A-56492, OCTOBER 1, 1934, 14 COMP. GEN. 264

A-56492: Oct 1, 1934

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BONDS - PREMIUMS - DISBURSING OFFICERS OF THE DISTRICT OF COLUMBIA PREMIUMS ON THE BONDS OF THE SPECIAL DISBURSING AGENT AND HIS ASSISTANT AT THE DISTRICT OF COLUMBIA WORKHOUSE AND REFORMATORY ARE NOT CHARGEABLE TO WELFARE FUNDS OR FUNDS OF INMATES HELD IN TRUST BY THE GOVERNMENT. PAYMENT WAS MADE FROM "WELFARE FUNDS. " AND EXCEPTION WAS TAKEN TO THE PAYMENT FOR THE REASON PREMIUMS ON DISBURSING OFFICERS' BONDS ARE A PERSONAL EXPENSE AND SHOULD BE BORNE BY THE DISBURSING OFFICER. REPLY TO NOTICE OF EXCEPTION WAS MADE BY THE DISBURSING OFFICER ON JUNE 21. AS FOLLOWS: PREMIUMS ON SPECIAL AND DEPUTY DISBURSING AGENTS' BONDS ARE NOT DISBURSED FROM UNITED STATES FUNDS. A WELFARE FUND IS MAINTAINED.

A-56492, OCTOBER 1, 1934, 14 COMP. GEN. 264

BONDS - PREMIUMS - DISBURSING OFFICERS OF THE DISTRICT OF COLUMBIA PREMIUMS ON THE BONDS OF THE SPECIAL DISBURSING AGENT AND HIS ASSISTANT AT THE DISTRICT OF COLUMBIA WORKHOUSE AND REFORMATORY ARE NOT CHARGEABLE TO WELFARE FUNDS OR FUNDS OF INMATES HELD IN TRUST BY THE GOVERNMENT.

COMPTROLLER GENERAL MCCARL TO THE PRESIDENT, BOARD OF COMMISSIONERS, DISTRICT OF COLUMBIA, OCTOBER 1, 1934:

IN THE AUDIT OF THE ACCOUNTS OF KENNETH DOVE, SPECIAL DISBURSING AGENT, DISTRICT OF COLUMBIA WORKHOUSE AND REFORMATORY, EXCEPTION HASBEEN TAKEN TO PAYMENT OF $10 ON VOUCHER 499 IN FAVOR OF THE MARYLAND CASUALTY CO., COVERING PAYMENT FOR TWO PREMIUMS OF $5 EACH ON BONDS OF THE SPECIAL DISBURSING AGENT AND THE ASSISTANT DISBURSING AGENT FOR THE PERIOD FEBRUARY 11, 1934, TO FEBRUARY 11, 1935, AND FROM FEBRUARY 13, 1934, TO FEBRUARY 13, 1935, RESPECTIVELY.

PAYMENT WAS MADE FROM "WELFARE FUNDS, WORKHOUSE AND REFORMATORY, D.C., " AND EXCEPTION WAS TAKEN TO THE PAYMENT FOR THE REASON PREMIUMS ON DISBURSING OFFICERS' BONDS ARE A PERSONAL EXPENSE AND SHOULD BE BORNE BY THE DISBURSING OFFICER.

REPLY TO NOTICE OF EXCEPTION WAS MADE BY THE DISBURSING OFFICER ON JUNE 21, 1934, AS FOLLOWS:

PREMIUMS ON SPECIAL AND DEPUTY DISBURSING AGENTS' BONDS ARE NOT DISBURSED FROM UNITED STATES FUNDS. A WELFARE FUND IS MAINTAINED, IT BEING PROFITS FROM SALES OF CERTAIN ARTICLES AND GOODS TO INMATES AND EMPLOYEES. FROM THIS FUND PURCHASES ARE MADE FOR ATHLETIC SUPPLIES AND OTHER ENTERTAINMENT OF INMATES. THE DISBURSING AGENTS ARE ACCOUNTABLE FOR THESE FUNDS. HENCE IN VIEW OF THIS FACT IT IS NOT DEEMED PROPER THAT AN INDIVIDUAL SHOULD BEAR EXPENSE OF CARRYING BOND.

THE BOND OF THE SPECIAL DISBURSING AGENT RUNS TO THE UNITED STATES AND/OR THE DISTRICT OF COLUMBIA AND THE CONDITION ON SAID BOND IS AS FOLLOWS:

THE CONDITION OF THE FOREGOING OBLIGATION IS SUCH THAT WHEREAS THE COMMISSIONERS OF THE DISTRICT OF COLUMBIA HAVE, PURSUANT TO LAW, CONSTITUTED AND APPOINTED THE SAID KENNETH DOVE A SPECIAL DISBURSING AGENT AT THE WORKHOUSE AND REFORMATORY AT LORTON, VIRGINIA, TO PAY INMATES AT THE WORKHOUSE AND REFORMATORY PECUNIARY EARNINGS PURSUANT TO AUTHORITY CONTAINED IN THE DISTRICT OF COLUMBIA APPROPRIATION ACT APPROVED JULY 3, 1930 (46 STAT. 979); TO DISBURSE WELFARE FUNDS; AND TO RECEIVE, CARE FOR, DISBURSE AND PROPERLY ACCOUNT FOR FUNDS AND/OR PROPERTY OF PRISONER INMATES AT THE WORKHOUSE AND REFORMATORY AT LORTON, VIRGINIA.

THE BOND OF THE ASSISTANT DISBURSING AGENT RUNS TO THE UNITED STATES, ONLY, AND IS CONDITIONED UPON HIS PERFORMING DUTIES AS ASSISTANT TO THE SPECIAL DISBURSING AGENT AND, ACCORDINGLY, COVERS CORRESPONDING AND SIMILAR DUTIES.

THE ACT OF JULY 3, 1930, REFERRED TO ABOVE, PROVIDES FOR A WORKING CAPITAL FUND OF $50,000 FOR SUCH INDUSTRIAL ENTERPRISES AS MAY BE APPROVED BY THE COMMISSIONERS OF THE DISTRICT OF COLUMBIA, THE RECEIPTS FROM THE SALE OF PRODUCTS AND SERVICES TO BE DEPOSITED TO THE CREDIT OF SAID WORKING CAPITAL FUND FOR USE AS A REVOLVING FUND FOR THE FISCAL YEAR 1931-

* * * FOR THE PURCHASE AND REPAIR OF MACHINERY, TOOLS AND EQUIPMENT, PURCHASE OF RAW MATERIALS AND MANUFACTURING SUPPLIES, PURCHASE, MAINTENANCE AND OPERATION OF NONPASSENGER-CARRYING VEHICLES, PURCHASE AND MAINTENANCE OF HORSES, AND PURCHASES OF FUEL FOR MANUFACTURING PURPOSES; FOR FREIGHT, PERSONAL SERVICES, AND ALL OTHER NECESSARY EXPENSES; AND FOR THE PAYMENT TO INMATES OR THEIR DEPENDENTS OF SUCH PECUNIARY EARNINGS AS THE COMMISSIONERS MAY DEEM PROPER.

THE RECORDS OF THIS OFFICE SHOW THAT DISBURSEMENTS FROM THE WORKING CAPITAL FUND (REFERRED TO ABOVE) ARE DISBURSED BY J. R. LUSBY AND NOT BY THE SPECIAL DISBURSING AGENT AND HIS ASSISTANT AT THE WORKHOUSE AND REFORMATORY, AS INDICATED ON THEIR BONDS. HOWEVER, THE RECORDS OF THIS OFFICE SHOW FURTHER THAT THE DISBURSING AGENT AT THE WORKHOUSE AND REFORMATORY AND HIS ASSISTANT DO DISBURSE CERTAIN SPECIAL DEPOSIT FUNDS UNDER THE TITLE "DCT 605 INMATES FUNDS, WORKHOUSE AND REFORMATORY, DISTRICT OF COLUMBIA, (TRUST FUNDS)," WHICH FUNDS ARE SPECIFICALLY COVERED BY THEIR BONDS AND ORIGINATE FROM FUNDS COVERED INTO THE TREASURY UNDER THE TITLE "9905 DEPOSITS OF INMATES FUNDS, WORKHOUSE AND REFORMATORY, DISTRICT OF COLUMBIA, TRUST FUNDS.'

THE ACT OF AUGUST 5, 1909, 36 STAT. 125, PROVIDES AS FOLLOWS:

UNTIL OTHERWISE PROVIDED BY LAW NO BOND SHALL BE ACCEPTED FROM ANY SURETY OR BONDING COMPANY FOR ANY OFFICER OR EMPLOYEE OF THE UNITED STATES WHICH SHALL COST MORE THAN THIRTY-FIVE PERCENTUM IN EXCESS OF THE RATE OF PREMIUM CHARGED FOR A LIKE BOND DURING THE CALENDAR YEAR NINETEEN HUNDRED AND EIGHT: PROVIDED, THAT HEREAFTER THE UNITED STATES SHALL NOT PAY ANY PART OF THE PREMIUM OR OTHER COSTS OF FURNISHING A BOND REQUIRED BY LAW OR OTHERWISE OF ANY OFFICER OR EMPLOYEE OF THE UNITED STATES.

IT IS CLEAR THAT THE INHIBITION CONTAINED IN THE PROVISO OPERATES DIRECTLY UPON THE PUBLIC AGENT AS WELL AS THE PUBLIC FUNDS. 3 COMP. GEN. 190.

IT APPEARS THAT THE CANTEEN OPERATED AT THE DISTRICT OF COLUMBIA WORKHOUSE AND REFORMATORY OCCUPIES PUBLIC-OWNED QUARTERS RENT FREE, AND USES HEAT AND LIGHT FURNISHED BY THE DISTRICT OF COLUMBIA AND THAT SALARIED EMPLOYEES OF THE DISTRICT OF COLUMBIA HANDLE THE FUNDS, KEEP THE ACCOUNTS, AND ARE IN DIRECT CHARGE OF THE CANTEENS. IN DECISION OF FEBRUARY 10, 1931, A-18286, TO YOU, APPROVING AN ACCOUNTING SYSTEM FOR PERSONAL FUNDS AND EARNINGS OF THE DISTRICT OF COLUMBIA WORKHOUSE AND REFORMATORY, IT WAS STATED AS FOLLOWS:

IT IS UNDERSTOOD THAT PROFITS ACCRUING FROM OPERATION OF THE CANTEENS WILL BE USED IN THE DISCRETION OF THE GENERAL SUPERINTENDENT OF PENAL INSTITUTIONS FOR THE BENEFIT OF INMATES, AND ACCOUNTS HAVE BEEN PROVIDED WITH A VIEW TO INSURING ADEQUATE ACCOUNTING THEREFOR.

THE FUNDS IN QUESTION ARE HELD IN TRUST FOR THE SPECIFIC PURPOSES FOR WHICH COLLECTED. THEY ARE IN THE TRUST OF THE GOVERNMENT RATHER THAN OF THE DISBURSING OFFICER AND/OR HIS ASSISTANT, THE DUTIES OF SAID DISBURSING OFFICER AND ASSISTANT BEING THOSE OF PUBLIC EMPLOYEES. IN SUCH CIRCUMSTANCES SAID FUNDS MUST BE VIEWED AS ARE OTHER PUBLIC FUNDS SUBJECT TO THE PROVISIONS OF THE ACT OF AUGUST 5, 1909, AND MAY NOT BE USED FOR THE PAYMENT OF PREMIUMS UPON PERSONAL BONDS OF PUBLIC EMPLOYEES COVERING THE EXPENDITURE NOT ONLY OF THE WELFARE FUNDS BUT THE TRUST FUNDS BELONGING TO THE INMATES, SUCH EXPENSES BEING PERSONAL TO THE EMPLOYEES. 3 COMP. GEN. 190, AND 13 ID. 185.

ACCORDINGLY, I HAVE TO ADVISE THAT CREDIT FOR THE PAYMENT OF $10 WILL BE DISALLOWED IN THE SETTLEMENT OF THE ACCOUNTS.