[Request for Reconsideration of Denial of Application for Waiver of Debt]

B-196226: Aug 30, 1984

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A retired Naval officer requested reconsideration of a Claims Group decision to deny his application for a waiver of his debt for overpayments which resulted from administrative errors in computing his leave status when his final pay was prepared. A portion of his debt was waived; however, a payment that he received was not recorded and resulted in an overpayment. A request for waiver of this overpayment was denied by the Navy and the Claims Group. The retired officer claimed that he did not remember receiving the payment and that collection of the debt would cause undue hardship to him. The employee also contended that, when he checked with the disbursing office, he was assured that his pay was correct. GAO found that, as a reasonable person, the officer should have noted the error at the time of his separation payment and requested an itemized breakdown of his separation pay which would have revealed the error. A person, who has reason to know that he has been overpaid, has a duty to retain the excessive payments caused by administrative error for eventual return to the Government. Financial hardship involved in making restitution of such funds is not a factor which GAO may properly consider in determining whether a federal employee is without fault. Accordingly, the action taken by the Claims Group in denying the waiver was sustained.

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