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Military Regulation
Army Regulation 735–5

Property Accountability

Policies and Procedures for Property Accountability

Headquarters Department of the Army Washington, DC 10 June 2002

UNCLASSIFIED

SUMMARY of CHANGE
AR 735–5 Policies and Procedures for Property Accountability This revision-o Changes the term "sensitive items" to "controlled inventory item" (paras 1429a(2) and 14-29a(4)(a)). Changes the dollar value of discrepancies that are not reported on inventory adjustment reports (IARs) from $50.00 to $1,000.00 in extended line item value (para 14-29a(4)). Changes the requirement for causative research on IARs from inventory discrepancies resulting in adjustment from over $500.00 to over $1,000.00 in extended line item value (para 14-29c). Changes the goal for inventory adjustments (both gains and losses) for all IARs from less than 2.5 percent of the dollar value to less than 5 percent of the dollar value of the requisitioning object (RO) during the fiscal year (paras 14-29e and 14-29g). Adds condition code changes, re-identification, and pseudoreceipts to administrative IARs that are not included in the total when determining whether the goal of 5 percent has been achieved (para 14-29h(5),(6) and(7)). Adds the terms “causative research” and “controlled inventory items” to the glossary (glossary, sect II). Revision dated 31 January 1998-Identifies the statutory authority and DoD accounting policy that policies and procedures contained in this regulation are based on (para 1-4). Expands the basic requirements for conducting inventories to include property on hand at USAMC Accountable Supply Distribution Activities and Depots, supplies stored by a supply support activity, supplies at the user level accounted for on property book records, real property, and Army War Reserve 3 stocks (para 2-6). Adds, under responsibility, a new type of responsibility, i.e., custodial responsibility, providing the definition and obligations (para 2-8d). Identifies installed carpeting

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