B-125255, NOV. 29, 1956

B-125255: Nov 29, 1956

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VETERANS ADMINISTRATOR: FURTHER REFERENCE IS MADE TO LETTER OF OCTOBER 24. THE SAID PROCEDURE WAS DESIGNED TO SIMPLIFY THE ACCOUNTING FOR COLLECTIONS MADE BY THE GENERAL ACCOUNTING OFFICE ON DEBTS REPORTED AS UNCOLLECTIBLE INVOLVING THE BENEFIT APPROPRIATIONS ACCOUNTS "36X0102 COMPENSATION AND PENSIONS. IT IS REQUESTED THAT IT CAN BE EXPANDED TO INCLUDE UNCOLLECTIBLE DEBTS REPORTED HERE UNDER THE LOAN GUARANTY PROGRAM. WE ARE INTERESTED IN ANY STEPS WHICH PROPERLY CAN BE TAKEN. CONSIDERING THAT NO OBJECTION IS PERCEIVED TO ACCOUNTING FOR COLLECTIONS PERTAINING TO THE LOAN GUARANTY PROGRAM UNDER THE REFERRED TO PROCEDURE. YOU ARE ADVISED THAT THE PROPOSAL TO EXPAND THE PROCEDURE TO INCLUDE SUCH COLLECTIONS IS APPROVED.

B-125255, NOV. 29, 1956

TO THE HONORABLE H. V. HIGLEY, ADMINISTRATOR, VETERANS ADMINISTRATOR:

FURTHER REFERENCE IS MADE TO LETTER OF OCTOBER 24, 1956, FROM THE DEPUTY ADMINISTRATOR, REQUESTING OUR APPROVAL OF A PROPOSAL TO EXTEND THE DEBT COLLECTION PROCEDURE OUTLINED IN OUR LETTER DATED SEPTEMBER 13, 1955, B- 125255, TO YOU, TO INCLUDE UNCOLLECTIBLE DEBTS ARISING UNDER THE LOAN GUARANTY PROGRAM, 38 U.S.C. 694, ET SEQ.

BRIEFLY STATED, THE SAID PROCEDURE WAS DESIGNED TO SIMPLIFY THE ACCOUNTING FOR COLLECTIONS MADE BY THE GENERAL ACCOUNTING OFFICE ON DEBTS REPORTED AS UNCOLLECTIBLE INVOLVING THE BENEFIT APPROPRIATIONS ACCOUNTS "36X0102 COMPENSATION AND PENSIONS, VETERANS ADMINISTRATION" AND "36X0137 READJUSTMENT BENEFITS, VETERANS ADMINISTRATION.' SINCE THE ADOPTION OF THIS PROCEDURE HAS RESULTED IN ADMINISTRATIVE ECONOMIES TO OUR RESPECTIVE AGENCIES, IT IS REQUESTED THAT IT CAN BE EXPANDED TO INCLUDE UNCOLLECTIBLE DEBTS REPORTED HERE UNDER THE LOAN GUARANTY PROGRAM.

WE ARE INTERESTED IN ANY STEPS WHICH PROPERLY CAN BE TAKEN, CONSISTENT WITH EXISTING LAW, TO EFFECT ADMINISTRATIVE SAVINGS IN CARRYING OUT NECESSARY GOVERNMENT FUNCTIONS. ACCORDINGLY, AND CONSIDERING THAT NO OBJECTION IS PERCEIVED TO ACCOUNTING FOR COLLECTIONS PERTAINING TO THE LOAN GUARANTY PROGRAM UNDER THE REFERRED TO PROCEDURE, YOU ARE ADVISED THAT THE PROPOSAL TO EXPAND THE PROCEDURE TO INCLUDE SUCH COLLECTIONS IS APPROVED.

THE DEPUTY ADMINISTRATOR ALSO REQUESTS THAT COLLECTIONS MADE BY THE GENERAL ACCOUNTING OFFICE ON ACCOUNT OF LOAN GUARANTY UNCOLLECTIBLE DEBTS HEREAFTER BE DEPOSITED DIRECTLY TO THE GENERAL FUND RECEIPT ACCOUNTS "361392 INTEREST ON DEFERRED COLLECTIONS OR PAYMENTS" OR "363355 REPAYMENTS OF LOANS TO VETERANS," AS APPLICABLE, WITH ADVICE THEREOF FURNISHED TO THE VETERANS ADMINISTRATION INSTEAD OF THE PRESENT PRACTICE OF DEPOSITING SUCH COLLECTIONS TO THE CREDIT OF DEPOSIT FUND ACCOUNT "36X6777 COLLECTIONS, LOAN GUARANTY SERVICE, VETERANS ADMINISTRATION TO CONTINUE MAINTAINING A COMPLETE FINANCIAL HISTORY OF THE OPERATIONS OF THE LOAN GUARANTY PROGRAM, AND WILL PROVIDE COLLECTION DATA ON DEFAULTED LOANS WHEN REQUESTED TO FURNISH INFORMATION REGARDING THE LOAN GUARANTY PROGRAM TO CONGRESSIONAL COMMITTEES AND THE BUREAU OF THE BUDGET.

IN VIEW OF THE REPRESENTATIONS MADE IN RESPECT OF THE NEED FOR STATISTICAL AND REPORTING INFORMATION REGARDING THE FINANCIAL ACTIVITIES OF THE LOAN GUARANTY PROGRAM, WE WILL DEPOSIT INTO THE TREASURY THE COLLECTIONS PERTAINING THERETO IN THE MANNER REQUESTED.