equal to or greater than the causative research threshold.
The thresholds are as follows:
The extended dollar value of the line item is ,500
Any adjustment of a depot-level repairable (DLR),
regardless of dollar value.
PROPERTY BOOK MATERIAL. The
commanding officer determines if Financial Liability
Investigation of Property Loss, DD Form 200, is
required. When the form is required, it is used to assign
responsibility, adjust records, or provide relief from
accountability. The commanding officer makes this
determination based on the results of preliminary and
causative research. As a rule, all items are subject to
survey procedures, with the following exceptions:
. Items of nominal value, and extended dollar
value not exceeding 0 per incident, unless there is
suspicion of fraud, theft, or personal negligence.
. Motor vehicle accident investigation reports may
be used instead of DD Form 200 when the investigation
clearly shows there is no negligence, no personal injury,
and no claim against the government.
. Property lost during combat operations. These
loses are accounted for in other regulations and are not
subject to survey procedures on DD Form 200.
. Discrepancies in quantities transferred to
Defense Reutilization and Marketing Office (DRMO),
provided the loss value 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
. Special tooling and test equipment reporting will
be provided by the cognizant laboratory or hardware
Also, consult SECNAVINST 5500.4 (series) for
policy of Missing, Lost, Stolen, and Recovered (MLSR)
Reports. Adjustments for sensitive or classified items,
such as arms, ammunition, and explosives, require an
MLSR as the initial report. The DD Form 200 is required
as a final report if a sensitive item is in inventory.
Material damaged in shipment, reported on Standard
Form (SF) 364, requires a final report. Material
damaged in transit, reported on Discrepancy in
Shipment (SF-361), also requires a final report to be
This section describes the procedures on how to
account for lost, damaged, or destroyed government
property. The DOD 7200.10-M provides guidance and
policies on qualifications, duties, and responsibilities.
Immediately after discovery of loss, damage, or
destroyed property, you should start an inquiry. The
inquiry must be an informal procedure to find the facts
and circumstances that caused the gain, loss, damage,
or destruction. The individual conducting the inquiry is
responsible for completing blocks 1 through 11 of DD
Form 200. Refer to NAVSUP P-485/567 for procedures
in preparing the DD Form 200. The inquiry should
identify what, how, where, when it happened, and who
was involved. Also, include findings of any evidence of
negligence, willful misconduct, and deliberate
unauthorized use or disposition of property.
During the inquiry, the first matter to be determined
is whether there is evidence of negligence. To find if the
incident involves negligence, ask the question, Would
a reasonably prudent person have acted in this reamer?
Check to ensure that proper procedures were followed
for the use of the property. Also, inquire about the
situation or condition when the incident happened. For
example, an operator driving a forklift with a pallet load
of uneven material traveled over the speed limit on a
slippery and rough terrain and dropped and damaged the
material. The operator was speeding, and although he
knew about the rough ground, he failed to secure the
pallet load. This is considered evidence of negligence.
A reasonably prudent person would take precautions
when operating a forklift under these conditions.
Evidence of simple or gross negligence depends on
the conduct of the individual. If the individual did not
exercise precautions or good judgement, then simple
negligence applies. If the individuals conduct was
characterized as reckless, deliberate, or a complete
disregard of foreseeable results, then gross negligence
applies. Evidence of whether simple or gross negligence
was the cause of the loss or damage is based on the facts
and circumstances, and is documented during the
After completing the inquiry, the accountable or
responsible officer forwards the DD Form 200 to the
appointing authority. The appointing authority then
determines if there is a need for the financial liability
officer or board to investigate. Refer to NAVSUP P-485,
chapter 5, for procedures in processing discrepancies
with/without personal responsibilities. Figure 7-12
shows the flow of DD Form 200 during processing.