B-206856 April 7, 1982

B-206856 April 7, 1982

Donald M. Spillman Esq. Office of the Regional Solicitor Department of the Interior Richard B. Russell Federal Building 75 Spring Street, S.W. Atlanta, Georgia 30303

Dear Mr. Spillman:

This is in response to your recent telephone conversation with Mr. Robert Centola of this office, and prior related correspondence, concerning the claim of Mr. Paul McCrary, an employee of the National Park Service. The claim is for the value of a boat owned by Mr. McCrary which was apparently stolen from a Government-owned dock. The claim was settled, as confirmed by the documents you previously submitted, under the Military Personnel and Civilian Employees' Claims Act of 1964, 31 U.S.C. Sec. 241, not under the Military Claims Act, 10 U.S.C. Sec. 2733, as stated in previous letters from our Office. _

Claims settled under 31 U.S.C. Sec. 241 are paid from the appropriations of the administrative agency involved. There is no legal basis .or submitting them to the General Accounting office for payment. In this connection, 31 U.S.C. Sec. 241 authorizes the head of each agency to "settle and pay" (emphasis added) claims by employees for loss or damage to personal property incurred incident to service. The amount of the award has no effect on the source of funds. We are enclosing for your information a copy of decision B-143673, November 11, 1976 which,, on pages 2 and 3, discusses the payment of claims under 31 U.S.C. Sec. 241. (B-143073 was subsequently overruled by 56 Camp. Gen. 615 (1977), copy enclosed, insofar as it relates to the payment of judgments against Internal Revenue Service employees under 26 U.S.C. Sec. 7423, but the discussion of 31 U.S.C. Sec. 241 remains valid.)

We are also enclosing a copy of decision B-174762, January 24, 1972, holding that payments under 31 U.S.C. Sec. 241 are chargeable to appropriations current at the time fine] administrative action is taken to allow the claim. While B-174762 dealt with a claim of only $15, the amount of the claim has no bearing or. the principle involved.

Previous correspondence cited portions of your Departmental Manual. Part 451.1.18A, which refers to payment of awards in excess of $2,50O, relates to the Federal Tort Claims Act,, 28 U.S.C.. Sec. 2672, pursuant to which administrative settlements in excess of $2,500 are paid, upon certification by GAO from a permanent appropriation. The procedures .or payment or awards c, under the Federal Tort Claims Act are spelled out in the statute itself and have, relevance to claims under 31 U.S.C. Sec. 241.

Part 451.3.2 of the Departmental Manual, as we read it, says merely that the internal Department procedures for investigating and settling Claims under the Federal Tort Claims Act should be followed for claims under 31 U.S.C. Sec. 241 as well. This has no effect - nor could it law-fully - on the availability of appropriations to pay claims under either statute.

Finally, you indicated that your office has on previous occasions Submitted claims under 31 U.S.C. Sec. 241 to GAO, and they have been paid. If the claims were submitted on Standard Form 1145 vouchers and there was no indication on the face of the voucher that the claim was not in. fact a claim under the Federal Tort Claims Act, it is possible that such claims may have been certified for payment. In any event, we have checked with our Claims Group and confirmed that any claims under 31 U.S.C. Sec. 241 that may have been paid by GAO in the past were paid through inadvertence.

Since it appears that any such erroneous payments that may have occurred in the past were based on a good faith misinterpretation of applicable regulations, we see no purpose to be served by attempting to identify those cases in order to seek reimbursement from the Interior Department, and hence will consider the prior cases closed. However, for the reasons stated, we are unable to take any further action on Mr. McCrary's claim.

Sincerely yours,

Robert H. Hunter Assistant General Counsel

Enclosures