[Request for Review of Claims Group's Denial of an Application for Waiver]

A review was requested of the Claims Group's denial of a former Naval Reserve member's application for waiver of his debt to the United States. The debt arose from erroneous payments of a basic allowance for quarters that the member received when he and his family were residing in Government quarters. The member contended that, as soon as he noticed the unexpected increase in pay, he contacted the Navy and was informed that the money was owed to him for previous underpayments. However, when the member was discharged he was advised of the erroneous payments and his indebtedness to the Government. The member stated that, since he received no answer from the Navy for 2 years regarding his application for waiver, he believed that the matter was corrected and it was unfair to collect from him now. The Claims Group denied the waiver application on ground that, after occupying Government quarters and receiving no entitlement increases, the member had no basis to expect any increase in pay. Further, he should have informed the Navy when he received statements that he was receiving quarters allowances while living in Government quarters. GAO held that a reasonably prudent person would not have been satisfied with assurances that the increases were to correct previous underpayments. In addition, the employee should have set aside the amount of basic quarters allowance and insisted on an examination of the records. Since he did not do so, GAO found that the member was at fault in the matter, and his application for waiver could not be granted. In addition, there is no basis for granting a waiver due to Navy delays in making its determination. Accordingly, the Claims Group denial of the waiver was sustained.