AUGUST 24, 1922, 2 COMP. GEN. 137

AUGUST 24, 1922, 2 COMP. GEN. 137

VERIFICATION OF EXPENSE ACCOUNTS OF EMPLOYEES OF PANAMA CANAL THE VERIFICATION OF EXPENSE ACCOUNTS UNDER OATH OR BY AFFIRMATION HAS LONG BEEN RECOGNIZED BY THE ACCOUNTING OFFICERS OF THE GOVERNMENT AS A NECESSARY ACCOUNTING REQUIREMENT, AND SUCH VERIFICATION OF ALL EXPENSE ACCOUNTS OF EMPLOYEES OF THE PANAMA CANAL WILL HEREAFTER BE REQUIRED BY THE COMPTROLLER GENERAL UNDER THE AUTHORITY CONFERRED UPON HIM BY SECTIONS 304 AND 309 OF THE ACT OF JUNE 10, 1921, 42 STAT., 24, 25.

COMPTROLLER GENERAL MCCARL TO THE GOVERNOR OF THE PANAMA CANAL, AUGUST 24, 1922:

I RECEIVED JULY 27, 1922, A COMMUNICATION FROM THE CHIEF OF OFFICE, THE PANAMA CANAL, WASHINGTON, D.C., READING:

THE DISBURSING CLERK OF THIS OFFICE IS IN RECEIPT OF A LETTER FROM THE GENERAL ACCOUNTING OFFICE, WAR DEPARTMENT DIVISION, DATED JUNE 13, 1922, A COPY OF WHICH IS INCLOSED HEREWITH.

IN THIS LETTER THE DISBURSING CLERK IS ADVISED THAT IT WILL BE NECESSARY FOR ALL OFFICERS AND EMPLOYEES TRAVELING ON OFFICIAL BUSINESS TO SUPPORT THEIR EXPENSE ACCOUNTS WITH AFFIDAVITS. ON JUNE 30, 1905, THE COMPTROLLER OF THE TREASURY DECIDED THAT IT WOULD NOT BE NECESSARY FOR OFFICERS AND EMPLOYEES OF THE PANAMA CANAL TO SUPPORT TRAVELING EXPENSE VOUCHERS BY AFFIDAVITS. SEE DECISION OF JUNE 30, 1905, COPY OF WHICH IS INCLOSED HEREWITH. SINCE THE RENDITION OF THIS DECISION VOUCHERS FOR REIMBURSEMENT OF TRAVELING EXPENSES OF OFFICERS AND EMPLOYEES OF THE PANAMA CANAL HAVE NOT BEEN SUPPORTED BY AFFIDAVITS.

SECTION 5438 OF THE REVISED STATUTES, AS AMENDED BY THE ACT OF MAY 30, 1908 (35 STAT., 555), MAKES IT AS GREAT A CRIME TO CERTIFY FALSELY TO ANY VOUCHER OR EXPENSE ACCOUNT AS TO SWEAR FALSELY TO SUCH VOUCHER OR EXPENSE ACCOUNT. THIS SECTION AS AMENDED PROVIDES A PUNISHMENT BY IMPRISONMENT FOR NOT MORE THAN TWO YEARS AND BY A FINE NOT EXCEEDING $500 FOR MAKING A FALSE CERTIFICATE.

IT WOULD SEEM, THEREFORE, THAT THERE IS NO NECESSITY OF REQUIRING EXPENSE VOUCHERS TO BE SWORN TO, AS IT WOULD FREQUENTLY HAPPEN THAT IT WOULD BE VERY INCONVENIENT FOR INSPECTORS TO SECURE AFFIDAVITS TO THEIR EXPENSE ACCOUNTS AND THEY WOULD FREQUENTLY HAVE TO PAY OUT OF THEIR OWN FUNDS THE COST OF HAVING SUCH AFFIDAVITS ADMINISTERED.

IT IS REQUESTED THAT YOU REVIEW THE DECISION OF THE GENERAL ACCOUNTING OFFICE, WAR DEPARTMENT DIVISION, AND ADVISE THIS OFFICE WHETHER IT CAN CONTINUE THE PRACTICE THAT HAS HERETOFORE PREVAILED UNDER THE DECISION OF THE COMPTROLLER OF THE TREASURY, DATED JUNE 30, 1905.

IN THE DECISION OF THE COMPTROLLER OF THE TREASURY OF JUNE 30, 1905, 11 COMP. DEC., 812, IT WAS STATED:

THERE IS NO REQUIREMENT OF LAW THAT SUCH VOUCHERS SHALL BE VERIFIED BY AFFIDAVIT, EACH DEPARTMENT DETERMINING FOR ITSELF WHAT EVIDENCE IT WILL REQUIRE AS TO THE CORRECTNESS OF SUCH ACCOUNTS RENDERED BY ITS OFFICERS AND EMPLOYEES.

BY HIS ORDER OF APRIL 1, 1905, THE PRESIDENT ACTING UNDER THE POWERS GIVEN HIM BY THE ACT OF JUNE 28, 1902, 32 STAT., 483, CHARGED THE PRESENT ISTHMIAN CANAL COMMISSION, UNDER THE SUPERVISION AND DIRECTION OF THE SECRETARY OF WAR AND SUBJECT TO THE APPROVAL OF THE PRESIDENT, WITH THE CONSTRUCTION AND MAINTENANCE OF A WATERWAY ACROSS THE ISTHMUS OF PANAMA AND WITH ALL MATTERS INCIDENT AND NECESSARY THERETO. IF, THEREFORE, THAT COMMISSION, ACTING IN PURSUANCE OF THE POWERS THUS DELEGATED, DOES NOT REQUIRE AFFIDAVITS TO VOUCHERS FOR TRAVELING EXPENSES, SUCH AFFIDAVITS WILL NOT BE REQUIRED BY THE ACCOUNTING OFFICERS OF THE TREASURY.

BUT IN 14 COMP. DEC., AT PAGE 15, IT WAS SAID, UPON A SUBMISSION OF THE POST OFFICE DEPARTMENT, THAT---

BEFORE CLOSING THIS OPINION, I DESIRE TO REFER TO AN UNHAPPY DICTUM FOUND IN A DECISION SIGNED BY ME ON JUNE 30, 1905 (11 COMP. DEC., 812), THE CLOSING DAY OF A FISCAL YEAR--- A TIME WHEN, BECAUSE OF THE STRESS OF BUSINESS, MISTAKES OF FACT AND LAW ARE LIABLE TO CREEP INTO DECISIONS. THE LANGUAGE REFERRED TO IS:

"THERE IS NO REQUIREMENT OF LAW THAT SUCH VOUCHERS SHALL BE VERIFIED BY AFFIDAVIT, EACH DEPARTMENT DETERMINING FOR ITSELF WHAT EVIDENCE IT WILL REQUIRE AS TO THE CORRECTNESS OF SUCH ACCOUNTS RENDERED BY ITS OFFICERS AND EMPLOYEES.'

THE DECISION IN WHICH THIS LANGUAGE OCCURS WAS ONE IN WHICH IT WAS DECIDED THAT IF THE ISTHMIAN CANAL COMMISSION, UNDER THE DIRECTION OF THE PRESIDENT, SHOULD NOT REQUIRE AFFIDAVITS TO EXPENSE ACCOUNTS, SUCH AFFIDAVITS WOULD NOT BE REQUIRED BY THE ACCOUNTING OFFICERS OF THE TREASURY. UNDER THE BROAD POWERS GIVEN THE PRESIDENT UNDER THE PROVISIONS OF THE SPOONER ACT AS TO THE EXPENDITURE OF MONEY IN THE BUILDING OF THE CANAL, I THINK SAID DECISION WAS CORRECT, BUT THE DICTUM ABOVE STATED IS NOT CORRECT AND AT NO TIME IN THE HISTORY OF THE GOVERNMENT HAS A DEPARTMENT DETERMINED FOR ITSELF WHAT EVIDENCE WAS NECESSARY TO HAVE AN ACCOUNT ALLOWED BY THE ACCOUNTING OFFICERS. I DEEPLY REGRET THAT THE LANGUAGE IN QUESTION WAS USED, AS IT MAY, AT LEAST IN PART, BE RESPONSIBLE FOR YOUR INQUIRY HEREIN.

IN THE LETTER OF JUNE 13, 1922, REFERRED TO AS THE DECISION OF THE WAR DEPARTMENT DIVISION, THIS OFFICE, ATTENTION WAS DIRECTED TO THE FACT THAT ON MARCH 12, 1914, CERTAIN VOUCHER FORMS WERE APPROVED BY THE THEN COMPTROLLER OF THE TREASURY, AMONG WHICH WAS FORM NO. 1005, BEING FOR USE IN CLAIMING REIMBURSEMENT FOR TRAVELING EXPENSES, ETC., AND WHICH FORM, AS SO APPROVED, CONTAINED A CERTIFICATE FOR VERIFICATION BY OATH. ON THIS BASIS, THE NOTICE TO THE DISBURSING CLERK OF THE PANAMA CANAL WAS IN SUBSTANCE THAT THE DECISIONS, 11 COMP. DEC., 812, AND 14 ID., 13, IN EFFECT, HAD BEEN OVERRULED BY THE ACTION IN APPROVING THE VOUCHER FORM AS THUS SUBMITTED AND, THOUGH SUCH UNVERIFIED VOUCHERS HAD THERETOFORE BEEN RECEIVED AND PASSED FOR CREDIT WITHOUT QUESTION IN THAT RESPECT, THAT FURTHER SIMILAR ACTION, AFTER NOTICE, WOULD BE UNWARRANTED AND UNAUTHORIZED.

THE ACT OF JULY 31, 1894, 28 STAT., 206, PROVIDED:

THE COMPTROLLER OF THE TREASURY SHALL, UNDER THE DIRECTION OF THE SECRETARY OF THE TREASURY, PRESCRIBE THE FORMS OF KEEPING AND RENDERING ALL PUBLIC ACCOUNTS, * * *.

UNDER THIS LAW THE COMPTROLLER OF THE TREASURY, AND THE FIRST AND SECOND COMPTROLLERS OF THE TREASURY UNDER PRIOR LAWS, HAVE, UNDER THE DIRECTION OF THE VARIOUS SECRETARIES OF THE TREASURY, PROVIDED THAT THE CIVIL OFFICERS, AGENTS, AND EMPLOYEES OF THE GOVERNMENT IN THE RENDITION OF THEIR EXPENSE ACCOUNTS SHOULD VERIFY SUCH EXPENSE ACCOUNTS UNDER OATH, AND THIS WAS THE ALMOST UNIVERSAL RULE AS APPLIED TO ALL DEPARTMENTS, ESTABLISHMENTS, ETC., OF THE GOVERNMENT, SUBJECT ONLY TO STATUTORY PROVISION PROVIDING TO THE CONTRARY, OR TO EXCEPTIONS AS TO PARTICULAR CASES OR CLASSES OF CASES, NOTABLE AMONG WHICH EXCEPTIONS WERE THOSE CASES INVOLVING CONFIDENTIAL MISSIONS, ETC., AS TO WHICH A VERIFICATION BY OATH WOULD DISCLOSE THE IDENTITY OF ONE WHOSE IDENTITY IT WAS NOT DESIRABLE BE KNOWN.

THE EXTENT OF THE EXCEPTIONS AS TO THE REQUIREMENTS OF THE OATH TO EXPENSE VOUCHERS IS NOT KNOWN NOR IS IT IMPORTANT IN CONNECTION WITH THIS CONSIDERATION, BUT IT IS UNDERSTOOD THAT FOR A CONSIDERABLE PERIOD PRIOR TO AUGUST 24, 1912, THE MATTER OF DISPENSING WITH THE REQUIREMENT, IN PART OR IN WHOLE, WAS ONE WHICH RECEIVED SERIOUS CONSIDERATION, PARTICULARLY BY REASON OF THE DIFFICULTIES ENCOUNTERED BY EMPLOYEES OF THE GOVERNMENT IN HAVING THEIR VOUCHERS SWORN TO, DUE IN LARGE MEASURE TO THE REMOTENESS OF THEIR STATIONS OR FIELDS OF OPERATION. THIS CULMINATED IN THE PROVISION CONTAINED IN THE ACT OF AUGUST 24, 1912, SECTION 8, 37 STAT., 487, PROVIDING FOR THE ADMINISTERING OF OATHS, WITHOUT CHARGE, BY CERTAIN SPECIFICALLY DESIGNATED OFFICERS OR EMPLOYEES OF THE GOVERNMENT.

THUS THE VERIFICATION OF EXPENSE ACCOUNTS UNDER OATH, LONG RECOGNIZED BY THE ACCOUNTING OFFICERS AS A NECESSARY ACCOUNTING REQUIREMENT, RECEIVED, IF IT HAD NOT THERETOFORE RECEIVED, SPECIFIC LEGISLATIVE RECOGNITION AND THE REQUIREMENT OF SUCH VERIFICATION UNDER OATH MAY BE SAID TO BE AN ESTABLISHED AND SETTLED MATTER, SUBJECT ONLY TO EXPRESS STATUTORY MODIFICATION OR EXCEPTIONS IN CERTAIN CASES OR CLASSES OF CASES WHERE TO INSIST ON THE REQUIREMENT WOULD JEOPARDIZE THE INTERESTS OF THE UNITED STATES, ETC. THE OBJECTIONS THERETO STATED BY THE PRESENT SUBMISSION ARE SUCH AS MAY BE MADE BY ANY OF THE GOVERNMENT SERVICES AND CAN NOT MAINTAIN.

BY VIRTUE OF THE PROVISIONS OF THE BUDGET AND ACCOUNTING ACT OF JUNE 10, 1921, SECTIONS 304 AND 309, 42 STAT., 24 AND 25, THE AUTHORITY OF THE COMPTROLLER OF THE TREASURY, UNDER THE DIRECTION OF THE SECRETARY OF THE TREASURY, TO PRESCRIBE THE FORMS OF KEEPING AND RENDERING PUBLIC ACCOUNTS, WAS, ON AND AFTER JULY 1, 1921, VESTED IN AND PLACED EXCLUSIVELY UNDER THE COMPTROLLER GENERAL OF THE UNITED STATES; THEREFORE, I HAVE THE HONOR TO ADVISE YOU THAT THE VERIFICATION BY OATH OR AFFIRMATION OF EXPENSE ACCOUNTS OF EMPLOYEES OF THE PANAMA CANAL WILL BE REQUIRED HEREAFTER.