APRIL 30, 1924, 3 COMP. GEN. 817

APRIL 30, 1924, 3 COMP. GEN. 817

PROCEDURE FOR EFFECTING PAYMENT OF A LOST CHECK DRAWN ON A SPECIAL DEPOSIT ACCOUNT TO EFFECT PAYMENT OF THE AMOUNT OF A CHECK ISSUED BY A FORMER DISBURSING AGENT OF THE UNITED STATES AGAINST A SPECIAL DEPOSIT ACCOUNT WITH THE TREASURER OF THE UNITED STATES, SAID CHECK HAVING BEEN REPORTED LOST, AND THE REQUIRED BOND OF INDEMNITY AND AFFIDAVIT AS TO LOSS HAVING BEEN FURNISHED, A CERTIFICATE OF SETTLEMENT WILL BE ISSUED BY THE GENERAL ACCOUNTING OFFICE TO THE TREASURER OF THE UNITED STATES AUTHORIZING THE ISSUANCE OF A DUPLICATE CHECK COUNTERSIGNED BY THE TREASURER.

DECISION BY COMPTROLLER GENERAL MCCARL, APRIL 30, 1924:

THERE IS FOR DECISION THE MATTER OF THE PROCEDURE IN PAYING THE AMOUNT OF A LOST CHECK DRAWN IN FAVOR OF CHARLES F. ZOOK BY E. M. ROWLAND, FORMER TREASURER OF THE DANVILLE BRANCH, NATIONAL SOLDIERS' HOME, DANVILLE, ILL., SYMBOL NO. 26037, AGAINST HIS SPECIAL DEPOSIT ACCOUNT WITH THE TREASURER OF THE UNITED STATES IN THE SUM OF $18, THE SAID PAYEE FURNISHING THE CUSTOMARY BOND OF INDEMNITY FOR THE ISSUANCE OF A DUPLICATE CHECK, STATING IN THE ACCOMPANYING AFFIDAVIT THE CIRCUMSTANCES UNDER WHICH THE CHECK WAS LOST.

THE INTENDED PAYMENT TO ZOOK BY ROWLAND WAS OF PENSION MONEY FORWARDED TO THE HOME AND HELD IN SPECIAL DEPOSIT ACCOUNT TO BE DISBURSED FOR THE BENEFIT OF THE PENSIONER. 22 STAT., 322; 3 COMP. DEC., 350.

THE TREASURER OF THE UNITED STATES REPORTS THAT THE CHECK ISSUED HAS NOT BEEN PAID AND THAT IT HAS BEEN ENTERED ON THE STOPPAGE LIST.

THE PRESENT TREASURER OF THE HOME, FRANK F. BOTT, IN HIS LETTER OF OCTOBER 15, 1923, REQUESTED:

AS E. M. ROWLAND, FORMER TREASURER AT THIS BRANCH, IS NO LONGER IN THE SERVICE OF THE UNITED STATES, IT IS REQUESTED THAT THE AMOUNT * * * BE CREDITED TO MY ACCOUNTS, * * * TO SYMBOL 26082 * * *. THE REQUEST OF THE PRESENT TREASURER WAS IN ORDER TO ENABLE HIM TO MAKE PAYMENT TO CHARLES F. ZOOK.

THE STOPPAGE PLACED AGAINST THE CHECK HERE IN QUESTION ESTABLISHED A FREE BALANCE OF $18 IN THE ACCOUNT OF ROWLAND WITH THE TREASURER OF THE UNITED STATES, AND THE QUESTION WHICH ARISES IS WHETHER, IN ORDER TO EFFECT PAYMENT, IT IS NECESSARY TO EMPLOY THE INDIRECT PROCEDURE OF HAVING THE TREASURER OF THE UNITED STATES TRANSFER THE FREE BALANCE FROM ONE ACCOUNT TO ANOTHER SO THAT THE AMOUNT MAY BE PAID BY THE ONE TO WHOSE ACCOUNT THE BALANCE HAS BEEN TRANSFERRED.

SECTION 3646, REVISED STATUTES, AS AMENDED BY THE ACT OF MARCH 21, 1916, 39 STAT., 37, AND PRIOR ACTS, PROVIDES FOR THE ISSUANCE OF DUPLICATE CHECKS BY OFFICERS AND AGENTS OF THE UNITED STATES UPON THE EXECUTION OF SUCH BOND, WITH SURETIES, TO INDEMNIFY THE UNITED STATES, AND PROOF OF LOSS OF ORIGINAL CHECK, AS THE SECRETARY OF THE TREASURY SHALL PRESCRIBE.

SECTION 3647, REVISED STATUTES, PROVIDES:

IN CASE THE DISBURSING OFFICER OR AGENT BY WHOM SUCH LOST, DESTROYED OR STOLEN ORIGINAL CHECK WAS ISSUED, IS DEAD, OR NO LONGER IN THE SERVICE OF THE UNITED STATES, IT SHALL BE THE DUTY OF THE PROPER ACCOUNTING OFFICER, UNDER SUCH REGULATIONS AS THE SECRETARY OF THE TREASURY SHALL PRESCRIBE, TO STATE AN ACCOUNT IN FAVOR OF THE OWNER OF SUCH ORIGINAL CHECK FOR THE AMOUNT THEREOF, AND TO CHARGE SUCH AMOUNT TO THE ACCOUNT OF SUCH OFFICER OR AGENT.

IN CASES OF THIS CHARACTER, WHICH INVOLVE MONEYS IN SPECIAL DEPOSIT ACCOUNT RATHER THAN ADVANCES OF APPROPRIATED MONEYS, THE BETTER AND MORE DIRECT PROCEDURE WAS, PRIOR TO THE BUDGET AND ACCOUNTING ACT, 1921, FOR THE TREASURER OF THE UNITED STATES TO MAKE A DUPLICATE OF THE LOST CHECK, COUNTERSIGNING IT TO SHOW THAT THE DUPLICATE WAS MADE BY HIM. 21 COMP. DEC., 691.

SAID ACT OF JUNE 10, 1921, 42 STAT., 25, PROVIDES:

SEC. 307. THE COMPTROLLER GENERAL MAY PROVIDE FOR THE PAYMENT OF ACCOUNTS OR CLAIMS ADJUSTED AND SETTLED IN THE GENERAL ACCOUNTING OFFICE, THROUGH DISBURSING OFFICERS OF THE SEVERAL DEPARTMENTS AND ESTABLISHMENTS, INSTEAD OF BY WARRANT.

THIS STATUTE ENABLES THE ACCOMPLISHMENT OF SETTLEMENTS OF SUCH CLAIMS IN THE SAME MANNER AS THOSE INVOLVING APPROPRIATED MONEYS--- BY CERTIFICATE OF SETTLEMENT--- AND PERMITS THE DIRECT SETTLEMENT OF CLAIMS AND DEMANDS AGAINST SPECIAL DEPOSIT FUNDS, THE ONLY DIFFERENCE IN PROCEDURE BEING THAT THE CERTIFICATE OF SETTLEMENT CHARGING SPECIAL DEPOSIT FUNDS MUST BE ADDRESSED TO THE DISBURSING OFFICER, INSTEAD OF THE SECRETARY OF THE TREASURY, WITH DIRECTIONS AS TO PAYMENT.

ORDINARILY THE CERTIFICATE (IN DUPLICATE) WOULD BE ADDRESSED TO THE DISBURSING OFFICER WHOSE SPECIAL ACCOUNT IS TO BE CHARGED; OR IN CASES INVOLVING APPROPRIATED MONEYS, TO THE DISBURSING OFFICER HAVING, OR WHO COULD OBTAIN, FUNDS CHARGEABLE THEREWITH, THE CERTIFICATE OF SETTLEMENT BEING THE VOUCHER TO BE RETURNED IN THE ACCOUNT AND THE COPY TO BE RETAINED FOR ADMINISTRATIVE PURPOSES.

THE INSTANT CASE INVOLVES, HOWEVER, AN EXCEPTION TO THE RULE. IF THERE IS TO BE A LITERAL COMPLIANCE WITH SECTION 3647, REVISED STATUTES, IT BEING IMPOSSIBLE TO ADDRESS THE OFFICER WHOSE ACCOUNT IS TO BE CHARGED, THE REQUIRED SETTLEMENT MUST BE ADDRESSED TO A DISBURSING OFFICER CAPABLE OF FULFILLING ITS PURPOSE. TO COMPLY WITH THE REQUEST AS MADE WOULD MAKE THE PROCEDURE CUMBERSOME AND EXPENSIVE. THE FORMER PROCEDURE WOULD BE MORE DIRECT AND MORE EFFICIENT, AND MERGER THEREOF WITH THE RECENT STATUTORY AUTHORITY WOULD EFFECT THE STATUTORY REQUIREMENTS AND ACCOMPLISH WITH A MINIMUM OF EXPENSE, ETC., THE DESIRED PURPOSE, COMPLETE THE ORIGINAL TRANSACTION IN EVERY DETAIL AND PRESERVE THE CONTINUITY OF THE RECORDS.

AS UNDER THE EARLIER PROCEDURE, THE TREASURER OF THE UNITED STATES IS BEST PREPARED TO ACCOMPLISH PAYMENT OF THE INSTANT CLAIM; HE IS THE DISBURSING OFFICER OF THE UNITED STATES AND IS THEREFORE OF THE CLASS OF "DISBURSING OFFICERS" MENTIONED, THROUGH WHOM "THE PAYMENTS OF ACCOUNTS OR CLAIMS ADJUSTED AND SETTLED IN THE GENERAL ACCOUNTING OFFICE" MAY BE EFFECTED.

A CERTIFICATE OF SETTLEMENT WILL THEREFORE ISSUE TO THE TREASURER OF THE UNITED STATES DIRECTING PAYMENT OF THE SUM OF $18 TO CLAIMANT IN THE FOLLOWING MANNER:

BY CHECK BEARING THE SAME DATE, NUMBER AND SYMBOL DRAWN IN FAVOR OF CLAIMANT, IN THE NAME OF THE DISBURSING OFFICER AND COUNTERSIGNED BY THE TREASURER OF THE UNITED STATES, SUCH CHECK TO BE PAID, WHEN PRESENTED, IN LIKE MANNER AND SUBJECT TO THE SAME REGULATIONS AS APPLICABLE TO THE ORIGINAL.

SUCH TRANSACTION NEED NOT BE SHOWN IN THE ACCOUNTS OF THE TREASURER, THE RETURN OF THE CERTIFICATE WITH ACTION NOTED THEREON AND THE FILING OF THE PAID CHECK IN THE GENERAL ACCOUNTING OFFICE BEING A SUFFICIENT ACCOUNTING. THE TRANSACTION WILL THUS BE COMPLETED WITH A DETAILED RECORD THEREOF AND WITHOUT DISTURBING THE ORIGINAL RECORDS OR ADJUSTMENT OF BOOK ENTRIES.

LIKE PROCEDURE WILL BE FOLLOWED HEREAFTER IN CASES INVOLVING SPECIAL DEPOSIT ACCOUNTS AND LOST CHECKS THE AMOUNTS OF WHICH HAVE NOT BEEN COVERED INTO "OUTSTANDING LIABILITIES.'