B-86001/G), I-17000-2455, AUG. 4, 1955

B-86001/G), I-17000-2455, AUG. 4, 1955

TO THE SECRETARY OF THE ARMY:

REFERENCE IS MADE TO LETTER DATED FEBRUARY 8, 1955, WITH ENCLOSURES, FROM THE CHIEF OF FINANCE, CONCERNING INCREASED ALLOWANCE PAYMENTS MADE TO CAPTAIN JOSEPH F. GICE, O-1337703 AND O-56619, UNITED STATES ARMY, AS FOR AN OFFICER WITH A DEPENDENT FATHER AND MOTHER DURING THE PERIODS OCTOBER 1, 1945, THROUGH AUGUST 27, 1946, AND JANUARY 1, 1948, THROUGH JUNE 30, 1950. THE PAYMENTS WERE QUESTIONED IN A REPORT MADE BY OUR INVESTIGATORS, THREE COPIES OF WHICH WERE TRANSMITTED TO YOU BY OUR LETTER OF JANUARY 8, 1954.

THE CHIEF OF FINANCE REQUESTED RECONSIDERATION OF THE MATTER IN VIEW OF THE OFFICER'S STATEMENT DATED AUGUST 1, 1954, AND HIS 16TH INDORSEMENT DATED NOVEMBER 16, 1954. HOWEVER, FURTHER CONSIDERATION AS TO THE INCREASED ALLOWANCE PAYMENTS MADE FOR THE PERIOD JANUARY 1, 1948, THROUGH JUNE 30, 1950, DOES NOT APPEAR TO BE NECESSARY AT THIS TIME, SINCE THE OFFICER IS REFUNDING THE PAYMENTS MADE TO HIM FOR THAT PERIOD.

CONCERNING THE INCREASED ALLOWANCE PAYMENTS MADE FOR THE PERIOD OCTOBER 1, 1945, THROUGH AUGUST 27, 1946, THE REPORT OF INVESTIGATION SHOWED THAT DURING THAT PERIOD THE OFFICER CONTRIBUTED $100 PER MONTH BY MONEY ORDERS AND THAT THE LIVING EXPENSES OF THE PARENTS AVERAGED $267.58 PER MONTH EXCLUSIVE OF EXPENSES OF MAINTAINING THEIR APARTMENT IN THE BUILDING OWNED BY THEM AND OF THE SCHOOLING EXPENSES OF ANOTHER SON. PRIOR TO OCTOBER 1, 1945, THE FATHER WAS ENGAGED IN THE GROCERY BUSINESS, IT APPEARING THAT IN SEPTEMBER 1945 HE WAS FORCED TO CLOSE THE BUSINESS BECAUSE OF THE SALE OF THE BUILDING WHERE THE GROCERY WAS LOCATED AND THAT THEY HAD NO INCOME DURING THE MONTHS OF OCTOBER, NOVEMBER, AND DECEMBER 1945. DURING THE YEAR 1946 THE TOTAL INCOME OF THE PARENTS FROM ALL SOURCES OTHER THAN THE OFFICER'S CONTRIBUTIONS AMOUNTED TO $1,063.32 (BEFORE DEDUCTING DEPRECIATION), WHICH WAS REALIZED FROM THE RENTAL OF PROPERTIES OWNED BY THEM. THE OFFICER CONTENDS THAT A DEPRECIATION ALLOWANCE SHOULD BE DEDUCTED FROM SUCH INCOME OF HIS PARENTS.

THE QUESTION WHETHER DEPRECIATION ON INCOME PRODUCING PROPERTIES OF A MEMBER OF THE UNIFORMED SERVICES SHOULD BE DEDUCTED FROM INCOME IN DETERMINING WHETHER PARENTS ARE DEPENDENT ON THE MEMBER FOR CHIEF SUPPORT WAS ANSWERED IN THE NEGATIVE IN OUR DECISION OF JUNE 13, 1955, B-121975, TO THE SECRETARY OF DEFENSE. A COPY OF THAT DECISION IS ENCLOSED.

HOWEVER, ASIDE FROM THAT QUESTION, SINCE THE FATHER AND MOTHER LIVED TOGETHER DURING THE PERIOD OCTOBER 1, 1945, THROUGH AUGUST 27, 1946, THE DEPENDENCY STATUS OF THE PARENTS, OR EITHER OF THEM, MUST BE DETERMINED ON THE BASIS OF FAMILY UNIT AND THE FAMILY INCOME AND FUNDS MUST BE CONSIDERED AS A GENERAL FUND FOR THE SUPPORT OF BOTH PARENTS. NEITHER PARENT MAY BE CONSIDERED AS IN FACT DEPENDENT ON THE OFFICER FOR CHIEF SUPPORT WHERE THE OFFICER'S CONTRIBUTIONS WERE LESS THAN ONE HALF OF THE FAMILY LIVING EXPENSES. SINCE DURING THE PERIOD OCTOBER 1, 1945, THROUGH AUGUST 27, 1946, THE OFFICER'S CONTRIBUTION WAS LESS THAN ONE-HALF OF THE FAMILY LIVING EXPENSES, THE CONCLUSION IS REQUIRED THAT NEITHER OF THE PARENTS WAS DEPENDENT ON THE OFFICER FOR CHIEF SUPPORT DURING THAT PERIOD.

ACCORDINGLY, FURTHER CONSIDERATION BY THE DEPARTMENT OF THE ARMY WITH A VIEW TOWARD RECOVERY OF THE IMPROPER PAYMENTS MADE TO THE OFFICER DURING THE PERIOD OCTOBER 1, 1945, THROUGH AUGUST 27, 1946, AND INFORMATION AS TO THE AMOUNT COLLECTED WILL BE APPRECIATED.

THE ENCLOSURES WITH THE LETTER FROM THE CHIEF OF FINANCE ARE RETURNED.