A-73515, MAY 12, 1936, 15 COMP. GEN. 993

A-73515: May 12, 1936

Additional Materials:

Contact:

Edda Emmanuelli Perez
(202) 512-2853
EmmanuelliPerezE@gao.gov

 

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

AS FOLLOWS: YOUR DECISION IS REQUESTED WITH REGARD TO THE FOLLOWING PROBLEM THAT HAS ARISEN IN CONNECTION WITH THE RURAL REHABILITATION PROGRAM OF THE RESETTLEMENT ADMINISTRATION. IS MAKING LOANS WITH FUNDS MADE AVAILABLE THROUGH THE EMERGENCY RELIEF APPROPRIATION ACT OF 1935 FOR THE PURPOSE OF FINANCING. FOR SUCH OTHER PURPOSES AS ARE NECESSARY IN THE ADMINISTRATION OF APPROVED PROJECTS INVOLVING RURAL REHABILITATION OR RELIEF IN STRICKEN AGRICULTURAL AREAS. THE OFFICIAL OF THE RESETTLEMENT ADMINISTRATION HAVING DIRECT CONTACT WITH THE BORROWER IS THE COUNTY RURAL REHABILITATION SUPERVISOR. AT THE PRESENT TIME THERE ARE APPROXIMATELY TWENTY-SIX HUNDRED (2. 600) COUNTY RURAL REHABILITATION SUPERVISORS LOCATED IN VARIOUS COUNTIES IN THE UNITED STATES WHERE THE RURAL REHABILITATION PROGRAM IS CONDUCTED.

A-73515, MAY 12, 1936, 15 COMP. GEN. 993

COLLECTIONS - TRANSMITTAL BY POSTAL MONEY ORDER - RESETTLEMENT ADMINISTRATION WHEN NECESSARY FOR SAFEGUARDING, COLLECTIONS BY COUNTY RURAL REHABILITATION SUPERVISORS OF THE RESETTLEMENT ADMINISTRATION MAY BE TRANSMITTED TO ACCOUNTABLE OFFICERS BY POSTAL MONEY ORDERS, THE FEES THEREFOR TO BE BILLED THE RESETTLEMENT ADMINISTRATION AT REGULAR INTERVALS AND CHARGED TO THE FUNDS ALLOCATED BY THE PRESIDENT FOR ADMINISTRATIVE EXPENSES OF SAID ADMINISTRATION.

COMPTROLLER GENERAL MCCARL TO THE ADMINISTRATOR, RESETTLEMENT ADMINISTRATION, MAY 12, 1936:

CONSIDERATION HAS BEEN GIVEN YOUR LETTER OF APRIL 6, 1936, AS FOLLOWS:

YOUR DECISION IS REQUESTED WITH REGARD TO THE FOLLOWING PROBLEM THAT HAS ARISEN IN CONNECTION WITH THE RURAL REHABILITATION PROGRAM OF THE RESETTLEMENT ADMINISTRATION.

THE RESETTLEMENT ADMINISTRATION, PURSUANT TO RULES AND REGULATIONS CONTAINED IN EXECUTIVE ORDER 7143, DATED AUGUST 19, 1935, IS MAKING LOANS WITH FUNDS MADE AVAILABLE THROUGH THE EMERGENCY RELIEF APPROPRIATION ACT OF 1935 FOR THE PURPOSE OF FINANCING, IN WHOLE OR IN PART, THE PURCHASE OF FARM LANDS AND NECESSARY EQUIPMENT BY FARMERS, FARM TENANTS, CROPPERS, OR FARM LABORERS, AND FOR SUCH OTHER PURPOSES AS ARE NECESSARY IN THE ADMINISTRATION OF APPROVED PROJECTS INVOLVING RURAL REHABILITATION OR RELIEF IN STRICKEN AGRICULTURAL AREAS.

THE OFFICIAL OF THE RESETTLEMENT ADMINISTRATION HAVING DIRECT CONTACT WITH THE BORROWER IS THE COUNTY RURAL REHABILITATION SUPERVISOR. AT THE PRESENT TIME THERE ARE APPROXIMATELY TWENTY-SIX HUNDRED (2,600) COUNTY RURAL REHABILITATION SUPERVISORS LOCATED IN VARIOUS COUNTIES IN THE UNITED STATES WHERE THE RURAL REHABILITATION PROGRAM IS CONDUCTED. INDEBTEDNESSES RESULTING FROM LOANS MADE BY THE RESETTLEMENT ADMINISTRATION ARE COLLECTED BY SUCH COUNTY RURAL REHABILITATION SUPERVISORS FROM THE BORROWERS. COLLECTIONS ARE USUALLY MADE IN SMALL AMOUNTS AND IN CASH. IT IS THOUGHT DESIRABLE BY THE RESETTLEMENT ADMINISTRATION THAT SUCH COLLECTIONS SHOULD BE TRANSMITTED TO THE STATE OFFICES OF THE RESETTLEMENT ADMINISTRATION AT THE EARLIEST POSSIBLE MOMENT. INASMUCH AS COUNTY RURAL REHABILITATION SUPERVISORS ARE OFTEN LOCATED AT GREAT DISTANCES FROM THE STATE OFFICE OF THE RESETTLEMENT ADMINISTRATION HAVING SUPERVISION OVER THEIR COUNTY, THE PROBLEM ARISES AS TO THE METHOD TO BE EMPLOYED IN TRANSMITTING THESE FUNDS TO STATE OFFICES. AT PRESENT SUCH FUNDS ARE TRANSMITTED BY REGISTERED MAIL.

THERE ARE SEVERAL OBJECTIONS TO THE PRESENT PROCEDURE:

FIRST, THERE IS THE RISK OF LOSS OF CURRENCY TRANSMITTED THROUGH THE MAILS.

SECOND, THIS PROCEDURE REQUIRES THE HANDLING OF CURRENCY BELONGING TO THE UNITED STATES BY SEVERAL EMPLOYEES OF THE RESETTLEMENT ADMINISTRATION IN THE STATE OFFICES.

THIRD, IT IS DIFFICULT TO KEEP ADEQUATE ACCOUNTING RECORDS OF SUMS OF MONEY SO RECEIVED.

FOR THESE REASONS, IT IS THOUGHT DESIRABLE TO ADOPT THE FOLLOWING PROCEDURE:

EACH COUNTY RURAL REHABILITATION SUPERVISOR WILL BE PROVIDED WITH AN IDENTIFICATION CARD, IDENTIFYING HIM TO LOCAL POSTMASTERS. IMMEDIATELY, OR AS SOON AFTER MAKING COLLECTIONS AS IS PRACTICABLE, SUCH COUNTY RURAL REHABILITATION SUPERVISORS WILL DEPOSIT THE FUNDS COLLECTED WITH A LOCAL POST OFFICE AND RECEIVE A MONEY ORDER MADE PAYABLE TO THE RESETTLEMENT ADMINISTRATION IN EXCHANGE THEREFOR. THE PURPOSE OF THE IDENTIFICATION CARD IS TO ENABLE THE COUNTY RURAL REHABILITATION SUPERVISORS TO OBTAIN CREDIT FROM THE LOCAL POSTMASTER FOR THE CHARGES TO BE INCURRED FOR THE ISSUANCE OF A POSTAL MONEY ORDER. AT STATED ACCOUNTING PERIODS A BILL WILL BE TRANSMITTED TO THE RESETTLEMENT ADMINISTRATION AT WASHINGTON FOR THE CHARGES DUE THE POST OFFICE DEPARTMENT FOR SUCH MONEY ORDERS AND A VOUCHER WILL BE ISSUED IN PAYMENT THEREFOR.

IN VIEW OF THE FACT THAT THE COSTS OF THE PROCUREMENT OF SUCH MONEY ORDERS IS AN EXPENSE INCIDENTAL TO THE RURAL REHABILITATION PROGRAM OF THE RESETTLEMENT ADMINISTRATION, MAY FUNDS ALLOCATED BY THE PRESIDENT PURSUANT TO THE EMERGENCY RELIEF APPROPRIATION ACT OF 1935 FOR THE PURPOSE OF MAKING LOANS, AS AFORESAID, PROPERLY BE USED FOR SUCH EXPENDITURES? THE EVENT THAT FUNDS SO ALLOCATED ARE NOT AVAILABLE FOR SUCH EXPENDITURES, MAY THE SAME BE MADE WITH FUNDS ALLOCATED BY THE PRESIDENT PURSUANT TO THE EMERGENCY RELIEF APPROPRIATION ACT OF 1935 FOR ADMINISTRATIVE EXPENSES OF THE RESETTLEMENT ADMINISTRATION?

INASMUCH AS IT IS DESIRED TO INAUGURATE THE AFORE-MENTIONED PROCEDURE AS QUICKLY AS POSSIBLE, YOUR EARLY DECISION IS REQUESTED.

ASSUMING THAT THE PROPOSED ARRANGEMENT FOR ISSUING MONEY ORDERS WITHOUT PREPAYMENT OF THE FEES IS AUTHORIZED OR IS NOT PROHIBITED BY EXISTING POSTAL LAWS AND REGULATIONS AND ACCEPTABLE TO THE POSTMASTER GENERAL, AND IF, AS YOU STATE, IT IS NECESSARY FOR THE ADEQUATE PROTECTION OF MONEYS COLLECTED BY COUNTY RURAL REHABILITATION SUPERVISORS OF YOUR ADMINISTRATION FROM PERSONS TO WHOM LOANS HAVE BEEN MADE BY YOUR ADMINISTRATION, TO TRANSMIT SUCH COLLECTIONS BY POSTAL MONEY ORDERS TO ACCOUNTABLE OFFICERS, THIS OFFICE WILL INTERPOSE NO OBJECTION TO THE ARRANGEMENT PROPOSED. THE POSTAL MONEY ORDER FEES IN SUCH CASES BEING AN ADMINISTRATIVE EXPENSE PAYMENT THEREFOR IS PROPERLY FOR CHARGING TO THE FUNDS ALLOCATED BY THE PRESIDENT PURSUANT TO THE EMERGENCY RELIEF APPROPRIATION ACT OF 1935, FOR ADMINISTRATIVE EXPENSES OF THE RESETTLEMENT ADMINISTRATION (CF. A 29027, OCT. 16, 1929).