B-214372, JUL 3, 1984, OFFICE OF GENERAL COUNSEL

B-214372, JUL 3, 1984, OFFICE OF GENERAL COUNSEL

ACCOUNTABLE OFFICERS - ACCOUNTS - IRREGULARITIES, ETC. - ADMINISTRATIVE AUTHORITY TO RESOLVE 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. 3527(A). 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 $750. TITLE 7, GAO POLICY AND PROCEDURES MANUAL FOR THE GUIDANCE OF FEDERAL AGENCIES, 28.14 (JULY 14, 1983). THE AMOUNT INVOLVED HERE IS UNDER $750, AND THUS MAY BE DISPOSED OF WITHIN AGENCY'S DELEGATED AUTHORITY.

MR. STANLEY SPORKIN GENERAL COUNSEL CENTRAL INTELLIGENCE AGENCY WASHINGTON, D.C. 20505

DEAR MR. SPORKIN:

THIS RESPONDS TO YOUR REQUEST THAT WE RELIEVE AN ACCOUNTABLE OFFICER UNDER 31 U.S.C. SEC. 3527 FROM LIABILITY FOR A SHORTAGE OF $646.88 IN PUBLIC FUNDS. IN VIEW OF THE AMOUNT INVOLVED, WE RETURN THIS REQUEST TO YOU FOR RESOLUTION BY ADMINISTRATIVE ACTION.

YOU HAVE REQUESTED RELIEF FOR A GS-10 EMPLOYEE WHO FACED AN UNANTICIPATED GREAT INCREASE IN RESPONSIBILITIES IN EACH FACET OF HIS JOB. FINANCIAL VOUCHERS WITH COMPLICATED SUB-ACCOUNTING INCREASED BY 500 PERCENT AND TOTAL FUNDS FOR WHICH THE EMPLOYEE WAS RESPONSIBLE WENT FROM A FEW HUNDRED THOUSAND DOLLARS TO SEVERAL MILLION.

IN FEBRUARY 1983, A SHORTAGE OF $646.88 WAS DISCOVERED. THE LOSS WAS NOT DISCOVERED EARLIER BECAUSE OF SECURITY PROCEDURES THAT REQUIRED TIGHTLY CONTROLLED COMMUNICATION. THEREFORE, YOUR HEADQUARTERS WAS NOT IMMEDIATELY AWARE OF THE CHANGE IN WORKLOAD NOR WAS THE EMPLOYEE IN A POSITION TO SEEK ASSISTANCE. BASED ON THESE FACTS, YOU HAVE CONCLUDED THAT THERE WAS NO EVIDENCE OF FRAUD OR DECEPTION ON THE PART OF THE EMPLOYEE AND THAT THE AGENCY'S ACTIONS WERE THE PROXIMATE CAUSE OF THE LOSS. ACCORDINGLY, YOU HAVE REQUESTED THAT WE GRANT RELIEF.

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 JULY 14, 1983, WE SET THIS FIXED DOLLAR AMOUNT AT $750. TITLE 7, GAO POLICY AND PROCEDURES MANUAL FOR THE GUIDANCE OF FEDERAL AGENCIES, SEC. 28.14 (JULY 14, 1983). 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 AMOUNT IN THIS CASE IS LESS THAN $750, YOUR AGENCY HAS AUTHORITY TO GRANT OR DENY RELIEF OF LIABILITY UPON MAKING THE APPROPRIATE DETERMINATIONS SET FORTH ABOVE. WE ARE RETURNING THIS CASE TO YOU FOR ADMINISTRATIVE RESOLUTION WITHOUT THE NEED FOR FURTHER CONCURRENCE FROM THIS OFFICE.