State Department's Adjustment of Appropriations to Cover Loss by Disbursing Officer

The Department of State requested relief for an employee for a loss that occurred while she was serving as a United States Disbursing Officer. GAO instructed that the amount of the relief should have been charged to the appropriation or fund available for the expense of the disbursing or other accountable function at the time the adjustment was effected. The Assistant Secretary-Controller of the Department of State responded by stating that while an adjustment appeared necessary to clear the employee's account, the Department of State had no appropriation specifically available for such adjustments. However, the response also stated that while Disbursing Officers was an employee of the Department of State, they receive and disburse moneys on behalf of other agencies, and it was impossible in this case to determine whether the losses were related to a Department of State function or to one of the many other agencies for which employees perform disbursing services. Thus, the Department of State requested advice in assistance to determine how relief for such losses should be treated.