B-131105, APR. 3, 1964
Highlights
THE ABOVE DECISION WAS RENDERED TO THE DIRECTOR OF THE FORMER INTERNATIONAL COOPERATION ADMINISTRATION IN RECOGNITION OF THE DESIRABILITY OF AVOIDING UNNECESSARY ADMINISTRATIVE COSTS OF PROCESSING CLAIMS. OR OF PROCESSING SMALL CLAIMS FOR ADDITIONAL AMOUNTS DUE IN THE EVENT A CORRECTION OF THE AMOUNT DUE IS NOT OBTAINED FROM THE CLAIMANT. THE ADMINISTRATIVE ADJUSTMENT UPWARD AND PAYMENT OF A CLAIM IN EXCESS OF THE AMOUNT CLAIMED IS A VOLUNTARY SATISFACTION BEYOND THE LEGAL OBLIGATION OF THE GOVERNMENT. FOR THIS REASON THE ACCOUNTING OFFICERS HAVE LONG CONSIDERED SUCH PAYMENTS AS IMPROPER. THIS RULE WAS FOLLOWED IN THE EARLIER DECISIONS OF THIS OFFICE IN 9 COMP. THIS OFFICE WAS PERSUADED BY THE ARGUMENT THAT THE RELAXATION OF THE RULE WITH RESPECT TO ERRORS OF COMPUTATION OR EXTENSION OF $10 OR LESS WOULD RESULT IN SAVINGS IN THE ADMINISTRATIVE COST OF PROCESSING SUCH CLAIMS WITHOUT SERIOUS CONFLICT WITH THE LONG STANDING RULE AGAINST SUCH PAYMENTS.
B-131105, APR. 3, 1964
TO THE ADMINISTRATOR, GENERAL SERVICES ADMINISTRATION:
BY LETTER DATED FEBRUARY 10, 1964, THE ACTING ADMINISTRATOR, GENERAL SERVICES ADMINISTRATION, REQUESTED OUR CONSIDERATION TO AN INCREASE IN THE DOLLAR LIMIT TO THE AUTHORIZATION SET OUT IN A DECISION OF THIS OFFICE, B- 131105, DATED MAY 13, 1957, 36 COMP. GEN. 769, PERMITTING GOVERNMENT DEPARTMENTS AND AGENCIES, UNDER CERTAIN CONDITIONS, TO ADMINISTRATIVELY ADJUST CLAIMS UPWARD AND DOWNWARD FOR MINOR ERRORS OF COMPUTATION OR EXTENSION IN AMOUNTS NOT IN EXCESS OF $10.
THE ABOVE DECISION WAS RENDERED TO THE DIRECTOR OF THE FORMER INTERNATIONAL COOPERATION ADMINISTRATION IN RECOGNITION OF THE DESIRABILITY OF AVOIDING UNNECESSARY ADMINISTRATIVE COSTS OF PROCESSING CLAIMS, SUCH AS RETURNING DOCUMENTS FOR CORRECTION, OR OF PROCESSING SMALL CLAIMS FOR ADDITIONAL AMOUNTS DUE IN THE EVENT A CORRECTION OF THE AMOUNT DUE IS NOT OBTAINED FROM THE CLAIMANT.
THE LETTER OF FEBRUARY 10, 1964, STATES THAT THE METHOD OF MAKING ADJUSTMENTS AUTHORIZED IN THE 1957 DECISION HAS SAVED CONSIDERABLE TIME AND EXPENSE TO THE GOVERNMENT AND CONTRACTORS. HOWEVER, IN VIEW OF THE TIME WHICH HAS ELAPSED SINCE THIS DECISION, YOU SUGGEST THAT THE CEILING BE RAISED FROM $10 TO $50 FOR EACH CLAIM UNDER CONSIDERATION AND FURTHER STATE THAT SUCH CHANGE WOULD NOT RESULT IN ANY LOSS TO THE GOVERNMENT AND WOULD PRESENT AREAS FOR SAVINGS IN THE PROCESSING OF PAYMENT TRANSACTIONS BETWEEN AGENCIES AND CONTRACTORS.
THE ADMINISTRATIVE ADJUSTMENT UPWARD AND PAYMENT OF A CLAIM IN EXCESS OF THE AMOUNT CLAIMED IS A VOLUNTARY SATISFACTION BEYOND THE LEGAL OBLIGATION OF THE GOVERNMENT. FOR THIS REASON THE ACCOUNTING OFFICERS HAVE LONG CONSIDERED SUCH PAYMENTS AS IMPROPER. THIS RULE WAS FOLLOWED IN THE EARLIER DECISIONS OF THIS OFFICE IN 9 COMP. GEN. 251 AND 22 ID. 304. THE DECISION CITED, 36 COMP. GEN. 769, THIS OFFICE WAS PERSUADED BY THE ARGUMENT THAT THE RELAXATION OF THE RULE WITH RESPECT TO ERRORS OF COMPUTATION OR EXTENSION OF $10 OR LESS WOULD RESULT IN SAVINGS IN THE ADMINISTRATIVE COST OF PROCESSING SUCH CLAIMS WITHOUT SERIOUS CONFLICT WITH THE LONG STANDING RULE AGAINST SUCH PAYMENTS.
IT IS THE VIEW OF THIS OFFICE THAT THE RULE AGAINST THE PAYMENT OF CLAIMS IN EXCESS OF THE AMOUNT CLAIMED IS A SALUTARY ONE AND IS WELL FOUNDED. 36 COMP. GEN. 769 WE SANCTIONED ADJUSTMENT NOT IN EXCESS OF $10 OVER THE AMOUNT CLAIMED ON THE BASIS THAT THIS AMOUNT REPRESENTED THE LIMIT WHICH WE WOULD RECOGNIZE AS AN EXCEPTION TO THIS RULE AND WE ARE NOT PREPARED TO INCREASE THE LIMIT STATED THEREIN.
ACCORDINGLY, WE CANNOT AGREE THAT THE PRESENT AUTHORIZATION FOR THE ADMINISTRATIVE ADJUSTMENT OF CLAIMS INVOLVING ERRORS IN COMPUTATION OR EXTENSION SHOULD BE INCREASED TO THE AMOUNT SUGGESTED IN THE LETTER OF FEBRUARY 10, 1964.