Request for Reconsideration

A request was made for reconsideration of a GAO decision which denied a waiver of indebtedness to a disbursing agent for the improper disbursement of individual Indian money. A teller had disbursed two checks to an improper payee after determining the payee's maiden name and assuming that the recipient of the checks was the proper payee. The Bureau of Indian Affairs (BIA) became aware of its error when contacted by the proper payee, transferred the sum to the account of the proper payee, and diligently tried to collect the erroneous payment to no avail. When collection action was terminated, the overdraft was eliminated by charging the balance to the account of the disbursing officer. GAO was convinced that the loss was not the result of any shortcoming in the system attributable to the disbursing officer since BIA did not have and could not get further information on the proper payee. Accordingly, relief was granted and the shortage could be restored by a charge to the current appropriation for operation of the program.