B-114617, JAN 20, 1954
Highlights
PRECIS-UNAVAILABLE SECRETARY OF DEFENSE: REFERENCE IS MADE TO LETTER OF NOVEMBER 10. THE ACCOUNTING PROCEDURES FOR THE CANCELLATION OF MUSTERING-OUT PAYMENT CHECKS WAS THE SUBJECT OF MEETINGS BETWEEN REPRESENTATIVES OF THE ACCOUNTING SYSTEMS DIVISION OF THIS OFFICE AND REPRESENTATIVES OF THE DEPARTMENT OF THE ARMY. IT IS NOW CONCLUDED THAT THE SUGGESTIONS CONTAINED IN OFFICE LETTER OF OCTOBER 7. SINCE IT IS UNDERSTOOD THAT IN ALL CASES OF MUSTERING-OUT PAYMENT. THE PAYMENT IS SIMULTANEOUSLY OBLIGATED AND LIQUIDATED AT THE TIME THE CHECK IS DRAWN AND THE SERVICEMAN'S PAY RECORD IS BOTH DEBITED AND CREDITED WHEN THE PAYMENT IS MADE. THERE APPEARS TO BE NO ACCOUNTING PROBLEM INVOLVED IF ALL NECESSARY MUSTERING-OUT PAYMENT CHECK CANCELLATIONS ARE PROCESSED DIRECTLY AS A REVERSAL OR CANCELLATION OF THE ORIGINAL ACCOUNTING ENTRIES.
B-114617, JAN 20, 1954
PRECIS-UNAVAILABLE
SECRETARY OF DEFENSE:
REFERENCE IS MADE TO LETTER OF NOVEMBER 10, 1953, FROM THE ASSISTANT SECRETARY OF DEFENSE, IN REPLY TO OFFICE LETTER OF OCTOBER 7, 1953, RELATIVE TO A CHANGE IN THE PROCEDURE FOR HANDLING CURRENT CHECKS COVERING MUSTERING-OUT PAYMENTS DRAWN TO THE ORDER OF DECEASED PAYEES.
FOLLOWING THE RECEIPT OF YOUR LETTER, THE ACCOUNTING PROCEDURES FOR THE CANCELLATION OF MUSTERING-OUT PAYMENT CHECKS WAS THE SUBJECT OF MEETINGS BETWEEN REPRESENTATIVES OF THE ACCOUNTING SYSTEMS DIVISION OF THIS OFFICE AND REPRESENTATIVES OF THE DEPARTMENT OF THE ARMY, AND AS A RESULT THEREOF, IT IS NOW CONCLUDED THAT THE SUGGESTIONS CONTAINED IN OFFICE LETTER OF OCTOBER 7, 1953, TO YOU, RELATIVE TO THE METHOD OF HANDLING SUCH MATTERS ADMINISTRATIVELY, SHOULD NOT APPLY.
SINCE IT IS UNDERSTOOD THAT IN ALL CASES OF MUSTERING-OUT PAYMENT, EITHER TO THE SERVICEMAN OR HIS SURVIVOR UNDER THE MUSTERING-OUT PAYMENT LAWS, THE PAYMENT IS SIMULTANEOUSLY OBLIGATED AND LIQUIDATED AT THE TIME THE CHECK IS DRAWN AND THE SERVICEMAN'S PAY RECORD IS BOTH DEBITED AND CREDITED WHEN THE PAYMENT IS MADE, THERE APPEARS TO BE NO ACCOUNTING PROBLEM INVOLVED IF ALL NECESSARY MUSTERING-OUT PAYMENT CHECK CANCELLATIONS ARE PROCESSED DIRECTLY AS A REVERSAL OR CANCELLATION OF THE ORIGINAL ACCOUNTING ENTRIES.
ACCORDINGLY, THE MILITARY DEPARTMENTS MAY BE AUTHORIZED TO PROCESS ALL SUCH CHECKS FOR CANCELLATION UNDER THEIR OWN PROCEDURES FOR CREDITING THE PROCEEDS DIRECTLY TO THE APPROPRIATE MUSTERING-OUT PAYMENT APPROPRIATION.
CHECKS OF THE TYPE HERE CONCERNED WHICH HERETOFORE HAVE BEEN RECEIVED IN THIS OFFICE WILL CONTINUE TO BE PROCESSED BY THE CLAIMS DIVISION UNDER THE OLD PROCEDURES.