B-215433, DEC 10, 1984, OFFICE OF GENERAL COUNSEL

B-215433, DEC 10, 1984, OFFICE OF GENERAL COUNSEL

DISBURSING OFFICERS - LACK OF DUE CARE, ETC. - EVIDENCE DIGEST: ON RECONSIDERATION, RELIEF IS GRANTED ARMY DISBURSING OFFICE UNDER 31 U.S.C. 3527(C) IN TWO CASES WHERE SUBSTITUTE CHECKS BORE THE SAME DATE AS THE ORIGINAL CHECKS. UNDER JOINT UNIFORM MILITARY PAY SYSTEM ARMY (JUMPS), OFFICES PROCEDURES SUBSTITUTE CHECKS ARE REQUIRED TO BE ISSUED WHICH ARE IDENTICAL IN FORM TO THE ORIGINAL CHECK. THIS HAS BEEN INTERPRETED TO MEAN THAT BOTH CHECKS MUST BEAR THE SAME DATE REGARDLESS OF WHEN ISSUED. SINCE ALL CHECKS ARE NORMALLY MAILED, NOTIFICATION BY AN INDIVIDUAL PAYEE PROBABLY WOULD BE RECEIVED ABOUT 3 DAYS AFTER ISSUANCE. THEREFORE, IN THESE TWO CASES, WE ASSUME THAT THERE WAS AN ADEQUATE INTERVAL BETWEEN THE ISSUANCE OF THE ORIGINAL AND SUBSTITUTE CHECKS TO REASONABLY SUPPORT A CLAIM OF NONRECEIPT DUE TO A CHECK HAVING BEEN "LOST", STOLEN, OR DESTROYED."

MR. CLYDE E. JEFFCOAT: PRINCIPAL DEPUTY COMMANDER U.S. ARMY FINANCE AND ACCOUNTING CENTER INDIANAPOLIS, INDIANA 46249

DEAR MR. JEFFCOAT:

THIS RESPONDS TO YOUR REQUEST THAT WE RECONSIDER OUR DECISION, B-215433; B-215515, JULY 2, 1984, IN WHICH WE DENIED RELIEF TO ARMY FINANCE AND ACCOUNTING OFFICER, COLONEL (COL) H.H. GASSIE UNDER 31 U.S.C. SEC. 3527(C) FOR TWO IMPROPER DUPLICATE CHECK PAYMENTS TO TWO ARMY EMPLOYEES. BOTH EMPLOYEES LATER NEGOTIATED NOT ONLY THEIR RESPECTIVE ORIGINAL CHECKS BUT THE SUBSTITUTE CHECKS AS WELL. IN BOTH CASES, THE ORIGINAL AND THE SUBSTITUTE CHECKS BORE THE SAME DATE. THERE WAS NO INFORMATION IN YOUR ORIGINAL SUBMISSIONS TO EXPLAIN WHY IT WOULD BE REASONABLE FOR COL GASSIE TO ACCEPT A CLAIM OF NON-RECEIPT ON THE SAME DAY AS THE ORIGINAL CHECK WAS ISSUED. IT DID NOT APPEAR THAT THERE WAS AN ADEQUATE INTERVAL BETWEEN THE ISSUANCE OF THE ORIGINAL CHECKS AND THE ISSUANCE OF THE SUBSTITUTES TO SUPPORT A FINDING THAT THE ORIGINAL CHECKS HAD BEEN "LOST, STOLEN, OR DESTROYED." SINCE YOUR RECONSIDERATION REQUEST PROVIDES AN EXPLANATION, WE ARE NOW ABLE TO GRANT RELIEF.

ACCORDING TO THE INFORMATION YOU FURNISHED IN YOUR RECONSIDERATION REQUEST, IT APPEARS THAT THE SUBSTITUTE CHECKS WERE NOT ACTUALLY ISSUED ON THE SAME DATE AS THE ORIGINALS. UNDER THE PROCEDURE USED BY THE JOINT UNIFORM MILITARY PAY SYSTEM-ARMY (JUMPS) OFFICES, A SUBSTITUTE CHECK IS REQUIRED TO BE IDENTICAL TO THE ORIGINAL CHECK. YOUR DISBURSEMENT PERSONNEL HAVE INTERPRETED THIS TO MEAN THAT THE SAME DATE MUST BE PLACED ON THE SUBSTITUTE CHECK AS THE DATE APPEARING ON THE ORIGINAL, EVEN THOUGH THEY ARE NOT ISSUED ON THE SAME DAY. SINCE ALL JUMPS OFFICE CHECKS ARE NORMALLY MAILED, NOTIFICATION BY AN INDIVIDUAL PAYEE OF NON-RECEIPT OF A CHECK WOULD USUALLY BE RECEIVED ABOUT 3 DAYS AFTER THE PAY DAY. INTERNAL ARMY PROCESSING OF THE SUBSTITUTE CHECK TAKES ANOTHER 2 OR 3 DAYS BEFORE IT IS MAILED. THEREFORE, WE MAY ASSUME THAT IN THESE TWO INSTANCES, THERE WAS AN ADEQUATE INTERVAL OF TIME BETWEEN THE ISSUANCE OF THE ORIGINAL AND SUBSTITUTE CHECKS.

HOWEVER, WHILE WE CAN NOW ASSUME, BASED ON THE EXPLANATION YOU OFFER ABOUT THE JUMPS CHECK DATING POLICY, THAT A SUBSTITUTE CHECK WOULD NOT BE ISSUED WITHIN A SHORTER INTERVAL THAN 3 DAYS, WE CAN NO LONGER ASSUME, BASED ON THE DATE OF THE SUBSTITUTE CHECKS, THAT THESE INSTRUMENTS WERE ISSUED WITHIN THE TIME FRAME REQUIRED BY ARMY REGULATIONS. AS YOU ARE AWARE, UNDER THE APPLICABLE ARMY REGULATIONS, A DUPLICATE CHECK IS AUTHORIZED TO BE ISSUED BY THE ARMY DISBURSING OFFICER ONLY IF THE STOP PAYMENT REQUEST BY THE PAYEE IS MADE WITHIN 15 DAYS FROM THE ISSUE DATE OF THE ORIGINAL CHECK FOR CHECKS MAILED TO ADDRESSES IN THE CONTINENTAL UNITED STATES, AND WITHIN 30 DAYS FOR CHECKS MAILED TO OVERSEAS ADDRESSES. AR 37-103, PARA. 4-164. NEITHER OF THE RELIEF REQUESTS AT ISSUE HERE CONTAINED COPIES OF THE PAYEE'S STOP PAYMENT REQUEST AND IT APPEARS THAT THESE FORMS HAVE SUBSEQUENTLY BEEN LOST. NEVERTHELESS, YOUR OFFICE HAS ADVISED US, THAT BASED ON LEDGER INFORMATION ABOUT THE DATE THAT THE SUBSTITUTE CHECKS WERE PROCESSED, IT CAN BE ASCERTAINED THAT BOTH PAYEES' STOP PAYMENT REQUESTS WERE TIMELY AND, THEREFORE, THAT THE SUBSTITUTE INSTRUMENTS WERE PROPERLY ISSUED. ACCORDINGLY, WE NOW GRANT RELIEF.

WE REFER YOU TO OUR DECISION B-215380, ET AL., JULY 23, 1984. PLEASE NOTE THAT THE MATTERS WE MENTIONED IN THAT CASE FOR CONSIDERATION BY THE ARMY ARE ALSO APPLICABLE HERE. AS WE INDICATED IN THAT CASE, IT IS IMPERATIVE THAT THE PROPER BACKUP DOCUMENTATION BE PROVIDED WITH YOUR RELIEF REQUESTS.