When circumstances warrant, such as an indication of criminal action or gross negligence, the commanding officer may appoint a financial liability officer or a financial liability board to investigate the circumstances of the lost, damaged, or destroyed property. The criteria for appointing a financial liability officer or financial liability board to conduct a formal investigation is as follows:

It must be recommended by the responsible (accountable) officer.

It must be directed by higher authority.

It must be deemed appropriate by the appointing authority.

A criminal investigation must be initiated when research reveals there is evidence of theft. The NAVCRIMINVSERV must then be notified to initiate criminal proceedings. The legal officials and the commanding officer of the member must be consulted before any statement is taken from a person suspected of violating the Uniform Code of Military Justice (UCMJ).

When appointed, the financial liability officer is appointed and works with the responsible (accountable) officer to gather and document the facts and circumstances of the gain or loss. The financial liability officer is usually a commissioned officer, warrant officer, or enlisted member in paygrade E8 or E9. An individual who is responsible (accountable) for the items of property in question cannot be appointed as the financial liability officer. Additional research should include, as a minimum, the following actions:

Review the procedures to protect property for accuracy.

Determine whether normal procedures were complied with.

Determine the nature of personal responsibility, if any.

*Recommend corrective action.

Incidents that require further investigation of particular interest to Photographer's Mates are as follows:

Sensitive items, such as reclaimed silver, regardless of value

Classified items, regardless of value

Pilferable items when the extended dollar value of a line item discrepancy is $750 or more

Controlled equipage that is missing

Further research should be conducted to do the following:

Relieve the person responsible (accountable) for the items in question.

Substantiate adjustment of stock records.

Identify problem areas.

Determine corrective action.

The financial liability officer should conduct the review as quickly as possible. If there is a delay of 45 days or more, the financial liability officer must inform the appointing authority, in writing, of the reason(s) for delay.

After completing the investigation, all copies of the report, and attachments thereto, must be returned to the appointing authority or the reviewing authority (normally the commanding officer). The financial liability officer is not relieved from this detail until final action is taken. The appointing authority may agree or disagree with the findings and recommendations presented. When the appointing authority agrees with the report and there is no personal liability noted or recommended, block 13 will be signed and the report forwarded to the approving authority. When the appointing authority does not agree or there is suspicion of personal liability, then separate recommendations are made and the report is forwarded to the approving authority.

The approving authority may approve the findings of the financial liability officer or make recommendations. When the approving authority does not approve the report, a financial liability board may be appointed.