equal to or greater than the causative research threshold. The thresholds are as follows: The extended dollar value of the line item is ,500 or more. 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 documents. . Special tooling and test equipment reporting will be provided by the cognizant laboratory or hardware systems command. 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 submitted. Survey Procedures 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 individual’s 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 inquiry process. 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. 7-18