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GLYNN COUNTY: FURTHER REFERENCE IS MADE TO YOUR LETTER OF OCTOBER 8. WHEREIN IT WAS FOUND THAT OVERPAYMENTS IN THE NET AMOUNT OF $10. 960.18 THE VOUCHER IS ALSO SUPPORTED BY A FURTHER STATEMENT ENTITLED "RECONCILIATION OF DIFFERENCES CONTRACTOR AND GAO. NON-PROFIT SCHOOLS WERE NOT COVERED BY THE "FROZEN RATE" PROVISIONS OF THE LAW OR THE ADMINISTRATORS INTERPRETATION BY REGULATIONS. ONE VOUCHER WAS STATED IN THE AMOUNT OF $5. THE OTHER WAS STATED IN THE AMOUNT OF $11. 693.84 WAS DUE FROM YOUR INSTITUTION. THE VETERANS ADMINISTRATION HAS DETERMINED THAT YOUR INSTITUTION WAS ENTITLED TO AN ADDITIONAL PAYMENT OF $9. WAS "DETERMINED IN ACCORDANCE WITH PARAGRAPH 2 (A) 4 OF INSTRUCTION NO. 1 TO PUBLIC LAW 610.

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B-130770, JAN. 11, 1960

TO MR. R. E. HOOD, SECRETARY, BOARD OF EDUCATION, GLYNN COUNTY:

FURTHER REFERENCE IS MADE TO YOUR LETTER OF OCTOBER 8, 1959, TRANSMITTING A VOUCHER OF THE SAME DATE IN THE SUM OF $11,960.18, ALLEGED TO BE DUE YOUR INSTITUTION AS AN OFFSET AGAINST GENERAL ACCOUNTING OFFICE CERTIFICATE OF SETTLEMENT NO. 2283380 DATED APRIL 15, 1957, WHEREIN IT WAS FOUND THAT OVERPAYMENTS IN THE NET AMOUNT OF $10,697.93 HAD BEEN RECEIVED BY YOUR INSTITUTION FROM THE VETERANS ADMINISTRATION AND THAT SUCH AMOUNT SHOULD BE REFUNDED.

THE VOUCHER AS SUBMITTED RELATES TO FOUR CONTRACTS COVERING THE PERIOD MARCH 1, 1949, TO FEBRUARY 28, 1953, AS SET OUT IN ATTACHED STATEMENT ENTITLED "DEFICIT DUE CONTRACTOR," AS FOLLOWS:

* * * * * * * * * * * * * * (TABLE OMITTED) * * * * * * * * * * * * * *

ADJUSTMENTS

SURPLUS DEFICIT

SURPLUS ERRONEOUSLY REFUNDED AT 2-28-49 5,488.22

SURPLUS GENERAL ACADEMIC PROGRAM 10-11-54 3,715.35

TOTALS $12,128.51 $24,088.69

DEDUCT SURPLUS FROM DEFICIT 12,128.51

NET AMOUNT DUE SCHOOL $11,960.18

THE VOUCHER IS ALSO SUPPORTED BY A FURTHER STATEMENT ENTITLED "RECONCILIATION OF DIFFERENCES CONTRACTOR AND GAO," WHICH CONTAINS THE FOLLOWING COMPUTATIONS AND EXPLANATORY COMMENT:

TABLE

"BALANCE PER CERTIFICATE OF SETTLEMENT DATED APRIL 15, 1957 FROM GENERAL ACCOUNT OFFICE BEARING CLAIM NO. F-204181 (1) SHOWN AS DUE VETERANS ADMINISTRATION $10,697.93

BALANCE SHOWN PER COVERING VOUCHER ON FORM NO. 1034 DUE BRUNSWICK VOCATIONAL SCHOOL

11,960.18

DIFFERENCE $22,658.11

PER GAO FISCAL YEAR ENDED 2-29-52

PAID 1624.6 MONTHS AT $31.76 51,597.30

DUE 1624.6 MONTHS AT $27.12 44,059.15 7,538.15 FISCAL YEAR ENDED 2-28-53

PAID 655.4 MONTHS AT $49.12 32,193.25

DUE 655.4 MONTHS AT $27.12 17,774.45 14,418.80

NET OVERPAYMENT 21,956.95

PER SCHOOL FISCAL YEAR ENDED 2-29-52

PAID 1624.6 MONTHS AT 31.76 51,597.30

DUE 1624.6 MONTHS AT 35.87 58,275.71 (6,678.41)FISCAL YEAR ENDED 2-28-53

PAID 655.4 MONTHS AT 49.12 32,193.25

DUE 655.4 MONTHS AT 40.00 26,216.00 5,977.25

NET (DEFICIT) 701.16

DIFFERENCE $22,658.11

COMMENT: AS SHOWN ABOVE THE GAO HAS USED A FROZEN RATE OF $27.12 IN CALCULATING THE AMOUNT DUE FOR THE FISCAL YEARS ENDED 2-29-52 AND 2 28- 53. FOR THIS PERIOD, NON-PROFIT SCHOOLS WERE NOT COVERED BY THE "FROZEN RATE" PROVISIONS OF THE LAW OR THE ADMINISTRATORS INTERPRETATION BY REGULATIONS. PUBLIC LAW 610, 81ST CONGRESS, DID NOT PROVIDE OR INTEND A "FROZEN" RATE FOR NON-PROFIT SCHOOLS. ON THE CONTRARY, IT INTENDED AND PROVIDED FOR SUCH SCHOOLS TO BE REIMBURSED FOR THE COST OF INSTRUCTIONS OF VETERANS UP TO A MAXIMUM OF $500,00 PER YEAR PER STUDENT.'

THE RECORD SHOWS THAT BY TRANSMITTAL DATED NOVEMBER 28, 1956, THE VETERANS ADMINISTRATION REFERRED TO OUR OFFICE FOR DIRECT SETTLEMENT TWO VOUCHERS DATED NOVEMBER 5, 1954, RELATING TO THESE SAME TRAINING PERIODS. ONE VOUCHER WAS STATED IN THE AMOUNT OF $5,488.22 COVERING RECLAIM OF THIS AMOUNT ALLEGEDLY REFUNDED BY YOUR SCHOOL TO THE VETERANS ADMINISTRATION IN ERROR. THE OTHER WAS STATED IN THE AMOUNT OF $11,319.51 COVERING A NET DEFICIT IN TRADE COURSES ALLEGED TO BE DUE YOUR INSTITUTION. THE ADMINISTRATIVE REPORT COVERING THESE VOUCHERS, BASED UPON EXAMINATIONS AND AUDITS CONDUCTED BY THE VETERANS ADMINISTRATION REGIONAL OFFICE, REFLECTED THAT A NET BALANCE OF $13,693.84 WAS DUE FROM YOUR INSTITUTION. IN OTHER WORDS, THE ADJUSTMENT EFFECTED BY THE GENERAL ACCOUNTING OFFICE CERTIFICATE OF SETTLEMENT OF APRIL 15, 1957, ALLOWED A CREDIT IN FAVOR OF YOUR INSTITUTION FOR $2,995.91 IN EXCESS OF THAT ADMINISTRATIVELY RECOMMENDED.

UNDER CONTRACTS V3016V-217 AND V3016V-457 COVERING THE PERIODS MARCH 1, 1949, TO FEBRUARY 28, 1950, AND MARCH 1, 1950, TO FEBRUARY 28, 1951, YOUR INSTITUTION RECEIVED PAYMENT AT THE RATES OF $27.81 AND $26.41 PER MONTH, RESPECTIVELY, SUBJECT TO ADJUSTMENT PURSUANT TO VETERANS ADMINISTRATION REGULATION 38 C.F.R. 21.530 (A) (4). THE VETERANS ADMINISTRATION HAS DETERMINED THAT YOUR INSTITUTION WAS ENTITLED TO AN ADDITIONAL PAYMENT OF $9,486.15 UNDER THE PROVISIONS OF THESE CONTRACTS.

THE RATE PAYABLE UNDER CONTRACT V3016V-684 COVERING THE PERIOD MARCH 1, 1951, TO FEBRUARY 29, 1952, WAS "DETERMINED IN ACCORDANCE WITH PARAGRAPH 2 (A) 4 OF INSTRUCTION NO. 1 TO PUBLIC LAW 610, 81ST CONGRESS, DATED JULY 13, 1950.' SEE PARAGRAPH 2 OF THE CONTRACT SCHEDULE AND 38 C.F.R. 21.691 (A) (11), 15 F.R. 6596, SEPTEMBER 30, 1950, PROVIDING FOR THE ESTABLISHMENT OF A "CUSTOMARY COST OF TUITION.' THIS RATE BECAME THE STATUTORY "CUSTOMARY COST OF TUITION" PAYABLE THEREAFTER FOR THE COURSES INVOLVED. WE FIND NO JUSTIFICATION FOR THE CONTRARY CONSTRUCTION SUGGESTED IN THE AMOUNT CONTAINED IN YOUR "RECONCILIATION" STATEMENT QUOTED ABOVE.

CONTRACT V3016V-874 COVERING THE PERIOD MARCH 1, 1952, TO FEBRUARY 28, 1953, PROVIDED FOR PAYMENT OF TUITION "UNDER THE PROVISIONS OF VETERANS REGULATION 10530 (A)" AND INCORPORATED ARTICLE 1 (F) PROVIDING FOR A "REVISION OF RATES" FROM TIME TO TIME, UPON WRITTEN NOTICE OF THE PARTY DESIRING SUCH REVISION. SEE 38 C.F.R. 21.530 (A), 16 F.R. 9033, SEPTEMBER 6, 1951, SETTING OUT THE REGULATIONS CITED IN THE CONTRACT AND CANCELLING VETERANS ADMINISTRATION REGULATION 38 C.F.R. 21.691. HOWEVER, SINCE A CUSTOMARY COST OF TUITION WAS ESTABLISHED BY CONTRACT V3016V-684 IN ACCORDANCE WITH THE MANDATORY PROVISIONS OF PUBLIC LAW 610, 81ST CONGRESS, 64 STAT. 336, THE INCONSISTENT PROVISIONS FOR A REVISION OF RATES AS PROVIDED BY THE ADMINISTRATIVE REGULATIONS AND INCORPORATED INTO CONTRACT V3016V-874 WERE UNAUTHORIZED. HENCE, THEY MAY NOT BE REGARDED AS AFFORDING ANY LEGAL BASIS FOR PAYMENT IN EXCESS OF THE "CUSTOMARY COST OF TUITION" THERETOFORE ESTABLISHED FOR THE COURSES INVOLVED.

THE VETERANS ADMINISTRATION HAS DETERMINED THAT YOUR INSTITUTION RECEIVED PAYMENT FOR 1,624.6 MONTHS AT $31.76 PER MONTH, OR A TOTAL OF $51,597.30, FOR THE PERIOD MARCH 1, 1951, TO FEBRUARY 29, 1952, COVERING TRAINING FURNISHED UNDER CONTRACT V3016V-684; ALSO, THAT YOUR INSTITUTION RECEIVED PAYMENT FOR 655.4 MONTHS AT $49.12 PER MONTH, OR A TOTAL OF $32,193.25, FOR THE PERIOD MARCH 1, 1952, TO FEBRUARY 28, 1953, COVERING TRAINING FURNISHED UNDER CONTRACT V3016V-874.

THE VETERANS ADMINISTRATION HAS DETERMINED FURTHER THAT ON THE BASIS OF THE CUSTOMARY COST OF TUITION ESTABLISHED PURSUANT TO PUBLIC LAW 610, 81ST CONGRESS, YOUR INSTITUTION WAS ENTITLED TO RECEIVE FOR THE PERIOD MARCH 1, 1951, TO FEBRUARY 29, 1952, PAYMENT FOR 1,624.6 MONTHS AT $27.12 PER MONTH, OR A TOTAL OF $44,059.15; AND FOR THE PERIOD MARCH 1, 1952, TO FEBRUARY 28, 1953, PAYMENT FOR 655.4 MONTHS AT $27.12 PER MONTH OR A TOTAL OF $17,774.45.

THE VETERANS ADMINISTRATION HAS ALSO DETERMINED THAT YOUR INSTITUTION HAS RECEIVED OVERPAYMENTS TOTALING $3,715.35 ON ACCOUNT OF GENERAL ACADEMIC COURSES FURNISHED AT A CUSTOMARY CHANGE OF $15 A MONTH FOR THE PERIOD MARCH 1, 1949, THROUGH JUNE 30, 1952.

WITH RESPECT TO YOUR CLAIM FOR THE "SURPLUS" IN THE AMOUNT OF $5,488.22 ALLEGEDLY REFUNDED IN ERROR IT IS OUR VIEW THAT, IN THE ABSENCE OF STATUTORY AUTHORITY OR CONTRACT PROVISION REQUIRING SUCH REFUND, CREDIT SHOULD BE ALLOWED TO YOUR INSTITUTION FOR THIS ITEM.

THUS, THE TOTAL AMOUNT FOUND DUE YOUR INSTITUTION, INCLUDING THE CREDIT ITEMS INDICATED, IS $73,092.62, AND SINCE THE RECORD ESTABLISHES THAT PAYMENTS TOTALING $83,790.55 WERE MADE, THERE OBVIOUSLY IS NO BASIS FOR ALLOWANCE OF THE ADDITIONAL AMOUNT YOU HAVE CLAIMED. ON THE CONTRARY, THE DIFFERENCE OF $10,697.93REPRESENTS AN OVERPAYMENT BY THE VETERANS ADMINISTRATION WHICH WOULD BE REFUNDED PROMPTLY TO THE GOVERNMENT. THIS MAY BE ACCOMPLISHED, AS INDICATED IN THE CERTIFICATE OF SETTLEMENT OF APRIL 15, 1957, BY FORWARDING YOUR CHECK IN THE AMOUNT OF $10,697.93 DIRECT TO THE VETERANS ADMINISTRATION CENTRAL OFFICE.

INSTRUCTIONS ARE BEING ISSUED TODAY THAT IN THE ABSENCE OF RECEIPT OF THIS REFUND WITHIN 30 DAYS, STEPS NECESSARY TO EFFECT COLLECTION OF THE AMOUNT FOUND DUE SHOULD BE TAKEN BY APPROPRIATE OFFSET FROM ANY MONIES WHICH MAY OTHERWISE BECOME PAYABLE FROM GOVERNMENT FUNDS TO YOUR INSTITUTION.

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