B-122552, NOV. 28, 1956
Highlights
TO THE SECRETARY OF THE TREASURY: REFERENCE IS MADE TO LETTER OF MARCH 14. WHICH MATTER WAS THE SUBJECT OF OUR LETTER OF FEBRUARY 7. 204 WAS RECOVERED FROM THE FORGER AND HAS BEEN DEPOSITED TO THE ACCOUNT AGAINST WHICH THE CHECK WAS PAID. IT IS STATED THAT A 1954 PONTIAC CAR. WAS RECOVERED FROM THE FORGER AND THAT SINCE ANTICIPATED COSTS AND DELAYS IN SELLING THE CAR WITH CONSEQUENT STORAGE CHARGES WOULD RESULT IN A MONETARY REALIZATION THEREFROM FAR LESS THAN ITS WORTH TO THE GOVERNMENT. THE CAR WAS ASSIGNED TO THE UNITED STATES SECRET SERVICE WHICH HAD A NEED FOR SUCH A CAR AND COULD MAKE EFFECTIVE USE THEREOF. WE HAVE ALSO BEEN ADVISED INFORMALLY THAT THE FORGER IS CURRENTLY ENTITLED TO VETERANS ADMINISTRATION DISABILITY COMPENSATION OF $33 A MONTH.
B-122552, NOV. 28, 1956
TO THE SECRETARY OF THE TREASURY:
REFERENCE IS MADE TO LETTER OF MARCH 14, 1956, FROM THE FISCAL ASSISTANT SECRETARY, REQUESTING THAT CONSIDERATION BE GIVEN TO ALLOWING CREDIT IN THE TREASURER'S ACCOUNT, UNDER THE ACT OF AUGUST 4, 1947, 61 STAT. 730, 31 U.S.C. 156, FOR A PAYMENT OF $10,000 MADE IN THE TREASURER'S CASH ROOM ON THE FORGED INDORSEMENT OF THE PAYEE'S NAME ON CHECK NO. 24,555,750 DRAWN MAY 11, 1954, TO THE ORDER OF GEORGE E. SCOTT, WHICH MATTER WAS THE SUBJECT OF OUR LETTER OF FEBRUARY 7, 1955, B-122552, TO YOU.
THE FISCAL ASSISTANT SECRETARY'S LETTER REPORTS THAT $2,204 WAS RECOVERED FROM THE FORGER AND HAS BEEN DEPOSITED TO THE ACCOUNT AGAINST WHICH THE CHECK WAS PAID. ALSO, IT IS STATED THAT A 1954 PONTIAC CAR, PURCHASED FROM THE PROCEEDS OF THE CHECK, WAS RECOVERED FROM THE FORGER AND THAT SINCE ANTICIPATED COSTS AND DELAYS IN SELLING THE CAR WITH CONSEQUENT STORAGE CHARGES WOULD RESULT IN A MONETARY REALIZATION THEREFROM FAR LESS THAN ITS WORTH TO THE GOVERNMENT, THE CAR WAS ASSIGNED TO THE UNITED STATES SECRET SERVICE WHICH HAD A NEED FOR SUCH A CAR AND COULD MAKE EFFECTIVE USE THEREOF. WE HAVE ALSO BEEN ADVISED INFORMALLY THAT THE FORGER IS CURRENTLY ENTITLED TO VETERANS ADMINISTRATION DISABILITY COMPENSATION OF $33 A MONTH, APPROXIMATELY $514.35 FROM SUCH PAYMENTS HAVING BEEN WITHHELD AS OF AUGUST 30, 1956, TO APPLY ON SUCH INDEBTEDNESS.
THE REASONABLE VALUE OF THE AUTOMOBILE AS WELL AS THE AMOUNT RECOVERED FROM THE DISABILITY COMPENSATION, OF COURSE, DOES NOT CONSTITUTE A LOSS TO THE UNITED STATES AND SHOULD BE CREDITED TO THE NATIONAL SERVICE LIFE INSURANCE FUND WHICH SUSTAINED THE LOSS BY PAYMENT OF THE CHECK. ACCORDINGLY, IT IS REQUESTED THAT APPROPRIATE ACTION BE TAKEN TO TRANSFER FROM THE APPLICABLE SECRET SERVICE APPROPRIATION WHICH WAS AVAILABLE FOR OBLIGATION AT THE TIME THE AUTO WAS ACQUIRED BY IT, ITS THEN ESTIMATED REASONABLE VALUE AND CREDIT SUCH AMOUNT TO THE NATIONAL SERVICE LIFE INSURANCE FUND.
WITH THE UNDERSTANDING THAT SUCH ACTION WILL BE TAKEN, AND SINCE OUR REVIEW OF THE MATTER HAS INDICATED THAT THE CHECK WAS "PAID IN DUE COURSE AND WITHOUT NEGLIGENCE ON THE PART OF THE UNITED STATES," CREDIT WILL BE ALLOWED IN THE TREASURER'S ACCOUNT FOR THE FULL AMOUNT OF THE CHECK. TRUST THAT THE REMAINING AMOUNT OF THE OVERPAYMENT WILL EVENTUALLY BE RECOVERED FROM THE FORGER'S DISABILITY COMPENSATION AND UNDERSTAND THAT THE INCIDENT HAS RESULTED IN A STRENGTHENING OF THE INTERNAL CONTROLS IN THE TREASURER'S CASH DIVISION DESIGNED TO PREVENT A RECURRENCE OF SUCH AN ERRONEOUS PAYMENT.
A COPY OF OUR LETTER TO THE ADMINISTRATOR OF VETERANS AFFAIRS RELATIVE TO THE MATTER IS ATTACHED FOR YOUR INFORMATION.