Department of Defense—Authority to Impose Pecuniary Liability by, B-280764, May 4, 2000

B-280764 May 04, 2000 Jump To VIEW DECISION RELATED PAGES GAO CONTACTS Highlights We are aware of no statutory authority that would permit such action. Any decision inconsistent herewith is overruled. He poses three questions: (1) Is the person who approves the correctness of an individual employee's T&A record pecuniarily liable for an overpayment made as a result of erroneous data contained in the record? (2) Is the person who approves erroneous data in documents supporting a payment voucher. Pecuniarily liable for improper payments resulting from a certifying officer's reliance on that approval? and (3) Is the determination of liability affected by the fact that an automated system has processed the approved data without the source documents being available to the certifying officer? View Decision Matter of: Department of Defense--Authority to Impose Pecuniary Liability by Regulation File: B-280764 Date: May 4, 2000 DIGEST DECISION A recent Department of Defense (DOD) regulation authorizes DOD certifying officers to designate persons who approve time and attendance (T&A) records, receiving officials, and system administrators as "accountable officials." DOD Financial Management Regulation, DOD 7000.14-R, Vol. 5, Ch. 33, Para. 330505 (August 1998). The regulation provides that these officials shall be pecuniarily liable for erroneous payments resulting from the negligent performance of their duties. Id. at Para. 3302. Apparently in response to this regulation, the Chief, Fiscal Management Division and Administrative Support, Fort Sam Houston, requests an advance decision pursuant to 31 U.S.C. Sec. 3529. In his request letter, he poses three questions: (1) Is the person who approves the correctness of an individual employee's T&A record pecuniarily liable for an overpayment made as a result of erroneous data contained in the record? (2) Is the person who approves erroneous data in documents supporting a payment voucher, such as a receiving report or a vendor invoice, pecuniarily liable for improper payments resulting from a certifying officer's reliance on that approval? and (3) Is the determination of liability affected by the fact that an automated system has processed the approved data without the source documents being available to the certifying officer? For purposes of this decision, we have consolidated Fort Sam Houston's three questions into what we think is the one overarching issue. In our opinion, the issue is whether an agency, in the absence of statutory authority, may impose pecuniary liability on government employees for the negligent performance of their duties, as DOD has attempted to do in its regulation. For the reasons explained below, we think the answer to that question is "no." We are aware of no statutory authority that would allow DOD to impose pecuniary liability on designated accountable officials. BACKGROUND Accountability for public funds rests primarily, although not exclusively, with certifying officers. 31 U.S.C. Sec. 3528. Certifying officers are responsible for preparing payment vouchers and for the information contained in those vouchers. 31 U.S.C. Sec. 3528 (a)(1), (2). Certifying officers also are responsible for the legality of proposed payments, and are liable for the amount of illegal or improper payments resulting from their certifications. 31 U.S.C. Sec. 3528 (a)(3), (4). Specifically, a certifying officer's pecuniary liability extends to any payment that (1) is illegal, improper, or incorrect because of an inaccurate or misleading certificate; (2) is prohibited by law; or (3) does not represent a legal obligation under the appropriation involved. 31 U.S.C. Sec. 3528 (a)(4). Agency officials who execute approving functions of the sort that Fort Sam Houston raises here are not certifying officers under 31 U.S.C. Sec. 3528, and incur no pecuniary liability under that statute in the execution of such functions. See, e.g., 65 Comp. Gen. 19, 20-21 (1985); B-241856.2, Sept. 23, 1992; B-197109, Mar. 24, 1980. A disbursing officer is also by statute an accountable officer. 31 U.S.C. Sec. 3325. The functions of a disbursing officer are largely self-defining--to disburse public funds. By statute, a disbursing officer shall only disburse funds in conformity with a certified voucher. Id. A disbursing officer shall examine a payment voucher if necessary to decide if it is in proper form, certified, and computed correctly. Id. Other than for the accuracy of the computation, the disbursing official is accountable for the funds in his possession and for their disbursement in conformity with duly certified vouchers. 31 U.S.C. Secs. 3325, 3527. See also 10 U.S.C. Sec. 2773 (designation of deputy disbursing officer as an accountable official). Fort Sam Houston officials identified several circumstances in which certifying and disbursing officers may make improper payments as a result of erroneous supporting documents.