B-168995, APR. 17, 1970

B-168995: Apr 17, 1970

Additional Materials:

Contact:

Edda Emmanuelli Perez
(202) 512-2853
EmmanuelliPerezE@gao.gov

 

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

1945 MAY BE ALLOWED AS TO PORTION DEDUCTED AND FOR WHICH CHECKS WERE ISSUED BUT RETURNED AS UNDELIVERABLE. SINCE PROCEEDS OF CHECKS ARE TRUST FUNDS. CLAIM FOR WHICH IS NOT BARRED BY 1940 LIMITATIONS ACT. INASMUCH AS 25 YEARS HAVE ELAPSED AND POSSIBILITY OF FULFILLING TRUST APPEARS REMOTE. REFUND OF DEDUCTIONS TO MEMBER IS PERMITTED. CLAIM OF EITHER PARENTS OR MEMBER TO FAMILY ALLOWANCE OR DEDUCTIONS THEREFOR FOR WHICH CHECKS WERE NOT ISSUED IS BARRED BY LIMITATIONS. WERE MADE AT THE RATE OF $22 PER MONTH FROM JUNE 1943 THROUGH DECEMBER 11. WERE ISSUED IN FAVOR OF YOUR PARENTS IN CHINA BUT WERE RETURNED TO THE FINANCE CENTER. WERE CANCELLED. NO SUCH CHECKS WERE ISSUED FOR THE PERIOD FROM APRIL 1945 THROUGH DECEMBER 1945.

B-168995, APR. 17, 1970

FAMILY ALLOWANCES--CONTRIBUTION REFUND TO SERVICEMAN--FAMILY IN BLOCKED COUNTRY CLAIM FOR REFUND OF DEDUCTIONS FOR FAMILY ALLOWANCE FOR MEMBER'S PARENTS IN CHINA FROM JUNE 1943 TO DEC. 11, 1945 MAY BE ALLOWED AS TO PORTION DEDUCTED AND FOR WHICH CHECKS WERE ISSUED BUT RETURNED AS UNDELIVERABLE, SINCE PROCEEDS OF CHECKS ARE TRUST FUNDS, CLAIM FOR WHICH IS NOT BARRED BY 1940 LIMITATIONS ACT. INASMUCH AS 25 YEARS HAVE ELAPSED AND POSSIBILITY OF FULFILLING TRUST APPEARS REMOTE, REFUND OF DEDUCTIONS TO MEMBER IS PERMITTED, BUT CLAIM OF EITHER PARENTS OR MEMBER TO FAMILY ALLOWANCE OR DEDUCTIONS THEREFOR FOR WHICH CHECKS WERE NOT ISSUED IS BARRED BY LIMITATIONS.

TO MR. GEE H. SIM:

IN YOUR LETTER OF DECEMBER 15, 1969, YOU IN EFFECT REQUEST REVIEW OF OUR CLAIMS DIVISION LETTER OF DECEMBER 2, 1969, WHICH DENIED YOUR CLAIM FOR REFUND OF AMOUNTS DEDUCTED FROM YOUR MILITARY PAY AS YOUR CONTRIBUTION FOR FAMILY ALLOWANCE FOR YOUR PARENTS DURING WORLD WAR II.

THE RECORDS SHOW THAT DEDUCTIONS FROM YOUR PAY, TOTALING $682, WERE MADE AT THE RATE OF $22 PER MONTH FROM JUNE 1943 THROUGH DECEMBER 11, 1945, THE DATE OF YOUR DISCHARGE FROM THE ARMY. FAMILY ALLOWANCE CHECKS AT THE RATE OF $37 PER MONTH FROM JUNE 1943 THROUGH MARCH 31, 1945, WERE ISSUED IN FAVOR OF YOUR PARENTS IN CHINA BUT WERE RETURNED TO THE FINANCE CENTER, UNITED STATES ARMY, AS UNDELIVERABLE, AND WERE CANCELLED. NO SUCH CHECKS WERE ISSUED FOR THE PERIOD FROM APRIL 1945 THROUGH DECEMBER 1945.

YOUR PRIOR CLAIM FOR REFUND OF YOUR CONTRIBUTIONS WAS FORWARDED TO THIS OFFICE BY THE FINANCE CENTER, UNITED STATES ARMY, ON JULY 18, 1956, AND WAS CONSIDERED TO BE BARRED BY THE ACT OF OCTOBER 9, 1940, A COPY OF WHICH WAS FURNISHED TO YOU ON AUGUST 22, 1956, WITH THE RETURN OF THAT CLAIM. IN OUR LETTER OF DECEMBER 2, 1969, YOU WERE INFORMED THAT YOUR PARENTS, AS THE PAYEES OF THE FAMILY ALLOWANCE CHECKS, ARE ENTITLED TO THE PROCEEDS OF SUCH CHECKS DURING THEIR LIFETIME AND, THEREFORE, FURTHER ACTION ON YOUR CLAIM MAY NOT BE TAKEN IN THE ABSENCE OF EVIDENCE THAT YOUR PARENTS ARE NO LONGER LIVING.

YOU AGAIN REQUEST REFUND OF THE DEDUCTIONS MADE FROM YOUR MILITARY PAY AS YOUR PARENTS NEVER RECEIVED THE PAYMENTS AUTHORIZED FOR THEM. YOU SAY THAT THE MAINLAND OF CHINA IS "UNDER RESTRICTION" AND YOU DO NOT KNOW WHETHER YOUR PARENTS ARE LIVING OR NOT.

THE SERVICEMEN'S DEPENDENTS ALLOWANCE ACT OF 1942, CH. 443, 56 STAT. 381, AS AMENDED BY THE ACT OF OCTOBER 26, 1943, CH. 281, 57 STAT. 577, PROVIDED FOR A MONTHLY FAMILY ALLOWANCE FOR DEPENDENTS OF ENLISTED MEN IN ACTIVE MILITARY OR NAVAL SERVICE. THE MONTHLY ALLOWANCE OF $37 IN THE CASE OF YOUR PARENTS CONSISTED OF THE AMOUNT OF $22 DEDUCTED FROM YOUR PAY AND THE GOVERNMENT'S CONTRIBUTION OF $15.

SECTION 71, TITLE 31, U.S.C. STATES THAT ALL CLAIMS AND DEMANDS BY THE GOVERNMENT OR AGAINST IT, AND ALL ACCOUNTS IN WHICH THE GOVERNMENT IS CONCERNED, EITHER AS A DEBTOR OR CREDITOR, SHALL BE SETTLED AND ADJUSTED IN THE GENERAL ACCOUNTING OFFICE. THE ACT OF OCTOBER 9, 1940, CH. 788, 54 STAT. 1061, 31 U.S.C. 71A, 237, PROVIDES THAT EVERY CLAIM OR DEMAND AGAINST THE UNITED STATES COGNIZABLE BY THE GENERAL ACCOUNTING OFFICE (WITH CERTAIN EXCEPTIONS NOT HERE APPLICABLE) SHALL BE FOREVER BARRED UNLESS SUCH CLAIM BE RECEIVED IN SAID OFFICE WITHIN TEN FULL YEARS AFTER THE DATE THE CLAIM FIRST ACCRUED.

ANY CLAIM BY YOUR PARENTS FOR FAMILY ALLOWANCE FOR THE PERIOD FROM APRIL 1945 THROUGH DECEMBER 1945, FOR WHICH NO CHECKS WERE ISSUED IS BARRED AS YOUR PARENTS DID NOT FILE CLAIM WITH THIS OFFICE BY DECEMBER 1955, WHEN THE TEN-YEAR PERIOD EXPIRED. YOUR CLAIM FOR CONTRIBUTIONS FOR THIS PERIOD IS ALSO BARRED AS YOUR CLAIM, FIRST RECEIVED BY THIS OFFICE ON JULY 18, 1956, WAS NOT RECEIVED WITHIN TEN YEARS AFTER THE CLAIM FIRST ACCRUED.

FAMILY ALLOWANCE CHECKS FOR THE PERIOD JUNE 1943 THROUGH MARCH 1945, ISSUED IN FAVOR OF YOUR PARENTS WHO WERE RESIDING IN CHINA, COULD NOT BE DELIVERED BECAUSE OF THE WAR CONDITIONS AND THEY WERE RETURNED AND CANCELLED. THESE CHECKS SHOULD NOT HAVE BEEN CANCELLED AND, UNDER THE PROVISIONS OF SECTION 1 OF THE ACT OF JULY 11, 1947, CH. 222, 61 STAT. 308, 31 U.S.C. 132 (C), CLAIM FOR THE PROCEEDS OF THESE CHECKS IS NOT BARRED BY THE 1940 ACT.

THE PROCEEDS OF THESE CHECKS HAVE, IN EFFECT, BEEN HELD IN TRUST FOR YOUR PARENTS PENDING RECEIPT OF A CLAIM FROM THEM FOR SUCH AMOUNT. IN VIEW OF THE LONG PERIOD (MORE THAN 25 YEARS) THAT HAS ELAPSED SINCE THE CHECKS WERE ISSUED, THE LACK OF ANY CLAIM FROM YOUR PARENTS DURING THIS PERIOD AND THE OTHER CIRCUMSTANCES IN THIS CASE, IT SEEMS UNLIKELY THAT YOUR PARENTS EVER WILL PRESENT A CLAIM FOR THE CHECKS. SINCE THE GOVERNMENT HAS NOT BEEN ABLE TO FULFILL THE TRUST AND THERE IS NO REASONABLE PROSPECT THAT IT WILL BE ABLE TO DO SO IN THE FORESEEABLE FUTURE, WE HAVE CONCLUDED THAT THE PART OF SUCH PROCEEDS WHICH REPRESENTS MONEY DEDUCTED FROM YOUR PAY SHOULD BE RETURNED TO YOU.

ACCORDINGLY, OUR CLAIMS DIVISION WILL ISSUE A SETTLEMENT IN YOUR FAVOR FOR THE AMOUNT OF $484 REPRESENTING THE MONTHLY DEDUCTIONS OF $22 FROM YOUR PAY AS YOUR CONTRIBUTION TO THE FAMILY ALLOWANCE PAYMENTS FOR WHICH THE CHECKS WERE ISSUED.