B-178953 L/M, AUG 2, 1973

B-178953 L/M, AUG 2, 1973

PRECIS-UNAVAILABLE

MRS. JEAN CURRENCE, DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE:

IN A LETTER DATED MAY 23, 1973, TO THE COMPTROLLER GENERAL, YOU REQUESTED RELIEF FOR A LOSS OF $235 YOU INCURRED IN CONNECTION WITH YOUR POSITION AS A CASHIER AT HSMHA. THE REQUEST WAS MADE FOR CONSIDERATION PURSUANT TO THE PROVISIONS OF 31 U.S.C. 82A-2.

YOUR LETTER STATES THAT THE LOSS OCCURRED THROUGH THE PAYMENT OF TWO TRAVEL ADVANCE VOUCHERS ON JULY 13, 1972, TO A PERSON SUPPOSEDLY ACTING AS A COURIER TO PICK UP THE FUNDS FOR THE PERSONS AUTHORIZED TO PERFORM THE TRAVEL. YOU STATE THAT SINCE THE VOUCHERS APPEARED TO BE IN ORDER WITH ALL NECESSARY SIGNATURES AND HAD PRIOR APPROVALS, YOU PAID THE VOUCHERS WITHOUT FURTHER QUESTION AND WITHOUT REQUESTING IDENTIFICATION BY THE COURIER. SHORTLY THEREAFTER IT WAS DETERMINED THAT CERTAIN SIGNATURES ON THE VOUCHERS HAD BEEN FORGED AND THE PERSON WHO RECEIVED THE FUNDS WAS NOT THE COURIER AUTHORIZED TO DO SO.

YOU REFER TO A PROVISION IN THE DEPARTMENT OF THE TREASURY'S MANUAL OF PROCEDURES AND INSTRUCTIONS FOR CASHIERS THAT UNLESS THE TRAVELER IS PERSONALLY KNOWN BY THE CASHIER, THE CASHIER WILL REQUIRE ADEQUATE IDENTIFICATION BEFORE DISBURSING FUNDS. YOU STATE THAT IN THIS INSTANCE THE TRAVELERS WERE KNOWN TO YOU AND INASMUCH AS YOUR IMMEDIATE SUPERVISOR HAD APPROVED THE VOUCHERS FOR PAYMENT, YOU MADE SUCH PAYMENTS IN GOOD FAITH WITHOUT ANY REQUEST FOR ADDITIONAL EVIDENCE OF IDENTIFICATION BY THE COURIER.

THE SECTION OF THE LEGISLATION UNDER WHICH YOU REQUESTED RELIEF, 31 U.S.C. 82A-2, AUTHORIZES THE COMPTROLLER GENERAL OR HIS DESIGNEE TO RELIEVE A DISBURSING OFFICER FOR A DEFICIENCY OCCURRING AS A RESULT OF ANY ILLEGAL, IMPROPER, OR INCORRECT PAYMENT WHENEVER IT IS DETERMINED THAT SUCH PAYMENT WAS NOT THE RESULT OF BAD FAITH OR LACK OF DUE CARE ON THE PART OF THE DISBURSING OFFICER. WE DO NOT QUESTION THAT THE PAYMENTS WERE MADE IN GOOD FAITH.

WITH REGARD TO DUE CARE, A GOVERNMENT OFFICIAL CHARGED WITH THE CUSTODY AND HANDLING OF PUBLIC MONEYS IS EXPECTED TO EXERCISE THE HIGHEST DEGREE OF CARE IN THE PERFORMANCE OF HIS DUTY. APPLYING THE LESSER RULE OF EXERCISING SUCH REASONABLE CARE AND DILIGENCE AS A CAUTIOUS, PRUDENT, AND DILIGENT PERSON WOULD APPLY TO HIS OWN AFFAIRS, IT SEEMS MOST LIKELY THAT A PERSON UNDER THE CIRCUMSTANCES IN THIS CASE WOULD HAVE MADE CERTAIN THAT THE PAYMENTS WERE BEING MADE TO THE PROPER PERSON.

WE HAVE CONSIDERED THE THREE FACTORS YOU NOTED AS PERTINENT IN THIS LOSS, NAMELY (1) NEGOTIABLE VOUCHERS WERE STOLEN INDICATING SOME MEASURE OF NEGLECT ON THE PART OF THE ISSUING OFFICE, (2) YOUR IMMEDIATE SUPERVISOR APPROVED THE VOUCHERS FOR PAYMENT, AND (3) IMMEDIATELY AFTER THE INCIDENT A NEW POLICY OF IDENTIFICATION WAS INITIATED. THESE POINTS DO NOT GO TO THE ISSUE OF DUE CARE TO BE PROPERLY EXERCISED BY DISBURSING OFFICERS OR OTHERS IN MAKING PAYMENTS FROM GOVERNMENT FUNDS. THIS LOSS APPEARS TO BE DUE PRIMARILY, IF NOT SOLELY, TO YOUR FAILURE TO REQUIRE AND OBTAIN IDENTIFICATION FROM THE COURIER IN ORDER TO MAKE CERTAIN THAT THE PAYMENTS WERE BEING MADE TO THE PERSON AUTHORIZED TO RECEIVE THEM.

ACCORDINGLY, WE MUST CONCLUDE THAT THE PRIMARY CAUSE FOR THE LOSS WAS YOUR LACK OF DUE CARE AND YOUR REQUEST FOR RELIEF IS DENIED. IN THIS CONNECTION, WE NOTE THAT MR. JAMES B. CARDWELL, ASSISTANT SECRETARY, COMPTROLLER, DEPARTMENT OF HEW, IN HIS MEMORANDUM OF FEBRUARY 12, 1973, TO MR. WILLIAM MULDOON, REACHED THE SAME CONCLUSION.

A COPY OF THIS LETTER IS BEING SENT TO CONGRESSMAN GILBERT GUDE.