documenting necessary inventory adjustments to stock
The inventory adjustment process is designed to
adjust and correct the difference between the quantities
in the stock records and in the location(s). For certain
items, the inventory adjustment process is inadequate
to certify that the loss or gain was not caused by
misconduct, negligence, or abuse. In this case, a survey
action may be required.
When a preliminary research cannot resolve the
discrepancy, the accountable and responsible individual
must initiate a causative research. A Financial Liability
Investigation of Property Loss, DD Form 200, is
prepared and forwarded to the appropriate survey
When the survey action involves stock
material, the inventory adjustment is entered into the
stock record only after approval of the survey.
When a loss or gain of material meets the criteria
for survey action, prepare a DD Form 200 according to
the procedures outlined in NAVSUP P-485.
CRITERIA FOR SUPPLY SYSTEM STOCK.
Prepare a DD Form 200 for unresolved discrepancies
involving supply system stock material categories as
Sensitive items such as drugs, precious metals,
narcotics, and alcohol regardless of money
Classified material regardless of dollar value.
Arms, ammunition, and explosives regardless of
Pilferable, valuable, and attractive items that
easily convert to personal use (such as hand
tools, individual clothing, office machines, and
photographic equipment) and when extended
dollar value of a line item discrepancy is 0.00
Bulk petroleum products when the loss exceeds
Noncontrolled items when the extended dollar
value exceeds the causative research threshold
of ,500 (,000 for CLF food items).
Any adjustments to AVDLR/DLR, regardless of
. Discrepancy or repetitive loss where there is an
indication or suspicion of fraud, theft, or
CRITERIA FOR PROPERTY BOOK
MATERIAL. Property book material consists of all
government property other than supply system stock. It
includes military real property, military personal
property, weapons and other military equipment in use,
and plant equipment. When property book material is
lost, commanding officers must determine if a DD Form
200 is required to assign responsibility, adjust records,
or provide relief from accountability. As a rule, all
items are subject to survey procedures with the
l When the loss of a motor vehicle is involved, a
motor vehicle accident investigation report may be used
instead of the report of survey. The accident report may
be used for survey purposes only when the investigation
clearly indicates that there is no negligence, personal
injury, or claim against the government.
. Discrepancies in quantities transferred to
disposal DRMO are not surveyed provided that the
value of the loss is less than 0 per line item and does
not involve sensitive items. A pattern of shortages may
trigger an investigation to identify theft or intentional
losses of items to avoid preparing turn-in documents.
l Special tooling and special testing equipment
reporting procedures should be provided by the
cognizant laboratory or hardware systems command.
l Property lost during combat operations. These
losses are accounted for in other regulation and need not
be reported on DD Form 200.
Missing, Lost, Stolen, and Recovered Reports
In addition to the above procedures, SECNAVINST
5500.4 should be consulted with respect to the policy
of missing, lost, stolen, and recovered (MLSR) reports
The MLSR (message report) is required for adjustments
of sensitive or classified items such as arms,
ammunitions, and explosives. The DD Form 200 is
used as the final report if a sensitive item is in the
inventory. Material damaged in shipment and in transit
that is reported on Standard Form (SF) 364 or SF 361
also requires a DD Form 200 as a final report.