B-200437 L/M, OCT 21, 1980
Highlights
WHEN THE PACKAGE WAS DELIVERED TO THE 27TH FINANCE SECTION. 800 FRANCS WERE FOUND MISSING. A CLAIM WAS SUBMITTED TO THE DEPARTMENT OF THE TREASURY FOR SETTLEMENT OF THE LOSS UNDER THE GOVERNMENT LOSSES IN SHIPMENT ACT. THE CLAIM WAS DENIED. FOSTER'S NEGLIGENCE WAS CONSIDERED TO BE THE PROXIMATE CAUSE OF THE LOSS AND HE HAS BEEN FOUND PECUNIARILY LIABLE. YOU HAVE DETERMINED THAT DISBURSING OFFICER DANIELS. DEPUTY DISBURSING OFFICERS MACLEOD AND COOK WERE ACTING IN THE LINE OF DUTY AND THAT THE LOSS OCCURRED WITHOUT THEIR FAULT OR NEGLIGENCE. PHYSICAL LOSSES SUCH AS THE ONE IN QUESTION ARE COVERED BY 31 U.S.C. THAT STATUTE REQUIRES THE GENERAL ACCOUNTING OFFICE TO RELIEVE ACCOUNTABLE DISBURSING OFFICERS WHEN THE SECRETARY OF THE CONCERNED DEPARTMENT OR PROPERLY AUTHORIZED DELEGATE DETERMINES THAT A LOSS OCCURRED (A) WHILE THE OFFICER WAS ACTING IN THE LINE OF DUTY AND (B) WITHOUT THE OFFICER'S FAULT OR NEGLIGENCE.
B-200437 L/M, OCT 21, 1980
OFFICE OF GENERAL COUNSEL
ALAN J. GIBBS, ASSISTANT SECRETARY OF THE ARMY:
THIS RESPONDS TO A REQUEST UNDER 31 U.S.C. SEC. 95A FOR RELIEF OF DISBURSING OFFICER, W.E. DANIELS AND DEPUTY DISBURSING OFFICERS SCOTT L. MACLEOD AND CRAIG A. COOK FROM LIABILITY FOR A LOSS OF $25,145.71. FOR THE REASONS GIVEN BELOW, WE GRANT RELIEF TO THE NAMED OFFICERS, AS NECESSARY, IN THE AMOUNT OF THE LOSS.
ON MARCH 20, 1978, MR. KENNETH C. FOSTER, DEPUTY TO DISBURSING OFFICER DANIELS, PRESENTED A CHECK FOR 125,000 FRANCS TO THE MORGAN GUARANTY TRUST IN PARIS, FRANCE TO OBTAIN FUNDS FOR TRANSMITTAL TO THE ARMY FINANCE OFFICE FOR USE IN CONVERSION OF DOLLARS TO FRANCS. AFTER OBTAINING THE FUNDS, MR. FOSTER WRAPPED A PACKAGE FOR TRANSMITTAL OF THE MONEY AND PLACED THE PACKAGE INTO THE US EMBASSY COURIER SYSTEM AS REGISTERED MAIL. THE REQUIRED WITNESS TO THE PREPARATION OF THE PACKAGE DID NOT COUNT THE MONEY.
WHEN THE PACKAGE WAS DELIVERED TO THE 27TH FINANCE SECTION, 120,800 FRANCS WERE FOUND MISSING. AT THE CONVERSION RATE OF 4.804 FRANCS TO THE DOLLAR, THE LOSS AMOUNTED TO $25,141.71. SUBSEQUENTLY, A CLAIM WAS SUBMITTED TO THE DEPARTMENT OF THE TREASURY FOR SETTLEMENT OF THE LOSS UNDER THE GOVERNMENT LOSSES IN SHIPMENT ACT, 31 U.S.C. SEC. 738A. THE CLAIM WAS DENIED, HOWEVER, BECAUSE MR. FOSTER FAILED TO PROPERLY PREPARE THE MONEY FOR SHIPMENT.
MR. FOSTER'S NEGLIGENCE WAS CONSIDERED TO BE THE PROXIMATE CAUSE OF THE LOSS AND HE HAS BEEN FOUND PECUNIARILY LIABLE. YOU HAVE DETERMINED THAT DISBURSING OFFICER DANIELS, AND DEPUTY DISBURSING OFFICERS MACLEOD AND COOK WERE ACTING IN THE LINE OF DUTY AND THAT THE LOSS OCCURRED WITHOUT THEIR FAULT OR NEGLIGENCE.
PHYSICAL LOSSES SUCH AS THE ONE IN QUESTION ARE COVERED BY 31 U.S.C. SEC. 95A. THAT STATUTE REQUIRES THE GENERAL ACCOUNTING OFFICE TO RELIEVE ACCOUNTABLE DISBURSING OFFICERS WHEN THE SECRETARY OF THE CONCERNED DEPARTMENT OR PROPERLY AUTHORIZED DELEGATE DETERMINES THAT A LOSS OCCURRED (A) WHILE THE OFFICER WAS ACTING IN THE LINE OF DUTY AND (B) WITHOUT THE OFFICER'S FAULT OR NEGLIGENCE. SINCE YOU, AS THE SECRETARY'S DELEGATE, HAVE MADE THE NECESSARY ADMINISTRATIVE DETERMINATIONS AND THE LOSS IS A PHYSICAL LOSS, UNDER 95A WE HEREBY GRANT RELIEF TO DISBURSING OFFICER DANIELS, AND DEPUTY DISBURSING OFFICERS MACLEOD AND COOK, AS NECESSARY, IN THE AMOUNT OF $25,145.71. (IT IS NOT CLEAR WHY RELIEF IS REQUESTED FOR THE DISBURSING OFFICER AND THE TWO DEPUTIES SINCE PRESUMABLY ONLY ONE OF THEM WAS ACTING AS DISBURSING OFFICER AT THE TIME.)