A-90367, APRIL 20, 1938, 17 COMP. GEN. 859

A-90367: Apr 20, 1938

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CLAIM FOR REFUND THEREOF IS CHARGEABLE TO SUCH APPROPRIATION WHETHER IT BE LAPSED OR CURRENT. WHERE COLLECTIONS ERRONEOUSLY HAVE BEEN COVERED INTO THE TREASURY AS "MISCELLANEOUS RECEIPTS" AND REFUNDS THEREOF ARE NOT PROPERLY CHARGEABLE TO ANY OTHER APPROPRIATION. THERE IS FOR CONSIDERATION CHARGING THE APPROPRIATION ACCOUNT "REFUND OF MONEYS ERRONEOUSLY RECEIVED AND COVERED" ESTABLISHED BY THE PERMANENT APPROPRIATION REPEAL ACT. RATHER THAN COLLECTIONS IN THE POSSESSION OF DISBURSING OFFICERS WHICH WERE AUTHORIZED TO BE CHARGED UNDER THE PROCEDURE ESTABLISHED PRIOR TO THE PASSAGE OF THE SAID ACT. IS AS FOLLOWS: REFERENCE IS MADE TO YOUR CERTIFICATE OF SETTLEMENT NUMBER 0479959 DATED DECEMBER 28.

A-90367, APRIL 20, 1938, 17 COMP. GEN. 859

REFUNDS OF ERRONEOUS COLLECTIONS WHERE AN AMOUNT ERRONEOUSLY COLLECTED BY THE GOVERNMENT HAS BEEN CREDITED TO AN APPROPRIATION ACCOUNT, CLAIM FOR REFUND THEREOF IS CHARGEABLE TO SUCH APPROPRIATION WHETHER IT BE LAPSED OR CURRENT, OR REIMBURSABLE OR NONREIMBURSABLE, BUT WHERE COLLECTIONS ERRONEOUSLY HAVE BEEN COVERED INTO THE TREASURY AS "MISCELLANEOUS RECEIPTS" AND REFUNDS THEREOF ARE NOT PROPERLY CHARGEABLE TO ANY OTHER APPROPRIATION, THERE IS FOR CONSIDERATION CHARGING THE APPROPRIATION ACCOUNT "REFUND OF MONEYS ERRONEOUSLY RECEIVED AND COVERED" ESTABLISHED BY THE PERMANENT APPROPRIATION REPEAL ACT, 1934, 48 STAT. 1231, RATHER THAN COLLECTIONS IN THE POSSESSION OF DISBURSING OFFICERS WHICH WERE AUTHORIZED TO BE CHARGED UNDER THE PROCEDURE ESTABLISHED PRIOR TO THE PASSAGE OF THE SAID ACT.

ACTING COMPTROLLER GENERAL ELLIOTT TO THE GOVERNOR, FARM CREDIT ADMINISTRATION, APRIL 20, 1938:

LETTER OF JANUARY 11, 1938, FROM THE ASSISTANT COMPTROLLER, FARM CREDIT ADMINISTRATION, IS AS FOLLOWS:

REFERENCE IS MADE TO YOUR CERTIFICATE OF SETTLEMENT NUMBER 0479959 DATED DECEMBER 28, 1937, IN FAVOR OF L. J. SIMPSON FOR $60.25, REFUND OF HARVESTING EXPENSES ERRONEOUSLY CREDITED TOWARD LIQUIDATION OF THE LOAN ACCOUNT OF JAMES FOLSOM, PAYABLE FROM THE APPROPRIATION "FARMERS' CROP PRODUCTION AND HARVESTING LOANS, FARM CREDIT ADMINISTRATION, 1935 1936.'

MY LETTER OF JULY 12, 1937, SUBMITTING THE CLAIM OF MR. SIMPSON TO YOUR OFFICE FOR DIRECT SETTLEMENT RECOMMENDED THAT PAYMENT BE MADE FROM SUBSEQUENT COLLECTIONS ON ACCOUNT OF LOANS MADE FROM THE APPROPRIATION "FARMERS' CROP PRODUCTION AND HAVESTING LOANS, FARM CREDIT ADMINISTRATION, 1935-1936," IN ACCORDANCE WITH THE PROCEDURE APPROVED IN YOUR LETTER TO THIS OFFICE DATED FEBRUARY 23, 1934 (A-53655), BUT CALLED ATTENTION TO RECENT SETTLEMENTS MADE BY YOUR OFFICE INVOLVING OTHER CLAIMS FOR REFUND OF AMOUNTS ERRONEOUSLY COLLECTED WHICH PROVIDED FOR SAID REFUNDS TO BE MADE FROM THE APPROPRIATION "REFUND OF MONEYS ERRONEOUSLY RECEIVED AND COVERED.' YOUR LETTER OF JUNE 28, 1937 (A 86711), DISCUSSES THE APPROPRIATION OR FUNDS TO BE USED FOR MAKING REFUNDS OF ERRONEOUS COLLECTIONS. SECTION 18 (A) OF THE PERMANENT APPROPRIATION REPEAL ACT APPROVED JUNE 26, 1934, APPEARS TO CONTEMPLATE THAT THE APPROPRIATION MADE THEREUNDER ENTITLED "REFUND OF MONEYS ERRONEOUSLY RECEIVED AND COVERED" SHALL BE USED NOT ONLY FOR THE PAYMENT OF REFUNDS THAT ARE CHARGEABLE TO APPROPRIATION ACCOUNTS ABOLISHED BY SAID ACT BUT TO OTHER COLLECTIONS ERRONEOUSLY RECEIVED AND COVERED WHICH ARE NOT PROPERLY CHARGEABLE TO ANY OTHER APPROPRIATION.

IT IS THE UNDERSTANDING OF THIS OFFICE THAT PRIOR TO PASSAGE OF THE PERMANENT APPROPRIATION REPEAL ACT MONEYS ERRONEOUSLY COLLECTED AND DEPOSITED INTO THE TREASURY TO THE CREDIT OF AN APPROPRIATION ACCOUNT COULD BE USED FOR THE PURPOSE OF MAKING A REFUND ONLY IN CASE THE LANGUAGE OF THAT APPROPRIATION MADE IT SPECIFICALLY AVAILABLE FOR SUCH REFUND, AND THAT DECISIONS OF YOUR OFFICE, INCLUDING THE ONE TO THIS OFFICE DATED FEBRUARY 23, 1934, GAVE APPROVAL TO THE PAYMENT OF SUCH REFUNDS FROM SUBSEQUENT COLLECTIONS OF THE SAME CLASSIFICATION.

THE RULE APPLIED IN MAKING SETTLEMENT OF MR. SIMPSON'S CLAIM FROM THE APPROPRIATION "FARMERS' CROP PRODUCTION AND HARVESTING LOANS, FARM CREDIT ADMINISTRATION, 1935-1936" IS NOT UNDERSTOOD, AND THIS OFFICE WOULD APPRECIATE RECEIVING FURTHER INFORMATION RELATIVE THERETO FOR ITS GUIDANCE IN THE CONSIDERATION AND ADMINISTRATIVE AUDIT OF OTHER CLAIMS OF THE SAME CHARACTER.

THE DECISION OF FEBRUARY 23, 1934, A-53655, WAS RENDERED IN RESPONSE TO YOUR SUBMISSION OF FEBRUARY 3, 1934. THE SUBMISSION DID NOT STATE TO WHAT ACCOUNT THE ERRONEOUS COLLECTIONS HAD BEEN CREDITED, BUT THE ASSUMPTION WAS THAT SUCH AMOUNTS HAD BEEN COVERED INTO THE TREASURY AS MISCELLANEOUS RECEIPTS, AND UPON THAT BASIS PAYMENT FROM SIMILAR FUNDS IN THE POSSESSION OF THE DISBURSING OFFICERS WAS AUTHORIZED. IN VIEW OF THE PROVISIONS OF SECTION 18 (A) OF THE PERMANENT APPROPRIATION REPEAL ACT, 1934, 48 STAT. 1231, WHICH, AMONG OTHER THINGS, ESTABLISHED ON THE BOOKS OF THE GOVERNMENT, EFFECTIVE JULY 1, 1935, AN ACCOUNT,"REFUND OF MONEYS ERRONEOUSLY RECEIVED AND COVERED," TO PROVIDE FOR THE REFUND OF COLLECTIONS ERRONEOUSLY RECEIVED AND COVERED WHICH ARE NOT PROPERLY CHARGEABLE TO ANY OTHER APPROPRIATION, THE PROCEDURE AUTHORIZED BY DECISION OF FEBRUARY 23, 1934, SUPRA, APPEARS NOW UNNECESSARY, AND THE GENERAL RULE IN CONNECTION WITH SUCH CASES MAY BE STATED SUBSTANTIALLY AS FOLLOWS:

WHEN THE AMOUNT SUBJECT TO REFUND CAN BE TRACED AS HAVING BEEN ERRONEOUSLY CREDITED TO AN APPROPRIATION ACCOUNT THE REFUND CLAIM IS CHARGEABLE TO SAID APPROPRIATION WHETHER IT BE LAPSED OR CURRENT, OR REIMBURSABLE OR NONREIMBURSABLE. THE SAME RULE IS APPLICABLE WHEN THE FUND ESTABLISHED WITH FUNDS ADVANCED BY THE RECONSTRUCTION FINANCE CORPORATION UNDER THE ACT OF JANUARY 22, 1932, 47 STAT. 5, IS INVOLVED. IT IS ONLY WHEN COLLECTIONS ERRONEOUSLY COVERED INTO THE TREASURY AS MISCELLANEOUS RECEIPTS ARE INVOLVED AND THE REFUND IS NOT PROPERLY CHARGEABLE TO ANY OTHER APPROPRIATION THAT THERE IS FOR CONSIDERATION CHARGING THE APPROPRIATION "REFUND OF MONEYS ERRONEOUSLY RECEIVED AND COVERED.'

THE FUNDS FOUND DUE L. J. SIMPSON HAD BEEN DEPOSITED AND ERRONEOUSLY CREDITED TO THE APPROPRIATION INVOLVED AND IN SUCH CIRCUMSTANCES THE REFUND PAYMENT WAS PROPERLY CHARGEABLE TO SAID APPROPRIATION.