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The status of any recovery action in process or
contemplated
When an investigating officer is required, the CO
is responsible for making the appointment. If the CO
is not authorized to convene an investigation, he or she
must request an investigation through the chain of
command. The investigating officer must not be in the
DO’s chain of command.
Whenever possible, a
disinterested DO should be appointed as the
investigating officer. Investigating officers should be
commissioned officers in the rank of O-4 or above, or
civilian employees in grades GS-12 or above, and if
practical, senior in rank to the DO under investigation.
The investigating officer should be familiar with
investigative techniques and have a knowledge of the
required internal controls, pertinent laws, and
directives. If the investigative officer does not meet
these requirements, technical guidance should be
requested from the staff judge advocate or other
appropriate sources. The required procedures and
findings are detailed in the DODFMR, Volume 5,
chapter 06.
Identifying, Documenting, Tracking, and
Accounting for Irregularities
Previously, you read that financial irregularities in
a DO’s account usually occur in three general areas:
physical losses (either major or minor) of funds; illegal,
improper, or incorrect payments; and overages of funds.
Now, let’s look at each of these areas and the steps that
should be taken by those in accountable positions to
monitor, control, and identify these irregularities.
S U B S I D I A R Y A C C O U N T A B I L I T Y
RECORDS.— The DO always has primary
responsibility for identifying, tracking, and accounting
for irregularities. Using the DD Form 2667, Subsidiary
Accountability Record, allows the DO to maintain a
record of all physical losses or overages of funds.
Separate DD 2667s should be maintained for physical
losses; separate DD 2667s should be maintained for
overages. The DD 2667 maintained for a loss must be
reconciled with the DD 2657 daily and fled as a
subsidiary record supporting the DD 2657. If more than
one physical loss or overage occurs in a single day
(because of the use of more than one deputy, agent, or
cashier), each loss or overage must be accounted for
individually.
PHYSICAL LOSSES OF FUNDS.— Physical
losses of funds are divided into two categories: major
and minor. In dealing with a physical loss of funds, the
first step is to determine the extent of the loss.
Major.— As previously stated, a major physical
loss is a loss of $750 or more. It includes losses of
public funds, records, or papers as a result of fire, flood,
earthquake, action by hostile force, airplane crash,
shipwreck, or explosion. It includes other losses not
covered by the Government Losses in Shipment Act,
unexplained losses, and other similar occurrences. Any
losses of $750 or more resulting from wrongful
conduct, such as theft, robbery, and burglary, are major
physical losses. Losses resulting from embezzlement
or fraudulent acts of disbursing personnel, acting alone
or in collusion with others, are treated as major physical
losses regardless of the amount involved. For all major
losses, an investigative officer must be appointed to
hold the appropriate type of investigation.
Minor.— Minor physical losses are those under
$750 when there is no fraud involved. The DO is
pecuniarily liable for all minor losses that occur in his
or her account, but may request relief of liability for
minor losses by submitting a quarterly minor loss report
to DFAS-CL. Unless an indication of fraud exists, the
CO is not required to report a minor loss of funds
through the chain of command to DFAS-CL. The DO,
however, must notify the CO in writing whenever a
minor loss of funds occurs.
All minor losses over $25 included on the quarterly
report must be supported by a separate investigative
report prepared by someone outside the disbursing
office. Investigative comments associated with a minor
loss of $25 or less must be made by the DO and
submitted in support of the associated items on the
quarterly report. If a loss of $25 or less is attributable
to the DO, the deputy will conduct the investigation and
prepare a written investigative report. Under no
circumstances will the individual incurring the loss
prepare his or her own investigative report.
ILLEGAL, INCORRECT, OR IMPROPER
PAYMENT LOSSES.— Illegal, incorrect, or improper
(erroneous) payment deficiencies may result from a
number of causes, such as the following situations:
Overpayment of a payee
Two or more payments to the same payee for the
same entitlement
Payment to the wrong payee
U.S. Treasury check overdrafts
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