Request for Relief of Liability for Loss of Funds

An accountable Coast Guard officer sustained a loss of funds from her account. Unless relieved therefrom, she would be pecuniarily liable for any shortages in that account. The Coast Guard determined that her negligence contributed to the loss and refused to support her request fo relief from liability. That agency has begun to withhold small installments from her pay as a setoff against the amount she is in arrears. Her representative alleged that the Coast Guard failed to observe certain procedural due process requirements incident to the withholding action and requested a GAO investigation, hearing, and termination of the withholding action pending the outcome of the proposed investigation and hearing. GAO was unable to honor the request as certain statutory criteria must be satisfied before GAO may grant relief. The head of the agency must make certain specific determinations including a finding that the loss occurred without fault or negligence on the part of the officer while acting within the scope of his employment. When the head of the agency does not make such a determination, GAO has no authority to review or overturn the agency's finding. GAO suggested that the Coast Guard be contacted requesting a reconsideration. Where collection action against an accountable officer is initiated and pay is withheld, the officer may request GAO to report the balance due to the Attorney General who is required to initiate suit against the accountable officer within 60 days.