[Letter]

B-271017 Aug 12, 1996 Jump To VIEW DECISION RELATED PAGES GAO CONTACTS Highlights We may relieve accountable officers for improper payments where the payments were not the result of bad faith or lack or reasonable care. We will relieve them of liability for two improper payments for travel advances made by their subordinate cashiers. We will relieve cashiers who processed fraudulent travel vouchers where they followed all prescribed procedures for cashing travel vouchers. The Comptroller General is authorized to deny relief to accountable officers where the Comptroller General concludes that the agency did not diligently carry out collection action under procedures the Comptroller General prescribes. The improper payments were made on two separate occasions at Moody Air Force Base Defense Accounting Office. View Decision B-271017 August 12, 1996 We may relieve accountable officers for improper payments where the payments were not the result of bad faith or lack or reasonable care. Where, as here, supervisory accountable officers maintain and supervise an adequate system of procedures to prevent improper payments, we will relieve them of liability for two improper payments for travel advances made by their subordinate cashiers. We will relieve cashiers who processed fraudulent travel vouchers where they followed all prescribed procedures for cashing travel vouchers. The Comptroller General is authorized to deny relief to accountable officers where the Comptroller General concludes that the agency did not diligently carry out collection action under procedures the Comptroller General prescribes. We assess the adequacy of agency collection activities in light of the Federal Claims Collection Standards, 4 C.F.R. Part 101 (1996). The prompt referral of this matter by the accountable officer to the Air Force's Office of Special Investigations conforms to the requirements of the Federal Claims Collection Standards and internal DOD Directives. B-271017 Mr. John S. Nabil, Director Defense Finance and Accounting Service Denver Center 6760 E. Irvington Place Denver, Colorado 80279 Dear Mr. Nabil: This responds to your January 29, 1996, request for relief of liability for four accountable officers for two improper payments totalling $5,513.74. The improper payments were made on two separate occasions at Moody Air Force Base Defense Accounting Office, Georgia, based on fraudulent "Do It Yourself Move" (DITY) papers. For the reasons discussed below, we grant the requested relief. The first improper payment occurred on August 1, 1994, when Sergeant First Class (SFC) Robert J. Lamb went to the 347th Comptroller Squadron, Moody Air Force Base Traffic Management Office (TMO) and requested paperwork for a DITY move. Based upon fraudulent orders presented by SFC Lamb calling him to active duty, Ms. Nancy Yates, personal property counselor at TMO, assisted SFC Lamb in the preparation of DD Form 2278, Application for Do-It-Yourself Move. The orders presented appeared to be authentic and valid. Upon completion of the form with the proper signatures, SFC Lamb went to the Moody Air Force Base finance office and gave the DD Form 2278, along with a copy of his orders, to Ms. Maureen Frazier, a travel pay technician. Ms. Frazier reviewed the form and orders checking for the requisite signatures and fund citations. The appropriate information was entered in the Integrated Automated Travel System (IATS) and the voucher authorizing payment was forwarded to Ms. Maureen Corpus, the cashier in Paying and Collecting, for payment. Ms. Corpus verified SFC Lamb's military identification and his signature and paid SFC Lamb the advance cash payment of $3,613.74. The second improper payment was on September 28, 1994, when SFC Lamb again went to the Moody Air Force Base finance office and presented what appeared to be valid travel orders calling him to active duty and a completed DD Form 2278. This DD Form 2278 was not completed by TMO personnel and the signature on the form was forged. Travel pay personnel entered the appropriate information in the IATS and forwarded the voucher authorizing payment to Ms. Nancy Harrell, alternate cashier in Paying and Collecting, for payment. The DD Form 2278 allowed for a payment of $3,613.74, just as the first DD Form 2278 had, but SFC Lamb requested a reduced payment of $1,900. Ms. Harrell verified SFC Lamb's identification and signature and paid him the advance cash payment of $1,900. On December 19, 1994, the Defense Accounting and Finance Service, Denver, Colorado, sent out a fraud alert warning the field offices of SFC Lamb. The warning read: "Member is AWOL from the Army 1265th Ordinance Maintenance Unit. SFC Lamb has received fraudulent travel payments from several Air Force, Army, and Navy bases in the Florida area using what appears to be valid guard-to-active duty orders . . .