B-118860, JAN. 27, 1956

B-118860, JAN. 27, 1956

TO THE HONORABLE SECRETARY OF THE TREASURY:

REFERENCE IS MADE TO LETTER DATED OCTOBER 28, 1955, AND ITS ATTACHMENTS, FROM THE ACTING SECRETARY OF THE TREASURY, PRESENTING FOR OUR CONSIDERATION THE QUESTION OF GRANTING RELIEF UNDER THE PROVISIONS OF PUBLIC LAW 365, APPROVED AUGUST 11, 1955 (69 STAT. 687), IN THE ACCOUNTS OF CERTAIN FORMER CHIEF DISBURSING OFFICERS, CERTAIN REGIONAL DISBURSING OFFICERS, AND THREE DISBURSING OFFICERS WHO ARE DEPARTMENT OF STATE PERSONNEL DISBURSING UNDER DELEGATION OF AUTHORITY FROM THE TREASURY DEPARTMENT. ALSO,REQUEST WAS MADE THAT RELIEF BE GRANTED UNDER PUBLIC LAW 334, APPROVED AUGUST 9, 1955 (69 STAT. 626), FOR SHORTAGES IN THE SAVINGS BONDS ACCOUNT OF FORMER CHIEF DISBURSING OFFICER PAUL D. BANNING, FOR SHORTAGES IN THE ACCOUNTS OF THE DISTRICT DIRECTOR OF INTERNAL REVENUE, CLEVELAND, OHIO, AND FOR TWO DISCREPANCIES IN THE PUBLIC DEBT ACCOUNTS. ALL OF THE ABOVE-MENTIONED ITEMS WERE COVERED IN COMPANION BILLS, H.R. 3362 AND S. 1386, 84TH CONGRESS, 1ST SESSION, INTRODUCED AT THE REQUEST OF THE TREASURY DEPARTMENT,"FOR THE RELIEF OF G. F. ALLEN, DECEASED, FORMER CHIEF DISBURSING OFFICER, TREASURY DEPARTMENT, AND FOR OTHER PURPOSES.' HOWEVER, IN VIEW OF THE ENACTMENT DURING THE 1ST SESSION OF THE 84TH CONGRESS OF PUBLIC LAWS 365 AND 334, THERE WAS NO NECESSITY FOR THE ENACTMENT OF THESE BILLS, AND THE CHAIRMAN OF THE SENATE AND OF THE HOUSE COMMITTEE ON THE JUDICIARY WERE SO ADVISED BY THE ACTING SECRETARY OF THE TREASURY ON SEPTEMBER 16, 1955.

THE AMOUNTS FOR WHICH RELIEF IS REQUESTED IN THE CASES OF FORMER CHIEF DISBURSING OFFICERS ALLEN, BRENNAN, AND BANNING, AND REGIONAL DISBURSING OFFICER WELDON, ARE REDUCED BY THE AMOUNTS OF $55.43, $34, $17.67, AND $20, RESPECTIVELY, SINCE ADJUSTMENTS OF THESE AMOUNTS HAVE BEEN OR WILL BE MADE AS FOLLOWS:

ADJUSTMENT OF THE AMOUNT OF $55.43 INVOLVED IN EXHIBIT NO. 4 OF YOUR LETTER, PREVIOUSLY HAD BEEN EFFECTED BY US.

THE AMOUNT OF $34, INVOLVED IN EXHIBIT NO. 8, HAS BEEN COLLECTED BY US IN FULL, AND WE WILL TAKE THE NECESSARY ACTION TO ADJUST THE CHECKING ACCOUNT.

THE AMOUNT OF $17.67, INVOLVED IN EXHIBIT NO. 18, WAS COLLECTED BY THE CHIEF DISBURSING OFFICER, OCTOBER 24, 1955, AND THE NECESSARY ADJUSTMENT HAS BEEN EFFECTED.

THE DEBT OF $20, INVOLVED IN EXHIBIT NO. 43, HAS BEEN LIQUIDATED. VIEW OF THE FINDINGS AND RECOMMENDATIONS CONTAINED IN THE ABOVE LETTER OF OCTOBER 28, 1955, IT IS DETERMINED BY US THAT THE INVOLVED INCORRECT PAYMENTS--- SUBJECT TO THE FOUR REDUCTIONS ABOVE STATED--- MADE BY THE CHIEF DISBURSING OFFICERS AND REGIONAL DISBURSING OFFICERS INVOLVED, WERE NOT THE RESULT OF BAD FAITH OR LACK OF DUE CARE ON THEIR PART, AND ACCORDINGLY THE RELIEF REQUESTED PURSUANT TO THE PROVISIONS OF PUBLIC LAW NO. 365 HEREBY IS ALLOWED. YOUR DEPARTMENT MAY EFFECT ADJUSTMENT OF THE OVERDRAFTS AND SHORTAGES, INVOLVED IN THE 44 EXHIBITS ACCOMPANYING YOUR LETTER, BY CHARGING THE APPROPRIATION 2061800, SALARIES AND EXPENSES, DIVISION OF DISBURSEMENT, 1956. WE NOTE THAT NO SPECIFIC RECOMMENDATION IS MADE IN THE TREASURY LETTER FOR THE RELIEF OF THE THREE STATE DEPARTMENT DISBURSING OFFICERS REFERRED TO ABOVE, APPARENTLY FOR THE REASON THAT THE STATE DEPARTMENT PROPOSES TO SUBMIT RECOMMENDATION TO YOUR DEPARTMENT IN THESE CASES AT A LATER DATE. HOWEVER, RECOGNIZING THE DESIRABILITY OF ACTING AT THIS TIME ON ALL THE CASES INCLUDED IN YOUR LETTER, WE HAVE GIVEN CONSIDERATION TO THE EXPLANATIONS OF THESE THREE ITEMS CONTAINED IN THE EXHIBITS SUBMITTED BY THE TREASURY DEPARTMENT ON JANUARY 5, 1955, TO THE SPEAKER OF THE HOUSE OF REPRESENTATIVES (HOUSE REPORT NO. 166, 84TH CONGRESS, 1ST SESSION, ACCOMPANYING H.R. 3362), AND TO OTHER INFORMATION SINCE MADE AVAILABLE TO US. WE HAVE DETERMINED THAT THE ACTS OF THESE THREE OFFICERS WERE NOT THE RESULT OF BAD FAITH OR LACK OF DUE CARE ON THEIR PART AND, ACCORDINGLY, RELIEF ALSO IS HEREBY GRANTED IN THEIR CASES PURSUANT TO THE PROVISIONS OF PUBLIC LAW 365.

FURTHERMORE, AS REQUESTED, RELIEF IS HEREBY GRANTED IN THE CASE OF THE THREE ITEMS DESCRIBED ON PAGES 3 AND 4 OF THE LETTER OF OCTOBER 28, 1955, PERTAINING TO PERSONNEL OF YOUR DEPARTMENT FOR WHOM RELIEF IS REQUESTED UNDER PUBLIC LAW 334, ABOVE, IT APPEARING THAT THESE DEFICIENCIES OCCURRED BY REASON OF THE ACT OR OMISSION OF A SUBORDINATE EMPLOYEE IN EACH INSTANCE AND WITHOUT FAULT OR NEGLIGENCE ON THE PART OF THE ACCOUNTABLE OFFICER INVOLVED, AS FOLLOWS:

1. SHORTAGE OF $75 IN THE SAVINGS BONDS ACCOUNT OF FORMER CHIEF DISBURSING OFFICER BANNING.

2. SHORTAGE OF $30 IN THE ACCOUNTS OF THE DISTRICT DIRECTOR OF INTERNAL REVENUE, CLEVELAND, OHIO, RESULTING FROM THE ACCEPTANCE BY TWO TELLERS OF TWO COUNTERFEIT BILLS. PURSUANT TO THE PROVISIONS OF PUBLIC LAW 334, REIMBURSEMENT OF $20 TO JAMES D. MARPLE AND $10 TO MRS. CLARA LONGBRAKE IS HEREBY AUTHORIZED, THEY BEING THE TELLERS INVOLVED WHO REIMBURSED THE DISTRICT DIRECTOR'S REVENUE ACCOUNT FROM THEIR PERSONAL FUNDS.

3. DISCREPANCY IN THE PUBLIC DEBT ACCOUNTS, $106.75. THE RELIEF GRANTED FOR THIS ITEM SHOULD BE CREDITED TO THE ACCOUNT OF THE TREASURER OF THE UNITED STATES FOR THE PURPOSE OF ADJUSTING THE PUBLIC DEBT ACCOUNT. IT IS REQUESTED THAT YOUR DEPARTMENT TAKE THE NECESSARY ACTION TO ADJUST THE ACCOUNTS INVOLVED IN THE IMMEDIATELY PRECEDING ITEMS NOS. 1 AND 2, AS PROPOSED IN THE LETTER OF OCTOBER 28, 1955. WITH REGARD TO ITEM NO. 3, $106.75, IT IS NOTED THAT THE ACTING SECRETARY MAKES NO RECOMMENDATION AS TO THE APPROPRIATION INVOLVED IN EFFECTING THE ADJUSTMENT. HOWEVER, IT IS UNDERSTOOD THAT YOUR DEPARTMENT WILL TAKE APPROPRIATE STEPS TO CHARGE WHATEVER APPROPRIATION OR FUND IS AVAILABLE.

THERE IS NOTED THE STATEMENT IN TREASURY DEPARTMENT LETTER THAT, AS FAR AS IS PROPER AND PRACTICABLE, COLLECTION ACTION HAS BEEN AND WILL CONTINUE TO BE DILIGENTLY PURSUED IN THESE CASES BY THE DIVISION OF DISBURSEMENT, TREASURY DEPARTMENT.

WE HAVE TODAY ADVISED THE CHAIRMAN OF THE SENATE AND OF THE HOUSE COMMITTEE ON THE JUDICIARY OF THE ACTION HEREIN TAKEN BY US, THUS RENDERING UNNECESSARY ANY FURTHER ACTION BY THE CONGRESS ON S. 1386 AND H.R. 3362.