B-210648 L/M, APR 4, 1983, OFFICE OF GENERAL COUNSEL

B-210648 L/M, APR 4, 1983, OFFICE OF GENERAL COUNSEL

PRECIS-UNAVAILABLE

BRIGADIER GENERAL ROBERT B. ADAMS, DEPARTMENT OF THE ARMY:

THIS REPLIES TO YOUR REQUEST THAT RELIEF BE GRANTED UNDER THE PROVISIONS OF 31 U.S.C. SEC. 3527(C) (FORMERLY 31 U.S.C. SEC. 82A-2 (1976)), FOR THE IMPROPER PAYMENT OF FRAUDULENT TRAVEL CLAIMS IN THE AMOUNT OF $1,374.21 CHARGEABLE TO THE ACCOUNT OF LIEUTENANT COLONEL (LTC) H. W. NEILL, FINANCE CORPS, SYMBOL NUMBER 6380, FINANCE AND ACCOUNTING OFFICER, U. S. ARMY QUARTERMASTER CENTER, FORT LEE, VIRGINIA. THE REQUEST RECITES THE REQUIRED FINDING THAT THE IMPROPER PAYMENT WAS NOT THE RESULT OF BAD FAITH OR LACK OF DUE CARE ON THE PART OF LTC NEILL. NEVERTHELESS, WE ARE UNABLE TO GRANT RELIEF.

THE RECORD SHOWS THAT ON SEVEN DIFFERENT OCCASIONS OVER A PERIOD OF 9 MONTHS, SPECIALIST FOUR VINCENT J. RAVENEL FORGED NUMEROUS SIGNATURES ON TEMPORARY DUTY (TDY) TRAVEL ORDER FORMS IN ORDER TO OBTAIN ADVANCE TRAVEL MONEY. IN FIVE OF THE SEVEN INSTANCES, SPECIALIST RAVENEL SUBMITTED TRAVEL VOUCHERS TO SETTLE THE ACCOUNT. IN EACH OF THESE INSTANCES, SPECIALIST RAVENEL WAS ASSISTED BY A MEMBER OF THE FINANCE AND ACCOUNTING OFFICE IN THE PREPARATION OF THE VOUCHERS. BY USING THESE PROCEDURES, SPECIALIST RAVENEL DEFRAUDED THE GOVERNMENT IN THE AMOUNT OF $6,153.00.

IN MARCH 1980, SPECIALIST RAVENEL'S SUPERVISING OFFICER BECAME AWARE OF THE FRAUDULENT ACTIVITY WHEN A MEMBER OF THE FINANCE AND ACCOUNTING OFFICE CALLED THE OFFICER REQUESTING THAT SPECIALIST RAVENEL COME TO THE FINANCE OFFICE TO COMPLETE A TEMPORARY DUTY (TDY) FORM FOR FEBRUARY 1980. DURING THE ENSUING INVESTIGATION, SPECIALIST RAVENEL ADMITTED ALL OF THE FRAUDULENT ACTS AND IMMEDIATE COLLECTION AGAINST HIM WAS INITIATED. THE RECORD STATES THAT $4,778.79 OUT OF THE $6,153.00 WAS RECOVERED AND THAT COLLECTION EFFORTS WILL CONTINUE TO BE PURSUED.

AN ACCOUNTABLE OFFICER IS PERSONALLY LIABLE FOR DEFICIENCIES IN HIS ACCOUNTS CAUSED BY ILLEGAL, IMPROPER OR INCORRECT PAYMENTS. HOWEVER, UNDER THE PROVISIONS OF 31 U.S.C. SEC. 3527(C), SUPRA, THIS OFFICE IS AUTHORIZED TO GRANT RELIEF FROM LIABILITY UPON A DETERMINATION THAT THE PAYMENT IS NOT THE RESULT OF BAD FAITH OR LACK OF REASONABLE CARE ON THE PART OF THE DISBURSING OFFICIAL. SEE, GENERALLY, 54 COMP.GEN. 112 (1974).

THE RECORD INDICATES THAT VARIOUS MEMBERS OF THE FINANCE AND ACCOUNTING OFFICE, RATHER THAN LTC NEILL, PROCESSED THE FRAUDULENT FORMS WHICH RESULTED IN THE IMPROPER PAYMENTS. IN THE PAST, IN THOSE INSTANCES WHERE A SUBORDINATE ACTUALLY WAS RESPONSIBLE FOR THE ERRONEOUS PAYMENT, RATHER THAN THE ACCOUNTABLE OFFICER HIMSELF, WE HAVE GRANTED RELIEF UPON A SHOWING THAT THE ACCOUNTABLE OFFICER PROPERLY SUPERVISED HIS SUBORDINATES BY MAINTAINING AN ADEQUATE SYSTEM OF PROCEDURES AND CONTROLS TO AVOID ERRORS, AND TOOK STEPS TO SEE THAT THE SYSTEM WAS EFFECTIVE AND BEING FOLLOWED. SEE, E.G., B-187180, SEPTEMBER 21, 1976. FROM THE RECORD BEFORE US, HOWEVER, WE CANNOT TELL WHETHER LTC NEILL MAINTAINED AND POLICED SUCH A SYSTEM. IN FACT, THE REPORT OF INVESTIGATION DATED DECEMBER 5, 1980, STATES THAT THE TRAVEL ORDER NUMBERS USED ON THE FRAUDULENT DOCUMENTS HAD BEEN ASSIGNED TO SOMEONE ELSE, THAT MANY OF THE TRAVEL ORDERS HAD ILLEGIBLE SIGNATURES, AND THAT THERE WAS NO RECORD OF TRAVEL ORDERS ON WHICH SPECIALIST RAVENEL RECEIVED ADVANCE PAYMENTS. LTC NEILL'S OWN STATEMENT THAT HIS INDEPENDENT AUDIT TRACING WITHIN HIS FINANCE OFFICE DID NOT DISCLOSE ANY IRREGULARITIES AND/OR WRONGDOING BY FINANCE PERSONNEL DOES NOT ADDRESS THESE APPARENT IRREGULARITIES.

FOR THIS REASON WE ARE UNABLE TO DETERMINE THAT THE IMPROPER PAYMENTS DID NOT RESULT FROM LACK OF DUE CARE ON LTC NEILL'S PART. WE THEREFORE DENY THE REQUESTED RELIEF. IF FURTHER EVIDENCE IS PRESENTED THAT SUPPORTS THE FINDINGS REQUIRED FOR RELIEF, WE WOULD BE HAPPY TO RECONSIDER THIS DECISION.