B-86001 (D), 1-7000-2992, DEC. 31, 1956

B-86001 (D), 1-7000-2992, DEC. 31, 1956

TO THE SECRETARY OF THE ARMY:

REFERENCE IS MADE TO LETTER OF AUGUST 9, 1954, WITH ENCLOSURES, FROM THE CHIEF OF FINANCE, CONCERNING PAYMENTS OF RENTAL AND SUBSISTENCE ALLOWANCES MADE TO MAJOR RICHARD F. DECKER, O-1309056, AUS, AS AN OFFICER WITH A DEPENDENT MOTHER DURING THE PERIOD OCTOBER 1, 1948, TO SEPTEMBER 30, 1949. THESE OVERPAYMENTS WERE QUESTIONED IN A REPORT OF INVESTIGATION, THREE COPIES OF WHICH WERE TRANSMITTED TO YOU WITH OUR LETTER OF NOVEMBER 5, 1953.

RECONSIDERATION OF THE MATTER WAS REQUESTED IN VIEW OF THE ADDITIONAL INFORMATION SET FORTH IN THE ENCLOSURES SUBMITTED WITH THE LETTER OF AUGUST 9, 1954, INCLUDING THE OFFICER'S TESTIMONY BEFORE AN OFFICER OF THE INSPECTOR GENERAL'S DEPARTMENT AT HEADQUARTERS, USAREUR COMMUNICATIONS ZONE, APO 58, U.S. ARMY EUROPE, BETWEEN FEBRUARY 25 AND MARCH 3, 1954.

OUR INVESTIGATION, INCLUDING A PERSONAL INTERVIEW WITH THE OFFICER'S MOTHER AND FATHER, DISCLOSED THAT DURING THE PERIOD THE INCREASED ALLOWANCES WERE PAID THEY AND AN INVALID UNEMPLOYED SON LIVED TOGETHER; THAT THE LIVING EXPENSES OF THE FAMILY AVERAGED ABOUT $397 A MONTH DURING THAT PERIOD; AND THAT THE FATHER'S NET INCOME AVERAGED ABOUT $473 A MONTH IN 1948 AND $528 A MONTH IN 1949. IT WAS ALSO DISCLOSED THAT WHILE DURING THE PERIOD INVOLVED THE MOTHER RECEIVED $100 A MONTH FROM HER OFFICER SON IN THE FORM OF AN ALLOTMENT FROM HIS PAY THE ENTIRE AMOUNT RECEIVED FROM HIM LATER WAS RETURNED TO HIM.

THE GIST OF THE OFFICER'S TESTIMONY IS THAT THE AMOUNT OF THE ALLOTMENTS FROM HIS PAY WAS NOT RETURNED TO HIM; THAT HE DID NOT KNOW THE AMOUNT OF HIS FATHER'S AVERAGE MONTHLY INCOME; THAT THE HOUSE IN WHICH HIS PARENTS LIVED ACTUALLY WAS OWNED BY HIM AND WAS OCCUPIED RENT FREE; AND THAT THE FAIR RENTAL VALUE OF THE HOUSE WAS $90 A MONTH. THE MOTHER'S AVERMENTS ARE TO THE SAME GENERAL EFFECT INSOFAR AS THE FATHER'S INCOME AND THE HOUSE ARE CONCERNED.

WHERE AN OFFICER'S MOTHER AND FATHER LIVE TOGETHER DURING THE PERIOD THE INCREASED ALLOWANCE PAYMENTS ARE MADE, THE DEPENDENCY STATUS OF EITHER PARENT MUST BE CONSIDERED ON THE BASIS OF THE FAMILY UNIT. THIS IS PREDICATED ON THE THEORY THAT ORDINARILY THE FAMILY INCOME MUST BE CONSIDERED AS A GENERAL FUND FOR THE SUPPORT OF BOTH PARENTS. HENCE, WHILE AN OFFICER MAY CLAIM INCREASED ALLOWANCES ON ACCOUNT OF EITHER OR BOTH PARENTS, NEITHER MAY BE CONSIDERED AS IN FACT DEPENDENT ON THE CLAIMING OFFICER FOR CHIEF SUPPORT WHERE THEIR OTHER INCOME AMOUNTS TO MORE THAN HALF OF THEIR ACTUAL LIVING EXPENSES OR WHERE THE OFFICER'SAVERAGE MONTHLY CONTRIBUTION IS LESS THAN THE AVERAGE MONTHLY FAMILY INCOME. COMPARE SPALDING V. UNITED STATES, 116 C.CLS. 803. THIS WAS THE RULE PRIOR TO THE CAREER COMPENSATION ACT OF 1949 AS WELL AS AFTER THE DATE OF THAT ACT.

UPON REVIEW OF THE MATTER, THE CONCLUSION IS REQUIRED THAT THE RECORD, AS NOW SUPPLEMENTED BY THE ADDITIONAL INFORMATION WITH THE LETTER OF AUGUST 9, 1954, DOES NOT WARRANT A DETERMINATION THAT THE MOTHER WAS IN FACT DEPENDENT ON THE OFFICER FOR THE CHIEF PART OF HER SUPPORT.

WE WILL APPRECIATE INFORMATION AS TO THE AMOUNTS COLLECTED BY THE DEPARTMENT OF THE ARMY ON ACCOUNT OF THE IMPROPER PAYMENTS MADE TO THE OFFICER.

THE DEPARTMENT OF THE ARMY FILE OF CORRESPONDENCE ENCLOSED WITH THE LETTER OF AUGUST 9, 1954, IS RETURNED HEREWITH.