Accounting for and Destroying of Valueless Foreign Currencies

A decision was requested concerning the proper procedures to be followed in accounting for Vietnamese piasters and Cambodian riels and the propriety of destroying these currencies as surplus property. The Treasury Department reports that it currently holds a number of Vietnamese piasters and Cambodian riels obtained as a result of the evacuation of the American Embassies in Vietnam and Cambodia. For accountability purposes, these notes are valued by the Treasury at $914.66. Also, two additional quantities of piasters were deposited with the Treasury by the Agency for International Development (AID) and the Navy. Neither the AID nor the Navy piasters have been assigned a dollar value for accountability purposes. GAO held that the Treasury may charge the Gain and Loss Account for $914.66, the amount the piasters and the riels were valued. This is permissible as the currency was held by the United States for exchange purposes and, therefore, under federal law may be charged against gains from operations for the same purposes. Moreover, the currency is valueless and will remain valueless as a medium of exchange. Additionally, GAO held with regard to the AID and Navy piasters, that if the currency is not assigned a value for accountability purposes the valueless foreign currency may be destroyed as surplus personal property.