Request for Reconsideration of Entitlement to Award Under International Claims Settlement Act

The Department of the Treasury requested reconsideration of a claim against a deceased person for an emergency financial assistance loan by the Department of State to transport himself and his sons from Poland to the United States. It was determined that the Treasury could: (1) use the proceeds of an award to the deceased person under the International Claims Settlement Act to partially offset the debt; and (2) offset the remainder of the debt from the funeral expense payment due to the person who paid those expenses for the deceased. In its request for reconsideration, Treasury contended that payments of awards under the act were not subject to setoff against amounts due the United States. GAO determined that the United States could not properly use the award's proceeds to offset the amount due, since: (1) the United States was not a party to the claim under the act and was trustee of the fund from which the award was paid; and (2) neither Congress or the agreement with Poland provided for such deductions from awards under the act.