B-211233, JUN 28, 1983, OFFICE OF GENERAL COUNSEL

B-211233, JUN 28, 1983, OFFICE OF GENERAL COUNSEL

PRECIS-UNAVAILABLE

MR. RAYMOND F. WISNIEWSKI, ASSOCIATE DIRECTOR, OFFICE OF ADMINISTRATION, SELECTIVE SERVICE SYSTEM:

THIS IS IN RESPONSE TO YOUR LETTER OF MARCH 2, 1983, TRANSMITTED TO THE GENERAL ACCOUNTING OFFICE (GAO) BY THE ACTING CHIEF DISBURSING OFFICER, DEPARTMENT OF THE TREASURY, REQUESTING THAT MS. JEANNE C. MCGARRITY, CLASS "A" CASHIER OF THE SELECTIVE SERVICE SYSTEM NATIONAL HEADQUARTERS BE RELIEVED FROM LIABILITY FOR A $600 IMPREST FUND SHORTAGE RESULTING FROM TWO LOSSES INCURRED IN JUNE 1981. FOR THE REASONS STATED BELOW, RELIEF IS GRANTED.

THE RECORD FOR BOTH OF THESE LOSSES IS SCANT. ACCORDING TO THE RECORD, THE FIRST LOSS, IN THE AMOUNT OF $545, WAS DISCOVERED ON MONDAY, JUNE 15, 1981, AND THE SECOND LOSS, IN THE AMOUNT OF $55, WAS DISCOVERED ON THE FOLLOWING MONDAY, JUNE 22, 1981. THE RECORD INDICATES THAT THE CIRCUMSTANCES OF BOTH OF THESE LOSSES WERE IDENTICAL. WHEN THE LOSSES ALLEGEDLY OCCURRED, THE IMPREST FUND WAS IN A LOCKED CASH BOX WHICH, ALONG WITH A KEY TO THE CASH BOX, WAS PLACED IN A DIEBOLD SAFE LOCATED IN AN OPEN AREA. THE RECORD INDICATES THAT THIS SAFE WAS LOCKED BY MS. MCGARRITY AT THE TIME BOTH LOSSES OCCURRED.

BESIDES MS. MCGARRITY, FOUR OTHER EMPLOYEES OF THE SELECTIVE SERVICE SYSTEM KNEW THE COMBINATION TO THE SAFE: AN ALTERNATE CASHIER, A FINANCIAL ASSISTANT, AN ACCOUNTANT, AND A FINANCE OFFICER. ADDITIONALLY, AT THE TIME THESE TWO LOSSES OCCURRED, SEVERAL OTHER THEFTS WERE REPORTED IN THE BUILDING.

THE SELECTIVE SERVICE SYSTEM CONDUCTED AN INTERNAL INVESTIGATION OF THESE TWO LOSSES. NO IRREGULARITIES WERE FOUND DURING THIS INVESTIGATION AND IT WAS DETERMINED THAT FUND CONTROLS WERE ADEQUATE. FURTHERMORE, SEVERAL MONTHS LATER THE SECRET SERVICE CONDUCTED AN INVESTIGATION OF THESE TWO LOSSES. DURING THIS INVESTIGATION, MS. MCGARRITY STATED THAT SHE LOCKED THE SAFE BEFORE THE WEEKENDS IN WHICH THE LOSSES ALLEGEDLY OCCURRED. ADDITIONALLY, OUR OFFICE WAS INFORMALLY ADVISED BY THE AGENT WHO CONDUCTED THE INVESTIGATION THAT IT WAS NOT UNUSUAL TO LEAVE A KEY TO A CASH BOX ALONG WITH THE CASH BOX ITSELF IN A SAFE. HE ALSO STATED THAT A THEFT HAD DEFINITELY OCCURRED AND THAT HE DID NOT FIND ANY LIABILITY ON THE PART OF MS. MCGARRITY.

WE HAVE AUTHORITY UNDER 31 U.S.C. SEC. 3527(A) TO GRANT RELIEF TO ACCOUNTABLE OFFICERS FOR THE PHYSICAL LOSS OF FUNDS UPON OUR CONCURRENCE WITH A DETERMINATION BY THE HEAD OF AN AGENCY THAT SUCH LOSS OCCURRED WHILE THE OFFICER WAS ACTING IN THE DISCHARGE OF HIS OFFICIAL DUTIES AND THAT SUCH LOSS DID NOT RESULT FROM FAULT OR NEGLIGENCE ON THE PART OF THE OFFICER. IN THIS CASE, THE AGENCY HAS MADE THE REQUISITE DETERMINATIONS.

WHILE THE INVESTIGATIVE EFFORTS OF THE SECRET SERVICE SUGGEST THAT THE TWO LOSSES WERE PROBABLY DUE TO THEFT, THE RECORD IS DEVOID OF ANY OTHER EVIDENCE, SUCH AS EVIDENCE OF A FORCEABLE ENTRY INTO THE SAFE, WHICH PROVIDES AN EXPLANATION FOR THE TWO LOSSES. AS SUCH, WE CONSIDER THAT THE SHORTAGE IN THIS CASE FALLS WITHIN THE CATEGORY OF AN "UNEXPLAINED LOSS." THIS OFFICE HAS HELD THAT THE DISAPPEARANCE OF FUNDS WITHOUT AN EXPLANATION GIVES RISE TO A PRESUMPTION OF NEGLIGENCE ON THE PART OF THE ACCOUNTABLE OFFICERS, AND THE BURDEN IS ON THE OFFICER TO REBUT THE PRESUMPTION WITH EVIDENCE TO THE CONTRARY. SEE 48 COMP.GEN. 566 (1969).

WE HAVE IN THE PAST RELIEVED ACCOUNTABLE OFFICERS FOR LIABILITY FROM LOSSES WHERE, IN VIOLATION OF SECTION 4 OF THE DEPARTMENT OF THE TREASURY'S "MANUAL OF PROCEDURES AND INSTRUCTIONS FOR CASHIERS OPERATING UNDER EXECUTIVE ORDER NO. 6166" (JUNE 1976), A NUMBER OF EMPLOYEES HAD KNOWLEDGE OF A SAFE COMBINATION. SEE, B-205985, JULY 12, 1982. IN SUCH CASES, THERE IS NO WAY TO DETERMINE WHICH PERSON TO HOLD RESPONSIBLE FOR THE LOSS.

IN THIS CASE, FIVE PEOPLE KNEW OF THE COMBINATION. ADDITIONALLY, AGAIN AT VARIANCE WITH THIS MANUAL, THE SELECTIVE SERVICE SYSTEM APPARENTLY DID NOT CHANGE THE COMBINATION TO THE SAFE AFTER THE FIRST LOSS OCCURRED. ARE THUS OF THE VIEW THAT THE LOSS IN THIS CASE CANNOT BE ATTRIBUTED TO NEGLIGENCE ON THE PART OF MS. MCGARRITY. ACCORDINGLY, RELIEF IS GRANTED TO MS. MCGARRITY FOR THE FULL AMOUNT OF THE TWO LOSSES.

WE NOTE IN CLOSING THAT WHILE THE CHIEF DISBURSING OFFICER INFORMS US THAT THE SAFE HAS NOW BEEN MOVED TO AN ENCLOSED ROOM, WE HAVE NO WAY OF KNOWING WHETHER THE NATIONAL HEADQUARTERS OF THE SELECTIVE SERVICE SYSTEM HAS NOW COMPLIED WITH THE OTHER PROVISIONS OF THE DEPARTMENT OF THE TREASURY'S "MANUAL OF PROCEDURES AND INSTRUCTIONS FOR CASHIERS" REGARDING THE SAFEKEEPING OF FACILITIES. FOR EXAMPLE, WE ARE NOT TOLD WHETHER THE COMBINATION TO THE SAFE AND THE KEY TO THE CASH BOX HAS BEEN CHANGED, OR WHETHER ACCESS TO THE SAFE AND CASH BOX HAS BEEN LIMITED TO THE CLASS "A" CASHIER AND HER ALTERNATE. IT IS IMPERATIVE THAT THE SELECTIVE SERVICE SYSTEM COMPLY WITH THE TREASURY GUIDELINES TO AVOID A RECURRENCE OF THESE LOSSES.