothing.

Fixed base property book Record of property issued under an authorization document other an MTOEMTOEModification table of organization and equipment, deployable TDATDATables of distribution and allowances, and de- ployable CTA items.

Formal accountability Obligation to maintain property book or stock record property accounts, commissary accounts, or troop issue subsistence activity (TISA) sales accounts. All property is subject to formal accountability unless specifically exempted by regulation or specific instructions of HQDA.

Government–furnished property Government-owned property furnished to a contractor for the performance of a contract. Property in the possession of, or directly acquired by, the Government and subsequently furnished to the contractor (in- cludes subcontractors and alternate locations) for performance of a contract. Also known as Government- furnished material and Government- furnished equipment in accordance with FARFARFederal Acquisition Regulation 45.1, it is defined as—

Grade (applicable to Army National Guard only) Grade referred to in this regulation is the grade that has been granted Federal recognition. An exception is the grade of the AG in each State. The grade of the State adjutant general may be greater than their Federally recognized grade.

Gross negligence An extreme departure from the course of action to be expected of a reasonably prudent person, all cir- cumstances being considered. The act is characterized by a reckless, deliberate, or wanton disregard of the foreseeable consequences.

Hand receipt A signed document acknowledging acceptance of and responsibility for the items of property listed thereon that are issued for use and are to be returned.

Hand tools Any handheld devices that are either manually operated or power driven that are portable, lightweight and small enough to be used by a craftsman in accomplishing their trade. They include such items are wrenches, screwdrivers, hammers, chisels, pliers, saws, impact wrenches, and other small devices that are normally held in a tool box.

Individual equipment Personal clothing and equipment issued for exclusive personal use of an individual.

Installed building equipment Items of equipment that are affixed and built into the facility as an integral part of the facility. Equipment that is an integral part of the facility is equipment that is necessary to make the facility complete, and if removed would destroy or reduce the usefulness of the facility. Use of the equipment determines if it is an integral part of the facility.

Inventory accounting Establishment and maintenance of accounts for material in storage, in manufacturing process, on hand, in transit, or on consignment in terms of cost or quantity. The accounting process includes maintenance of supporting records and rendition of reports when required. Specific types of inventory accounting are detail, summary, financial, and item accounting.

Investigation Means of determining the facts related to the LDD of Government property; determining the present con- dition of such property; receiving recommendations as to disposition, retention, and further accountability for such property; or determining the responsibility for LDD of Government property.

Item A generic term meaning any article of material which is produced, stocked, issued, or used.

Item accounting Method of accounting that expresses credit and debit (loss or gain) entries in terms of quantity of items transacted without regard for dollar value of the materiel. May be performed in either a detailed or sum- mary manner.

Latent defects Weaknesses or flaws normally not detected by examination or routine tests, but present at time of manu- facture and may be aggravated or discovered by use.

Liability The state of being responsible or answerable for the LDD of Government property.

Loss Loss of, damage to, or destruction of property of the Government under control of the Army. Includes physical loss and loss of accountability for Government equipment. Property is considered lost when it cannot be accounted for by the person responsible for it.

Materiel Property necessary to equip, maintain, operate, and support military activities. May be used either for ad- ministrative or combat purposes.

Negligence The failure to act as a reasonably prudent person would have acted under similar circumstances. An act or omission that a reasonably prudent person would not have committed, or omitted, under similar circum- stances. Failure to comply with existing laws, regulations, and/or procedures may be considered as evidence of negligence. The individual must also have a duty of care, whether specifically (i.e., a property user) or more generally (that is, all Soldiers must follow Army regulations).

Nonconsumable supplies Supplies not consumed in use and retaining their original identity during the period of use, such as weap- ons, machines, tools, furniture, and fixtures.

Nonexpendable items An item of Army property coded with an ARC of “N” in the AEMM (see DA PamDA PamDepartment of the Army Pamphlets 708 – 2). Nonexpendable items require property book accountability after issue from the SRA. Commercial and fabricated items similar to items coded ARC “N” (see DA PamDA PamDepartment of the Army Pamphlets 708 – 1 and DA PamDA PamDepartment of the Army Pamphlets 708 – 2) are considered nonexpendable items.

Nonpersonal responsibility Responsibility for GP derived from other than possession of the property. This includes responsibility for GP derived from positions such as Command, Supervisory, and Custodial Responsibility; or Direct Re- sponsibility resulting from appointment or signing a Primary Hand Receipt.

Nonplant equipment Capital equipment that does not meet the criteria for plant equipment.

Organizational property Property authorized to a unit or organization under an MTOEMTOEModification table of organization and equipment or deployable TDATDATables of distribution and allowances authorization document and all CTA property, which deploys with the unit.

Organizational property book Record of property issued under an MTOEMTOEModification table of organization and equipment or deployable TDATDATables of distribution and allowances authorization document. CTA items of equipment that are mission-related to all table of organization and equipment units Armywide are consid- ered organizational property. Examples of this type of equipment can be found in AR 71 – 32.

Original package A sealed or otherwise securely closed container packed by vendor, supply depot, or arsenal. Container conforms to the following: cles are packed for convenience in shipment. Component articles comprising a standard assembled unit of equipment, when shipped as a complete unit, may be considered as one article. nently affixed markings a list of quantities and description of the contents. package. depot, or arsenal, and with no evidence of tampering or visible damage to contents.

Oversight management Reviews of administrative property adjustments by senior commanders, brigade level and above, to en- sure inventory adjustments are proper and in the best interest of the Army. Administrative property adjust- ments include: a . Inventory adjustment reports. b . FLIPLs. c . Damage statements approved by subordinate commanders. d . FLIPLs initiated to account for losses during military operations other than war PA&E. e . Equipment or clothing issued to individuals for their sole use and care such as weapons, personal re- tention items, mobility kit bags, flight jackets, parkas, and similar items. In defining PA&E, determine how the member uses the property and whether it is turned in at the end of the work shift. This is especially true when dealing with portable radios and hand tools. A portable radio, for example, is personal equip- ment when an individual uses it constantly, carries it wherever he or she goes, and has it for an indefinite period of time. However, it is not personal equipment when the individual has it for a specified time while on duty and turns if in to be used by others at the end of a shift.

Personal clothing Military-type clothing and personal clothing such as headgear, underwear, footwear, Service uniforms, and component items prescribed by the Secretary of the Army and provided to enlisted members.

Personal property Property of any kind or any interest herein, except real property, and records of the Federal Government.

Personal responsibility The obligations of a person to exercise reasonable and prudent actions to properly use, care for, and safeguard all GP in their possession. It applies to all GP issued for, acquired for, or converted to a per- son’s exclusive use, with or without receipt.

Plant clearance officer Authorized representative of the KO, appointed per agency procedures, responsible for screening, redis- tributing, and disposing of contractor inventory from a contractor's plant or work site.

Property Anything that may be owned. As used in the Army, this term is usually confined to tangible property, in- cluding real estate and material. For special purposes and as used in certain statutes, this term may ex- clude such items as the public domain, certain lands, and records of the Federal Government.

Property administrator An individual duly designated by appropriate authority to administer contract requirements and obligations relative to GP furnished to or acquired by a contractor; an authorized representative of the KO.

Property book A formally designated set of property records maintained under AR 710 – 4 to account for organizational and fixed-based property in a using unit.

Property records and property account General term referring to any record of property. This includes not only formal SRAs maintained in item or monetary terms, but also organizational and fixed-based property book records, individual clothing and equipment records, hand receipt records, or any system of files for property records.

Proximate cause The cause, which in a natural and continuous sequence of events unbroken by a new cause produced the loss or damage. Without this cause, the loss or damage would not have occurred. It is further defined as the primary moving cause, or the predominate cause, from which the loss or damage followed as a natural, direct, and immediate consequence. There may be more than one proximate cause for a specific loss or damage (for example, a vehicle accident where both drivers were negligent).

Real property Land and interests in lands. This includes buildings, piers, docks, warehouses, rights-of way, and base- ments, utility systems, and all other improvements permanently attached and ordinarily regarded as real estate. This does not include machinery, equipment, or fixed signal communication systems that may be removed without harming the usefulness of the structure.

Receiving officer An officer charged with custody or storage of property received by means of shipment. The office is distin- guished from the consignee on the bill of lading because that consignee usually is the transportation of- ficer. Usually, the receiving officer is an APOAPOAccountable property officer at the station of destination.

Record All forms of information (such as, narrative, graphic data, and computer memory) registered in either tem- porary or permanent form so that it can be retrieved, reproduced, or preserved.

Respondent Any individual, State, or entity against whom financial liability is recommended or assessed.

Responsibility The obligation of an individual to ensure Government property and funds entrusted to their possession, command, or supervision are properly used and cared for and that proper custody and safekeeping are provided. There are five types of responsibility—

Responsible officer An individual assigned direct responsibility for the property listed on DD FormDD FormDepartment of Defense form 200. By virtue of assign- ment, the responsible officer is usually a APOAPOAccountable property officer or other APOAPOAccountable property officer, a unit commander, or head of an activity and has been formally assigned to their position in writing.

Sales account Formal records of accountability maintained in monetary terms by TISAs, commissaries, and other sales activities. Line item stock record balances are not normally maintained by sales accounts.

Scrap Property that has no value except for its basic material content.

Senior commander An officer designated on orders from HQDA as the SC of an installation. Normally the senior general of- ficer at the installation. The SC’s mission is the care of Soldiers, Families, and DA Civilians, and to enable unit readiness. While the delegation of senior command authority is direct from HQDA, the SC will rou- tinely resolve installation issues with U.S. Army Installation Management Command (IMCOMIMCOMU.S. Army Installation Management Command) and, as needed, the associated ACOMACOMArmy service component command, ASCCASCCArmy service component commander, or DRUDRUDirect reporting unit. Does not apply to the ARNGARNGArmy National Guard. However, when specific reference is made to accountability for, processing of, or collection of debts for GP that is lost, damaged, destroyed, or otherwise rendered unserviceable from SRAs, the term means the USPFO.

Shipping officer An officer who ships property for which they are responsible or accountable, as distinguished from the of- ficer who prepares the bill of lading. Normally, a shipping officer is an ACTPO who ships property to an officer who has requisitioned the articles (receiving officer).

Shipping-type (item) discrepancy A variation in quantity or condition of goods received from that shown on the authorized (supply) shipping document; for example, SF 364 or DD FormDD FormDepartment of Defense form 1348 – 1A. A shipping-type (item) shortage or overage is not evident on delivery; it is discovered when the article of freight as described on the transportation docu- ment is opened and the contents do not agree with the supply shipping documents.

Simple negligence The failure to act as a reasonably prudent person would have acted under similar circumstances.

Standard rebuild cost Average cost to repair an article to return it to its regular operating condition. The cost may be set forth in publications such as supply bulletins and manuals, or may be obtained from the installation maintenance activity.

State Per 42 USCUSCUnited States Code 12103, each of the several states, the District of Columbia, the Commonwealth of Puerto Rico, Guam, American Samoa, the Virgin Islands of the United States, the Trust Territory of the Pacific Islands, and the Commonwealth of the Northern Mariana Islands.

Stock record A perpetual inventory form of record, which shows by nomenclature, the quantities received, issued, and the balance on hand. The stock record will show by item the receipt, issue, and transfer of accountability of property; the balances on hand; and such other identifying or stock control data as required.

Stock record account Formal basic record showing, by item, receipt, and disposal of property being held for issue, balance on hand, and other identifying or stock control data. The account is prepared on prescribed forms.

Sub–hand receipt A hand receipt for property from a primary hand receipt holder or a subhand receipt holder to a person subsequently given the property for care, use, safekeeping or further issue. It does not transfer direct re- sponsibility for the property to the subhand receipt holder, but does transfer personal responsibility.

Summary accounting Grouping transactions together for a specific time or activity, and then posting only net results or summary of transactions to the accounting records.

Supervisory responsibility Obligation of a supervisor to ensure all GP issued to, or used by, their subordinates is properly used and cared for and that proper custody and safekeeping of the property are provided. It is inherent in all super- visory positions and is not contingent upon signed receipts or responsibility statements. It arises because of assignment to a specific position and includes: a . Providing proper guidance and direction. b . Enforcing all security, safety, and accounting requirements. c . Maintaining a supervisory climate that will facilitate and ensure the proper care and use of GP.

Supplies Items needed to equip, maintain, operate, and support military activities. Supplies may be used for admin- istrative, combat, or general plant purposes. Supplies include food, clothing, equipment, arms, ammuni- tion, fuel materials, and machinery of all kinds. For planning and administrative purposes, supplies are divided into 10 classes. Supplies are synonymous with ‘equipment’ and ‘materiel.’

Training equipment Items developed, authorized, issued, or procured primarily for training and learning.

Transportation officer The officer responsible for the shipment of property. This officer initiates and accomplishes bill of ladings (BLs). When no person is specifically provided to perform these functions, the officer who accomplishes BLs is responsible for duties assigned to the transportation officer.

Transportation-type discrepancy in shipment A carrier (common or contract) may fail to deliver to a consignee, in the condition originally billed, all of the packages or loose pieces of property listed on the GBL or other transportation documents (for exam- ple, CBL, manifest, load list, freight warrant). The shortage, overage, or damage is termed a “transporta- tion-type discrepancy.” Transportation-type discrepancies reportable on DD FormDD FormDepartment of Defense form 361 may be the fault of the carrier, shipper, vendor, contractor, container consolidation point, or transshipping activities. Over- ages and shortages within commercial or government-owned (or leased) shipping containers, military- owned demountable containers, roll-on or roll-off trailers, or container expresses with seals intact, miss- ing, or broken are included in this term.

U.S. property and fiscal officer A commissioned officer of the Army or National Guard of the United States on extended Federal active duty and who is accountable and responsible for the proper obligation and expenditure of all Federal funds and for the receipt and accounting of all Federal property in the possession of the National Guard of the State; maintains an SRA comparable to the level of a CONUSCONUSContinental United States installation; and must ensure that ac- countability for Federal property is maintained after property is issued to the property book level.

Unserviceability More inclusive term than damage or destruction. It indicates, in military usage, that the article to which the term is applied is no longer useful for its intended purpose. Damage or destruction may not be involved. The term also indicates property that has deteriorated through use; however, it may include property no longer usable for its original purpose, despite the reason for its condition.

Voucher Document attesting to, or serving as evidence of a specific property transaction. Credit vouchers, such as signed receipts, support a reduction of on-hand balance shown on the property record. Debit vouchers, such as receiving reports, support an increase in the recorded on-hand balance.

Willful misconduct Any intentional wrongful or unlawful act or omission relating to Government property, to include misappro- priation of Government property.