B-203646 L/M, NOV 30, 1981, OFFICE OF GENERAL COUNSEL

B-203646 L/M, NOV 30, 1981, OFFICE OF GENERAL COUNSEL

PRECIS-UNAVAILABLE

CONRAD R. HOFFMAN, CONTROLLER, VETERANS ADMINISTRATION:

IN YOUR LETTER OF APRIL 30, 1981, YOU REQUEST RELIEF FOR RICHARD NOLAN, CLASS "B" CASHIER, VETERANS ADMINISTRATION (VA) MEDICAL CENTER, LOMA LINDA, CALIFORNIA, IN THE AMOUNT OF $834.81 FOR THE LOSS OF PUBLIC FUNDS IN HIS CUSTODY. RELIEF IS GRANTED FOR THE REASONS STATED BELOW.

ON MAY 1, 1979, RICHARD NOLAN DISCOVERED A SHORTAGE OF $834.81 FROM CASH ADVANCED TO HIM AS A CLASS "B" CASHIER. THE SHORTAGE WAS DISCOVERED WHILE MR. NOLAN WAS VERIFYING HIS ACCOUNTABILITY FOR HIS MONTHLY REPORT TO THE TREASURY. HE HAD JUST RETURNED FROM THREE DAYS OF LEAVE. MR. NOLAN KEPT THE CASH IN A LOCKED CASH BOX PROVIDED HIM BY THE VA. THE CASH BOX WAS STORED IN A SAFE ALSO PROVIDED BY THE VA. SEVERAL OTHER CASHIERS WORKED IN THIS SAME OFFICE.

UPON DISCOVERING THE LOSS, VA REQUESTED INVESTIGATIONS FROM THE SECRET SERVICE AND THE FEDERAL BUREAU OF INVESTIGATION. THE SECRET SERVICE DECLINED TO TAKE POSITIVE ACTION AND THE FEDERAL BUREAU OF INVESTIGATION INITIATED NO FORMAL INVESTIGATION.

LATER, AN INVESTIGATION BY LOCAL VA OFFICIALS DISCLOSED THAT THE CASH BOX USED BY MR. NOLAN COULD BE OPENED WITH OTHER KEYS THAN THE ONE PROVIDED MR. NOLAN. IN DECEMBER 1978, SIMILAR CASH BOXES HAD BEEN WITHDRAWN FROM SERVICE BECAUSE OF THE SAME PROBLEM. THE VA INVESTIGATION CONCLUDED THAT ANY OF THE EMPLOYEES WITH ACCESS TO THE CASHIER'S OFFICE COULD HAVE STOLEN THE MISSING FUNDS. ONE OF THE ALTERNATE CASHIERS THEN WORKING IN THE OFFICE WAS SUSPECTED AS BEING RESPONSIBLE FOR OTHER LOSSES. ON THE BASIS OF THIS INFORMATION, THE CONTROLLER OF VA ASCRIBES THE LOSS TO THE PERVASIVE LAXITY OF MANAGEMENT IN THE PROTECTION OF THE CASH BOXES. ACCORDINGLY, THE CONTROLLER OF VA HAS CONCLUDED THAT MR. NOLAN WAS NOT NEGLIGENT IN THE LOSS AND REQUESTED THAT HE BE RELIEVED OF HIS LIABILITY FOR THE MISSING FUNDS.

WE HAVE AUTHORITY UNDER 31 U.S.C. SEC. 82A-1 (1976) TO GRANT RELIEF TO ACCOUNTABLE OFFICERS FOR THE PHYSICAL LOSS OF FUNDS UPON OUR CONCURRENCE WITH THE AGENCY HEAD OR HIS DELEGATE:

"*** (1) THAT SUCH LOSS OR DEFICIENCY OCCURRED WHILE SUCH OFFICER OR AGENT WAS ACTING IN THE DISCHARGE OF HIS OFFICIAL DUTIES ***; AND (2) THAT SUCH LOSS OR DEFICIENCY OCCURRED WITHOUT FAULT OR NEGLIGENCE ON THE PART OF SUCH OFFICER OR AGENT. ***"

THE AGENCY HAS MADE THE DETERMINATIONS REQUIRED BY THIS SECTION WITH REGARD TO MR. NOLAN.

WHILE THE LOSS MAY HAVE OCCURRED IN MR. NOLAN'S ABSENCE, IT OCCURRED FROM A CASH BOX OVER WHICH HE RETAINED CONTROL. ACCORDINGLY, THE LOSS OCCURRED WHILE HE WAS DISCHARGING HIS OFFICIAL DUTIES.

THERE IS A PRESUMPTION THAT AN ACCOUNTABLE OFFICER HAS BEEN NEGLIGENT IN THE LOSS OF ANY FUNDS FOR WHICH HE/SHE IS RESPONSIBLE. 54 COMP.GEN. 112, 115 (1975). THIS PRESUMPTION IS REBUTTABLE BY EVIDENCE TO THE CONTRARY. ID. ONE SUCH FORM OF EVIDENCE IS A FAILURE ON THE PART OF AN AGENCY TO PROVIDE ADEQUATE SECURITY. B-197270, MARCH 7, 1980. IN THAT DECISION, RELIEF WAS GRANTED TO AN AGENT CASHIER BECAUSE AN ASSISTANT CASHIER'S KEY FIT HER CASH BOX. SIMILARLY, IN MR. NOLAN'S CASE, THE CHIEF, FISCAL SERVICES CONCLUDED THAT KEYS BELONGING TO THE ALTERNATE CASHIERS WOULD FIT MR. NOLAN'S CASH BOX, GIVING THESE CASHIERS ACCESS TO THE FUNDS IN MR. NOLAN'S CASH BOX DURING HIS ABSENCE. ACCORDINGLY, WE CONCUR IN THE RECOMMENDATION OF THE CONTROLLER AND GRANT RELIEF AS REQUESTED.