A-90179, MARCH 14, 1938, 17 COMP. GEN. 734

A-90179: Mar 14, 1938

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CHECKS - OUTSTANDING LIABILITIES - APPROPRIATION REIMBURSEMENT AND DISBURSING OFFICER'S RELIEF WHERE A CHECK ISSUED TO A DECEASED PAYEE TO COVER AN ALLOTMENT OF PAY WAS COVERED INTO . THE AMOUNT IN "OUTSTANDING LIABILITIES" WILL BE RESTORED TO THE INVOLVED APPROPRIATION AND CREDIT ALLOWED FOR THE ITEM IN THE ACCOUNTS OF THE DISBURSING OFFICER CONCERNED. 1938: THERE IS FOR CONSIDERATION YOUR LETTER OF OCTOBER 29. WAS DISALLOWED IN PART FOR $23 ON OCTOBER 18. CHECK NO. 260880 WAS ISSUED JULY 1. CHECK NO. 260880 WAS NEGOTIATED AND HONORED BY THE TREASURER OF THE UNITED STATES ON JULY 5. ITEM IS DISALLOWED. WERE ISSUED IN PAYMENT OF THE JUNE 1933 ALLOTMENT. CHECK NO. 260880 WAS NEGOTIATED AND PAID BY THE TREASURER OF THE UNITED STATES JULY 5.

A-90179, MARCH 14, 1938, 17 COMP. GEN. 734

CHECKS - OUTSTANDING LIABILITIES - APPROPRIATION REIMBURSEMENT AND DISBURSING OFFICER'S RELIEF WHERE A CHECK ISSUED TO A DECEASED PAYEE TO COVER AN ALLOTMENT OF PAY WAS COVERED INTO ,OUTSTANDING LIABILITIES" AND ANOTHER CHECK, ALIKE IN PURPOSE AND AMOUNT, HAS BEEN PAID, THE AMOUNT IN "OUTSTANDING LIABILITIES" WILL BE RESTORED TO THE INVOLVED APPROPRIATION AND CREDIT ALLOWED FOR THE ITEM IN THE ACCOUNTS OF THE DISBURSING OFFICER CONCERNED, AS ANY CLAIM IN CONNECTION WITH THE CHECK ISSUED TO THE DECEASED PAYEE WOULD NOW BE FOR CONSIDERATION OF THE GENERAL ACCOUNTING OFFICE, AND ANY INDORSEMENT IN THE NAME OF THE PAYEE WOULD BE A FORGERY THROUGH WHICH NO TRANSFEREE COULD ACQUIRE A RIGHT TO ENFORCE PAYMENT. 8 COMP. GEN. 477, DISTINGUISHED.

ACTING COMPTROLLER GENERAL ELLIOTT TO LT.COL. E.F. ELY, UNITED STATES ARMY, MARCH 14, 1938:

THERE IS FOR CONSIDERATION YOUR LETTER OF OCTOBER 29, 1937, REQUESTING, AS CUSTODIAN OF THE RETAINED RECORDS OF MAJOR CHARLES F. EDDY, UNITED STATES ARMY (DECEASED), A REVIEW OF DISALLOWANCE AGAINST VOUCHER 3 OF HIS JULY 1933 ACCOUNTS. THE VOUCHER, A PAY ROLL OF THE CIVILIAN CONSERVATION CORPS, WAS DISALLOWED IN PART FOR $23 ON OCTOBER 18, 1937, FOR REASONS GIVEN ON FORM 2084, NOTICE OF EXCEPTION, AS FOLLOWS:

PAY ROLL JUNE 1-30, 1933. PAGE 2, LINE 19, JOHN T. BRADLEY, CHECK NO. 260880 WAS ISSUED JULY 1, 1933, IN FAVOR OF ALICE KETTLEBAND, THE DAUGHTER OF MRS. F. BRADLEY (DECEASED) IN THE AMOUNT OF $23 COVERING ALLOTMENT FOR JUNE 1933, WITHOUT REQUIRING A BOND OF INDEMNITY TO COVER CHECK NO. 293416 ISSUED ON JULY 1, 1933, IN THE AMOUNT OF $23 IN FAVOR OF MRS. F. BRADLEY (DECEASED), THE ALLOTTEE. CHECK NO. 260880 WAS NEGOTIATED AND HONORED BY THE TREASURER OF THE UNITED STATES ON JULY 5, 1933, WHILE RECORDS OF THIS OFFICE SHOW THE AMOUNT OF CHECK NO. 293416 AS HAVING BEEN COVERED INTO "OUTSTANDING LIABILITIES" ON FEBRUARY 29, 1936, THE SAID CHECK NOT HAVING BEEN TRANSMITTED. IN THE ABSENCE OF A BOND OF INDEMNITY TO COVER CHECK NO. 293416 OR EVIDENCE OF CANCELATION THEREOF, ITEM IS DISALLOWED. SEE 8 COMP. GEN. 477. DEBT REPORTED.

THE MUSTER ON THE VOUCHER FOR JOHN T. BRADLEY, ENROLLEE, SHOWS AN ALLOTMENT IN THE AMOUNT OF $23 A MONTH TO "MOTHER, MRS. F. BRADLEY, 3233 NORTH HARTVILLE ST., PHILADELPHIA, PA.' THE VOUCHER FURTHER SHOWS THAT CHECKS 260880 AND 293416, EACH IN THE AMOUNT OF $23, WERE ISSUED IN PAYMENT OF THE JUNE 1933 ALLOTMENT. CHECK NO. 260880 WAS NEGOTIATED AND PAID BY THE TREASURER OF THE UNITED STATES JULY 5, 1933, AND CHECK NO. 293416 WAS COVERED INTO "OUTSTANDING LIABILITIES" AFTER HAVING BEEN OUTSTANDING AND UNPAID AT THE CLOSE OF THE FISCAL YEAR NEXT FOLLOWING THE FISCAL YEAR IN WHICH ISSUED, AS REQUIRED BY SECTION 21 OF THE ACT OF JUNE 26, 1934, 48 STAT. 1235.

IT APPEARS THAT THE CORRECT DATE OF MRS. BRADLEY'S DEATH IS MAY 24, 1933.

IT IS EVIDENT THAT TWO CHECKS WERE ISSUED AND RELEASED JULY 1, 1933,EACH IN THE AMOUNT OF $23, FOR THE MONTH OF JUNE 1933, ONE OF WHICH WAS A DUPLICATE IN PURPOSE AND AMOUNT OF THE OTHER, WHEREAS ONLY $23 WAS DUE. CHECK NO. 260880 WAS PROPERLY DRAWN AND NEGOTIATED. CHECK NO. 293416 HAS BEEN COVERED INTO "OUTSTANDING LIABILITIES," AND THE GENERAL RULE IS THAT WHEN THE AMOUNT OF AN OUTSTANDING GOVERNMENT CHECK HAS BEEN COVERED INTO "OUTSTANDING LIABILITIES," THERE IS NO AUTHORITY OF LAW FOR RESTORING THE SAME TO THE CREDIT OF THE APPROPRIATION FROM WHICH ORIGINALLY DRAWN UNTIL THE CHECK HAS BEEN PRESENTED BY THE BONA FIDE HOLDER OF THE SAME OR UNTIL A BOND OF INDEMNITY HAS BEEN FURNISHED BY THE PERSON CLAIMING THE PROCEEDS THEREOF. 8 COMP. GEN. 477. HOWEVER, ANY CLAIM IN CONNECTION THEREWITH WOULD NOT BE FOR CONSIDERATION BY THE GENERAL ACCOUNTING OFFICE, AND SINCE THIS CHECK CANNOT COME INTO THE HANDS OF A BONA FIDE HOLDER WITHOUT HAVING BEEN INDORSED BY THE PAYEE (14 COMP. GEN. 212), ANY INDORSEMENT IN THE NAME OF THE PAYEE WOULD BE A FORGERY, THROUGH WHICH FORGED INDORSEMENT NO TRANSFEREE COULD ACQUIRE TITLE WITH A RIGHT TO ENFORCE PAYMENT (UNITED STATES V. GUARANTY TRUST CO. OF NEW YORK, 293 U.S. 340), THERE APPEARS NO REASON FOR WITHHOLDING CREDIT IN THE DISBURSING ACCOUNT OF MAJOR EDDY. 84610, APRIL 20, 1937. THE NECESSARY ACTION WILL BE TAKEN BY THIS OFFICE TO RESTORE FROM "OUTSTANDING LIABILITIES" THE SUM OF $23 TO "EMERGENCY CONSERVATION FUND, 1934--- MARCH 31, 1935.'

UPON REVIEW, THEREFORE, BASED ON FACTS NOW APPEARING IN THE RECORD, CREDIT WILL BE ALLOWED FOR THE ITEM IN THE ACCOUNTS OF THE DISBURSING OFFICE.