B-141025, NOVEMBER 12, 1959, 39 COMP. GEN. 372

B-141025, NOVEMBER 12, 1959, 39 COMP. GEN. 372

SALARY CHECKS - ISSUANCE TO BANK IN LIEU OF INDIVIDUAL EMPLOYEES - PROHIBITION THE ISSUANCE OF A SINGLE GOVERNMENT SALARY CHECK TO A BANK FOR DEPOSIT TO INDIVIDUAL ACCOUNTS OF EMPLOYEES UPON THEIR REQUEST RATHER THAN THE ISSUANCE OF INDIVIDUAL CHECKS TO EACH EMPLOYEE IS IN CONTRAVENTION OF SECTION 3477, REVISED STATUTES, 31 U.S.C. 203, WHICH PRECLUDES THE ASSIGNMENT OF CLAIMS UNLESS A PROPER POWER OF ATTORNEY, ORDER OR OTHER AUTHORITY IN THE PRESCRIBED FORM IS EXECUTED, AND OF SECTION 3620, REVISED STATUTES, 31 U.S.C. 492, WHICH REQUIRES DISBURSING OFFICERS TO DRAW CHECKS ONLY IN FAVOR OF THE PERSON TO WHOM PAYMENT IS MADE.

TO THE SECRETARY OF THE AIR FORCE, NOVEMBER 12, 1959:

IT HAS COME TO THE ATTENTION OF OUR OFFICE THAT IT IS THE PRACTICE OF THE DISBURSING OFFICER OF THE AIR FORCE ACCOUNTING AND FINANCE CENTER, DENVER, COLORADO, TO ISSUE A SINGLE CHECK TO A BANK EACH PAY PERIOD WHEN A SUFFICIENT NUMBER OF CIVILIAN EMPLOYEES REQUEST THAT THEIR SALARY CHECKS BE MAILED TO SUCH BANK FOR DEPOSIT. THE CHECK, MADE PAYABLE TO THE BANK, IS ISSUED IN THE TOTAL AMOUNT OF THE COMBINED INDIVIDUAL SALARY PAYMENTS AND IS SUPPORTED BY AN ATTACHED LISTING SHOWING THE NAME OF EACH EMPLOYEE AND THE INDIVIDUAL AMOUNTS TO BE DEPOSITED.

THE PROCEDURE FOR ISSUING GOVERNMENT CHECKS, COVERING SALARY PAYMENTS OF CIVILIAN EMPLOYEES, IN FAVOR OF BANKS, FOR DEPOSIT TO THE INDIVIDUAL ACCOUNTS OF EMPLOYEES CONCERNED, RATHER THAN ISSUING CHECKS TO EACH OF THE INDIVIDUAL EMPLOYEES IS SET FORTH IN AIR FORCE MANUAL 173-50, PARAGRAPH 70401.1, WHICH PROVIDES, IN PERTINENT PART, AS FOLLOWS:

* * * CHECKS MAY BE MAILED EACH PAYDAY TO BANKS OR SIMILAR INSTITUTIONS FOR DEPOSIT TO THE EMPLOYEES' ACCOUNTS UPON WRITTEN REQUEST BY THE EMPLOYEES STATING THAT SATISFACTORY ARRANGEMENTS HAVE BEEN MADE WITH THE BANK FOR ACCEPTANCE OF THE CHECKS. IF MORE THAN ONE EMPLOYEE DESIGNATES THE SAME BANK, A SINGLE CHECK MAY BE DRAWN FOR THE TOTAL AMOUNT AND TRANSMITTED TO THE BANK WITH A LIST SHOWING THE NAME OF EACH EMPLOYEE AND THE INDIVIDUAL AMOUNTS TO BE DEPOSITED.

SECTIONS 3477 AND 3620 OF THE REVISED STATUTES, AS AMENDED, 31 U.S.C. 203 AND 492, RESPECTIVELY, PROVIDE IN PERTINENT PART:

SEC. 203. ASSIGNMENTS OF CLAIMS; * * *

ALL TRANSFERS AND ASSIGNMENTS MADE OF ANY CLAIM UPON THE UNITED STATES OR OF ANY PART OF SHARE THEREOF, OR INTEREST THEREIN, WHETHER ABSOLUTE OR CONDITIONAL, AND WHATEVER MAY BE THE CONSIDERATION THEREFOR, AND ALL POWERS OF ATTORNEY, ORDERS, OR OTHER AUTHORITIES FOR RECEIVING PAYMENT OF ANY SUCH CLAIM, OR OF ANY PART OR SHARE THEREOF, EXCEPT AS HEREINAFTER PROVIDED, SHALL BE ABSOLUTELY NULL AND VOID, UNLESS THEY ARE FREELY MADE AND EXECUTED IN THE PRESENCE OF AT LEAST TWO ATTESTING WITNESSES, AFTER THE ALLOWANCE OF SUCH A CLAIM, THE ASCERTAINMENT OF THE AMOUNT DUE, AND THE ISSUING OF A WARRANT FOR THE PAYMENT THEREOF. SUCH TRANSFERS, ASSIGNMENTS, AND POWERS OF ATTORNEY, MUST RECITE THE WARRANT FOR PAYMENT, AND MUST BE ACKNOWLEDGED BY THE PERSON MAKING THEM, BEFORE AN OFFICER HAVING AUTHORITY TO TAKE ACKNOWLEDGMENTS OF DEEDS, AND SHALL BE CERTIFIED BY THE OFFICER; AND IT MUST APPEAR BY THE CERTIFICATE THAT THE OFFICER, AT THE TIME OF THE ACKNOWLEDGMENT, READ AND FULLY EXPLAINED THE TRANSFER, ASSIGNMENT, OR WARRANT OF ATTORNEY TO THE PERSON ACKNOWLEDGING THE SAME. * * * ( ITALICS SUPPLIED.)

SEC. 402. DUTY OF DISBURSING OFFICERS.

EXCEPT AS OTHERWISE PROVIDED BY LAW IT SHALL BE THE DUTY OF EVERY DISBURSING OFFICER HAVING ANY PUBLIC MONEY INTRUSTED TO HIM FOR DISBURSEMENT, TO DEPOSIT THE SAME WITH THE TREASURER OR WITH ONE OF THE DEPOSITARIES OF THE UNITED STATES MENTIONED IN SECTION 476 OF THIS TITLE, AND TO DRAW FOR THE SAME ONLY AS IT MAY BE REQUIRED FOR PAYMENTS TO BE MADE BY HIM IN PURSUANCE OF LAW AND DRAW FOR THE SAME ONLY IN FAVOR OF THE PERSONS TO WHOM PAYMENT IS MADE; * * * ( ITALICS SUPPLIED.)

UNDER THE SPECIFIC PROVISION OF SECTION 3620 OF THE REVISED STATUTES, AS AMENDED, SUPRA, THAT A DISBURSING OFFICER CAN DRAW HIS CHECK ONLY IN FAVOR OF THE PERSON TO WHOM PAYMENT IS MADE, A DISBURSING OFFICER, UNLESS OTHERWISE PROVIDED BY LAW, IS PROHIBITED FROM DRAWING THE SALARY CHECK OF AN EMPLOYEE IN FAVOR OF ANY PERSON OTHER THAN THE EMPLOYEE TO WHOM PAYMENT IS MADE. SEE 15 COMP. DEC. 604, 14 ID. 395, 12 ID. 227. IN ADDITION, THE ACCOUNTING OFFICERS OF THE GOVERNMENT HAVE HELD GENERALLY THAT PAYMENT OF AN EMPLOYEE'S ACCRUED SALARY TO ANOTHER WOULD CONSTITUTE AN ASSIGNMENT PROHIBITED BY SECTION 3477 OF THE REVISED STATUTES, AS AMENDED, SUPRA, UNLESS A POWER OF ATTORNEY, ORDER, OR OTHER AUTHORITY FOR RECEIVING PAYMENT HAS BEEN EXECUTED IN THE FORM AND MANNER PRESCRIBED BY THE SECTION. SEE 11 COMP. DEC. 790 AND DECISIONS CITED THEREIN. IT DOES NOT APPEAR THAT THE PROCEDURE SET FORTH IN AIR FORCE MANUAL 173-50, PARAGRAPH 70401.1, PROVIDES FOR THE EXECUTION OF A PROPER POWER OF ATTORNEY, ORDER, OR OTHER AUTHORITY FOR RECEIVING PAYMENT IN THE FORM AND MANNER PRESCRIBED IN SECTION 3477 OF THE REVISED STATUTES, AS AMENDED, SUPRA, OR THAT SUCH REQUIREMENT IS BEING COMPLIED WITH BY THE DISBURSING OFFICER AT THE AIR FORCE ACCOUNTING AND FINANCE CENTER, DENVER, COLORADO.

ACCORDINGLY, IT MUST BE HELD THAT THE PROCEDURE SET FORTH IN AIR FORCE MANUAL 173-50, PARAGRAPH 70401.1, FOR ISSUING GOVERNMENT CHECKS, COVERING SALARY PAYMENTS OF CIVILIAN EMPLOYEES, IN FAVOR OF BANKS, FOR DEPOSIT TO THE INDIVIDUAL ACCOUNTS OF EMPLOYEES CONCERNED, RATHER THAN ISSUING CHECKS TO EACH OF THE INDIVIDUAL EMPLOYEES IS IN CONTRAVENTION OF THE LAW. THEREFORE, THE PRACTICE OF THE DISBURSING OFFICER OF THE AIR FORCE ACCOUNTING AND FINANCE CENTER, DENVER, COLORADO, OF ISSUING A SINGLE CHECK TO A BANK EACH PAY PERIOD WHEN A SUFFICIENT NUMBER OF CIVILIAN EMPLOYEES REQUEST THAT THEIR SALARY CHECKS BE MAILED TO SUCH BANK FOR DEPOSIT SHOULD BE DISCONTINUED.