A-28277, A-34586, JANUARY 13, 1936, 15 COMP. GEN. 601

A-28277, A-34586, JANUARY 13, 1936, 15 COMP. GEN. 601

CLAIMS - CERTIFICATES OF SETTLEMENT - PAYMENT BY TREASURER OF THE UNITED STATES SECTION 4 OF EXECUTIVE ORDER NO. 6166 OF JUNE 10, 1933, ESTABLISHES A CENTRALIZED DISBURSING SYSTEM, NOT INDICATING ANY INTENT TO TAKE FROM THE TREASURY DEPARTMENT AND THE GENERAL ACCOUNTING OFFICE THE AUTHORITY VESTED IN THEM BY STATUTE TO ISSUE AND COUNTERSIGN PAY WARRANTS ISSUED ON CERTIFICATES OF SETTLEMENT OF THE GENERAL ACCOUNTING OFFICE AND THE MAKING OF PAYMENT THEREON BY THE TREASURER OF THE UNITED STATES, CERTIFICATES OF SETTLEMENT OF THOSE CLASSES OF CLAIMS, PAYMENT OF WHICH HAS NOT BEEN AUTHORIZED BY THE GENERAL ACCOUNTING OFFICE, PURSUANT TO SECTION 307 OF THE BUDGET AND ACCOUNTING ACT OF JUNE 10, 1921, 42 STAT. 25, TO BE MADE BY A DISBURSING OFFICER, WILL CONTINUE TO BE TRANSMITTED TO THE TREASURY DEPARTMENT FOR PAYMENT BY PAY WARRANTS, AS HERETOFORE.

COMPTROLLER GENERAL MCCARL TO THE SECRETARY OF THE TREASURY, JANUARY 13, 1936:

THERE WAS RECEIVED JANUARY 10, 1936, A LETTER WITHOUT DATE FROM THE CHIEF, DIVISION OF BOOKKEEPING AND WARRANTS OF YOUR DEPARTMENT, BY YOUR DIRECTION, ADDRESSED TO THE CHIEF, ACCOUNTING AND BOOKKEEPING DIVISION OF THIS OFFICE, AS FOLLOWS:

REFERRING TO OUR CONVERSATION YESTERDAY WITH REGARD TO PAYMENT OF CERTIFICATES DRAWN IN FAVOR OF CLAIMANTS WHO SUFFERED LOSS BY FIRE IN MINNESOTA, DURING OCTOBER 1918, AN INDEFINITE APPROPRIATION FOR WHOSE RELIEF WAS PROVIDED BY PRIVATE ACT NO. 336, APPROVED AUGUST 27, 1935, THIS OFFICE, LATE YESTERDAY EVENING, RECEIVED A LARGE NUMBER OF SUCH CERTIFICATES, THE AGGREGATE PAYMENTS UNDER WHICH AMOUNT TO $324,161.95.

AS I INFORMED YOU, THIS OFFICE CANNOT DRAW A SETTLEMENT WARRANT COVERING THESE SETTLEMENTS, NOR COULD THE TREASURER DRAW HIS CHECK ON SUCH SETTLEMENT WARRANT IF ISSUED, IN VIEW OF THE TRANSFER OF FUNCTION OF DISBURSEMENT OF MONEYS OF THE UNITED STATES EXERCISED BY THE TREASURER OF THE UNITED STATES UPON CERTIFICATE OF SETTLEMENT TO THE DIVISION OF DISBURSEMENT, EFFECTIVE JANUARY 1, 1936. WITH A VIEW, HOWEVER, TO PLACING THESE SETTLEMENTS IN LINE FOR PAYMENT, I HAVE DRAWN AND AM FORWARDING TO YOU WITH THIS LETTER, REQUISITION NO. 1, DATED TODAY, COVERING ADVANCE TO MR. ALLEN OF THE SUM OF $324,161.95, UNDER "OX834, RELIEF OF CLAIMANTS WHO SUFFERED LOSS BY FIRE IN MINNESOTA DURING OCTOBER 1918.' THIS REQUISITION IS ACCOMPANIED BY MISCELLANEOUS CIVIL APPROPRIATION WARRANT NO. 218, ESTABLISHING THAT AMOUNT UNDER THE APPROPRIATION REFERRED TO AND APPROPRIATE ACCOUNTABLE WARRANT. THIS PROCEDURE IS FOLLOWED WITH A VIEW TO EXPEDITING ACTION ON PAYMENT OF THESE SETTLEMENTS AND IT IS ASSUMED THAT YOU WILL HAVE ACTION TAKEN, FIRST ON THE APPROPRIATION WARRANT; SECONDLY, ON THE REQUISITION, AND FINALLY, ON THE ACCOUNTABLE WARRANTS, IN ACCORDANCE WITH THE PROCEDURE FOLLOWED IN CERTAIN OTHER CASES AS HERETOFORE AGREED TO.

I AM TRANSMITTING THE CERTIFICATES OF SETTLEMENT DIRECT TO MR. ALLEN, TO BE HELD UNTIL CREDIT IS PLACED IN HIS ACCOUNT. I ASSUMED THAT YOU DID NOT WANT THEM RETURNED TO YOUR OFFICE FOR TRANSMITTING TO MR. ALLEN.

IT HAS LONG BEEN THE PRACTICE UNDER SECTIONS 4 AND 11 OF THE ACT OF JULY 31, 1894, 28 STAT. 205 AND 209 (SECS. 76 AND 147, TITLE 31, U.S. CODE) TO RECOGNIZE TWO KINDS OF WARRANTS ISSUED BY THE TREASURY AND COUNTERSIGNED BY THIS OFFICE, THAT IS TO SAY, ACCOUNTABLE WARRANTS BASED ON REQUISITIONS FOR THE ADVANCE OF FUNDS TO DISBURSING OFFICERS FOR DISBURSING PURPOSES AND PAY WARRANTS BASED ON CERTIFICATES OF SETTLEMENT ISSUED BY THIS OFFICE FOR PAYMENT BY THE TREASURER OF THE UNITED STATES. SECTIONS 7 AND 8 OF THE SAID ACT OF 1894, AS AMENDED, REQUIRED THAT THE AMOUNT FOUND DUE CLAIMANTS UNDER SETTLEMENTS BY THE ACCOUNTING OFFICERS BE CERTIFIED TO THE DIVISION OF BOOKKEEPING AND WARRANTS OR TO THE POSTMASTER GENERAL FOR PAYMENT BY WARRANT.

BY SECTION 307 OF THE BUDGET AND ACCOUNTING ACT OF JUNE 10, 1921, 42 STAT. 25, IT WAS PROVIDED:

THE COMPTROLLER GENERAL MAY PROVIDE FOR THE PAYMENT OF ACCOUNTS OR CLAIMS ADJUSTED AND SETTLED IN THE GENERAL ACCOUNTING OFFICE, THROUGH DISBURSING OFFICERS OF THE SEVERAL DEPARTMENTS AND ESTABLISHMENTS, INSTEAD OF BY WARRANT.

UNDER THE AUTHORITY OF SAID SECTION 307 AND PURSUANT TO THE PROVISIONS OF SECTION 4 OF EXECUTIVE ORDER NO. 6166 OF JUNE 10, 1933, WHICH PROVIDED FOR THE CONSOLIDATION OF THE "FUNCTION OF DISBURSEMENT OF MONEYS OF THE UNITED STATES EXERCISED BY ANY AGENCY," THIS OFFICE HAS PROVIDED FOR THE PAYMENT OF CERTAIN CLASSES OF CLAIMS BY THE CHIEF DISBURSING OFFICER OR OTHER DISBURSING OFFICER OF THE GOVERNMENT IN CASES WITH RESPECT TO WHICH THE APPROPRIATIONS INVOLVED OTHERWISE WERE FOR DISBURSEMENT BY SUCH DISBURSING OFFICER. THIS OFFICE HAS NOT PROVIDED, HOWEVER, FOR THE PAYMENT OF CLASSES OF CLAIMS SUCH AS INVOLVED IN THE PRESENT MATTER BY DISBURSING OFFICERS RATHER THAN BY PAY WARRANTS, AND IT IS NOT APPARENT THAT ANY ECONOMY WOULD BE EFFECTED BY SO PROVIDING.

THE ABOVE QUOTED LETTER WOULD INDICATE A MISUNDERSTANDING ON THE PART OF SOME ONE IN YOUR DEPARTMENT AS TO THE EFFECT OF SECTION 4 OF THE EXECUTIVE ORDER OF JUNE 10, 1933. THERE APPEARS NOTHING IN SAID SECTION TO INDICATE AN INTENT TO TAKE FROM THE TREASURY DEPARTMENT AND THIS OFFICE THE AUTHORITY VESTED IN THEM BY STATUTE TO ISSUE AND COUNTERSIGN PAY WARRANTS, OR TO CONSOLIDATE WITH THE "FUNCTION OF DISBURSEMENT,"THERETOFORE EXERCISED BY THE VARIOUS AGENCIES, THE FUNCTION OF THE TREASURER OF THE UNITED STATES IN MAKING PAYMENT ON PAY WARRANTS ISSUED ON CERTIFICATES OF SETTLEMENT BY THIS OFFICE. THE LAW IMPOSES UPON THE TREASURER THE DUTY OF MAKING PAYMENT ON SUCH WARRANTS AND THE EXECUTIVE ORDER OF JUNE 4, 1933, CANNOT BE CONSTRUED AS RELIEVING HIM OF THAT DUTY.

ACCORDINGLY, CERTIFICATES OF SETTLEMENT ISSUED BY THIS OFFICE FOR THE PAYMENT OF CLAIMS OF THE CLASSES WITH RESPECT TO WHICH THIS OFFICE HAS NOT PROVIDED UNDER SAID SECTION 307 OF THE ACT OF 1921, FOR PAYMENT BY A DISBURSING OFFICER INSTEAD OF BY WARRANT, WILL CONTINUE TO BE TRANSMITTED TO THE DIVISION OF BOOKKEEPING AND WARRANTS OF YOUR DEPARTMENT FOR PAYMENT BY PAY WARRANTS AS HERETOFORE, UNLESS AND UNTIL IT BE SHOWN THAT IT WOULD BE IN THE INTEREST OF THE GOVERNMENT FOR THIS OFFICE TO PROVIDE FOR THE PAYMENT OF SUCH CLAIMS BY A DISBURSING OFFICER INSTEAD OF BY WARRANT.

THE REQUISITION FOR THE ADVANCE OF FUNDS TO THE CHIEF DISBURSING OFFICER FOR THE PAYMENT OF THE CLAIMS HERE IN QUESTION AS WELL AS THE APPROPRIATION WARRANT AND THE ACCOUNTABLE WARRANT ARE RETURNED HEREWITH WITHOUT COUNTERSIGNATURE OR APPROVAL.