This response is based on the information provided.  We suggest you discuss with your Comptroller, contracting team, program manager and/or legal department as appropriate.

The question asked: If a Service takes equipment procured via NGREA and transfers it from RC to AC, understand that money or replacement has to change hands IAW DoDI 1225.06.

What happens if a Service does not transfer NGREA procured equipment, but divests the capability entirely as no longer needed for mission requirements?  Does the Service still transfer money?

Due to the different Appropriations used, e.g. NGREA vs APA, the transferring of the equipment would more than likely trigger a transfer of funding.  If the RC decides to divest the capability and no transfer takes place then there would not be a need to transfer funds but would show on the RC property accountability report.  In the event of a transfer, then the property would have to be accounted for on the report so Congress will understand the status of that property.  Once the transfer takes place the RC would have to account for the funds for that particular property even if the capability is divested by the AC.