Financial Liability Officer’s Guide — DA PAM 735-5

This pamphlet provides guidance to individuals appointed as financial liability officers on conducting and documenting financial liability investigations of property loss. A financial liability officer is appointed to investigate the loss of Government property and the circumstances involved in the loss. Based on the investigation findings and recommendations, the approving authority (the individual who will take final action on the financial liability investigation of property loss) will make a final decision. The decision could be to relieve all concerned of responsibility and accountability for the loss, or to assess financial liability against an individual, or individuals. A great deal of responsibility is placed on the financial liability officer to conduct a fair, impartial and thorough investigation. The Army has billions of dollars invested in supplies and equipment. When any of these supplies and equipment are lost, damaged, or destroyed, it is essential to determine the cause of the loss, so corrective action can be taken to preclude further losses. When the loss is the result of negligence or willful misconduct on the part of an individual or several individuals, then it is proper to assess financial liability against the individual(s) for the cost of the loss.