[Query Concerning Possible Violation of Dual Compensation Act]

GAO was asked whether an Army employee, who was employed in a nonappropriated fund position and received a temporary full-time appointment to an appropriated fund position, violated the Dual Compensation Act when he continued to work in both positions and his total hours exceeded 40 hours per week. The Army questioned the application of the act since one of the positions was paid from nonappropriated funds. GAO stated that the act covers both appropriated and nonappropriated fund positions. Therefore, the employee had been erroneously overpaid during weeks when he worked more than 40 hours. To compute the employee's indebtedness, the agency must determine from which position the erroneous payments arose. The employee was entitled to retain compensation for only one position. The indebtedness should be regarded as one owed to the United States. Therefore, the waiver of collection provisions of federal regulations is applicable.