B-103575 August 27, 1951

B-103575 August 27, 1951

The Honorable The Secretary of Agriculture

My dear Mr. Secretary:

Reference is made to letter of May 14, 1951, from the Assistant Secretary of Agriculture, requesting that the officers of the Department of Agriculture and the former Federal Surplus Commodities Corporation be relieved pursuant to the act of August 1, 1947, 62 31 U.S.C. 82a-1, of accountability for the loss or deficiency of Government records in connection with the use of food and cotton order stamps issued for investigation purposes during the period from January 1940 through March 1943, in carrying out stamp programs conducted under authority of section 32 of the act of August 24, 1935, as amended, 7 U.S.C. 612c to encourage domestic comsumptin of surplus agricultural commodities.

Also, it is recommend that, in view of the small amounts paid out in recent years, the balance of the funds--reported to be $779,812.83, as of January 31 1951--representing the proceeds from sales of orange and green colored food and cotton order stamps now held in the trust account "12X8086 Redemption of Order Stamps, Production and Marketing Administration" be transferred to miscellaneous receipts as moneys received from presons unknown. The view is expressed that since the involved programs were discontinued on March 31, 1943, the time for filling claims for such funds will expire on March 31, 1953, pursuant to the act of October 9, 1940, 54 Stat. 1064 31 U.S.C. 237.

It appears to have been administratively concluded during the fiscal year of 1940, that it was necessary in the enforcement of the regulations governing the involved food and cotton order stamp programs to determine the extent to which such order stamps were being properly used. The technique employed involved inssuance by the Chief Disbursing Officer, Treasury Department, to the investigators of the Federal Surplus Commodities Corporation of order stamps for use in cooperation with relief clients to ascertain the extent to which unauthorized items could be purschased with the stamps or exchanged for cash in violation of the applicable regulations. Stamps of the value of $694,324.50, were issued during the period from 1940 through 1943, of which those having a value of $31,895 were returned to the issuing officer. Stamps of the value of $198,637.75 were used by the investigators, the proceeds thereof ultimately being credited to the applicable appropriation or trust fund. The remaining balance of the stamps having a value of $463,791.7 5, were destroyed on March 9, 1945, by a committee of representative of the Department of Agriculture, the Treasury Department and the Chief Disbursing Officer and that there are still outstanding in the records of the Chief Disbursing Officer balances for food and cotton order stamps of the aggregate value of $198,637.75.

While the charge in the records of the Chief Disbursing Officer is stated in money terms, the amount thereof does not, in fact, represent a financial loss to the United States. Therefore, in view of the explanation furnished in the letter of May 14, as to the excessive administration costs which would be incurred in locating the documents necessar to establish accountability for the value of the outstanding order stamps and of the certification that the loss of or deficiency in such records occurred while the responsible officers or agents were acting in their official capacities and without fault or negligence on their part, relief is hereby granted pursuant to the cited act of August 1, 1947, to the involved officers and agents of the Department of Agriculture and the former Federal Surplus Commodities corporation and to the Chief Disbursing Officer, Treasury Department, for their respective liabilities resulting from the loss or deficiency of such records.

The recommendation that the balance of the proceeds from the sales of orange and green food order stamps be transferred to miscellaneous receipts may not be approved. While these funds represent moneys received from persons unknown in the sense that the identities of the rightful owners are not known, the moneys were transferred to the United States in exchange for order stamps to be held in trust for redemption of the stamps upon presentation by vendors who received them in payment for food and cotton products. A-51604, A-97205, September 26, 1939.

Thus, the funds having been received and held in trust for the rightful owners, such moneys are required to be disposed of as directed in the last proviso to section 20 of the Permanent Appropriations Repeal Act of June 26, 1934, 48 Stat. 1233 31 U.S.C. 725s as follows:

"Provided further. That on June 30 of each year there shall be transferred to the trust fund receipt account directed to be established in section 725p of this title, such portion of the balances in any trust- fund account hereinbefore or hereafter listed or established, except the balances in the accounts listed in subsection (c) of this section, which have been in any such fund for more than one year and represent moneys belonging to individuals whose whereabouts are unknown, and subsequent claims therefor shall be disbursed from the trust fund receipt account "Unclaimed Moneys of Individuals Whose Whereabouts are Unknown", directed to be established in section 725p of this title."

Accordingly, the current balance in the trust account "12X8086" is required to be transferred to the trust receipt account "Unclaimed Moneys of Individuals Whose Whereabouts are Unknown" established by section 17 of the cited act of June 26, 1934, 48 Stat. 1230 31 U.S.C. 725p. In this connection, since the provisions of the act of October 9, 1940, 31 U.S.C. 237, barring claims against the United States conginzable by the Office unless received here within 10 full years after accrual thereof, do not apply to funds held in trust by the Government, under existing law, there is no time limit on the filing of claims for the funds in question.

A copy of this letter has been furnished to the Secretary of the Treasury for his information.

Sincerely yours,

Comptroller General of the United States