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B-125559, MAY 16, 1957

B-125559 May 16, 1957
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HAVE BEEN MADE WITHOUT DEDUCTION OF THE AMOUNT OF THE CIVIL SERVICE ANNUITY ALLOCABLE TO THE PERIOD OF EMPLOYMENT AS REQUIRED BY SECTION 2/B) OF THE ACT OF FEBRUARY 28. SIMILAR PRIOR PAYMENTS WERE THE SUBJECT OF AUDIT EXCEPTIONS IN 1954 RESULTING IN THE COLLECTION FROM MR. BOYLE WAS THEREAFTER CORRECTLY PAID UNTIL JUNE 30. WERE DISALLOWED BY SETTLEMENTS OF MAY 21. THE DISALLOWANCES WERE REVIEWED AND SUSTAINED BY DECISION OF DECEMBER 27. THE EFFECTIVE DATE OF THIS CONTRACT IS JULY 1. TO REPORT TO OUR OFFICE WHEN SUCH STEPS SHALL HAVE BEEN TAKEN.

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B-125559, MAY 16, 1957

TO HONORABLE FRANKLIN G. FLOETE, ADMINISTRATOR, GENERAL SERVICES ADMINISTRATION:

OUR ATTENTION HAS BEEN CALLED TO PAYMENTS CURRENTLY BEING MADE TO MR. JOHN BOYLE, A CIVIL SERVICE RETIRED ANNUITANT, OF COMPENSATION AT THE RATE OF $50 PER DAY WHEN ACTUALLY EMPLOYED, WHICH PAYMENTS SINCE JULY 2, 1956, HAVE BEEN MADE WITHOUT DEDUCTION OF THE AMOUNT OF THE CIVIL SERVICE ANNUITY ALLOCABLE TO THE PERIOD OF EMPLOYMENT AS REQUIRED BY SECTION 2/B) OF THE ACT OF FEBRUARY 28, 1948, 62 STAT. 49.

SIMILAR PRIOR PAYMENTS WERE THE SUBJECT OF AUDIT EXCEPTIONS IN 1954 RESULTING IN THE COLLECTION FROM MR. BOYLE OF $543.16 BY DEDUCTION ON DISBURSING OFFICER VOUCHER 279688, IN THE MAY 1955 ACCOUNTS OF J. F. CANNON. MR. BOYLE WAS THEREAFTER CORRECTLY PAID UNTIL JUNE 30, 1956. CLAIMS BY HIM FOR REPAYMENT OF THE AMOUNTS COLLECTED FROM HIM AND THE AMOUNTS WITHHELD FROM HIS COMPENSATION EQUALING THE CIVIL SERVICE ANNUITY TO JUNE 30,1956, WERE DISALLOWED BY SETTLEMENTS OF MAY 21, 1954 AND JULY 21, 1955, AND THE DISALLOWANCES WERE REVIEWED AND SUSTAINED BY DECISION OF DECEMBER 27, 1955, B-125559, TO MR. BOYLE.

BY WRITTEN AGREEMENT ACCEPTED BY MR. BOYLE ON FEBRUARY 22, 1957, HE AGREED TO RENDER PERSONAL SERVICES AS PATENT ADVISOR AND CONSULTANT FOR COMPENSATION AT THE RATE OF $50 PER DAY FOR THE TIME ACTUALLY DEVOTED TO THE WORK. THE CONTRACT CONTAINS THIS PROVISION:

"THIS CONTRACT SHALL TERMINATE JUNE 30, 1957, AND THE EFFECTIVE DATE OF THIS CONTRACT IS JULY 1, 1956.'

UNDER THIS CONTRACT MR. BOYLE HAS RENDERED SERVICES FROM JULY 2, 1956. TO THE EXTENT THE CONTRACT PURPORTS TO BE RETROACTIVE FROM FEBRUARY 22, 1957 TO JULY 1, 1956, WE DEEM THAT PORTION TO BE MERELY CONFIRMATORY OF AN ORAL AGREEMENT AND WE DO NOT HERE QUESTION THE CONTRACT CONCERNING ITS RETROACTIVE PART. BUT SINCE THAT CONTRACT DOES NOT DIFFER MATERIALLY FROM THE PRIOR CONTRACT WHICH RESULTED IN THE PAYMENTS OBJECTED TO IN THE AUDIT WE DO QUESTION THE FAILURE OF THE ADMINISTRATIVE OFFICE TO CONTINUE THE REDUCTION OF THE $50 PER DAY RATE BY THE AMOUNT OF "THE RETIREMENT ANNUITY ALLOCABLE TO THE PERIOD OF ACTUAL EMPLOYMENT" AS PROVIDED BY SECTION 2 (B) OF THE ACT OF FEBRUARY 28, 1948.

IN THE CIRCUMSTANCES PROMPT STEPS SHOULD BE TAKEN TO REDUCE ALL PER DIEM PAYMENTS TO MR. BOYLE BY THE CIVIL SERVICE ANNUITY ALLOCABLE TO DAYS OF EMPLOYMENT IN ACCORDANCE WITH 28 COMP. GEN. 693, TO COLLECT FROM HIM THE EXCESS PAYMENTS MADE SINCE JULY 2, 1956, AND TO REPORT TO OUR OFFICE WHEN SUCH STEPS SHALL HAVE BEEN TAKEN.

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