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PRECIS-UNAVAILABLE THE SECRETARY OF DEFENSE: REFERENCE IS MADE TO MY LETTER DATED SEPTEMBER 15. B-110805 WHEREIN APPROVAL WAS GIVEN IN GENERAL TO A PLAN PROPOSED BY THE DEPARTMENT OF THE ARMY FOR THE RECOUPMENT OF EXCESSIVE ALLOTMENT PAYMENTS MADE TO THE VETERANS ADMINISTRATION. WAS APPROVED FOR THE PURPOSE STATED WITH THE EXCEPTION THAT AMOUNTS SET-OFF IN FAVOR OF THE DEPARTMENT OF THE ARMY WHICH HAVE BEEN TRANSFERRED FROM THE SPECIAL DEPOSIT FUND TO "REPAYMENTS. IN GIVING APPROVAL TO THE PROPOSED PLAN IT WAS INTENDED THAT THE STATEMENT IN THE FINAL PARAGRAPH OF MY LETTER OF SEPTEMBER 15. 1952 WOULD APPLY ONLY TO THOSE ITEMS OF COLLECTION WHICH WERE DEFINITELY IDENTIFIED AS HAVING BEEN TRANSFERRED FROM THE DEPOSIT FUND ACCOUNT TO THE MISCELLANEOUS RECEIPT ACCOUNT "213590 REPAYMENTS.

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B-110805, DEC 16, 1952

PRECIS-UNAVAILABLE

THE SECRETARY OF DEFENSE:

REFERENCE IS MADE TO MY LETTER DATED SEPTEMBER 15, 1952, B-110805 WHEREIN APPROVAL WAS GIVEN IN GENERAL TO A PLAN PROPOSED BY THE DEPARTMENT OF THE ARMY FOR THE RECOUPMENT OF EXCESSIVE ALLOTMENT PAYMENTS MADE TO THE VETERANS ADMINISTRATION. THE PROPOSED PLAN, AS SUBMITTED TO THIS OFFICE IN LETTER DATED JUNE 23, 1952 FROM THE DEPUTY COMPTROLLER FOR ACCOUNTING POLICY, OFFICE OF THE ASSISTANT SECRETARY OF DEFENSE, WAS APPROVED FOR THE PURPOSE STATED WITH THE EXCEPTION THAT AMOUNTS SET-OFF IN FAVOR OF THE DEPARTMENT OF THE ARMY WHICH HAVE BEEN TRANSFERRED FROM THE SPECIAL DEPOSIT FUND TO "REPAYMENTS, LAPSED APPROPRIATIONS" BUT SUBSEQUENTLY DETERMINED TO BE EXCESSIVE MAY NOT BE PAID TO THE VETERANS ADMINISTRATION FROM SIMILAR AMOUNTS SUBSEQUENTLY RECEIVED BY THE DEPARTMENT OF THE ARMY BY SETOFF. IN GIVING APPROVAL TO THE PROPOSED PLAN IT WAS INTENDED THAT THE STATEMENT IN THE FINAL PARAGRAPH OF MY LETTER OF SEPTEMBER 15, 1952 WOULD APPLY ONLY TO THOSE ITEMS OF COLLECTION WHICH WERE DEFINITELY IDENTIFIED AS HAVING BEEN TRANSFERRED FROM THE DEPOSIT FUND ACCOUNT TO THE MISCELLANEOUS RECEIPT ACCOUNT "213590 REPAYMENTS, LAPSED APPROPRIATIONS."

REPRESENTATIVES OF THIS OFFICE HAVE BEEN INFORMALLY ADVISED THAT STRICT COMPLIANCE WITH THE ABOVE STATEMENT, AS INTERPRETED BY THE DEPARTMENT OF THE ARMY AND THE VETERANS ADMINISTRATION WOULD HAVE THE EFFECT OF DEFEATING THE PURPOSE OF THE ORIGINAL PLAN WHICH CONTEMPLATED MAKING ADJUSTMENTS TO THE VETERANS ADMINISTRATION OF AMOUNTS INITIALLY SET-OFF IN FAVOR OF THE DEPARTMENT OF THE ARMY AS EXCESSIVE ALLOTMENT PAYMENTS BUT LATER DETERMINED TO BE DUE THE VETERANS ADMINISTRATION BECAUSE OF SOME INSURANCE DISBURSEMENT MADE BY THAT AGENCY. IN VIEW THEREOF THE MATTER HAS BEEN RECONSIDERED, AND THE PLAN SUBMITTED IN THE LETTER OF JUNE 23, 1952 IS APPROVED. THE SUCCESSFUL OPERATION OF THE FINANCING ASPECTS OF THE PLAN DEPENDS UPON MAINTAINING A SUFFICIENT BALANCE IN THE SPECIAL DEPOSIT FUND TO REIMBURSE THE VETERANS ADMINISTRATION WHEN NECESSARY. THE PRINCIPLE OF THE PLAN IS TO PROCEED ON THE BASIS THAT PAYMENTS MADE TO THE VETERANS ADMINISTRATION FROM THE SPECIAL FUND ACCOUNT INVOLVE MONEYS THAT HAVE NOT YET BEEN DEPOSITED TO "213590 REPAYMENTS, LAPSED APPROPRIATIONS."

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