Army Regulation AR 735-5 Property Accountability Policies 10 May 2013

Product Information

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

Change of hand receipt holder inventories often occur at the platoon and squad levels. The incoming platoon leader or noncommissioned officer (NCO) inventories all property signed down to them from the commander. The incoming sub-hand receipt holder is responsible for ensuring 100 percent accountability of all items, including BII and COEI. If the Soldier does not contest liability they may voluntarily sign a Department of Defense Form 362, or Statement of Charges/Cash Collection Voucher. While DD Form 362 is an admission of liability for the lost or damaged property and an agreement to pay for it, the Army uses FLIPLs in situations where responsibility for the loss is in question, or where the amount to be charged is in dispute.Custodial responsibility obligates a person to ensure property in storage and awaiting issue or turn-in is cared for and kept safe. Custodial responsibility often results from a supply assignment.

Personal responsibility obligates a person to exercise reasonable actions to properly care for and keep safe property issued or acquired for a person's exclusive use. Personal responsibility always accompanies the physical possession of property. Financial liability investigations for property loss (FLIPL) often occur during changes of command. When officers are about to take command, they are thrown into the confusing world of supply and the change of hand receipt process. In a perfect world, all runs smoothly; the outgoing hand receipt holder is present, all hand-receipted property is immaculate, and all sub-hand receipt holders are available.Direct responsibility obligates a person to ensure property they signed for is properly used, cared for, and kept safe.