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B-115499, MAY 11, 1967

B-115499 May 11, 1967
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TO THE SECRETARY OF THE NAVY: FURTHER REFERENCE IS MADE TO LETTER OF JANUARY 16. WHICH ARE OTHERWISE FREE FROM DOUBT AS TO ENTITLEMENT. DEPENDING ON WHETHER OR NOT THE MEMBER IS ON ACTIVE DUTY. THIS REQUIREMENT IS BASED ON OUR DECISION OF SEPTEMBER 30. THE PURPOSE OF THE REQUIREMENT FOR CENTRALIZED SETTLEMENT OF SUCH CLAIMS IS TO PROTECT AGAINST DOUBLE PAYMENTS ON THE BASIS OF DUPLICATE CLAIMS PRESENTED TO DIFFERENT DISBURSING OFFICERS. WAS PRESENTED TO US AT A CONFERENCE BETWEEN REPRESENTATIVES OF THIS OFFICE AND THE DEPARTMENT OF THE NAVY. THE CENTERS INVOLVED ARE THE NAVY REGIONAL FINANCE CENTERS AT BROOKLYN. EACH OF THOSE OFFICES WILL HANDLE CLAIMS FOR A CERTAIN PRESCRIBED AREA. UNDER THE ALTERNATE PLAN A MEMBER ON ACTIVE DUTY WILL PRESENT HIS CLAIM TO THE DISBURSING OFFICER CURRENTLY HOLDING HIS PAY RECORD.

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B-115499, MAY 11, 1967

TO THE SECRETARY OF THE NAVY:

FURTHER REFERENCE IS MADE TO LETTER OF JANUARY 16, 1967, FROM THE ASSISTANT SECRETARY OF THE NAVY (FINANCIAL MANAGEMENT) REQUESTING A DECISION WHETHER NAVY TRAVEL INSTRUCTIONS MAY BE AMENDED TO PERMIT LOST- ORIGINAL-ORDER CLAIMS, WHICH ARE OTHERWISE FREE FROM DOUBT AS TO ENTITLEMENT, TO BE SETTLED BY THE NAVY FINANCE CENTER OR REGIONAL FINANCE CENTER NEAREST THE INDIVIDUAL'S DUTY STATION OR HOME, DEPENDING ON WHETHER OR NOT THE MEMBER IS ON ACTIVE DUTY.

NAVY TRAVEL INSTRUCTIONS (PARAGRAPH 4002-2C) REQUIRE THAT ALL CLAIMS INVOLVING LOST ORIGINAL ORDERS BE SUBMITTED TO THE NAVY FINANCE CENTER, WASHINGTON, D.C. THIS REQUIREMENT IS BASED ON OUR DECISION OF SEPTEMBER 30, 1953, TO THE SECRETARY OF THE NAVY, B-115499, 33 COMP. GEN. 130, AUTHORIZING THE PAYMENT OF SUCH CLAIMS BY THE DEPARTMENT OF THE NAVY AT A CENTRAL LOCATION. THE PURPOSE OF THE REQUIREMENT FOR CENTRALIZED SETTLEMENT OF SUCH CLAIMS IS TO PROTECT AGAINST DOUBLE PAYMENTS ON THE BASIS OF DUPLICATE CLAIMS PRESENTED TO DIFFERENT DISBURSING OFFICERS, A CONTROL CLEARLY NECESSARY UNDER NAVY REGULATIONS AUTHORIZING THE PRESENTATION OF TRAVEL VOUCHERS TO ANY DISBURSING OFFICER OF THE NAVY FOR PAYMENT AND IN THE ABSENCE OF ANY EVIDENCE OF PAYMENT SUCH AS THE NOTATION OF PRIOR PAYMENT ON THE ORIGINAL TRAVEL ORDERS.

THE CLAIMS PAYMENT PROPOSAL SET OUT IN THE ASSISTANT SECRETARY'S LETTER LACKED THE DUPLICATE PAYMENT SAFEGUARD OF CENTRALIZED SETTLEMENT AND THE SUBSTITUTE CONTROLS IT INDICATED WOULD BE INSTITUTED FOR THAT PURPOSE APPEARED TO BE INADEQUATE. AN ALTERNATE PROPOSAL, HOWEVER, WAS PRESENTED TO US AT A CONFERENCE BETWEEN REPRESENTATIVES OF THIS OFFICE AND THE DEPARTMENT OF THE NAVY.

UNDER THE ALTERNATE PROPOSAL, PARAGRAPH 4002-2C OF NAVY TRAVEL INSTRUCTIONS WOULD BE REVISED TO PROVIDE FOR PAYMENT OF LOST ORDER TRAVEL CLAIMS ON A REGIONAL BASIS BY CERTAIN DESIGNATED NAVY FINANCE CENTERS AND NAVY REGIONAL FINANCE CENTERS. THE CENTERS INVOLVED ARE THE NAVY REGIONAL FINANCE CENTERS AT BROOKLYN, PHILADELPHIA, NORFOLK, GREAT LAKES, SAN DIEGO, OAKLAND AND PEARL HARBOR, AND THE NAVY FINANCE CENTER IN WASHINGTON, D.C. EACH OF THOSE OFFICES WILL HANDLE CLAIMS FOR A CERTAIN PRESCRIBED AREA.

UNDER THE ALTERNATE PLAN A MEMBER ON ACTIVE DUTY WILL PRESENT HIS CLAIM TO THE DISBURSING OFFICER CURRENTLY HOLDING HIS PAY RECORD. A MEMBER SEPARATED OR RELEASED FRM ACTIVE DUTY WILL PRESENT HIS CLAIM TO ANY DISBURSING OFFICER WHO WILL FORWARD IT TO THE DISBURSING OFFICER OF THE ACTIVITY WHERE HE WAS RELEASED OR SEPARATED. IN EITHER CASE THE DISBURSING OFFICER INVOLVED WILL COMPLETE THE RECORD SO FAR AS POSSIBLE AND FORWARD THE CLAIM TO THE PROPER FINANCE CENTER FOR SETTLEMENT AND PAYMENT. DOUBTFUL CLAIMS INVOLVING LOST ORDERS WOULD BE FORWARDED TO THIS OFFICE VIA THE NAVY FINANCE CENTER, WASHINGTON, D.C., FOR DIRECT SETTLEMENT.

SINCE, AS WE UNDERSTAND IT, THE EFFECT OF THE ALTERNATE PLAN WOULD BE TO PROVIDE FOR CENTRALIZED SETTLEMENT OF LOST ORDER CLAIMS ON A REGIONAL BASIS, RATHER THAN THE NATIONWIDE BASIS NOW IN EFFECT, IT APPEARS TO RETAIN THE DUPLICATE PAYMENT SAFEGUARD OF CENTRALIZED SETTLEMENT AND SATISFIES THE PURPOSE OF 33 COMP. GEN. 130. WE HAVE NO OBJECTION TO ITS ADOPTION. HOWEVER, WE PLAN TO REVIEW THE EFFECTIVENESS OF THE NEW PROCEDURES AT A LATER DATE.

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