B-35978, SEPTEMBER 11, 1943, 23 COMP. GEN. 181

B-35978: Sep 11, 1943

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CERTIFYING OFFICERS' LIABILITY ON ADJUSTMENT VOUCHERS IT IS THE RESPONSIBILITY OF A CERTIFYING OFFICER UNDER THE ACT OF DECEMBER 29. TO ENSURE THAT THE FACTS STATED OR CERTIFIED ON A VOUCHER ARE CORRECT AND THAT THE PROPOSED PAYMENT IS LAWFUL UNDER THE APPROPRIATION OR FUND INVOLVED. IT MAY BE THAT THE CERTIFYING OFFICER WILL BE JUSTIFIED IN RELYING ON THE FACTS DETERMINED IN THE CERTIFICATION OF THE ORIGINAL PAYMENT VOUCHER. THE LEGALITY OF THE CHARGE TO THE APPROPRIATION OF HIS AGENCY IS FOR HIS DETERMINATION. THE OVERPAYMENT IS ONE OF FOREIGN SERVICE FUNDS AND THE APPROPRIATION ADJUSTMENT BETWEEN THE STATE DEPARTMENT AND THE AGENCY CONCERNED SHOULD NOT BE MADE UNTIL THE RESPONSIBILITY FOR THE OVER-PAYMENT HAS BEEN DETERMINED.

B-35978, SEPTEMBER 11, 1943, 23 COMP. GEN. 181

EXCHANGE - LOSSES - INCLUSION IN COMPUTATION OF DEDUCTIONS FOR WAR SAVINGS BONDS, ALLOTMENTS TO DEPENDENTS, ETC.; CERTIFYING OFFICERS' LIABILITY ON ADJUSTMENT VOUCHERS IT IS THE RESPONSIBILITY OF A CERTIFYING OFFICER UNDER THE ACT OF DECEMBER 29, 1941, TO ENSURE THAT THE FACTS STATED OR CERTIFIED ON A VOUCHER ARE CORRECT AND THAT THE PROPOSED PAYMENT IS LAWFUL UNDER THE APPROPRIATION OR FUND INVOLVED; AND, IN THE CASE OF AN ADJUSTMENT VOUCHER, IT MAY BE THAT THE CERTIFYING OFFICER WILL BE JUSTIFIED IN RELYING ON THE FACTS DETERMINED IN THE CERTIFICATION OF THE ORIGINAL PAYMENT VOUCHER, WHERE THE NATURE OF THE ARRANGEMENTS SO REQUIRES, BUT THE LEGALITY OF THE CHARGE TO THE APPROPRIATION OF HIS AGENCY IS FOR HIS DETERMINATION, AND, THEREFORE, HIS CERTIFICATION SHOULD NOT BE "A MATTER OF FORM.' WHERE, IN MAKING DISBURSEMENTS IN A FOREIGN COUNTRY ON BEHALF OF ANOTHER GOVERNMENT AGENCY, A STATE DEPARTMENT DISBURSING OFFICER CERTIFIED AND PAID ORIGINAL VOUCHERS WHICH CONTAINED ERRORS IN COMPUTATION OF LOSSES DUE TO FOREIGN CURRENCY APPRECIATION, THE OVERPAYMENT IS ONE OF FOREIGN SERVICE FUNDS AND THE APPROPRIATION ADJUSTMENT BETWEEN THE STATE DEPARTMENT AND THE AGENCY CONCERNED SHOULD NOT BE MADE UNTIL THE RESPONSIBILITY FOR THE OVER-PAYMENT HAS BEEN DETERMINED, BUT, IF THE AGENCY CONCERNED REQUESTED THAT THE INVOLVED PAYMENTS BE MADE, IT IS INCUMBENT UPON THAT AGENCY TO ASSUME THE RESPONSIBILITY OF COLLECTING THE OVERPAYMENT IN ORDER THAT THE STATE DEPARTMENT APPROPRIATION AND THE DISBURSING OFFICER'S ACCOUNT BE CLEARED PROMPTLY. IN VIEW OF THE PROVISION IN EXECUTIVE ORDER NO. 7972, AS AMENDED, ISSUED PURSUANT TO THE EXCHANGE LOSS ACT OF MARCH 26, 1934, THAT LOSSES DUE TO FOREIGN CURRENCY APPRECIATION ARE PAYABLE ON AN EMPLOYEE'S NET SALARY--- BASE SALARY, LESS ANY DEDUCTIONS FOR CONTRIBUTIONS TO THE RETIREMENT OR OTHER FUND OR ON ACCOUNT OF PERCENTAGE DEDUCTIONS IN COMPENSATION OR ALLOTMENT OF PAY--- THE EXCHANGE LOSS IS NOT PAYABLE ON CONTRIBUTIONS TO THE CIVIL SERVICE RETIREMENT FUND, ALLOTMENTS FOR THE PURCHASE OF WAR SAVINGS BONDS, AMOUNTS DEDUCTED FOR VICTORY TAX OR THE WITHHOLDING TAX NOR ON SALARY DEDUCTIONS REQUESTED OR PERMITTED BY AN EMPLOYEE AS A MEASURE OF AID TO HIM IN FACILITATING THE PAYMENT OF HIS TAXES. WHERE A GOVERNMENT EMPLOYEE SERVING IN A FOREIGN COUNTRY REQUESTED THAT HIS SALARY CHECKS BE SENT DIRECTLY TO HIS WIFE IN THIS COUNTRY WHO WAS AUTHORIZED UNDER A POWER OF ATTORNEY TO CASH THEM--- RATHER THAN DEPOSIT THEM TO HIS CREDIT FOR USE ABROAD--- ANY CASH PAYMENTS ACTUALLY SO MADE BY THE TREASURY TO THE EMPLOYEE'S WIFE OR ON HER ORDER CONSTITUTE AN ALLOTMENT, AND, AS SUCH, MAY NOT BE CONSIDERED UNDER THE EXCHANGE LOSS ACT OF MARCH 26, 1934, AND EXECUTIVE ORDER NO. 7972, AS AMENDED, ISSUED PURSUANT THERETO, IN COMPUTING EXCHANGE LOSSES ON THE EMPLOYEE'S SALARY. IN THE COMPUTATION OF EXCHANGE LOSS UNDER THE ACT OF MARCH 26, 1934, AND EXECUTIVE ORDER NO. 7972, AS AMENDED, OF A GOVERNMENT EMPLOYEE SERVING IN A FOREIGN COUNTRY, IF ALL OR A DEFINITE PART OF THE EMPLOYEE'S SALARY IS REGULARLY PAID DIRECTLY TO HIS DEPENDENT IN THIS COUNTRY--- REGARDLESS OF WHETHER THE METHOD USED TO ACCOMPLISH SUCH RESULT IS BY DIRECT PAYMENT TO THE DEPENDENT, ASSIGNMENT, OR PURSUANT TO THE EMPLOYEE'S POWER OF ATTORNEY --- IT MUST BE REGARDED THAT SUCH PAYMENTS ARE TO COVER AN ALLOTMENT, AND, AS SUCH, ARE EXCLUDED FROM THE EXCHANGE LOSS COMPUTATION BY THE SAID ACT AND REGULATIONS.

ACTING COMPTROLLER GENERAL YATES TO T. J. SLOWIE, FEDERAL COMMUNICATIONS COMMISSION, SEPTEMBER 11, 1943:

THERE HAS BEEN CONSIDERED YOUR LETTER OF JULY 27, 1943, FORWARDING THREE UNCOMPLETED ADJUSTMENT VOUCHERS SUBMITTED BY THE STATE DEPARTMENT FOR REIMBURSEMENT OF CERTAIN PAYMENTS MADE BY JOSEPH FLACK, FOREIGN SERVICE OFFICER, CARACAS, VENEZUELA, ON BEHALF OF YOUR COMMISSION, TO AN EMPLOYEE IN SERVICE THERE FOR LOSSES DUE TO APPRECIATION OF FOREIGN CURRENCIES. ALTHOUGH NOT STATED, IT IS ASSUMED THE SEVERAL QUESTIONS PUT IN YOUR LETTER ARE SUBMITTED BY YOU IN YOUR CAPACITY AS AUTHORIZED CERTIFYING OFFICER FOR THE FEDERAL COMMUNICATIONS COMMISSION.

TO EACH OF THE ADJUSTMENT VOUCHERS THERE IS ATTACHED A MEMORANDUM COPY OF A VOUCHER ( NOS. 102, 123, AND 136 IN MR. FLACK'S OFFICIAL ACCOUNTS) EVIDENCING THE PAYMENT OF A TOTAL OF $797.47 TO SYDNEY LINES AS "EXCHANGE RELIEF" AT THE RATE OF $185.46 PER MONTH ON HIS SALARY OF $305.68 PER MONTH FOR THE PERIOD JANUARY 13 TO MAY 21, 1643. ATTACHED, ALSO, IS A COPY OF A TELEGRAM FROM THE SECRETARY OF STATE TO THE EMBASSY AT CARACAS WHICH, WITH RESPECT TO THE SALARY LOSS, READS:

BECAUSE OF TECHNICALITIES IN PHRASEOLOGY OF LINES' POWER OF ATTORNEY CHECK FOR $190.10 COULD NOT BE DEPOSITED IN HIS BANK IN UNITED STATES. HAS BEEN SENT TO HIM BY AIR MAIL.

YOU ARE AUTHORIZED TO PAY LINES CURRENCY APPRECIATION LOSS (COMPUTED ON NET SALARY AND OVERTIME AGGREGATING $305.68 MONTHLY, WHICH HAS AND WILL CONTINUE TO BE PAID BY FEDERAL COMMUNICATIONS COMMISSION) FROM DATE OF DEPARTURE MIAMI THROUGH ENTIRE PERIOD HE IS ON OFFICIAL DUTY IN VENEZUELA. SALARY ACCRUED DATES ON 6TH AND 21ST OF EACH MONTH. TAKE UP PAYMENTS IN REGULAR ACCOUNTS ACCORDANCE SECTION V-45 FOR REIMBURSEMENT FEDERAL COMMUNICATIONS COMMISSION.

THE ARRANGEMENTS UNDER WHICH THE EMPLOYEE IS SERVING ARE NOT STATED, BUT THERE IS ON FILE HERE A TRAVEL ORDER ISSUED MR. LINES BY THE OFFICE OF THE COORDINATOR OF INTER-AMERICAN AFFAIRS, AUTHORIZING HIS TRAVEL FROM JANUARY 3 TO ABOUT APRIL 30, 1943, TO MIAMI, FLORIDA, VENEZUELA, THE GUIANAS, TRINIDAD, AND RETURN TO SAN FRANCISCO WITH THE NOTATION ADDED THAT MR. LINES WAS ASSIGNED BY THE COMMISSION TO THE COORDINATOR TO MAKE SURVEY. PER DIEM OF $7 WHILE OUTSIDE THE UNITED STATES IS PROVIDED. YOU REPORT THAT THE EMPLOYEE'S GROSS MONTHLY SALARY, INCLUDING OVERTIME, IS $319.02, FROM WHICH DEDUCTIONS TOTALLING $55.74 ARE MADE FOR CIVIL SERVICE RETIREMENT, VICTORY TAX AND WAR SAVINGS BONDS, AND THAT THE "BALANCE OF $263.28 IS PAID BY CHECKS DRAWN FAVOR OF THE EMPLOYEE BUT MAILED TO HIS WIFE WHO HAS BEEN GIVEN POWER OF ATTORNEY TO CASH SUCH CHECKS.' YOUR SEVERAL QUESTIONS, BASED ON THE FOREGOING FACTS, ARE QUOTED AND ANSWERED AS FOLLOWS:

1. DOES A CERTIFYING OFFICER OF AN AGENCY WHICH HAS BEEN BILLED ON AN ADJUSTMENT VOUCHER HAVE THE RIGHT TO MAKE EXCEPTIONS, SUSPENSIONS OR DISALLOWANCES FOR EXPENDITURES MADE BY THE BILLING AGENCY, WHEN THE ARRANGEMENTS FOR SUCH EXPENDITURES GENERALLY WERE MADE AT THE REQUEST OF THE AGENCY BILLED, AS IN THE INSTANT CASE?

2. SHOULD SUCH VOUCHERS BE CERTIFIED FOR PAYMENT AS A MATTER OF FORM, LEAVING TO THE AUDIT OF THE ORIGINAL VOUCHERS DETERMINATION OF THE PROPRIETY OF PAYMENTS MADE THEREON?

3. IF YOUR ANSWER TO QUESTION NUMBER TWO IS IN THE AFFIRMATIVE, WHICH CERTIFYING OFFICER IS RESPONSIBLE FOR ANY EXCESS PAYMENTS?

UNDER THE ACT OF DECEMBER 29, 1941, 55 STAT. 875, 31 U.S.C. 82C, IT IS THE CERTIFYING OFFICER'S RESPONSIBILITY TO ENSURE THAT THE FACTS STATED OR CERTIFIED ARE CORRECT AND THAT THE PROPOSED PAYMENT IS LAWFUL UNDER THE APPROPRIATION OR FUND INVOLVED. IN THE CASE OF AN ADJUSTMENT VOUCHER, IT MAY BE THAT THE CERTIFYING OFFICER WILL BE JUSTIFIED IN RELYING ON THE FACTS DETERMINED IN THE CERTIFICATION OF THE ORIGINAL PAYMENT VOUCHER, WHERE THE NATURE OF THE ARRANGEMENTS SO REQUIRES, BUT THE LEGALITY OF THE CHARGE TO THE APPROPRIATION OF HIS AGENCY IS FOR HIS DETERMINATION, IN THE FIRST INSTANCE, AND, THEREFORE, HIS CERTIFICATION SHOULD NOT BE "A MATTER OF FORM.'

THE ANSWER TO THE FIRST QUESTION MAY DEPEND TO A CERTAIN EXTENT ON THE NATURE OF THE ERROR WHICH DEVELOPS AND HOW THE ORIGINAL PAYMENT WAS EFFECTED. IN THIS CASE, ORIGINAL VOUCHER NO. 102 WAS BOTH CERTIFIED AND PAID BY THE FOREIGN SERVICE OFFICER. PRESUMABLY THE TWO LATER VOUCHERS, WHICH HAVE NOT YET BEEN RECEIVED HERE, ALSO WERE SO HANDLED. IF THE ERROR YOU NOTE HAD OCCURRED IN A CERTIFICATION OF THE ORIGINAL VOUCHER MADE BY AN AUTHORIZED CERTIFYING OFFICER YOUR COMMISSION--- WHICH WOULD SEEM TO HAVE BEEN THE PREFERABLE PROCEDURE WHERE THE STATE DEPARTMENT WAS CALLED UPON MERELY TO MAKE CERTAIN DISBURSEMENTS, WITHOUT CONTROL OF OR RESPONSIBILITY FOR THE BASIC ACTIVITY--- THE APPROPRIATION ADJUSTMENT WOULD BE FOR CARRYING OUT, WITH THE ERRONEOUS PAYMENT THEREUPON FOR COLLECTION FROM THE EMPLOYEE OVERPAID OR THE CERTIFYING OFFICER RESPONSIBLE. BUT SINCE THE THREE ORIGINAL VOUCHERS APPEAR TO HAVE BEEN BOTH CERTIFIED AND PAID BY THE FOREIGN SERVICE OFFICER, THE OVERPAYMENT IS ONE OF FOREIGN SERVICE FUNDS AND THE ADJUSTMENT SHOULD NOT BE MADE UNTIL, AT LEAST, THE RESPONSIBILITY HAS BEEN DETERMINED. OF COURSE, IF SUCH PAYMENTS WERE MADE AT THE REQUEST OF THE FEDERAL COMMUNICATIONS COMMISSION, IT MANIFESTLY IS INCUMBENT UPON THAT AGENCY TO ASSUME THE BURDEN OF COLLECTING BACK ANY OVERPAYMENT, IT BEING ESSENTIAL, OBVIOUSLY, THAT THE APPROPRIATION AND DISBURSING ACCOUNTS OF THE DEPARTMENT WHICH WAS ASKED TO PAY THE BILLS BE CLEARED PROMPTLY.

4. IF YOUR ANSWER TO QUESTION NUMBER TWO IS IN THE NEGATIVE, SHOULD THE ATTACHED VOUCHERS BE CERTIFIED FOR AMOUNTS REPRESENTING EXCHANGE LOSS ON GROSS SALARY PLUS OVERTIME LESS:

(A) CONTRIBUTIONS TO CIVIL SERVICE RETIREMENT FUND,

(B)DEDUCTIONS FOR VICTORY OR WITHHOLDING TAX,

(C) ALLOTMENT OF PAY FOR THE PURCHASE OF WAR SAVINGS BONDS,

(D) NET AMOUNT OF CHECK MAILED TO WIFE, OR

(E) COMBINATIONS OF (A), (B), (C), AND (D), ABOVE.

5. DOES A POWER OF ATTORNEY ARRANGEMENT AS DESCRIBED HEREIN CONSTITUTE AN "ALLOTMENT OF PAY" OR "SUNDRY CHECK AGE" AS CONTEMPLATED BY PARAGRAPH 1 (B) OF EXECUTIVE ORDER NO. 7972, AS AMENDED?

UNDER EXECUTIVE ORDER 7972, SEPTEMBER 15, 1938, LOSSES DUE TO FOREIGN CURRENCY APPRECIATION ARE PAYABLE, PURSUANT TO THE ACT OF MARCH 26, 1934, 48 STAT. 466, UPON AN EMPLOYEE'S NET SALARY AND NET ALLOWANCES (PARAGRAPHS 2 (A) AND 5). "NET SALARY" IS DEFINED AS "THE BASE SALARY, LESS ANY DEDUCTIONS FOR CONTRIBUTION TO THE RETIREMENT OR OTHER FUND OR ON ACCOUNT OF PERCENTAGE DEDUCTIONS IN COMPENSATION OR ALLOTMENT OF PAY" (PARAGRAPH 1 (B) ). AN ALLOTMENT, AS DEFINED IN ACCOUNTS SUPPLEMENT D OF THE FOREIGN SERVICE REGULATIONS, IS A DEFINITE PORTION OF THE REGULAR SALARY AUTHORIZED BY THE EMPLOYEE TO BE PAID TO ANOTHER PERSON OR INSTITUTION.

(A) THE "CONTRIBUTION" IN THIS CASE TO THE CIVIL SERVICE RETIREMENT FUND IS EXCLUDED BY SPECIFIC REGULATION, SUPRA.

(B)WHETHER A DEDUCTION FOR VICTORY TAX OR OF THE WITHHOLDING TAX MUST BE MADE FROM THE SALARY PAYMENT MAY DEPEND UPON THE PROPORTION OF THE YEAR'S SERVICE PERFORMED OUTSIDE THE UNITED STATES (SEE SECTIONS 465 (B) (7) AND 1621 (A) (8) OF THE INTERNAL REVENUE CODE, AS ADDED BY THE ACTS OF OCTOBER 21, 1942, 56 STAT. 887, 888, AND JUNE 9, 1943, 57 STAT. 126, PUBLIC LAW 68, RESPECTIVELY), BUT IN ANY EVENT, SUCH QUESTION IS FOR DETERMINATION BY THE COMMISSIONER OF INTERNAL REVENUE (B-31049, DECEMBER 18, 1942). IF, IN THE CASE OF MR. LINES, THE DEDUCTION WAS REQUIRED IN FACT, THERE CAN BE NO QUESTION BUT THAT EXCHANGE LOSS IS NOT PAYABLE THEREON. LIKEWISE, A DEDUCTION REQUESTED OR PERMITTED BY THE EMPLOYEE, AS A MEASURE OF AID TO HIM IN FACILITATING THE PAYMENT OF HIS TAXES, IS BOTH A DEDUCTION AND A FORM OF ALLOTMENT AND, IN EITHER ASPECT, NO EXCHANGE LOSS IS PAYABLE THEREON. CONTRARY TO THE INFORMATION FURNISHED TO THE SECRETARY OF STATE (SEE THE FIRST QUOTATION ABOVE), YOU ADVISE THAT MR. LINES' TAX WAS DEDUCTED IN FACT, IN VIEW OF WHICH NO CURRENCY APPRECIATION LOSS SHOULD HAVE BEEN COMPUTED ON THAT SALARY DEDUCTION.

(C) AN ALLOTMENT OF PAY FOR THE PURCHASE OF WAR SAVINGS BONDS IS EITHER AN "ALLOTMENT OF PAY" OR A FORM OF DEDUCTION FOR CONTRIBUTION, ETC., AND IF A PORTION OF MR. LINES' PAY WAS SO ALLOTTED, NO CURRENCY APPRECIATION LOSS IS PAYABLE THEREON. SEE THE ATTACHED COPY OF DECISION OF TODAY TO THE COORDINATOR OF INTER-AMERICAN AFFAIRS, B 36510.

AS TO THE REMAINING QUESTIONS 4 (D) AND 5, YOUR LETTER STATES THAT THE NET SALARY, AFTER THE DEDUCTIONS, IS PAID BY CHECKS DRAWN TO THE EMPLOYEE'S ORDER BUT MAILED TO HIS WIFE, WHO HAS A POWER OF ATTORNEY TO CASH THEM. THE SECRETARY OF STATE'S TELEGRAM, HOWEVER, REFERS TO A CHECK FOR $190.10, WHICH, BECAUSE OF TECHNICALITIES IN THE POWER OF ATTORNEY, COULD NOT BE DEPOSITED IN MR. LINES' BANK AND WAS SENT TO HIM BY AIR MAIL. IT HAS BEEN DECIDED THAT THE DEPOSIT OF AN EMPLOYEE'S CHECKS IN HIS DOMESTIC BANK ACCOUNT--- WHICH WOULD BE AVAILABLE, OF COURSE, FOR WITHDRAWAL AND EXPENDITURE BY MEANS OF CHECKS DRAWN WHEREVER HE MAY BE LOCATED--- IS NOT AN ALLOTMENT, AND THAT EXCHANGE LOSSES PROPERLY ARE COMPUTED AND PAID THEREON FOR PERIODS OF DUTY OUTSIDE THE UNITED STATES. B-28583, DECEMBER 9, 1942. AN ALLOTMENT, SUCH AS FOR THE SUPPORT OF DEPENDENTS, DIFFERS FROM THE DEPOSIT OF AN EMPLOYEE'S CHECKS IN HIS OWN BANK ACCOUNT IN THAT THE ALLOTMENT IS A REGULAR PAYMENT OF SOME OR ALL OF THE EMPLOYEE'S MONEY TO AND FOR THE USE OF ANOTHER, WHILE THE BANK ARRANGEMENT IS A DEPOSIT TO AND FOR HIS OWN ACCOUNT, WHICH MAY BE EXPECTED TO BE WITHDRAWN, IN PART AT LEAST, AND SPENT BY HIM ABROAD, IN A LOCALITY WHERE AN EXCHANGE LOSS MAY IN FACT BE INCURRED. THERE IS, OF COURSE, NO REAL BASIS FOR THE PAYMENT OF A FICTIONAL FOREIGN EXCHANGE LOSS UPON AMOUNTS REGULARLY DEDUCTED FROM THE EMPLOYEE'S SALARY AND PAID OVER TO OTHERS IN THIS COUNTRY, AND TO CARRY THAT PRINCIPLE INTO EFFECT THE EXECUTIVE ORDER ELIMINATES FROM CONSIDERATION RETIREMENT OR OTHER DEDUCTIONS AND ALLOTMENTS OF PAY, AND, IN THE SPECIAL CASE OF PERSONNEL SERVING UNDER THE WAR AND NAVY DEPARTMENTS, THE ORDER ELIMINATES "ALLOTMENTS, FINES AND FORFEITURES, CLOTHING, HOSPITAL, CIVIL SERVICE RETIREMENT FUND, PERCENTAGE DEDUCTIONS IN COMPENSATION, AND OTHER SUNDRY CHECK AGES.' IF THE ACTUAL ARRANGEMENT IS FOR THE PURPOSE OF AN ALLOTMENT, AND HAS THAT EFFECT, THAT IS, IF ALL OR A DEFINITE PORTION OF THE EMPLOYEE'S SALARY REGULARLY IS PAID OVER TO ANOTHER IN THIS COUNTRY, IT MUST BE VIEWED THAT SUCH PAYMENTS ARE TO COVER AN ALLOTMENT AND ARE EXCLUDED FROM THE EXCHANGE LOSS COMPUTATION BY THE EXECUTIVE ORDER. CANNOT BE MATERIAL WHAT FORMAL DIFFERENCES IN DOCUMENTATION ACCOMPLISH THE RESULT OF AN ALLOTMENT--- WHETHER BY DIRECT PAYMENT TO THE DEPENDENT UPON THE EMPLOYEE'S DIRECTION UNDER THE ACT OF MAY 14, 1937, 50 STAT. 166, OR BY PAYMENT TO THE DEPENDENT AS ASSIGNEE, IN THE SERVICES WHERE ASSIGNMENTS OF PAY ARE PERMITTED, OR BY PAYMENT TO THE DEPENDENT UNDER A POWER OF ATTORNEY GIVEN BY THE EMPLOYEE. THE FACT THAT THE PURPOSE OF THE EXECUTIVE ORDER MIGHT BE EVADED BY STILL OTHER DEVICES, WHICH DO NOT FALL WITHIN ITS BAN, CANNOT AFFECT THE CONCLUSION THAT ALL FORMS AND PROCEDURES WHICH, IN SUBSTANCE, DO COME WITHIN ITS EXCLUSIONS MERIT LIKE TREATMENT.

ACCORDINGLY--- IT NOT APPEARING THAT THE ENCASHMENT OF MR. LINES' CHECKS BY HIS WIFE WAS FOR THE PURPOSE OF DEPOSIT TO HIS CREDIT FOR HIS USE ABROAD--- IT MUST BE HELD THAT IF HE DIRECTED HIS CHECKS TO BE SENT REGULARLY TO HIS WIFE AND GAVE HER POWER OF ATTORNEY TO CASH THEM, ANY CASH PAYMENTS ACTUALLY SO MADE BY THE TREASURY TO HER ON HER ORDER CONSTITUTE AN ALLOTMENT AND ARE NOT FOR CONSIDERATION IN COMPUTING EXCHANGE LOSSES. UPON THE FACTS STATED IN YOUR LETTER, THE VOUCHERS, WHICH ARE RETURNED HEREWITH, SHOULD NOT BE CERTIFIED FOR PAYMENT, BUT THE EMPLOYEE SHOULD BE CALLED UPON TO MAKE AN IMMEDIATE REFUND, WHICH SHOULD BE TURNED OVER TO THE STATE DEPARTMENT FOR DEPOSIT TO THE APPROPRIATION OVERCHARGED. IF THE FACTS ARE OTHERWISE WITH RESPECT TO THE ACTUAL DEDUCTIONS OR ALLOTMENT PAID, THE ADJUSTMENT VOUCHERS SHOULD BE CORRECTED TO SHOW THE PROPER CHARGE AND ONLY THE DIFFERENCE COLLECTED BACK FROM THE EMPLOYEE. ALSO, BEFORE ANY SUCH TRANSFER IS MADE, IT SHOULD APPEAR WHY THE CHARGE IS NOT PROPERLY AGAINST AN APPROPRIATE FUND OF THE OFFICE OF THE COORDINATOR OF INTER-AMERICAN AFFAIRS, IF IN FACT THE EMPLOYEE WAS ASSIGNED OR DETAILED TO THE SERVICE OF THAT AGENCY. A-87710, JANUARY 5, 1938.