ARMY BOARD FOR CORRECTION OF MILITARY RECORDS RECORD OF PROCEEDINGS IN THE CASE OF: BOARD DATE: 14 July 2021 DOCKET NUMBER: AR20200003231 APPLICANT REQUESTS: * Relief of financial liability for the Financial Liability Investigation of Property Loss (FLIPL) in the amount of 24,586.65 * Reimbursement of $12,483.00 APPLICANT'S SUPPORTING DOCUMENTS CONSIDERED BY THE BOARD: * DD Form 149 (Application for Correction of Military Record) * Self-authored letter, dated 22 January 2020 * Orders Number 344-03, dated 9 December 2016 * Memorandum, Subject: Letter of Responsibility and Property Accountability, dated 24 April 2017 * Memorandum, Subject: Monthly Hand Receipt, Cyclic, and Sensitive Items Inventory, dated 24 August 2017 * Memorandum, Subject: Property Book Officer (PBO) Cyclic Memo, dated 25 September 2017 * Memorandum, Subject: Monthly Sensitive Item Inventory, dated 25 September 2017 * Memorandum for Record (MFR), Subject: Assumption of Property Book Accountability, dated 14 October 2017 * MFR, Subject: Request for Extension (Cyclic Inventory), dated 26 October 2017 * Memorandum, Subject: Monthly Hand Receipt, Cyclic, and Sensitive Items Inventory, dated 21 December 2017 * Memorandum, Subject: PBO Cyclic Memo, dated 22 December 2017 * Memorandum, Subject: Monthly Cyclic Inventory Schedule, dated 1 January 2018 * Memorandum, Subject: Monthly Hand Receipt, Cyclic and Sensitive Items Inventory, dated 29 January 2018 * Certified Mail receipt * MFR, Subject: PBO Cyclic Memo, dated 1 March 2018 * Memorandum, Subject: Monthly Sensitive Items Inventory, dated 27 March 2018 * Memorandum, Subject: Monthly Hand Receipt, Cyclic and Sensitive Items Inventory, dated 25 April 2018 * Memorandum, Subject: Monthly Hand Receipt, Cyclic and Sensitive Items Inventory, dated 1 May 2018 * MFR Subject: PBO Cyclic Memo, dated 1 June 2018 * Primary Hand Receipt, dated 2 July 2018 * Memorandum for Commander – Subject: Monthly hand Receipt, Cyclic, and Sensitive Items Inventory, dated 26 July 2018 * MFR Subject: Extension Request for Change of Command Inventories, dated 1 August 2018 * MFR Subject: Letter of Lateness, July Monthly Reports to include Sensitive Item Inventories, dated 16 August 2018 * DA Form 2823 (Sworn Statement), dated 17 September 2018 * MFR Subject: Letter of Lateness, dated 17 September 2018 * DA Form 200 (FLIPL), dated 12 December 2018 * MFR Subject: FLIPL Timeline, dated 22 January 2019 * MFR Subject: FLIPL Contacting Sergeant (SGT) G_, dated 24 January 2019 * Memorandum, Subject: Findings and Recommendations for FLIPL Investigation ($8,884.49), dated 24 January 2019 * Memorandum, Subject: Findings and Recommendations for FLIPL Investigation ($15,702.16), dated 24 January 2019 * Memorandum, Subject: FLIPL, 8,884.49, dated 25 January 2019 * Memorandum, Subject; FLIPL, 15,702.16, dated 25 January 2019 * Memorandum, Subject: FLIPL Phone and Email Conversation with SGT E_, dated 13 February 2019 * Memorandum, Subject: No Response Memo, dated 26 April 2019 * Memorandum, Subject: Review of FLIPL ($8,884.49), dated 1 May 2019 * Memorandum, Subject: Review of FLIPL ($15,702.16), dated 1 May 2019 * Memorandum, Subject: Assumption of Command by Authority of Army Regulation 600-20 (Army Command Policy), Chapter 2, Subparagraph 2-5, dated 11 May 2019 * Memorandum, Subject: FLIPL ($8.884.49) (Notification to the applicant), dated 14 May 2019 * Receipt of Notice of the assessment of financial liability by applicant, dated 16 May 2019 * Memorandum, Subject: Request for Reconsideration, FLIPL ($24,586.65), dated 1 September 2019 * Email correspondence, Subject: Official Request for Reconsideration, dated 24 October 2019 FACTS: 1. In a self-authored letter to the Board, the applicant states: a. Several FLIPLs were initiated based on a Change of Command (CoC) when he served with Headquarters and Headquarters Company (HHC), 35th Combat Sustainment Support Battalion (CSSB). He is asking the Board direct the removal of the assessment of financial liability against him for the loss, damage, or destruction of Government property investigated under FLIPLs WCA6AA-XX-G4-0003 and WC6AA- XX-G4-0004. b. On 22 February 2019, the Investigating Officer (IO) sent two FLIPLs via certified mail to his unit. c. On 26 March 2019, and 5 June 2019, SGT C_ signed for the FLIPLs sent via certified mail. d. On 18 July 2019, he was made aware of the FLIPLs. e. He consulted legal counsel concerning his rights and filed a request for reconsideration with the approval authority. f. On 24 October 2019, the Approval Authority denied his request for reconsideration based on timeliness. g. Since he had no knowledge of the existence of FLIPLs as the investigation progressed, he respectfully requests that the Army Review Board Agency reconsider the approval authority's decision to impose financial liability against him. h. Further, he requests all collection activities against him be suspended and be reimbursed for previously collected amounts. i. According to Army Regulation (AR) 735-5 (Property Accountability Policies) paragraph, 13-43(a) (9 November 2016), provides a Soldier may request reconsideration of an approval authority's decision to impose financial liability on the grounds of legal error. AR 735-5, paragraph 13-44, defines legal error as, "Establishing that the facts of the case do not support an assessment of financial liability." j. He does not believe the facts support the legal conclusion that his conduct meets the required negligence standard for the imposition of financial liability. According to AR 735-5: (1) Paragraph 13-29(b )(1 ), "Before a person can be held financially liable, the facts must show that they, through negligence or willful misconduct, violated a particular responsibility or duty involving the property. (2) Paragraph 13-29(b)(2) defines simple negligence as, "The absence of due care, by an act or omission of a person which lacks the degree of care for the property that a reasonably prudent person would have undertaken under similar circumstances, to avoid the loss of Government property. The IO has not established that he was the proximate cause of the loss, he believes he should be relieved of all financial liability. k. He does not believe the IO's recommendation of liability is legally supportable for either FLIPL. He does not believe he acted negligently or that he is the proximate cause of the loss. l. Based on the foregoing, he respectfully requests reconsideration of the assessment of financial liability against him for the loss, damage, or destruction of Government property investigated under FLIPLs WCA6AA-XX-G4-0003 and WC6AA- XX-G4-0004. 2. A review of his official record shows: a. On 12 December 2009, he was appointed as a Reserve commissioned officer and executed an oath of office. b. He served in various positions and assignments to include deployments in support of Operation Enduring Freedom in 2011 and 2013. c. The applicant remains on active duty. 3. The applicant provides the following: a. On 9 December 2016, Orders Number 344-03, published by Headquarters, U.S. Army Garrison, Okinawa, shows the applicant would proceed on a permanent change of station (PCS) to 35th Combat Sustainment Support Battalion, effective 17 January 2017. b. MFR, Subject: Letter of Responsibility and Property Accountability, showing as the company commander he had personally signed for each item of property issued from several property book offices. Items exclusively used by one person will be issued directly to the user. Monitor and supervise the company Supply Sergeant. Be informed in a timely manner of all required inventories, to include losses, or damage to government property. FLIPLs will be initiated within five days of notification of loss liability. c. Memorandum for HHC, 35th CSSB, – Subject: Monthly Hand Receipt, Cyclic, and Sensitive Items Inventory, provides requirements for Monthly Hand Receipts and Cyclic Inventory. d. On 25 September 2017, the applicant conducted a Sensitive Items Inventory in place of the Cyclic Inventory for the month of September. No discrepancies were noted. e. On14 October 2017, MFR, Subject: Assumption of Property Book Accountability provides the applicant assumed command of HHC, 35th CSSB with an effective date of 28 April 2017 and took over the responsibility of property accountability. f. On 26 October 2017, MFR, Subject: Request for Extension, the applicant requested an extension of his cyclic inventory for the month of October 2017. Further he stated he would complete 20 percent of the cyclic inventory November 2017. His rationale for the extension was the non-availability of several hand receipt holders who were supporting Exercise Courageous Channel and lack of planning on his part. g. On 21 December 2017, Memorandum, Subject: Monthly hand Receipt, Cyclic, and Sensitive Items Inventory for HHC, 35th CSSB, – Subject: Monthly Hand Receipt, Cyclic, and Sensitive Items Inventory, provides requirements for Monthly Hand Receipts and Cyclic Inventory. h. On 22 December 2017, MFR, Subject: PBO Cyclic Memo shows the applicant certified he did not have a cyclic inventory for the month of December since it was not required In Accordance With (IAW) AR 710-2 (Supply Policy Below the National Level), AR 735-5 and Department of the Army (DA) Pamphlet 710-2-1 (Using Unit Supply System (Manual Procedures)). i. On 1 January 2018, MFR, Subject: Monthly Cyclic inventory Schedule shows the frequency in which commanders would conduct inventories and the month and line numbers to be inventoried. j. On 29 January 2018, Memorandum, Subject: Monthly Hand Receipt, Cyclic, and Sensitive Items Inventory shows the applicant conducted an inventory of equipment identified by the property book officer. A 10 percent cyclic inventory method was chosen for the command during the month of January. k. A certified mail receipt was provided showing the packet was mailed to the applicant at a San Diego military address. l. On 1 March 2018, MFR, Subject: PBO Cyclic Memorandum shows the PBO certified a cyclic inventory for the month of March was not required for the applicant's unit. m. On 27 March 2018, Memorandum, Subject: Monthly Sensitive Item Inventory shows all sensitive items were inventoried and checked for completeness by component using the proper inventory documents. Discrepancies were noted and/or accounted for IAW AR 735-5. The point of contact for the inventory was Captain (CPT) R_, the Battalion S-2. n. On 25 April 2018, Memorandum, Subject: Monthly Hand Receipt, Cyclic, and Sensitive Items Inventory shows the applicant directed a monthly hand receipt, cyclic and sensitive items inventory. A 10 percent cyclic inventory method was chosen for the command during the month of February. o. On 1 May 2018, Memorandum, Subject: Monthly hand Receipt, Cyclic, and Sensitive Items Inventory shows the applicant directed a monthly hand receipt, cyclic and sensitive items inventory. A 10 percent cyclic inventory method was chosen for the command during the month of May. p. On 1 June 2018, the PBO certified the applicant's unit was not required to complete a cyclic inventory for the month of June. q. On 2 July 2018, a Primary Hand Receipt shows the number, description, authorized sum, name of unit and unit identification code with emphasis on the cellular power distribution system, phone cellular multi-function organizer, blackberry, public address system, and power supply unit. The pages provided were 1, 23, 24, 37, 38 and 51 of 51 pages. r. On 26 July 2018, Memorandum, Subject: Monthly Hand Receipt, Cyclic, and Sensitive Item Inventory shows the applicant directed a monthly hand receipt, cyclic and sensitive items inventory. A 10 percent cyclic inventory method was chosen for the command during the month of July. s. On 1 August 2018, MFR, Subject: Extension Request of CoC Inventories was completed showing the incoming commander for HHC, 35th CSSB requested a 15-day extension to finalize the change of command inventories based on: (1) 27 Non-expendable End Item Shortages totaling $45,853.19. An effort was being made to recover them to ensure proper accountability. (2) The supply team was working to reconcile component shortages valued at $187,861.64. HHC received stock to fill some shortages requiring distribution to Sub- Hand Receipt Holders (SHRH) and an inventory by the incoming commander. (3) The outgoing commander was a current SHRH for I Corps Forward. I Corps Forward items on his SHR included a total of 26 line items and 111 pieces of equipment. t. On 16 August 2018, Memorandum, Subject: Letter of Lateness, July Monthly Reports to Include Sensitive Item Inventories, was provided: (1) Cyclic inventory finalized on 26 July 2018 was late because of a misinterpretation of cyclic requirement within the emailed reports. (2) Sensitive item inventory finalized on 27 July 2018 identified a computer system, digital (Gateway) was unaccounted for. (3) Primary hand receipt finalized on 30 July 2018. (4) All issues resulting in the Letter of lateness had been corrected. u. On 17 September 2018, a DA Form 2823 (Sworn Statement) authored by CPT G_ F_ states: (1) As incoming Commander, she conducted a joint inventory with the applicant (outgoing commander) during 25 June through 16 August 2018. (2) Inventory was conducted on the organizational property of HHC, 35th CSSB and TA-50 inventory. (3) Discrepancies were identified, missing end items and components were listed on the DD Form 200. (4) Items found were reconciled and identified as a valid shortage. (5) Items not found could not be reconciled and were identified as missing and were listed on their respective DD Form 200. (6) FLIPLs were split into three categories, End Item, Component or TA-50 Shortage. v. On 17 September 2018, MFR, Subject: Letter of Lateness authored by CPT F_ shows: (1) A loss was discovered during the HHC, 35th CSSB joint command inventories on 25 June to 16 August 2018. (2) The SHRH's were given until 16 August 2018 to find the missing items. (3) DD Form 200 was submitted but was late due to the high operation tempo of the unit. In addition, the HHC supply was limited in personnel and only one supply clerk to complete four FLIPLs for the CoC. w. On 12 December 2018, DD Form 200 reflects: (1) A discovery was made during the HHC, 35th CSSB joint change of command inventories between the applicant and the incoming commander from 25 June through 16 August 2018. The incoming commander and the Supply Noncommissioned Officer (NCO) identified the missing components. A suspense date of 16 August 2018 to locate the missing items was given to the sub hand-receipt holders. (2) Several recommendations were made to mitigate loss of organizational property. The Commander and supply team would establish proper property accountability of all items on the primary hand-receipt. The Commander will identify SHRH's. SHRH will always signed for equipment. PBO, Commander, SHRH's and supply team will ensure monthly cyclic inventories are conducted correctly and on time. The Supply NCO will establish a system to secure and file all accountable documents. (3) The supply clerk completed and signed the DD Form 200. (4) The incoming commander indicated the potential for negligence or abuse was evident or suspended. Further, she stated the missing property was accounted for and signed by the applicant on the outgoing commander's monthly reports showing the items were on hand. She recommended proper inventory occur and SHRH receive monthly training on property accountability. (5) The appointing authority found evidence that warranted holding the outgoing commander with property loss. He also recommended there could be a financial liability in the amount of not more than one half month per for the loss. A FLIPL officer was appointed. (6) The approving authority concurred with the IO's findings and recommended approval of holding the applicant liable in the amount of $3,994.56 equivalent to 64 percent of one month's base pay. The FLIPL was reviewed and approved by the Staff Judge Advocate. x. On 22 January 2019, MFR Subject: FLIPL Timeline completed by the IO provided: (1) 16 January 2018 – received FLIPL and began investigation. (2) 17 January 2018 – tried to establish communications with all parties (outgoing commander, incoming commander, outgoing supply sergeant, incoming supply sergeant) (3) 22 January 2018 – received copies of requested information from the Battalion S-4. Attempted to communicate with all parties concerned for further information to add before continuing the investigation. (4) 23 January 2018 – did not receive any further communication from all concerned. (5) 24 January 2018 – received a sworn statement from incoming commander. (6) 25 January 2018 – concluded investigation, provided S-4 the investigation to hand to legal for a review and notification to Soldier of liability. y. On 24 January 2019, MFR, Subject: FLIPL indicates the IO was unable to contact the outgoing supply sergeant and did not find him the proximate cause of the loss. z. On 24 January 2019, Memorandum Subject: Findings and Recommendations FLIPL Number WCA6AA-XX-G4-0003, ($8,884.49) provides: (1) The IO found the applicant liable for the missing items and should be held liable per AR 735-5, paragraph 13-29a 2(a-d). (2) Findings – determined the items missing, were not available during the CoC. The applicant was unable to produce the missing items during the inventories that concluded on 16 August 2018. Issues that may have contributed to the loss of equipment included the return from a field exercise, pending Date Eligible for Return from Overseas (DEROS) for the outgoing commander, and PCS of the supply sergeant during the CoC. (3) Recommendation – recommended an honest review of policies and procedures during the CoC. During normal inspection, the Battalion S-4 must ensure SHRH's sign their hand receipts. aa. On 25 January 2019, the applicant was notified that he was being assessed financial liability to the Government in the amount of $6,241.30 for the loss of Government property investigated under subject investigation property loss WCA6AA-XX-G4-0003 and WCA6AA-XX-G4-0004. Further he was given the opportunity to inspect and copy Army records relating to the debt, seek legal advice and submit a statement and other evidence to the approving authority in rebuttal of the recommendation. bb. On 13 February 2019, MFR, Subject: FLIPL shows a response was received from the incoming supply sergeant to questions asked pertaining to the CoC inventories between the outgoing and incoming commanders. He explained: (1) The unit was returning from the field. (2) The supply sergeant in place was out-processing. (3) Cyclic inventories had not been conducted each month, though the outgoing commander signed hand receipts each month. (4) The outgoing supply sergeant asked the commander to conduct inventories, however, he did not have time. (5) After the supply office moved four times since his arrival, the potential for hand receipts to get lost was likely. (6) After the CoC, hand receipts were signed and provided to every HRH. cc. On 26 April 2019, Memorandum, Subject: No Response Memo shows the IO noted on 22 February 2019, the battalion S-4 sent by certified mail the notification letter and the entire FLIPL packet to the applicant which he received on 26 March 2019. As of 26 April 2019, the applicant had not submitted a rebuttal statement or requested an extension. Therefore, he was submitting the FLIPL packet to the battalion S-4 for processing. dd. On 1 May 2019, a Memorandum, Subject: Review of FLIPL Number WCA6AA- XX-G4-0003, ($8,884.49) provides; the appointing authority will proceed with the imposition of liability, after a legal officer reviews it. The IO assembled sufficient evidence for legal to render an opinion. The outgoing commander (applicant) failed to properly account for the property. No evidence he sub-hand-receipted any of the property he signed for that turned up missing. The battalion commander recommended 50 percent liability rather than 100 percent. With the accession of liability, the applicant must be contacted and afforded the opportunity to get copies of the documentation, free legal advice on the debt, request reconsideration, request a hearing, request an extension or submit a request to ABCMR. ee. On 1 May 2019, a Memorandum for Commander – Subject: Findings and Recommendations for Financial Liability Investigation (FLIPL) Number WCA6AA-19-G4-0004, $15,702.16 provides the same statements as provided in FLIPL WCA6AA-XX-G4-0003. ff. On 11 May 2019, Memorandum, Subject: Assumption of Command by Authority of AR 600-20, Chapter 2, Subparagraph 2-5 shows a new lieutenant colonel assumed command of I Corps (Forward). gg. On 14 May 2019, Memorandum, Subject: Financial Liability, FLIPL WCA6AA- XX-G4-0003 shows the applicant was notified that he was being assessed financial liability to the Government in the amount of $6,241.50 for the loss of Government property investigated under subject investigation property loss WCA6AA-XX-G4-0003. Further he was given the opportunity to request a reconsideration, hearing, remission or cancellation of indebtedness, and stop all collection action, pending a decision on the request by the appropriate official. He was given 30 days to respond and if denied, afforded the opportunity to contact the Board. hh. On 16 May 2019, the applicant acknowledged receipt of notice of the assessment of financial liability. ii. On 1 September 2019, Memorandum, Subject: Request for Reconsideration, FLIPL WCA6AA-XX-G4-0003 and 0004 shows the applicant requested reconsideration of financial liability against him for the loss, damage or destruction of Government property investigated under FLIPLs WCA6AA-XX-G4-0003 and WCA6AA-XX-G4-0004 in the amount of $24,586.65. While the packet was sent via certified mail on 22 February 2019, he did not become aware of the paperwork until 18 July 2019. Since he was unaware of the FLIPLs, he would like the approving authority to reconsider his decision to impose financial liability against him. jj. On 24 October 2019, the applicant submitted a request for reconsideration, and was denied, because his memo was late, nor had an extension been requested. His only recourse was an application to the Board. 4. On 16 December 2020, in the processing of this case, an advisory opinion was obtained from the Office of the Deputy Chief of Staff, G-4, Director of Supply Policy. The advisory official stated the enclosed application for relief of financial liability for the FLIPL initiated against the applicant is returned with a recommendation that the financial liability assessed be reversed. This includes reimbursement of $12,483.00 and correction of records. a. After a thorough review, the Office of the Deputy Chief of Staff, G-4 concludes that the FLIPL was not conducted IAW AR 735-5 and the recommendation to hold the applicant liable is not administratively sound. b. The investigation was not executed promptly enough to discover, report, and investigate the loss of Government property IAW AR 735-5, paragraph 13-6. The unit did not complete the holistic process within the timelines prescribed in AR 735-5, table 13-1. The Active Army has 75 days to process a FLIPL, and this FLIPL took 324 days to be resolved. The proximate cause cannot be determined due to the broken sequence of events and delays in the investigation process. It was never proven to show that the applicant's actions were attributed to display any negligence or willful misconduct. c. The DD Form 200 was not completed properly IAW AR 735-5, paragraph 13-10 and Figure 13-2. In block 15, only sections 15b, 15c, 15d were complete and furthermore the applicant did not fill out block 16 which likely contributed to his being unaware of the FLIPL investigations taking place. In addition to this, Department of the Army (DA) Form 7531 (Checklist and Tracking Document for FLIPL) was not complete which directly contributed to the FLIPL not being conducted IAW AR 735-5. d. The applicant was never given the opportunity to provide a statement on his behalf during the investigation due to a lack of communication and the FLIPL going beyond the prescribed timeline as outlined in AR 735-5, para 13-6 and figure 13-1. This resulted in him never being made aware of the investigation until he was given the letter of notification for financial liability. e. The applicant was not provided the opportunity to rebut or submit a reconsideration after notification of financial liability. IAW with AR 735-5, chapter 13, paragraph 13-44, every individual found financially liable will have the opportunity to request reconsideration of the approving authority's decision. Reconsideration was handled incorrectly because it never went to the appeal authority. He received notification of financial liability on 18 July 2019, 11 months after the FLIPL was first initiated. This resulted in his request for reconsideration never being forwarded to the appeal authority. f. The unit initiated two separate FLIPLs for one circumstance. This was done for the purposes of providing document numbers from two separate document registers non-expendable and expendable/durable). The recommended liability on both FLIPLs was one month's base pay. This led to the IO charging the applicant two times his base pay for one incident. IAW AR 735-5, paragraph 13-41, an individual can only be assessed a maximum of one month's base pay at the time of the loss. 5. The applicant was provided with a copy of the advisory opinion to give him an opportunity to respond and/or submit a rebuttal. 6. On 18 December 2020, by email the applicant concurred with the advisory opinion. BOARD DISCUSSION: After reviewing the application and all supporting documents, the Board determined relief was warranted. Based upon the available documentation and the findings and recommendation of the G4 advisory official, the Board concluded there was an error or injustice which would warrant a reversal of the financial liability assessed against the applicant, to include reimbursement of the $12,483.00 collected from the applicant previously. BOARD VOTE: Mbr 1 Mbr 2 Mbr 3 :XX :XXX :XX GRANT FULL RELIEF : : : GRANT PARTIAL RELIEF : : : GRANT FORMAL HEARING : : : DENY APPLICATION BOARD DETERMINATION/RECOMMENDATION: The Board determined the evidence presented is sufficient to warrant a recommendation for relief. As a result, the Board recommends that all Department of Army records of the individual concerned be corrected by amending and reversing the applicant’s Financial Liability Investigation of Property Loss (FLIPL) in the amount of $24,586.65. Additionally, the Board recommended reimbursement of the previously collected $12,483.00. X CHAIRPERSON I certify that herein is recorded the true and complete record of the proceedings of the Army Board for Correction of Military Records in this case. REFERENCES: 1. AR 710-2 (2 (Supply Policy Below the National Level) prescribes policy for supply operations below the national level. Appendix B implements the Command Supply Discipline Program (CSDP). It states the CSDP is a commander's program and that commanders will implement the CSDP by using their existing resources. It further provides program guidance that includes enforcement of supply discipline methods, administrative measures, disciplinary measures, reaction to incidents of non-financial liability, and ensuring supply discipline and management controls. 2. AR 735-5 (Property Accountability Policies) prescribes the basic policies and procedures in accounting for Army property and sets the requirements for formal property accounting within the Army, which includes but is not limited to defining the Command Supply Discipline Program, its intent, and implementing procedures. It specifies that commanders at all levels will ensure compliance with all policies and procedures prescribed by this regulation that apply at their level of command. AR 735-5 defines the following terms: a. 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 circumstances and which is the proximate cause of the loss of, damage to, or destruction of Government property. Failure to comply with existing laws, regulations, and/or procedures may be considered as evidence of negligence. b. 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 predominant cause, from which the loss or damage followed as a natural, direct, and immediate consequence. c. Chapter 13 states that the purpose of a FLIPL documents the circumstances concerning the loss or damage of Government property and serves as, or supports, a voucher for adjusting the property from accountable records. It also documents a charge of financial liability assessed against an individual or entity, or provides for the relief from financial liability. Chapter 13 also states a Financial Liability Officer's (FLO) responsibility is to determine the cause and value of the loss or damage of Government property listed on the DD Form 200, and determine if assessment of financial liability is warranted. That determination must be based on the facts developed during a thorough and impartial investigation. However, before beginning the investigation, the FLO must have an understanding of the terms "responsibility, culpability, proximate cause, and loss"; each term impacts upon a determination of financial liability. Individuals may be held financially liable for the loss or damage of Government property if they were negligent or have committed willful misconduct, and their negligence or willful misconduct is the proximate cause of that loss or damage. (1) Responsibility. General responsibility: The type of responsibility a person has for property determines the obligations incurred by that individual for the property. DA Pam 735–5 presents specific issues the FLO must consider before recommending financial liability. (2) Culpability: Before a person can be held financially liable, the facts must show that they, through negligence or willful misconduct, violated a particular responsibility or duty involving the property. Simple negligence is the absence of due care, by an act or omission of a person which lacks that degree of care for the property that a reasonably prudent person would have taken under similar circumstances, to avoid the loss or damage of Government property. Gross negligence is an extreme departure from due care resulting from an act or omission of a person accountable or responsible for Government property which falls far short of that degree of care for the property that a reasonably prudent person would have taken under similar circumstances. It is accompanied by a reckless, deliberate, or wanton disregard for the foreseeable loss or damage to the property. Whether a person's acts or omissions constitute negligence depends on the circumstances of each case. Negligence under some circumstances may not reflect negligence under other circumstances. Therefore, fully consider the following factors, as a minimum, when determining the reasonableness of a person's conduct: the person's age, experience, physical condition, and special qualifications; the type of responsibility the person had toward the property; the type and nature of the property; the nature, complexity, level of danger, or urgency of the activity ongoing at the time of the loss or damage of the property; the adequacy of supervisory measures or guidance for property control; the feasibility of maintaining close supervision over the property, given the nature and complexity of the organization or activity supervised; and/or the extent supervision could influence the situation considering pressing duties or lack of qualified assistants. Willful misconduct is any intentional wrongful or unlawful act or omission relating to Government property. (3) Proximate Cause: Before holding a person financially liable for a loss to the Government, the facts must clearly show that the person's conduct was the "proximate" cause of the loss or damage. That is, the person's acts or omissions were the cause that, in a natural and continuous sequence, unbroken by a new cause, produced the loss or damage, and without which the loss/damage would not have occurred. (4) Loss: Before holding a person financially liable for a loss to the Government, the facts must clearly show that the person's conduct was the "proximate" cause of the loss or damage. That is, the person's acts or omissions were the cause that, in a natural and continuous sequence, unbroken by a new cause, produced the loss or damage, and without which the loss or damage would not have occurred. d. Paragraph 13-6 provides processing time segments for the DD Form 200. Under normal circumstances, do not exceed 240 calendar days total processing time. Commanders may adjust the time segments shown in these figures downward at their discretion. e. Paragraph 13-22c states when the approving authority can establish from the information contained on DD Form 200, blocks 9, 10, and 12 and attached exhibits that negligence or willful misconduct was the proximate cause of the loss or damage, financial liability may be assessed. f. Paragraph 13-42 states a request for reconsideration of the assessment of financial liability is based on legal error. Requests for reconsideration denied by the approval authority will be forwarded to the appeal authority by the approval authority. Submission of a request for reconsideration, a hearing, remission or cancellation of indebtedness stops all collection action, pending a decision on the request made by the appropriate official. g. Paragraph 13-43 states when the approving authority does not reverse their original decision to approve financial liability, the request for reconsideration becomes an appeal, which will be forwarded to the appeal authority by the approving authority. The request for reconsideration will set forth, in detail, any new evidence offered, and provide rationale why financial liability is not appropriate. h. Paragraph 13-44 states the approving authority, upon receipt of a request for reconsideration, will review any new evidence offered, and make a decision to either reverse the previous decision assessing financial liability against the individual or recommend the continuation of the assessment of financial liability. A request for reconsideration will be reviewed only on the basis of legal error (that is, the request must establish that the facts of the case do not support an assessment of financial liability). 3. DA Pamphlet 710-2-1(Using Unit Supply System (Manual Procedures) Paragraph 9- 6 (b) (Annual or Cyclic Inventory) provides when the cyclic inventory option has been chosen, conduct cyclic inventories monthly, quarterly, or semiannually. Inventory about 10 percent of the property book items monthly, 25 percent quarterly, or 50 percent semiannually. 4. AR 600-4 (Remission or Cancellation of Indebtedness) in accordance with the authority of Title 10, United States Code (USC), section 4837, the Secretary of the Army may remit or cancel a Soldier's debt to the U.S. Army if such action is in the best interests of the United States. Indebtedness to the U.S. Army that may not be canceled under Title 10, USC, section 4837 when the debt is incurred while not on active duty or in an active status. //NOTHING FOLLOWS//