B-215767, AUG 14, 1984, OFFICE OF GENERAL COUNSEL
Highlights
ACCOUNTABLE OFFICERS - RELIEF - DUPLICATE CHECKS ISSUED - IMPROPER PAYMENT DIGEST: RELIEF IS GRANTED ARMY DISBURSING OFFICER UNDER 31 U.S.C. 3527(C) FROM LIABILITY FOR IMPROPER PAYMENT RESULTING FROM PAYEE'S NEGOTIATION OF BOTH ORIGINAL AND SUBSTITUTE PAY CHECKS. PROPER PROCEDURES WERE FOLLOWED IN THE ISSUANCE OF THE SUBSTITUTE CHECK. THERE WAS NO INDICATION OF BAD FAITH ON THE PART OF THE DISBURSING OFFICER. THAT IS CHARGED TO HIS ACCOUNT. RELIEF IS GRANTED. SHORTLY AFTER A TREASURY CHECK FOR CIVILIAN PAY WAS ISSUED TO THE PAYEE. SEC. 3527(C) TO RELIEVE A DISBURSING OFFICER FROM LIABILITY FOR A DEFICIENCY RESULTING FROM AN IMPROPER PAYMENT UPON DETERMINING "THAT THE PAYMENT WAS NOT THE RESULT OF BAD FAITH OR LACK OF REASONABLE CARE BY THE OFFICIAL.".
B-215767, AUG 14, 1984, OFFICE OF GENERAL COUNSEL
ACCOUNTABLE OFFICERS - RELIEF - DUPLICATE CHECKS ISSUED - IMPROPER PAYMENT DIGEST: RELIEF IS GRANTED ARMY DISBURSING OFFICER UNDER 31 U.S.C. 3527(C) FROM LIABILITY FOR IMPROPER PAYMENT RESULTING FROM PAYEE'S NEGOTIATION OF BOTH ORIGINAL AND SUBSTITUTE PAY CHECKS. PROPER PROCEDURES WERE FOLLOWED IN THE ISSUANCE OF THE SUBSTITUTE CHECK, THERE WAS NO INDICATION OF BAD FAITH ON THE PART OF THE DISBURSING OFFICER, AND COLLECTION HAS BEEN PURSUED.
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 RELIEVE MAJOR R. F. HAWLEY, FINANCE CORPS, SYMBOL NUMBER 6406, FINANCE AND ACCOUNTING OFFICER, 172ND INFANTRY BRIGADE, FORT RICHARDSON, ALASKA, UNDER 31 U.S.C. SEC. 3527(C) FOR AN IMPROPER PAYMENT OF A $76.26 CHECK PAYABLE TO MR. DARCY L. BOERNER, THAT IS CHARGED TO HIS ACCOUNT. FOR THE REASONS STATED BELOW, RELIEF IS GRANTED.
SHORTLY AFTER A TREASURY CHECK FOR CIVILIAN PAY WAS ISSUED TO THE PAYEE, HE ALLEGED HE HAD NOT RECEIVED THE CHECK AND REQUESTED A STOP PAYMENT. THE LOSS RESULTED WHEN THE PAYEE NEGOTIATED BOTH THE ORIGINAL AND SUBSEQUENTLY ISSUED SUBSTITUTE CHECK.
THIS OFFICE HAS AUTHORITY UNDER 31 U.S.C. SEC. 3527(C) TO RELIEVE A DISBURSING OFFICER FROM LIABILITY FOR A DEFICIENCY RESULTING FROM AN IMPROPER PAYMENT UPON DETERMINING "THAT THE PAYMENT WAS NOT THE RESULT OF BAD FAITH OR LACK OF REASONABLE CARE BY THE OFFICIAL." WE HAVE RECOGNIZED THAT IN "DUPLICATE CHECK" CASES, SUCH AS THIS, THE IMPROPER PAYMENT "IS TOTALLY BEYOND THE RESPONSIBILITY AND CONTROL OF THE AGENCY DISBURSING OFFICER AND IS SOMETHING FOR WHICH HE SHOULD INCUR NO LIABILITY." COMP.GEN. 91, 94 (1982). RELIEF IS GRANTED WHEN THE RECORD INDICATES THAT THE DISBURSING OFFICER ACTED WITHIN THE BOUNDS OF DUE CARE AS ESTABLISHED BY APPLICABLE REGULATIONS, THAT THERE IS NO EVIDENCE OF BAD FAITH ON THE PART OF THE DISBURSING OFFICER, AND THAT A DILIGENT EFFORT WAS MADE TO COLLECT THE OVERPAYMENT. 62 COMP.GEN. 91, ID.
IT APPEARS THAT THE REQUEST FOR STOP PAYMENT AND THE ISSUANCE OF A SUBSTITUTE CHECK IN THIS CASE WERE WITHIN THE BOUNDS OF DUE CARE AS ESTABLISHED BY ARMY REGULATIONS. SEE AR 37-103, PARAGRAPHS 4-161, 4 162 AND 4-164. THERE WAS NO INDICATION OF BAD FAITH ON THE PART OF THE DISBURSING OFFICER.
AS WE HAVE NOTED BEFORE, THE SETTLEMENT OF A DISBURSING OFFICER'S ACCOUNT DOES NOT RELIEVE THE AGENCY OF ITS RESPONSIBILITY TO PURSUE COLLECTION ACTION ON THE DEBT CREATED BY THE IMPROPER PAYMENT.
SINCE IT APPEARS THAT COLLECTION ATTEMPTS ARE NOW BEING MADE TO COLLECT THIS DEBT IN ACCORDANCE WITH THE FEDERAL CLAIMS COLLECTION ACT, AS AMENDED, 37 U.S.C. SEC. 3711 ET SEQ., AND THE PROCEDURES OUTLINED IN OUR DECISION, 62 COMP.GEN. 476 (1983), RELIEF IS GRANTED.