Military Programs AR 735-5 & AR 710-2

Supply Economy & Property Accountability

Property accountability, hand receipts, the Command Supply Discipline Program (CSDP), and FLIPLs.

Types of Property

  • Property is classified by its Accounting Requirement Code (ARC):
  • Expendable (ARC: X): Items consumed in use (cleaning supplies, batteries, etc.). Not accounted for on hand receipts after issue.
  • Durable (ARC: D): Items not consumed in use but not formally managed by serial number on the property book (hand tools, etc.). Managed on hand receipts.
  • Nonexpendable (ARC: N): Items of significant value managed by serial number and on property books (weapons, NVGs, vehicles, etc.). Require formal hand receipts and accountability at all times.

Hand Receipts

DA Form 2062 is the primary hand receipt used to transfer longer-term property accountability from one person to another (or as a sub-hand receipt down to the user level).

DA Form 3161 is used as a Temporary Hand Receipt. A temporary hand receipt is only valid for 30 days. The person signing any hand receipt assumes direct responsibility for the property and must conduct a thorough inventory before signing.

FLIPL & Statement of Charges

  • When property is lost, damaged, or destroyed, accountability must be resolved:
  • Statement of Charges (DD Form 362): This is voluntary. The Soldier admits liability and agrees to pay through a payroll deduction.
  • FLIPL (Financial Liability Investigation of Property Loss): Initiated under AR 735-5 when a Soldier does not admit liability, or the loss exceeds the Soldier's base pay. A FLIPL determines if someone was negligent and should be held financially liable.

Command Supply Discipline Program (CSDP)

CSDP is a mandatory program directed by commanders to ensure compliance with Army supply policy. It establishes standardized requirements and ensures personnel are trained on property accountability.

Board Tips

Critical: Never say 'Report of Survey' — the Army only uses 'FLIPL' now. Know the three types of property (Expendable, Durable, Nonexpendable). Know the two main forms: DA Form 2062 (Hand Receipt) and DA Form 3161 (Temporary Hand Receipt). Know that a temporary hand receipt is only good for 30 days. Scenario: 'You discover a missing item during inventory — what do you do?' Answer: 'I would immediately halt the inventory, conduct a thorough search of the area, notify my chain of command, and if the item is not found, a FLIPL would be initiated.'