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B-257905 1 (1995-12-26)

handle is hein.gao/gaocrptabys0001 and id is 1 raw text is: Comptroller General of the United States Washington, D.C. 20548 Decision Matter of: Appropriation Accounting-Refunds and Uncollectibles File: B-257905 Date: December 26, 1995 DIGEST 1. Recoveries of amounts paid under a fraudulent contract constitute refunds that may be deposited to the credit of the appropriation charged with the payments until the appropriation account is closed. Once the account is closed, recoveries should be deposited to the general fund of the Treasury to the credit of the appropriate receipt account. 31 U.S.C. § 1552(b) (1994). 2. A loss in an accountable official's account should be adjusted in accordance with the requirements of the laws governing the adjustments of their accounts. Thus the appropriation current at the time relief is granted to the accountable official, or if relief is not granted, current at the time the debt is determined to be uncollectible, should be charged with the loss. DECISION This decision is in response to questions from the Central Intelligence Agency's (CIA) Office of General Counsel about (1) whether the CIA may deposit the amounts recovered from an embezzler to the credit of the appropriation against which the improper payments were initially charged under a fraudulent contract, and (2) whether the CIA is required to charge the amount of any unrecovered payments against current appropriations at the time it writes off the debt. The debt arose as a result of payments to a former employee on a fraudulent contract that was obligated against a prior year appropriation. After discovering the fraud, the CIA sought to recover the payments from the former employee. It may not be possible to recover the entire debt and some portion of the receivable may have to be written off as uncollectible. The CIA has also advised this Office that the fraudulent contract payments remain a charge against the prior year appropriation. For the reasons given below, the CIA may deposit recoveries of fraudulent payments to the credit of the appropriation charged with the payments unless that appropriation account has been closed. If the appropriation has been closed, any recoveries should be deposited to the general fund of the Treasury to the credit of the appropriate receipt account. 31 U.S.C. § 1552(b) (1994). To the extent the debt 11411122