B-122654, JUN. 12, 1956

B-122654: Jun 12, 1956

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MARION PUBLIC SCHOOLS: REFERENCE IS MADE TO YOUR LETTER DATED MAY 4. RELATIVE REFERENCE IS MADE TO YOUR LETTER DDATED MAY 4. IT IS STATED IN YOUR LETTER THAT THE FOUR NEW MEMBERS OF THE BOARD OF EDUCATION FEEL THAT A FAIR EXPLANATION IS IN ORDER SO AS TO ASSURE THEM OF A COMPLETE UNDERSTANDING OF THE PROBLEM WHICH FACES YOU. WHEREIN IT IS STATED THAT EVER SINCE THE TERMINATION OF THIS PROGRAM IN 1951 THERE HAS BEEN A QUESTION CONCERNING THE FINAL SETTLEMENT. IT IS ALSO STATED IN THIS LETTER THAT. SINCE THERE IS A DISAGREEMENT AS TO WHETHER THE ADJUSTMENT SHOULD BE MADE. THERE WAS ENCLOSED A SUMMARY OF THE COST OF OPERATION OF THE PROGRAM COMPILED JOINTLY BY MR. THERE WERE ENCLOSED WITH THIS LETTER EXPLANATIONS AS TO HOW THE VARIOUS SUMS WERE ALLOCATED BETWEEN THE REGULAR SCHOOL AND THE VETERANS TRAINING PROGRAM.

B-122654, JUN. 12, 1956

TO MR. ROBERT S. BROWN, SUPERINTENDENT OF SCHOOLS, MARION PUBLIC SCHOOLS:

REFERENCE IS MADE TO YOUR LETTER DATED MAY 4, 1956, RELATIVE

REFERENCE IS MADE TO YOUR LETTER DDATED MAY 4, 1956, RELATIVE TO THE REPORTED INDEBTEDNESS OF THE MARION CITY BOARD OF EDUCATION IN THE SUM OF $8,112.96 REPRESENTING PAYMENT OF CHARGES IN EXCESS OF THOSE PROPERLY DUE THE MARION CITY SCHOOLS FOR TRAINING FURNISHED TO VETERANS FROM JULY 1, 1946, TO MAY 1951, UNDER THE PROGRAM ADMINISTERED BY THE VETERANS ADMINISTRATION. IT IS STATED IN YOUR LETTER THAT THE FOUR NEW MEMBERS OF THE BOARD OF EDUCATION FEEL THAT A FAIR EXPLANATION IS IN ORDER SO AS TO ASSURE THEM OF A COMPLETE UNDERSTANDING OF THE PROBLEM WHICH FACES YOU. YOU ENCLOSED A COPY OF YOUR LETTER TO THE REGIONAL OFFICE OF THE VETERANS ADMINISTRATION AT CLEVELAND, OHIO, WHEREIN IT IS STATED THAT EVER SINCE THE TERMINATION OF THIS PROGRAM IN 1951 THERE HAS BEEN A QUESTION CONCERNING THE FINAL SETTLEMENT. IT IS ALSO STATED IN THIS LETTER THAT, SINCE THERE IS A DISAGREEMENT AS TO WHETHER THE ADJUSTMENT SHOULD BE MADE, THE NEW PERSONNEL OF THE BOARD WOULD LIKE TO ASK WHETHER THE SERVICES OF A REAUDIT OF THE RECORDS INVOLVED BY PERSONNEL OF THE VETERANS ADMINISTRATION REGIONAL OFFICE COULD BE MADE, OR WHETHER A REPRESENTATIVE OF THAT OFFICE COULD "MEET WITH OUR BOARD OF EDUCATION TO EXPLAIN THE DISCREPANCY IN THE FINAL SETTLEMENT OF THIS CONTRACT? " YOU REQUEST OUR REACTION TO THIS REQUEST.

THE INFORMATION AND DATA OF RECORD IN OUR OFFICE DISCLOSE THAT IN A LETTER DATED AUGUST 14, 1951, ADDRESSED TO MR. E. PAUL HOFFMAN, CLERK OF THE BOARD OF EDUCATION OF THE MARION CITY SCHOOL DISTRICT, MARION, OHIO, THERE WAS ENCLOSED A SUMMARY OF THE COST OF OPERATION OF THE PROGRAM COMPILED JOINTLY BY MR. HOFFMAN AND MR. SCHLOBOHM OF THE VETERANS ADMINISTRATION WHICH FORMED THE BASIS OF THE ULTIMATE ADMINISTRATIVE DETERMINATION THAT THE MARION CITY SCHOOLS HAD BEEN OVERPAID. THERE WERE ENCLOSED WITH THIS LETTER EXPLANATIONS AS TO HOW THE VARIOUS SUMS WERE ALLOCATED BETWEEN THE REGULAR SCHOOL AND THE VETERANS TRAINING PROGRAM, WITH THE ASSURANCE THAT IF FURTHER INFORMATION WAS DESIRED IT WOULD BE FURNISHED, AND ADVISING THAT THE FINAL FIGURES WOULD BE SUBMITTED TO THE VETERANS ADMINISTRATION CENTRAL OFFICE FOR APPROVAL. FURTHER DETAILED INFORMATION WAS FURNISHED IN A LETTER TO THE BOARD DATED MARCH 24, 1952, FROM THE CHIEF OF THE TRAINING FACILITIES SECTION OF THE CLEVELAND REGIONAL OFFICE. THEREAFTER, BY LETTER DATED APRIL 2, 1953, THE BOARD WAS ADVISED BY THE CHIEF, VOUCHER SECTION, OF THE VETERANS ADMINISTRATION REGIONAL OFFICE, THAT AN EVALUATION OF THE COST DATA SUBMITTED BY THE BOARD HAD DISCLOSED AN OVERPAYMENT OF $8,112.96 FOR THE ENTIRE PERIOD OF OPERATION, INCLUDING ALL VOUCHERS SUBMITTED, BOTH PAID AND UNPAID, AND THAT THE UNPAID VOUCHERS AMOUNTING TO $30,339.80 SHOULD BE CONSIDERED CANCELED AS THEIR PAYMENT WOULD SERVE TO INCREASE THE AMOUNT OF THE OVERPAYMENT. A REFUND IN THE AMOUNT OF $8,112.96 WAS REQUESTED.

IN HIS LETTER DATED JUNE 29, 1953, THE VETERANS ADMINISTRATION FINANCE OFFICER INVITED THE ATTENTION OF THE BOARD TO THE OVERPAYMENT AND TO THE FACT THAT THE REFUND REQUESTED APRIL 2, 1953, HAD NOT BEEN RECEIVED, AND REQUESTED INFORMATION AS TO WHEN THE REMITTANCE WOULD BE MADE. FOLLOWED THIS WITH A SIMILAR LETTER DATED AUGUST 14, 1953. THE VETERANS ADMINISTRATION HAS REPORTED THAT NO REPLIES WERE RECEIVED TO THE THREE REQUESTS, WHEREUPON THE MATTER WAS REFERRED TO OUR OFFICE AS AN INDEBTEDNESS WHICH COULD NOT BE COLLECTED ADMINISTRATIVELY.

REMITTANCE OF THE AMOUNT OF THE OVERPAYMENTS BY THE MARION CITY BOARD OF EDUCATION WAS AGAIN REQUESTED IN A LETTER FROM OUR OFFICE DATED SEPTEMBER 23, 1955. A FURTHER REQUEST WAS MADE BY LETTER DATED JANUARY 20, 1956, ADVISING THE BOARD THAT UNLESS PAYMENT WAS RECEIVED PROMPTLY THE MATTER WOULD BE REPORTED TO THE DEPARTMENT OF JUSTICE FOR APPROPRIATE ACTION. THEREAFTER, PURSUANT TO A REQUEST FROM THE HONORABLE WILLIAM G. BRAY, M. C., PHOTOSTATIC COPIES OF THE COST SHEETS CONTAINING THE COST DATA AND ITEMIZATION OF PAYMENTS ON WHICH THE AMOUNT OF THE INDEBTEDNESS WAS DETERMINED BY THE VETERANS ADMINISTRATION WERE FORWARDED TO YOU WITH OUR LETTER OF FEBRUARY 8, 1956.

IT APPEARS FROM THE FOREGOING THAT YOU HAVE RECEIVED FULL INFORMATION CONCERNING THIS INDEBTEDNESS WHICH HAS REMAINED OUTSTANDING FOR SEVERAL YEARS. FURTHERMORE, THERE IS NOTHING IN THE RECORD MADE AVAILABLE TO OUR OFFICE TO INDICATE THAT ANY QUESTION HAS BEEN RAISED HERETOFORE BY YOU OR THE MARION CITY BOARD OF EDUCATION WITH RESPECT TO THE DETERMINATIONS MADE BY THE VETERANS ADMINISTRATION IN EFFECTING THE FINAL SETTLEMENT, OR THAT THERE HAS BEEN ANY DISAGREEMENT AS TO THE AMOUNT OF THE INDEBTEDNESS AS REPORTED TO US FOR COLLECTION. HOWEVER, IN VIEW OF THE CONSIDERATIONS NOW PRESENTED IN YOUR LETTER, FURTHER ACTION BY OUR OFFICE WILL BE IN ABEYANCE FOR 60 DAYS IN ORDER THAT THE BOARD MAY COMPLETE ITS REVIEW AND SUBMIT SUCH INFORMATION AND DATA AS IT MAY BELIEVE WARRANTS RECONSIDERATION OF THE MATTER, OR MAKE THE NECESSARY ARRANGEMENTS FOR REMITTING THE SUM OF $8,112.96 DUE THE GOVERNMENT. IN THE ABSENCE OF FURTHER WORD FROM YOU AT THAT TIME THE MATTER WILL BE REFERRED TO THE ATTORNEY GENERAL WITH THE RECOMMENDATION THAT SUIT BE ..END :