B-131105, MAY 13, 1957, 36 COMP. GEN. 769

B-131105, MAY 13, 1957, 36 COMP. GEN. 769

CLAIMS - ADMINISTRATIVE CORRECTION - $10 LIMITATION CLAIMS AGAINST THE UNITED STATES WHICH INVOLVE MINOR ERRORS OF COMPUTATION OR EXTENSION NOT IN EXCESS OF $10 MAY BE ADJUSTED UPWARD OR DOWNWARD BY ADMINISTRATIVE OFFICERS WITHOUT HAVING THE CLAIM AMENDED BY THE CLAIMANT. 9 COMP. GEN. 251, 22 ID. 304, MODIFIED.

TO THE DIRECTOR, INTERNATIONAL COOPERATION ADMINISTRATION, MAY 13, 1957:

ON MARCH 15, 1957, THE DEPUTY DIRECTOR, AUDIT DIVISION, OFFICE OF THE CONTROLLER, INTERNATIONAL COOPERATION ADMINISTRATION, REQUESTED OUR GENERAL COUNSEL TO CONFIRM THE AUDIT ADJUSTMENT PROCEDURE SET FORTH IN PARAGRAPH II H.1. OF 11CA MANUAL NO. 784, EFFECTIVE OCTOBER 1, 1956.

THE PERTINENT PROVISIONS OF THE CITED MANUAL READ AS FOLLOWS:

UNDERCHARGE. ON MARCH 4, 1953, THE GENERAL COUNSEL OF GAO IN A DISCUSSION WITH THE CONTROLLER OF ICA AGREED THAT IT IS PROPER POLICY TO AUDIT FOR THE PROPER AMOUNT AND IF THE VARIANCE IS TEN DOLLARS OR LESS, TO INCREASE OR DECREASE THE PAYMENT WITHOUT REFERRAL TO THE PAYEE. THIS POLICY WILL APPLY ONLY IF THE UNDERCHARGE IS ONE OF COMPUTATION OR EXTENSION WHERE THE PAYEE HAS CLEARLY MADE CLAIM FOR THE FULL QUANTITY OF MATERIAL OR SERVICE AND AT THE PROPER UNIT PRICE. IN SUCH A CASE, THE AUDITOR MAY INCREASE THE AMOUNT CLAIMED NOT IN EXCESS OF $10. IF THE UNDERCLAIM IS IN EXCESS OF $10, APPROPRIATE NOTIFICATION MAY BE FURNISHED THE PAYEE AT THE TIME THE VOUCHER IS CERTIFIED.

THE DEPUTY DIRECTOR'S LETTER STATES THAT WHEREAS YOUR ADMINISTRATION HAS USED THIS PROCEDURE SINCE 1953, THE PROPRIETY OF ITS ADOPTION BY THE DEPARTMENT OF STATE HAS BEEN QUESTIONED ON THE BASIS OF A POSSIBLE CONFLICT WITH OUR DECISIONS, 9 COMP. GEN. 251 AND 22 ID. 304. IN VIEW THEREOF, REQUEST IS MADE FOR CONFIRMATION OF THE SUBJECT PROCEDURE.

THE REFERRED-TO DECISIONS FOLLOWED THE ESTABLISHED RULE THAT ADMINISTRATIVE OR ACCOUNTING OFFICERS OR EMPLOYEES MAY NOT INCREASE THE AMOUNT OF A VOUCHER REPRESENTING A CLAIM AGAINST THE GOVERNMENT. THE UNDERLYING PRINCIPLE OF THAT RULE IS THAT NO CHANGE IN A CLAIMANT'S ACCOUNT SHOULD BE MADE BY OTHER THAN THE CLAIMANT SO AS TO INCREASE THE AMOUNT CLAIMED TO BE DUE FROM THE GOVERNMENT, AND IS FOUNDED UPON POLICY OF THE COURTS WHERE NO GREATER AMOUNT THAN IS CLAIMED CAN ORDINARILY BE RECOVERED WITHOUT AN AMENDMENT OF THE PLEADINGS.

HOWEVER, IN FURTHERANCE OF OUR POLICY OF CONTINUOUSLY REVIEWING OUR PRACTICES AND PROCEDURES WITH THE VIEW OF DEVELOPING IMPROVEMENTS IN THE FISCAL TRANSACTIONS OF THE GOVERNMENT, WE HAVE RECOGNIZED THAT STRICT APPLICATION OF THIS RULE TO CLAIMS BY EMPLOYEES AND GOVERNMENT CREDITORS INVOLVING MINOR ERRORS OF COMPUTATION OR EXTENSION IN THE STATING OF A VOUCHER, CAN ONLY BE COSTLY IN ADMINISTRATION AND PRODUCTIVE OF MANY SMALL CLAIMS FOR THE ADDITIONAL AMOUNT DUE. THUS, WE HAVE SANCTIONED THE ADMINISTRATIVE ADJUSTMENT UPWARD OR DOWNWARD OF CLAIMS INVOLVING SUCH ERRORS IN AMOUNTS NOT IN EXCESS OF $10, WITHOUT AMENDMENT OF THE CLAIMS BY THE CLAIMANTS. OUR UNDERSTANDING IS THAT THIS PROCEDURE IS A RATHER COMMON PRACTICE IN VARIOUS ADMINISTRATIVE OFFICES. TO THE EXTENT THAT THIS ADJUSTMENT PROCEDURE MAY BE INCONSISTENT WITH THE CITED DECISIONS, THEY MAY BE REGARDED AS MODIFIED.

ACCORDINGLY, YOU ARE ADVISED THAT WE SEE NO OBJECTION TO THE ADJUSTMENT PROCEDURE QUOTED ABOVE, EXCEPT TO SUGGEST THAT THE PERIOD AFTER "$10" BE CHANGED TO A SEMICOLON AND THE WORD " IF" BE SHOWN IN SMALL CASE LETTERS SO AS TO MAKE THE SUCCEEDING SENTENCE RELATE CLEARLY TO UNDERCLAIMS DUE TO ERRORS IN COMPUTATION OR EXTENSION AND TO SUGGEST THAT THE PERIOD AT THE END OF THAT SENTENCE BE CHANGED TO A COMMA AND THE FOLLOWING WORDS ADDED: "IN ORDER THAT THE ERROR MAY BE EXPLAINED OR, IF NECESSARY, CORRECTED.'