B-220836, JAN 10, 1986, OFFICE OF GENERAL COUNSEL

B-220836, JAN 10, 1986, OFFICE OF GENERAL COUNSEL

DIGEST: THE GENERAL ACCOUNTING OFFICE HAS AGREED TO EXTEND THE TIME FRAME ESTABLISHED IN B-220836, NOVEMBER 29, 1985 FOR IMPLEMENTING ITS POLICY TO DENY RELIEF UNDER THE DILIGENT CLAIMS COLLECTION STANDARD OF 31 U.S.C. SEC. 3527(C) IF THERE HAS BEEN MORE THAN A 3-MONTH DELAY IN NOTIFYING ARMY'S COLLECTION REPRESENTATIVES OF THE LOSS AFTER THE DEBIT VOUCHER HAS BEEN RECEIVED BY THE FINANCE OFFICER. THIS POLICY WILL NOW BE INSTITUTED FOR DEBIT VOUCHERS DATED AFTER APRIL 15, 1986.

MR. CLYDE E. JEFFCOAT:

ACTING ASSISTANT COMPTROLLER FOR FINANCE AND ACCOUNTING

U.S. ARMY FINANCE AND ACCOUNTING CENTER

INDIANAPOLIS, INDIANA 46249

WE MET RECENTLY WITH YOUR STAFF SUPERVISORY ATTORNEY ADVISOR, MR. STEVE CAMPBELL, TO DISCUSS OUR RECENT LETTER TO YOU OF NOVEMBER 29, 1985, B-220836. IN OUR LETTER, WE INDICATED THAT RELIEF WILL BE DENIED FOR FUTURE CASES INVOLVING DEBIT VOUCHERS DATED AFTER JANUARY 15, 1986, IF THERE HAS BEEN MORE THAN 3-MONTH DELAY IN NOTIFYING YOUR COLLECTION REPRESENTATIVE OF THE LOSS AFTER THE DEBIT VOUCHER HAS BEEN RECEIVED BY THE FINANCE OFFICER. MR. CAMPBELL REQUESTED AND WE AGREED TO EXTEND THIS TIME TO COORDINATE THE NECESSARY CHANGES IN YOUR COLLECTION PROCEDURES. HOWEVER, MR. CAMPBELL INDICATED THAT HE WILL IMMEDIATELY NOTIFY ALL FINANCE AND ACCOUNTING OFFICERS OF THE NEED TO INFORM THE COLLECTION DIVISION OF A LOSS AS SOON AS NOTICE OF A LOSS IS RECEIVED FROM THE TREASURY OR OTHER FINANCIAL AGENT.

AS WE UNDERSTAND IT, SOME OF THE DELAY HAS BEEN CAUSED BECAUSE THE FINANCE OFFICER HIMSELF HAS BEEN REQUIRED TO ASCERTAIN THE MEMBER OR EMPLOYEE'S WHEREABOUTS, IF HE IS NO LONGER IN PAY STATUS, AND TO SEND THE OBLIGATORY THREE DEMAND LETTERS ASKING FOR REIMBURSEMENT FOR THE LOSS BEFORE THE OFFICER WAS FREE TO REFER THE MATTER FOR COLLECTION. AS A RESULT, IT IS FREQUENTLY A YEAR OR MORE BEFORE THE REFERRAL IS MADE, LEAVING A VERY COLD TRAIL FOR THE COLLECTION STAFF TO PURSUE. WHILE OF COURSE THE FINANCE OFFICER SHOULD HIMSELF ASCERTAIN IMMEDIATELY IF THE MEMBER OR EMPLOYEE IS IN PAY STATUS SO THAT AN OFFSET AGAINST HIS PAY CAN BE MADE BEFORE HE LEAVES THE SERVICE, WE DID SUGGEST THAT PERHAPS THE COLLECTION LETTERS COULD BE PREPARED AND FOLLOWED UP BY THE COLLECTION OFFICE RATHER THAN THE FINANCE OFFICIAL. THAT, OF COURSE, IS A MATTER FOR ARMY TO DECIDE. IN ANY EVENT, WE THINK IT IS ESSENTIAL THAT THE COLLECTION DIVISION HAVE AS MUCH LEAD TIME AS POSSIBLE IN ATTEMPTING TO COLLECT THE LOSS.

MR. CAMPBELL ALSO EXPRESSED CONCERN THAT WE WOULD ARBITRARILY DENY RELIEF IN ALL CASES IF THE COLLECTION DIVISION WAS NOT INFORMED OF A LOSS WITHIN 3 MONTHS. ALTHOUGH WE THINK THAT 3 MONTHS PROVIDES MORE THAN ENOUGH TIME FOR NOTICE TO BE GIVEN TO YOUR COLLECTION DIVISION, PLEASE BE ASSURED THAT IN SPECIAL OR UNUSUAL CIRCUMSTANCES WHERE THERE IS SUFFICIENT JUSTIFICATION FOR A LONGER DELAY, IT WILL BE TAKEN INTO CONSIDERATION.

WE APPRECIATE THE ATTENTION THAT YOU HAVE GIVEN OUR CONCERNS AND ARE PLEASED THAT THE ARMY IS PRESENTLY TAKING ACTION TO IMPLEMENT OUR RECOMMENDATIONS SO THAT IT WILL NOT BE NECESSARY TO DENY RELIEF BECAUSE OF LACK OF DILIGENT COLLECTION ACTION IN THE FUTURE.