A-15183, AUGUST 10, 1926, 6 COMP. GEN. 105

A-15183: Aug 10, 1926

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IS PAID HIS SALARY IN FULL WITHOUT THE AUTHORIZED DEDUCTIONS BEING MADE ON ACCOUNT OF THE RETIREMENT FUND. WHERE AN EMPLOYEE OF THE GOVERNMENT WAS IN A NONPAY STATUS OVER A CERTAIN PERIOD AND THE RETIREMENT DEDUCTIONS OVER SUCH PERIOD HAVE BEEN CHARGED AGAINST THE APPROPRIATIONS FROM WHICH HIS SALARY WAS PAID AND CREDITED TO THE RETIREMENT FUND. A PROPER ADJUSTMENT BETWEEN THE RETIREMENT FUND AND THE APPROPRIATION INVOLVED WILL BE MADE BY THE GENERAL ACCOUNTING OFFICE UPON THE REQUEST OF THE DISBURSING OFFICER. 1926: I HAVE YOUR LETTER WITHOUT DATE RECEIVED IN THIS OFFICE JULY 24. THE ILLUSTRATIONS AS GIVEN IN YOUR LETTER WILL BE TAKEN UP SEPARATELY AS THEY APPEAR THEREIN AND ANSWERED ACCORDINGLY.

A-15183, AUGUST 10, 1926, 6 COMP. GEN. 105

ACCOUNTING - RETIREMENT FUND DEDUCTIONS WHERE AN EMPLOYEE OF THE GOVERNMENT, SUBJECT TO THE RETIREMENT LAWS, IS PAID HIS SALARY IN FULL WITHOUT THE AUTHORIZED DEDUCTIONS BEING MADE ON ACCOUNT OF THE RETIREMENT FUND, THE MATTER SHOULD BE TREATED AS A DELAYED RETIREMENT DEDUCTION AND HANDLED, FOR ACCOUNTING PURPOSES, IN ACCORDANCE WITH 6 COMP. GEN. 100. WHERE AN EMPLOYEE OF THE GOVERNMENT WAS IN A NONPAY STATUS OVER A CERTAIN PERIOD AND THE RETIREMENT DEDUCTIONS OVER SUCH PERIOD HAVE BEEN CHARGED AGAINST THE APPROPRIATIONS FROM WHICH HIS SALARY WAS PAID AND CREDITED TO THE RETIREMENT FUND, A PROPER ADJUSTMENT BETWEEN THE RETIREMENT FUND AND THE APPROPRIATION INVOLVED WILL BE MADE BY THE GENERAL ACCOUNTING OFFICE UPON THE REQUEST OF THE DISBURSING OFFICER.

COMPTROLLER GENERAL MCCARL TO THE SECRETARY OF THE TREASURY, AUGUST 10, 1926:

I HAVE YOUR LETTER WITHOUT DATE RECEIVED IN THIS OFFICE JULY 24, 1926, IN WHICH YOU REQUEST TO BE ADVISED AS TO THE PROPER METHOD OF ACCOUNTING FOR RETIREMENT FUND DEDUCTIONS UNDER GENERAL ACCOUNTING OFFICE GENERAL REGULATIONS NO. 54, DATED JULY 6, 1926, IN CERTAIN CASES INVOLVING OVERPAYMENTS TO EMPLOYEES SUBJECT TO THE RETIREMENT LAWS.

THE ILLUSTRATIONS AS GIVEN IN YOUR LETTER WILL BE TAKEN UP SEPARATELY AS THEY APPEAR THEREIN AND ANSWERED ACCORDINGLY.

ILLUSTRATION "A"

IN THE CASE OF AN EMPLOYEE AT $225.00 PER MONTH, BELIEVED NOT TO HAVE BEEN CLASSIFIED AT THE TIME OF PAYMENT BUT ON AUDIT FOUND TO HAVE BEEN CLASSIFIED FOR THE PERIOD COVERED BY THE PAY ROLL AND A SUSPENSION OR DISALLOWANCE MADE FOR THE AMOUNT OF THE RETIREMENT DEDUCTIONS, RESULTING IN THE FOLLOWING SHOWING:

CHART

DEDUCTIONS

GROSS RETIREMENT OTHER NET ACTUALLY PAID TO EMPLOYEE - $225.00 ---------- --------- $225.00 SHOULD HAVE BEEN PAID ----- 225.00 $7.88 --------- 217.12

OVERPAYMENT TO BE

REFUNDED BY EMPLOYEE ----- ------- 7.88 --------- 7.88

REQUESTED: INSTRUCTIONS AS TO PROPER METHOD OF ACCOUNTING FOR COLLECTION OF $7.88 WHEN RECEIVED BY THE DISBURSING OFFICER, IT BEING EVIDENCE THAT CREDIT WAS TAKEN BY THE DISBURSING OFFICER AGAINST THE APPROPRIATION FROM WHICH PAID FOR $225.00 AND THAT THE REFUND OF $7.88 DOES NOT INVOLVE THAT APPROPRIATION BUT IS DUE THE RETIREMENT FUND.

THERE APPEARS TO BE NO DIFFICULTY IN A MATTER SUCH AS THIS. THE OVERPAYMENT TO THE EMPLOYEE MUST BE CONSIDERED MERELY AS A DELAYED RETIREMENT DEDUCTION AND SHOULD BE HANDLED ACCORDINGLY. SEE IN THIS CONNECTION DECISION A-14957, DATED AUGUST 4, 1926, 6 COMP. GEN. 100. THE COLLECTION ON ACCOUNT OF THE RETIREMENT FUND IS MADE BY THE DISBURSING OFFICER ON THE NEXT REGULAR PAY ROLL BY DEDUCTION FROM THE EMPLOYEE'S PAY, PAYMENT OF THE $7.88 TO THE BUREAU OF PENSIONS FOR THE CREDIT OF THE RETIREMENT FUND MAY PROPERLY BE INCLUDED IN THE CHECK FORWARDED TO THE DISBURSING CLERK, BUREAU OF PENSIONS, FOR DEDUCTIONS MADE DURING THE CURRENT MONTH. PROPER NOTATIONS SHOULD BE MADE DURING THE CURRENT MONTH. PROPER NOTATIONS SHOULD BE MADE ON THE PAY ROLL OR VOUCHER ON WHICH THE COLLECTION IS MADE, INCLUDING A REFERENCE TO THE PAY ROLL OR VOUCHER ON WHICH THE RETIREMENT DEDUCTION SHOULD HAVE BEEN MADE. IF THE AMOUNT IS REFUNDED BY THE EMPLOYEE, THEN THE MATTER MAY BE HANDLED AS A SEPARATE TRANSACTION AND FORWARDED TO THE DISBURSING CLERK, BUREAU OF PENSIONS, AS SUCH, PROPER NOTATIONS BEING MADE BY THE DISBURSING OFFICER HANDLING THE TRANSACTION UPON HIS ACCOUNT CURRENT TAKING THE MATTER UP BOTH AS A RECEIPT AND A DISBURSEMENT.

ILLUSTRATION "B"

IN THE CASE OF A CLASSIFIED EMPLOYEE AT $225.00 PER MONTH, PAID FOR THE FULL MONTH BUT ON AUDIT FOUND TO HAVE BEEN IN A NONPAY STATUS FOR TEN DAYS OF THE PERIOD COVERED BY THE PAY ROLL AND A SUSPENSION OR DISALLOWANCE MADE FOR THE AMOUNT OVERPAID, RESULTING IN THE FOLLOWING SHOWING:

DEDUCTIONS

GROSS RETIREMENT OTHER NET ACTUALLY PAID TO EMPLOYEE -- $225.00 $7.88 --- ---- $217.12 SHOULD HAVE BEEN PAID ------ 150.00 5.25 ------- 144.75

OVERPAYMENT TO BE

REFUNDED BY EMPLOYEE ----- 75.00 2.63 ------- 72.37

REQUESTED: INSTRUCTIONS AS TO METHOD OF ACCOUNTING AND PROCEDURE TO BE FOLLOWED, IT BEING EVIDENT THAT AS IN ILLUSTRATION "A" CREDIT WAS TAKEN BY THE DISBURSING OFFICER AGAINST THE APPROPRIATION FROM WHICH PAID FOR $225.00 OF WHICH $7.88 WAS DEPOSITED WITH THE DISBURSING CLERK, BUREAU OF PENSIONS, AND THAT THE SAID APPROPRIATION IS NOW DUE A REFUND OF $75.00 BUT THAT ONLY $72.37 SHOULD BE REFUNDED BY THE EMPLOYEE, THE REMAINING $2.63 HAVING BEEN TURNED OVER TO THE RETIREMENT FUND.

THIS ILLUSTRATION PRESENTS A TWOFOLD PROPOSITION: (1) THE APPROPRIATION HAS BEEN DEBITED IN AN AMOUNT IN EXCESS OF WHAT SHOULD HAVE BEEN CHARGED AGAINST IT IN THE SUM OF $75 AND (2) THE RETIREMENT FUND HAS BEEN GIVEN CREDIT FOR AN AMOUNT OF $2.63 IN EXCESS OF WHAT SHOULD HAVE BEEN CREDITED THERETO SO THAT A DOUBLE ADJUSTMENT BECOMES NECESSARY. THE ACTUAL OVERPAYMENT TO THE EMPLOYEE IS $72.37 AND HE SHOULD BE REQUIRED TO REFUND THAT AMOUNT WHICH WILL BE TAKEN UP BY THE DISBURSING OFFICER AND CREDITED AS A REPAYMENT TO THE APPROPRIATION ERRONEOUSLY DEPLETED.

WITH RESPECT TO THE ADJUSTMENT OF THE $2.63, ATTENTION IS INVITED TO DECISION A-15133 OF JULY 31, 1926, 6 COMP. GEN. 95, IN WHICH AN ADJUSTMENT SIMILAR TO THAT NECESSARY HERE IS DISCUSSED. IN THE PRESENT MATTER, SINCE THE ADJUSTMENT IS ONE BETWEEN THE RETIREMENT FUND AND THE APPROPRIATION ONLY, THE EMPLOYEE NOT BEING DIRECTLY INVOLVED IN SO FAR AS THE AMOUNT OF $2.63 IS CONCERNED, REQUEST FOR ADJUSTMENT MAY BE MADE BY THE DISBURSING OFFICER TO THIS OFFICE FOR PROPER ACTION IN THE MATTER. THE ADJUSTMENT MAY THEN BE MADE DIRECT BETWEEN THE RETIREMENT FUND BY DEBITING THE SAME WITH THE SUM OF $2.63 AND THE APPROPRIATION IN QUESTION BY CREDITING IT WITH A LIKE AMOUNT.

ILLUSTRATION "C"

IN THE CASE OF A CLASSIFIED EMPLOYEE AT $225.00 PER MONTH, PAID FOR THE FULL MONTH BUT ON AUDIT FOUND TO HAVE BEEN IN A NONPAY STATUS FOR THE ENTIRE MONTH COVERED BY THE PAY ROLL AND A SUSPENSION OR DISALLOWANCE MADE FOR THE AMOUNT OVERPAID, RESULTING IN THE FOLLOWING SHOWING:

CHART

DEDUCTIONS

GROSS RETIREMENT OTHER NET ACTUALLY PAID TO EMPLOYEE -- $225.00 $7.88 --- ---- $217.12 SHOULD HAVE BEEN PAID ----- ------- ------ ------- -------

OVERPAYMENT TO BE

REFUNDED BY EMPLOYEE ---- 225.00 7.88 ------- 217.12

REQUESTED: INSTRUCTIONS AS TO METHOD OF ACCOUNTING AND PROCEDURE TO BE FOLLOWED, IT BEING EVIDENT THAT THE SITUATION IN THIS CASE IS SIMILAR TO ILLUSTRATION "B," VIZ, A REFUND SHOULD BE MADE TO THE APPROPRIATION, PART OF WHICH SHOULD BE COLLECTED FROM THE EMPLOYEE, THE REMAINDER HAVING BEEN DEPOSITED TO THE RETIREMENT FUND.

THE SAME PROCEDURE AS OUTLINED IN "B" SHOULD BE FOLLOWED HERE. THE AMOUNT OF $217.12 SHOULD BE COLLECTED BY THE DISBURSING OFFICER FROM THE EMPLOYEE EITHER FROM DEDUCTIONS IN SUBSEQUENT REGULAR PAY ROLL OR PAY ROLLS, OR BY ACTUAL REFUND BY THE EMPLOYEE, AND THE AMOUNT SO DEDUCTED OR COLLECTED SHOULD BE TAKEN UP BY THE DISBURSING OFFICER OR CREDITED AS A REPAYMENT TO THE APPROPRIATION AND ACCOUNTED FOR BY HIM AS SUCH. UPON REQUEST BY THE DISBURSING OFFICER THIS OFFICE WILL MAKE PROPER ADJUSTMENT OF THE AMOUNT OF $7.88 BETWEEN THE RETIREMENT FUND AND THE APPROPRIATION INVOLVED.