B-205427 L/M, DEC 30, 1981, OFFICE OF GENERAL COUNSEL

B-205427 L/M, DEC 30, 1981, OFFICE OF GENERAL COUNSEL

DIGEST: THE DISCRETION TO RELIEVE AN ACCOUNTABLE OFFICER OF LIABILITY FOR LOST FUNDS WHERE THE AGENCY HEAD OR HIS DESIGNEE DETERMINES THAT (1) THE LOSS OR DEFICIENCY OCCURRED IN THE DISCHARGE OF HIS OFFICIAL DUTIES AND (2) THE LOSS OCCURRED WITHOUT FAULT OR NEGLIGENCE ON THE PART OF THE EMPLOYEE IS VESTED IN GAO BY 31 U.S.C. SEC. 82A-1. GAO HAS DELEGATED THIS RELIEF AUTHORITY TO THE HEADS OF AGENCIES WHERE ANY IRREGULARITY ARISING FROM A SINGLE INCIDENT, OR SERIES OF SIMILAR INCIDENTS OCCURRING ABOUT THE SAME TIME, AMOUNTS TO LESS THAN $500. 54 COMP.GEN. 112 (1974); B-161457, AUGUST 1, 1969. AMOUNT REMAINING UNCOLLECTED FROM A SERIES OF EMBEZZLEMENTS IS $75.95, AND THUS MAY BE DISPOSED OF WITHIN AGENCY'S DELEGATED AUTHORITY.

MR. THOMAS A. CARDOZA, INTERNAL REVENUE SERVICE:

THIS IS IN REPLY TO THE REQUEST DATED JUNE 10, 1981, OF THE CURRENT DIRECTOR OF THE FRESNO SERVICE CENTER OF THE INTERNAL REVENUE SERVICE (IRS), CONCURRED IN BY YOU, FOR RELIEF IN THE AMOUNT OF $75.95 EMBEZZLED AT THE FRESNO SERVICE CENTER WHILE MR. FREDERIC F. PURDUE WAS THE DIRECTOR AND ACCOUNTABLE OFFICER. IN VIEW OF THE AMOUNT INVOLVED, WE RETURN THIS REQUEST TO YOU FOR RESOLUTION BY ADMINISTRATIVE ACTION.

THE RECORD REVEALS THAT A FORMER EMPLOYEE EMBEZZLED $520.01 DURING THE PERIOD OF MARCH AND APRIL OF 1975 BY CONVERTING TO HER OWN USE FOUR REMITTANCES TO THE IRS WHILE SHE WAS EMPLOYED AT THE FRESNO SERVICE CENTER. ON MAY 26, 1976, THE FIRST OF THESE EMBEZZLEMENTS - IN THE AMOUNT OF $93 - WAS DISCOVERED. THE EMPLOYEE STATED THAT THIS WAS HER ONLY ACT OF CONVERSION. SHE WAS CONVICTED OF THIS OFFENSE AND MADE FULL RESTITUTION BY JULY 8, 1976. SUBSEQUENTLY, THE OTHER ACTS OF CONVERSION WERE DISCOVERED - WHICH THE EMPLOYEE THEN ACKNOWLEDGED - AND WERE SUCCESSFULLY PROSECUTED. REPORTS OF ALL OF THESE EMBEZZLEMENTS WERE SENT TO THE GENERAL ACCOUNTING OFFICE IN 1976 AND 1977. PARTIAL RESTITUTION WAS MADE GRADUALLY UNTIL THE TOTAL AMOUNT OWED WAS REDUCED TO $75.95 AS OF MARCH OF 1979. THEREAFTER, NO FURTHER PAYMENTS WERE RECEIVED AND THE ACCOUNT HAS SINCE BEEN DESIGNATED UNCOLLECTIBLE. THE UNCOLLECTED $75.95 IS CHARGEABLE AGAINST THE ACCOUNT OF MR. PURDUE. ON NOVEMBER 6, 1981, THIS OFFICE RECEIVED YOUR AGENCY'S REQUEST FOR RELIEF OF MR. PURDUE IN THIS AMOUNT DETERMINED UNCOLLECTIBLE. THAT REQUEST CONCLUDED THAT THESE LOSSES WERE NOT THE RESULT OF NEGLIGENCE ON MR. PURDUE'S PART.

THE AUTHORITY TO RELIEVE AN ACCOUNTABLE OFFICER OF LIABILITY FOR LOST FUNDS IS CONTAINED IN 31 U.S.C. SEC. 82A-1 (1976). THIS PROVISION GIVES US DISCRETION TO RELIEVE AN ACCOUNTABLE OFFICER OF LIABILITY WHERE WE AGREE WITH THE AGENCY HEAD'S DETERMINATION THAT (1) THE LOSS OR DEFICIENCY OCCURRED IN THE DISCHARGE OF THE ACCOUNTABLE OFFICER'S OFFICIAL DUTIES AND (2) THE LOSS OCCURRED WITHOUT FAULT OR NEGLIGENCE ON THE PART OF THE OFFICER. THIS DETERMINATION MAY BE MADE BY AN AUTHORIZED DESIGNEE OF THE AGENCY HEAD. B-196495, JANUARY 24, 1980.

THIS OFFICE HAS DELEGATED ITS AUTHORITY TO THE HEADS OF AGENCIES TO ADMINISTRATIVELY RESOLVE IRREGULARITIES IN THE ACCOUNTS OF ACCOUNTABLE OFFICERS INVOLVING LOSSES BELOW A FIXED DOLLAR AMOUNT. EFFECTIVE AUGUST 14, 1974, WE SET THIS FIXED DOLLAR AMOUNT AT $500. 54 COMP.GEN. 112 (1974). IN DETERMINING WHETHER TO GRANT RELIEF UNDER THIS DELEGATION, THE AGENCY HEAD MUST APPLY THE STANDARDS OF THIS OFFICE REGARDING RELIEF OF ACCOUNTABLE OFFICERS. B-189084, JANUARY 15, 1980.

SINCE THE UNCOLLECTED $75.95 INVOLVED IN YOUR AGENCY'S REQUEST FOR RELIEF OF MR. PURDUE IS LESS THAN $500, YOUR AGENCY HAS AUTHORITY TO GRANT OR DENY RELIEF OF LIABILITY TO MR. PURDUE UPON MAKING THE APPROPRIATE DETERMINATIONS SET FORTH ABOVE. WE ARE RETURING THIS CASE TO YOU FOR ADMINISTRATIVE RESOLUTION WITHOUT THE NEED FOR FURTHER CONCURRENCE FROM THIS OFFICE.