B-176092, JUL 14, 1972

B-176092: Jul 14, 1972

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THE PAYMENT WILL PERMIT COMPLETION OF PAYMENT OF THE SECOND INSTALLMENT OF BACK PAY DUE SOME 29 CLAIMANTS OF THE MANILA MANUFACTURING CO. THE CLAIMANTS HERE INVOLVED WERE WITHOUT FAULT. THIS PAYMENT WILL PERMIT COMPLETION OF PAYMENT OF THE SECOND INSTALLMENT OF BACK PAY DUE SOME 29 CLAIMANTS OF MANILA MANUFACTURING CO. THE PERTINENT FACTS AND CIRCUMSTANCES ARE SET FORTH BELOW. PAYABLE AT 12 MONTH INTERVALS WERE RECEIVED. 000 WAS RECEIVED AND DEPOSITED. AS SOON AS THE ERROR WAS DISCOVERED THOSE 14 CLAIMANTS WERE SENT LETTERS EXPLAINING THE ERROR AND WERE REQUESTED TO REFUND THE ERRONEOUS PAYMENT. 10 OF THE 14 RETURNED THE MONEY BUT EVEN WITH REPEATED LETTERS THE BOARD HAS BEEN UNSUCCESSFUL OBTAINING REFUNDS FROM THE OTHER 4.

B-176092, JUL 14, 1972

PAYMENTS FROM APPROPRIATED FUNDS - AUTHORIZATION TO CORRECT AGENCY ERROR DECISION ALLOWING CERTIFICATION FOR PAYMENT OF A VOUCHER IN THE AMOUNT OF $205, TO BE PAID FROM APPROPRIATION 6320100, THE SALARIES AND EXPENSES FOR THE NATIONAL LABOR RELATIONS BOARD (BOARD). THE PAYMENT WILL PERMIT COMPLETION OF PAYMENT OF THE SECOND INSTALLMENT OF BACK PAY DUE SOME 29 CLAIMANTS OF THE MANILA MANUFACTURING CO. SINCE THE RECORD SHOWS THAT THE ERRONEOUS OVERPAYMENTS TO OTHER CLAIMANTS OCCURRED AS A RESULT OF THE BOARD'S CARRYING OUT THE FUNCTIONS AND RESPONSIBILITIES IMPOSED ON IT BY LAW, AND THE CLAIMANTS HERE INVOLVED WERE WITHOUT FAULT, THE VOUCHER MAY BE CERTIFIED FOR PAYMENT FROM THE CITED APPROPRIATION. ANY REFUNDS RECEIVED ON THE FOUR OVERPAYMENTS SHOULD BE RECREDITED TO THE APPROPRIATION FUND IN ACCORDANCE WITH 7 GAO CHAPTER 3, COLLECTIONS.

TO MRS. ETHELREDA C. FESMIRE:

YOUR LETTER OF MAY 31, 1972, TRANSMITS A VOUCHER AND SCHEDULE OF PAYMENTS AND YOU REQUEST A DECISION AS TO WHETHER THE VOUCHER MAY BE CERTIFIED FOR PAYMENT IN THE AMOUNT OF $205. THIS AMOUNT WOULD BE PAID FROM APPROPRIATION 6320100, THE SALARIES AND EXPENSES FOR THE NATIONAL LABOR RELATIONS BOARD (BOARD). THIS PAYMENT WILL PERMIT COMPLETION OF PAYMENT OF THE SECOND INSTALLMENT OF BACK PAY DUE SOME 29 CLAIMANTS OF MANILA MANUFACTURING CO., MANILA, ARKANSAS. (CASE NOS. 26-CA-2491; 2541.)

THE PERTINENT FACTS AND CIRCUMSTANCES ARE SET FORTH BELOW.

IN DECEMBER, 1970, ONE OF YOUR REGIONAL OFFICES FORWARDED TO THE WASHINGTON OFFICE A CHECK IN THE AMOUNT OF $5,000 REPRESENTING THE INITIAL PAYMENT OF BACK PAY PURSUANT TO THE TERMS OF THE CONSENT DECREE IN THE CASE OF MANILA MANUFACTURING, MANILA, ARKANSAS. AT THE SAME TIME THREE PROMISSORY NOTES OF $5,000 EACH, PAYABLE AT 12 MONTH INTERVALS WERE RECEIVED. IN NOVEMBER 1971, THE SECOND INSTALLMENT OF $5,000 WAS RECEIVED AND DEPOSITED. HOWEVER, DUE TO A CHANGE IN ASSIGNMENTS IN THE FINANCE BRANCH, ANOTHER EMPLOYEE PREPARED THE SCHEDULE OF DISBURSEMENTS AND INADVERTENTLY PAID A SECOND INSTALLMENT TO THE 14 CLAIMANTS WHO HAD BEEN PAID IN FULL. AS SOON AS THE ERROR WAS DISCOVERED THOSE 14 CLAIMANTS WERE SENT LETTERS EXPLAINING THE ERROR AND WERE REQUESTED TO REFUND THE ERRONEOUS PAYMENT. 10 OF THE 14 RETURNED THE MONEY BUT EVEN WITH REPEATED LETTERS THE BOARD HAS BEEN UNSUCCESSFUL OBTAINING REFUNDS FROM THE OTHER 4. THEREFORE, IN ACCORDANCE WITH THE PROCEDURES ESTABLISHED UNDER THE COLLECTION ACT OF 1966, IT HAS BEEN DETERMINED THE COST OF PURSUING COLLECTION FROM THESE CLAIMANTS WOULD EXCEED THE COST OF THE ERRONEOUS PAYMENT.

THE 29 CLAIMANTS WHO WERE DUE 4 INSTALLMENTS SHOULD HAVE HAD $740 ADDITIONAL DISTRIBUTED AMONG THEM. THE 10 ERRONEOUS CHECKS WHICH WERE RETURNED PROVIDE $535 OF THAT AMOUNT. SINCE THE BOARD HAS BEEN UNABLE TO COLLECT THE $205 YOU REQUEST AUTHORITY TO CERTIFY THE VOUCHER IN THIS AMOUNT FROM THE ABOVE-CITED APPROPRIATION.

THE BASIS FOR YOUR DETERMINATION TO TERMINATE COLLECTION ACTION ON THE CRITERIA THAT THE COST OF PURSUING COLLECTION WOULD EXCEED THE COST OF THE ERRONEOUS PAYMENTS SHOULD BE DOCUMENTED IN ACCORDANCE WITH THE PROCEDURES ESTABLISHED UNDER THE FEDERAL CLAIMS COLLECTION ACT OF 1966.

FROM THE LIMITED EVIDENCE BEFORE US IT APPEARS THAT THE CLAIMANTS ENTITLED TO FURTHER PAYMENTS FROM THE TRUST FUND WERE WITHOUT FAULT AND THE SAME APPLIES TO THE COMPANY INVOLVED. THE ERRONEOUS OVER-PAYMENTS OCCURRED AS A RESULT OF THE BOARD CARRYING OUT THE FUNCTIONS AND RESPONSIBILITIES VESTED IN IT BY LAW TO ADMINISTER THE TRUST ACCOUNT FOR THE FINANCIAL BENEFIT OF THE AGGRIEVED EMPLOYEES. THEREFORE, IF OTHERWISE CORRECT, THE VOUCHER (IN THE AMOUNT OF $205) MAY BE CERTIFIED FOR PAYMENT FROM THE ABOVE-CITED APPROPRIATION (I.E., APPROPRIATION ACCOUNT 6320100, SALARIES AND EXPENSES). SEE B-134763, FEBRUARY 14, 1958; AND B-150053, NOVEMBER 5, 1962. IN THE EVENT ANY AMOUNTS ARE RECEIVED FROM THE FOUR DEBTORS SUCH AMOUNTS MAY BE RECREDITED AS AN APPROPRIATION REFUND TO ACCOUNT 6320100 IN ACCORDANCE WITH THE PROCEDURES FOUND IN 7 GAO CHAPTER 3, COLLECTIONS.

THE VOUCHER IS RETURNED HEREWITH.