B-179937, DEC 13, 1973

B-179937, DEC 13, 1973

WAIVER OF INDEBTEDNESS OF LIEUTENANT COMMANDER ROBERT W. KRASNOW, UNITED STATES NAVY MEDICAL CORPS, UNDER PROVISIONS OF 10 U.S.C. 2774 AND THE STANDARDS FOR WAIVER, 4 CFR 91 ET SEQ.

TO MR. SECRETARY:

THIS IS IN REFERENCE TO THE APPLICATION FOR WAIVER OF ERRONEOUS PAYMENTS OF BASIC PAY IN THE AMOUNT OF $713.76 IN THE CASE OF LIEUTENANT COMMANDER ROBERT W. KRASNOW, UNITED STATES NAVY.

THE RECORD BEFORE US INDICATES THAT LIEUTENANT COMMANDER KRASNOW REQUESTED A WAIVER OF THE INDEBTEDNESS UNDER THE PROVISIONS OF THE ACT OF OCTOBER 2, 1972, PUBLIC LAW 92-453, 86 STAT. 758, 10 U.S.C. 2774, BY LETTER DATED FEBRUARY 6, 1973, ADDRESSED TO THE COMPTROLLER OF THE NAVY. IT APPEARS THAT SINCE THE AMOUNT INVOLVED WAS OVER $500, THE REQUEST FOR WAIVER AND ACCOMPANYING DOCUMENTS WERE FORWARDED TO OUR TRANSPORTATION AND CLAIMS DIVISION AND RECEIVED THERE AUGUST 13, 1973.

OUR EXAMINATION OF THE RECORD INDICATES THAT LIEUTENANT COMMANDER KRASNOW ENTERED MEDICAL SCHOOL SEPTEMBER 8, 1964, AND WAS GRADUATED JUNE 9, 1968. HE PERFORMED HIS INTERNSHIP DURING THE PERIOD JULY 1, 1968 THROUGH JUNE 30, 1969. HIS PROFESSIONAL SERVICE DATE AS A NAVY MEDICAL CORPS OFFICER WAS ESTABLISHED AS JUNE 10, 1968.

UNDER THE PROVISIONS OF SUBSECTION 205(A)(7) OF TITLE 37, U.S.C. A MEDICAL OFFICER OF THE NAVY IS TO BE CREDITED WITH FOUR YEARS OF SERVICE FOR THE PURPOSES OF COMPUTING BASIC PAY.

A STATEMENT OF SERVICE DATED AUGUST 12, 1968, ESTABLISHED LIEUTENANT COMMANDER KRASNOW'S PAY ENTRY BASE DATE AS JUNE 10, 1963. WHEREAS, UNDER THE ABOVE-CITED SUBSECTION OF 37 U.S.C. 205, HIS PROPER PAY ENTRY BASE DATE SHOULD HAVE BEEN ESTABLISHED AS JUNE 10, 1964. THIS RESULTED IN OVERPAYMENTS OF BASIC PAY SINCE HE WAS CREDITED WITH ONE MORE YEAR OF CONSTRUCTIVE SERVICE THAN HE WAS ENTITLED TO IN THE COMPUTATION OF HIS BASIC PAY.

A STATEMENT OF SERVICE ISSUED MARCH 20, 1970, CORRECTED THE ERROR AND ESTABLISHED HIS PAY ENTRY BASE DATE AS JUNE 10, 1964. HOWEVER, IT APPEARS THAT NEITHER THE DISBURSING OFFICER NOR LIEUTENANT COMMANDER KRASNOW WAS INFORMED OF THE CORRECTION. AS A RESULT, THE MEMBER CONTINUED TO RECEIVE BASIC PAY ON THE BASIS OF THE ERRONEOUS PAY ENTRY BASE DATE OF JUNE 10, 1963, UNTIL THE ERROR WAS AGAIN DETECTED MARCH 21, 1972, AND HIS PAY RECORDS CORRECTED.

IN THIS CONNECTION, WE NOTE THAT THE AMOUNT OF $713.76 ESTABLISHED AS THE INDEBTEDNESS REPRESENTS THE AMOUNT OF OVERPAYMENTS MADE THROUGH DECEMBER 31, 1971. OUR EXAMINATION OF LIEUTENANT COMMANDER KRASNOW'S PAY RECORDS INDICATES THAT HE WAS ACTUALLY OVERPAID AN ADDITIONAL SUM OF $89.40 FOR THE MONTHS OF JANUARY AND FEBRUARY 1972, BEFORE THE ERROR WAS REDISCOVERED BY THE NAVY, FOR A TOTAL OVERPAYMENT OF $803.16, WHICH SUM HAS BEEN DEDUCTED FROM HIS PAY BEFORE HIS RELEASE FROM ACTIVE DUTY.

WE HAVE CAREFULLY CONSIDERED THE PROPRIETY OF WAIVING LIEUTENANT COMMANDER KRASNOW'S INDEBTEDNESS UNDER THE PROVISIONS OF 10 U.S.C. 2774 AND THE STANDARDS FOR WAIVER, 4 CFR 91 ET SEQ., PROMULGATED IN IMPLEMENTATION THEREOF.

WHILE THE RECORDS BEFORE US INDICATE THAT THE PAY ENTRY BASE DATE ERROR WAS DISCOVERED IN MARCH 1970 AND THAT LIEUTENANT COMMANDER KRASNOW SHOULD HAVE BEEN INFORMED OF THE ERROR, IT APPEARS REASONABLE TO ASSUME THAT HE DID NOT RECEIVE ANY NOTIFICATION OF THE ERROR, SINCE IT APPEARS NO NOTIFICATION WAS GIVEN TO OFFICIALS ADMINISTERING HIS PAY ACCOUNT AT THAT TIME. ALSO, THERE ARE NO INDICATIONS THAT THERE IS ANY FAULT OR LACK OF GOOD FAITH ON THE PART OF LIEUTENANT COMMANDER KRASNOW.

THEREFORE, UNDER THE AUTHORITY CONFERRED BY 10 U.S.C. 2774, AND IN VIEW OF THE FACTS AND CIRCUMSTANCES INVOLVED IN THIS CASE, INDICATING NO FAULT ON THE PART OF LIEUTENANT COMMANDER KRASNOW, WE HEREBY WAIVE THE TOTAL OVERPAYMENT OF $803.16.

SINCE THE INDEBTEDNESS HAS BEEN REPAID BY LIEUTENANT COMMANDER KRASNOW, HE HAS, UNDER THE PROVISIONS OF 10 U.S.C. 2774(C) TWO YEARS FROM THE EFFECTIVE DATE OF THE WAIVER IN WHICH TO FILE CLAIM FOR THE AMOUNT WAIVED. THEREFORE, HE SHOULD BE ADVISED OF THE WAIVER AND HIS RIGHT TO FILE CLAIM FOR THE AMOUNT REPAID BY HIM. ENCLOSED IS A COPY OF A LETTER FROM LIEUTENANT COMMANDER KRASNOW ADDRESSED TO OUR TRANSPORTATION AND CLAIMS DIVISION REQUESTING REFUND.