B-117604, MAY 27, 1968
Highlights
IT WAS NOTED THAT NUMEROUS CLAIMS WERE TERMINATED WITHOUT POSITIVE EVIDENCE TO SUPPORT AN ADMINISTRATIVE DETERMINATION THAT THE CLAIM COULD BE PROPERLY TERMINATED UNDER ANY OF THE CRITERIA SET OUT IN SECTION 104.3 OF THE JOINT REGULATIONS. THIS WAS NOTED PARTICULARLY IN THE CASE OF CLAIMS TERMINATED WITHOUT FURTHER ACTION BECAUSE OF THE BELIEF THAT THE COST OF FURTHER COLLECTION ACTION WOULD EXCEED THE AMOUNT RECOVERABLE THEREBY. IT WAS NOT CONTEMPLATED THAT ANY OF THESE BASES WOULD BE APPLIED IN THE ABSENCE OF DETAILED SUPPORT OF SUCH APPLICATION. IT WAS THE INTENT OF THE JOINT REGULATIONS THAT NO CLAIM IN EXCESS OF THE MINIMUM FIGURE FOR REFERRAL TO OUR OFFICE. YOU ARE ADVISED THAT WHILE THE MINIMUM FIGURE FOR REFERRAL TO OUR OFFICE PRESENTLY STIPULATED IN 4 GAO 56.3A IS $50.
B-117604, MAY 27, 1968
TO MR. SECRETARY:
REPRESENTATIVES OF OUR CLAIMS DIVISION CONDUCTED A SURVEY OF THE ADMINISTRATIVE PRACTICES OF THE FINANCE CENTER, UNITED STATES ARMY, INDIANAPOLIS, INDIANA, UNDER THE FEDERAL CLAIMS COLLECTION ACT OF 1966, PUB. L. 89-508, 80 STAT. 308, 31 U.S.C. 951-953 (SUPP. II). OUR SURVEY INDICATED A NEED FOR CLARIFICATION OF THE INTENT OF PARTS OF THE JOINT REGULATIONS ISSUED UNDER THAT ACT BY THE ATTORNEY GENERAL AND THE COMPTROLLER GENERAL (4 CFR PARTS 101-105).
IT WAS NOTED THAT NUMEROUS CLAIMS WERE TERMINATED WITHOUT POSITIVE EVIDENCE TO SUPPORT AN ADMINISTRATIVE DETERMINATION THAT THE CLAIM COULD BE PROPERLY TERMINATED UNDER ANY OF THE CRITERIA SET OUT IN SECTION 104.3 OF THE JOINT REGULATIONS, 4 CFR 104.3. THIS WAS NOTED PARTICULARLY IN THE CASE OF CLAIMS TERMINATED WITHOUT FURTHER ACTION BECAUSE OF THE BELIEF THAT THE COST OF FURTHER COLLECTION ACTION WOULD EXCEED THE AMOUNT RECOVERABLE THEREBY. WHILE SECTION 104.3 PROVIDES FOR TERMINATION OF COLLECTION ACTIVITY ON CLAIMS ON ANY ONE OF FIVE STIPULATED BASES, OR A COMBINATION THEREOF, IT WAS NOT CONTEMPLATED THAT ANY OF THESE BASES WOULD BE APPLIED IN THE ABSENCE OF DETAILED SUPPORT OF SUCH APPLICATION. SEE SECTION 102.11.
IT HAS BEEN OUR EXPERIENCE IN THE PAST THAT OUR OFFICE HAS EFFECTIVELY AND ECONOMICALLY COLLECTED MANY DEBT CLAIMS CONSIDERED UNCOLLECTIBLE BY THE ADMINISTRATIVE OFFICE INVOLVED, IN THE ABSENCE OF EVIDENCE IN SUCH CLAIMS WHICH WOULD PROPERLY SUPPORT APPLICATION OF ONE OR MORE OF THE BASES STIPULATED IN SECTION 104.3. IN THE LIGHT OF SUCH EXPERIENCE, IT WAS THE INTENT OF THE JOINT REGULATIONS THAT NO CLAIM IN EXCESS OF THE MINIMUM FIGURE FOR REFERRAL TO OUR OFFICE, STIPULATED IN SUBSECTION 56.3A OF TITLE 4 OF THE GENERAL ACCOUNTING OFFICE POLICY AND PROCEDURES MANUAL FOR THE GUIDANCE OF FEDERAL AGENCIES (4 GAO 56.3A), WOULD BE TERMINATED UNDER SECTION 104.3 IN THE ABSENCE OF EVIDENCE TO SUPPORT APPLICATION OF ONE OF THE CRITERIA STATED THEREIN, OR A COMBINATION THEREOF, AND THAT CLAIMS WHICH THUS COULD NOT BE TERMINATED WOULD BE REFERRED TO OUR OFFICE FOR FURTHER COLLECTION ACTION IN ACCORDANCE WITH PART 105 OF THE JOINT REGULATIONS (4 CFR PART 105).
IN THIS CONNECTION, YOU ARE ADVISED THAT WHILE THE MINIMUM FIGURE FOR REFERRAL TO OUR OFFICE PRESENTLY STIPULATED IN 4 GAO 56.3A IS $50, ACTION IS CURRENTLY BEING TAKEN TO RAISE SUCH FIGURE TO $100. A REVISION OF SAID SECTION WILL BE ISSUED SHORTLY; HOWEVER, IN THE INTERIM YOU ARE AUTHORIZED TO USE THE $100 FIGURE AS THE MINIMUM TO BE REFERRED TO GAO. ALSO, WHILE BOTH 4 CFR 105.3 AND 4 GAO 56.5/6) SPECIFY THAT REASONABLY CURRENT CREDIT DATA SHALL ACCOMPANY CLAIMS REPORTED TO OUR OFFICE, IT WAS NOT INTENDED THEREBY THAT INABILITY TO OBTAIN A CREDIT REPORT AFTER REASONABLE EFFORTS TO DO SO WOULD PRECLUDE SUCH REFERRAL IN THE ABSENCE OF SUFFICIENT POSITIVE EVIDENCE TO ADEQUATELY SUPPORT SUSPENSION OR TERMINATION OF THE CLAIM BY THE ADMINISTRATIVE AGENCY UNDER 4 CFR PART 104.
APPROPRIATE CHANGES IN THE ARMY REGULATIONS ISSUED PURSUANT TO THE JOINT REGULATIONS, AND IN THE PROCEDURES AND PRACTICES FOLLOWED BY THE FINANCE CENTER, SHOULD BE EFFECTED IMMEDIATELY.