A-83685, MARCH 12, 1937, 16 COMP. GEN. 840

A-83685: Mar 12, 1937

Additional Materials:

Contact:

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

 

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

ADDRESS OF THE PAYEE IS SHOWN ON THE PAYEE'S INVOICE. THERE IS NO AUTHORITY FOR DELIVERY OF THE CHECK "IN CARE OF THE NATIONAL RAILROAD ADJUSTMENT BOARD AT CHICAGO" AS SHOWN ON THE VOUCHER WHICH WAS NOT PREPARED BY THE PAYEE. INFORMATION NECESSARY TO THE KEEPING OF A CORRECT ADMINISTRATIVE RECORD OF EXPENDITURES IS PROVIDED THROUGH THE FURNISHING TO THE ADMINISTRATIVE OFFICE OF A SCHEDULE OF DISBURSEMENTS. " IT WAS RETURNED BY THIS OFFICE ON JANUARY 15. THE VOUCHER WAS ACCOMPANIED BY A LETTER DATED JANUARY 1937. AS FOLLOWS: RECEIPT IS ACKNOWLEDGED OF PREAUDIT DIFFERENCE STATEMENT FROM THE GENERAL ACCOUNTING OFFICE REGARDING VOUCHER IN FAVOR OF THE R. WHICH VOUCHER WAS RETURNED WITHOUT CERTIFICATION FOR THE FOLLOWING REASON: "VOUCHER SHOULD BE CORRECTED TO SHOW LOCAL ADDRESS OF PAYEE SO THAT CHECK ISSUED IN PAYMENT MAY BE DELIVERED DIRECTLY TO PAYEE NAMED ON THE VOUCHER.'.

A-83685, MARCH 12, 1937, 16 COMP. GEN. 840

CHECKS - DELIVERY - DIRECT TO PAYEES RATHER THAN THROUGH ADMINISTRATIVE OFFICES - INFORMATION FOR ADMINISTRATIVE RECORD KEEPING OF EXPENDITURES AS A GENERAL RULE, CHECKS ISSUED IN PAYMENT OF OBLIGATIONS OF THE UNITED STATES SHOULD BE DELIVERED DIRECT TO THE PAYEES, AND WHERE THE WASHINGTON, D.C., ADDRESS OF THE PAYEE IS SHOWN ON THE PAYEE'S INVOICE, THERE IS NO AUTHORITY FOR DELIVERY OF THE CHECK "IN CARE OF THE NATIONAL RAILROAD ADJUSTMENT BOARD AT CHICAGO" AS SHOWN ON THE VOUCHER WHICH WAS NOT PREPARED BY THE PAYEE, IN ORDER THAT AN ADMINISTRATIVE RECORD OF PAYMENTS COULD BE MAINTAINED, THERE HAVING BEEN NO REQUEST OF THE PAYEE THAT THE CHECK BE SO DELIVERED. INFORMATION NECESSARY TO THE KEEPING OF A CORRECT ADMINISTRATIVE RECORD OF EXPENDITURES IS PROVIDED THROUGH THE FURNISHING TO THE ADMINISTRATIVE OFFICE OF A SCHEDULE OF DISBURSEMENTS, AND SUMMARY THEREOF, OF THE DISBURSING OFFICER CONCERNED, WITH CHANGES, VOUCHER NUMBERS, DIFFERENCES IN AMOUNTS OF ADMINISTRATIVE APPROVAL AND ACTUAL DISBURSEMENTS, ETC., APPROPRIATELY SHOWN THEREON, IN ADDITION TO NOTICES OF EXCEPTION IN CASE OF SUSPENSION OR DISALLOWANCE BY THE GENERAL ACCOUNTING OFFICE AND A PREAUDIT DIFFERENCE STATEMENT IN CASE OF VOUCHERS NOT CERTIFIED FOR PAYMENT, AND AS SUCH INFORMATION HAS BEEN FURNISHED THE NATIONAL MEDIATION BOARD AUTHORIZED BY LAW TO MAKE EXPENDITURES FOR THE EXECUTION OF FUNCTIONS VESTED IN THE NATIONAL RAILROAD ADJUSTMENT BOARD, THERE APPEARS NO NECESSITY FOR THE FURNISHING THEREOF TO THE LATTER BOARD THROUGH THE MEDIUM OF CHECKS MAILED IN THEIR CARE.

ACTING COMPTROLLER GENERAL ELLIOTT TO THE CHAIRMAN, NATIONAL MEDIATION BOARD, MARCH 12, 1937:

THERE HAS BEEN RESUBMITTED TO THIS OFFICE FOR AUDIT BEFORE PAYMENT A VOUCHER IN FAVOR OF R. P. ANDREWS PAPER CO. IN THE AMOUNT OF $31.74, ORIGINALLY SUBMITTED ON NATIONAL RAILROAD ADJUSTMENT BOARD SCHEDULE NO. 55, COVERING FOUR SHEAFFER'S FOUNTAIN PEN DESK SETS FURNISHED THE ADJUSTMENT BOARD, NOVEMBER 9, 1936.

INASMUCH AS THE VOUCHER INDICATED THE PAYEE'S ADDRESS AS "NATIONAL RAILROAD ADJUSTMENT BOARD, 2000 CONSUMERS BUILDING, CHICAGO, ILL., " IT WAS RETURNED BY THIS OFFICE ON JANUARY 15, 1937, FOR CORRECTION TO SHOW THE LOCAL ADDRESS OF THE PAYEE SO THE CHECK ISSUED IN PAYMENT COULD BE SENT DIRECT TO THE PAYEE. WHEN RESUBMITTED, THE VOUCHER WAS ACCOMPANIED BY A LETTER DATED JANUARY 1937, FROM THE ADMINISTRATIVE OFFICER OF THE NATIONAL RAILROAD ADJUSTMENT BOARD TO THE SECRETARY OF THE NATIONAL MEDIATION BOARD, AS FOLLOWS:

RECEIPT IS ACKNOWLEDGED OF PREAUDIT DIFFERENCE STATEMENT FROM THE GENERAL ACCOUNTING OFFICE REGARDING VOUCHER IN FAVOR OF THE R. P. ANDREWS PAPER CO. IN THE AMOUNT OF $31.74, WHICH VOUCHER WAS RETURNED WITHOUT CERTIFICATION FOR THE FOLLOWING REASON:

"VOUCHER SHOULD BE CORRECTED TO SHOW LOCAL ADDRESS OF PAYEE SO THAT CHECK ISSUED IN PAYMENT MAY BE DELIVERED DIRECTLY TO PAYEE NAMED ON THE VOUCHER.'

YOU WILL RECALL THAT WHEN THIS OFFICE WAS FIRST ESTABLISHED VOUCHERS WERE PREPARED TO SHOW THE NAME AND ADDRESS OF THE PAYEE AND THE CHECKS WERE FORWARDED DIRECT TO THE PAYEE BY THE DISBURSING OFFICER. THE MAIN OBJECTION TO THE CHECK GOING DIRECT TO THE PAYEE WAS THAT THIS OFFICE COULD NOT KEEP A CORRECT RECORD OF EXPENDITURE FOR THE REASON THAT IN NUMBERS OF INSTANCES THE CHECK WAS DRAWN IN AN AMOUNT FOR MORE OR LESS THAN WAS SHOWN ON THE APPROVED VOUCHER. THIS WAS PARTICULARLY TRUE OF CASES IN WHICH DISCOUNTS WERE INVOLVED AND WE WERE NEVER SURE OF THE AMOUNT OF FINAL SETTLEMENT. IN ADDITION, THERE WAS OCCASIONALLY A DISALLOWANCE BY GENERAL ACCOUNTING OFFICE OF WHICH WE NEVER RECEIVED INFORMATION. UNDER THAT SYSTEM WE WOULD FREQUENTLY RECEIVE INQUIRIES FROM CONCERNS, FROM WHICH PURCHASES HAD BEEN MADE, AS TO THE NON-RECEIPT OF CHECKS AND WE HAD NO METHOD OF KNOWING WHETHER OR NOT A CHECK HAD BEEN ISSUED WITHOUT REQUESTING THE INFORMATION FROM THE DISBURSING OFFICER.

DURING THIS TIME REPEATED REQUESTS HAD BEEN MADE THAT ALL CHECKS COVERING PAYMENT OF EXPENSES OF THE NATIONAL RAILROAD ADJUSTMENT BOARD BE FORWARDED TO THE BOARD FOR APPROPRIATE DISTRIBUTION, BUT, FOR SOME REASON, THE REQUESTS WERE NOT GRANTED. IN ORDER THAT PROPER RECORD COULD BE KEPT OF PAYMENTS, IT WAS SUGGESTED THAT WE GIVE ALL ADDRESSES IN CARE OF THIS BOARD, WHICH WOULD INSURE THE CHECKS BEING MAILED ACCORDINGLY. WHILE THIS WAS SOME IMPROVEMENT OVER THE FORMER SYSTEM, IT HAS NOT BEEN ENTIRELY SATISFACTORY, FOR IT IS NECESSARY TO REQUEST THE PAYEES TO FURNISH THE VOUCHER NUMBER, DATE OF PAYMENT, AND AMOUNT WHEN THE CHECKS ARE FORWARDED, THOUGH IN SOME INSTANCES SEVERAL CHECKS ARE RECEIVED IN AN ENVELOPE ADDRESSED TO THE BOARD, WHICH IS BELIEVED TO BE THE MOST DESIRABLE PRACTICE.

IN THIS CONNECTION REFERENCE IS MADE TO LETTER FROM THE GENERAL ACCOUNTING OFFICE SIGNED BY E. W. BELL, CHIEF AUDIT DIVISION, SYMBOLS A- CSF-ADM, DATED DECEMBER 23, 1936, OUTLINING THE PRACTICE TO BE FOLLOWED IN THE SUBMISSION OF VOUCHERS COVERING RECLAIM AND SUPPLEMENTAL ITEMS, A COPY OF WHICH LETTER YOU FORWARDED WITH YOURS DATED DECEMBER 29, 1936. IN THIS LETTER THE GENERAL ACCOUNTING OFFICE STATES THAT THEY DESIRE ON SUCH VOUCHERS A REFERENCE TO THE DISBURSING OFFICER'S NAME, DISBURSING OFFICER'S SYMBOL NUMBER, DISBURSING OFFICER'S VOUCHER NUMBER, AND DATE OF PAYMENT OF THE BASIC VOUCHER. IN ADDITION, THEY DESIRE SIMILAR INFORMATION IN ALL CASES WHERE MORE THAN ONE TRAVEL VOUCHER IS SUBMITTED BY THE TRAVELER COVERING A COMPLETE TRIP OR TRIPS WHILE AWAY FROM HIS OFFICIAL STATION. ATTENTION IS INVITED TO THE FACT THAT THE ONLY MEANS WE HAVE OF OBTAINING THE INFORMATION OUTLINED ABOVE IS FROM THE CHECK ISSUED BY THE DISBURSING OFFICER, AND IF THE METHOD OUTLINED ON THE PREAUDIT DIFFERENCE STATEMENT MUST BE FOLLOWED, IT APPEARS THAT IT WILL BE NECESSARY FOR US TO OBTAIN THE INFORMATION IN EACH INSTANCE FROM THE DISBURSING OFFICER.

IN ORDER THAT WE MAY HAVE A DEFINITE POLICY OF PROCEDURE, IT IS REQUESTED THAT YOU ASCERTAIN AND ADVISE WHETHER OR NOT WE MAY CONTINUE SHOWING ADDRESSES OF PAYEES IN CARE OF THE NATIONAL RAILROAD ADJUSTMENT BOARD OR WHETHER THE INFORMATION REQUIRED BY THE PREAUDIT DIFFERENCE STATEMENT, A COPY OF WHICH IS ATTACHED HERETO FOR READY REFERENCE, MUST BE FOLLOWED AND, IF THE LATTER, HOW WE MAY OBTAIN INFORMATION TO KEEP PROPER RECORDS OF EXPENDITURES AND FOR APPROPRIATE REFERENCE TO PREVIOUS VOUCHERS WHEN NECESSARY.

AS A GENERAL RULE, CHECKS ISSUED IN PAYMENT OF OBLIGATIONS OF THE UNITED STATES SHOULD BE DELIVERED DIRECT TO THE PAYEES. THE REASON FOR THIS IS THAT IN TIME IT MAY BECOME IMPORTANT TO SHOW THAT THE CHECK WAS DELIVERED TO AND RECEIVED BY THE PERSON ENTITLED TO PAYMENT, PARTICULARLY IF THE INDORSEMENT OR NEGOTIATION OF THE CHECK SHOULD COME INTO QUESTION. IN THE PRESENT INSTANCE THE PAYEE'S ADDRESS APPEARS ON ITS INVOICE AS FIRST AND H STREETS SE., WASHINGTON, D.C.; THE VOUCHER SHOWING THE PAYEE'S ADDRESS IN CARE OF THE NATIONAL RAILROAD ADJUSTMENT BOARD AT CHICAGO, ILL., WAS NOT EXECUTED BY THE PAYEE; AND THERE IS OF RECORD HERE NO REQUEST OF THE PAYEE THAT THE CHECK IN PAYMENT OF THE VOUCHER BE SENT IN CARE OF THE ADJUSTMENT BOARD. IN SUCH CIRCUMSTANCES THERE IS NO AUTHORITY FOR DELIVERY OF THE CHECK OTHERWISE THAN DIRECT TO THE PAYEE AT ITS BONA FIDE ADDRESS APPEARING ON THE INVOICE.

WITH REFERENCE TO THE STATED DIFFICULTIES OF THE ADJUSTMENT BOARD IN KEEPING A CORRECT RECORD OF EXPENDITURES, IN OBTAINING INFORMATION OF DISALLOWANCES BY THIS OFFICE, AND IN MAKING APPROPRIATE REFERENCES TO PREVIOUS VOUCHERS WHEN NECESSARY, GENERAL REGULATIONS NO. 72, DATED JUNE 21, 1929, 8 COMP. GEN. 706, PROVIDES IN PARAGRAPH 1 (B) AND (D) THAT STANDARD FORM NO. 1064, SCHEDULE OF DISBURSEMENTS, SHALL BE COMPLETED BY THE DISBURSING OFFICER AT THE TIME OF PAYMENT OF THE VOUCHERS AND THAT A COPY THEREOF SHALL BE RETURNED TO THE ADMINISTRATIVE BUREAU OR OFFICE TOGETHER WITH A COPY OF STANDARD FORM NO. 1065, SUMMARY STATEMENT OF DISBURSEMENTS, AS AN ADVICE OF PAYMENT. PARAGRAPH 1 (C) OF SAID REGULATIONS PROVIDES THAT CHANGES MADE BY THE DISBURSING OFFICER SHALL BE SHOWN ON ALL COPIES OF THE SCHEDULE OF DISBURSEMENTS IN RED INK. COMPLETED BY THE DISBURSING OFFICER, THE SCHEDULE OF DISBURSEMENTS WILL SHOW ALL THE INFORMATION REQUIRED BY THE ADJUSTMENT BOARD AS TO THE DISBURSING OFFICER'S NAME AND SYMBOL NUMBER, THE DISBURSING OFFICER'S VOUCHER NUMBER, AND THE AMOUNT AND DATE OF THE PAYMENT, INCLUDING INFORMATION AS TO ANY DIFFERENCE BETWEEN THE AMOUNT APPROVED BY THE ADMINISTRATIVE OFFICE FOR PAYMENT AND THE AMOUNT ACTUALLY PAID BY THE DISBURSING OFFICER.

IT MAY BE STATED, ALSO, THAT A COPY OF GENERAL ACCOUNTING OFFICE FORM NO. 2084, NOTICE OF EXCEPTION, IS FURNISHED TO THE ADMINISTRATIVE OFFICE CONCERNED IN CONNECTION WITH EACH SUSPENSION OR DISALLOWANCE MADE BY THIS OFFICE IN THE ACCOUNTS OF A DISBURSING OFFICER; AND IN THE CASE OF PREAUDIT VOUCHERS NOT CERTIFIED BY THIS OFFICE FOR PAYMENT, A PREAUDIT DIFFERENCE STATEMENT IS RETURNED TO THE ADMINISTRATIVE OFFICE WITH THE VOUCHER.

IT APPEARS THAT COPIES OF SCHEDULES OF DISBURSEMENTS AND OF ANY NOTICES OF EXCEPTIONS WHICH MAY HAVE BEEN ISSUED, AND ORIGINAL PREAUDIT DIFFERENCE STATEMENTS IN CONNECTION WITH DISBURSEMENTS OR PROPOSED DISBURSEMENTS FOR THE NATIONAL RAILROAD ADJUSTMENT BOARD HAVE BEEN FURNISHED TO THE NATIONAL MEDIATION BOARD, WHICH IS AUTHORIZED BY LAW TO MAKE EXPENDITURES NECESSARY FOR THE EXECUTION OF THE FUNCTIONS VESTED IN THE ADJUSTMENT BOARD. ACCORDINGLY, THE INFORMATION REQUIRED BY THE NATIONAL RAILROAD ADJUSTMENT BOARD SHOULD BE OF RECORD IN THE OFFICE OF YOUR BOARD, AND THE METHOD BY WHICH IT MAY BE MADE AVAILABLE TO THE ADJUSTMENT BOARD WOULD APPEAR TO BE AN ADMINISTRATIVE MATTER FOR ARRANGEMENT BETWEEN THE TWO BOARDS. IN ANY EVENT, IT APPEARS THAT SUCH INFORMATION MAY BE OBTAINED BY THE ADJUSTMENT BOARD WITHOUT THE NEED FOR DELIVERY OF CHECKS IN ITS CARE. ANY CHECKS WHICH HERETOFORE MAY HAVE BEEN SO DELIVERED AND FOR ANY REASON CANNOT BE DELIVERED TO THE PAYEES SHOULD BE FORWARDED TO THIS OFFICE FOR SAFE KEEPING AND LAWFUL DISPOSITION IN ACCORDANCE WITH THE PROVISIONS OF BULLETIN NO. 3, MAY 19, 1923, 2 COMP. GEN. 829, AS REVISED BY SUPPLEMENT NO. 1, AUGUST 16, 1927, 7 COMP. GEN. 846.

THE VOUCHER HERE IN QUESTION WILL BE RETURNED THROUGH THE USUAL CHANNELS CERTIFIED FOR PAYMENT, IF OTHERWISE CORRECT, PROVIDED THE CHECK IN PAYMENT BE SENT DIRECT TO THE PAYEE AT ITS BONA FIDE ADDRESS APPEARING ON THE INVOICE ATTACHED TO THE VOUCHER.