MEMORANDUM OF CONSIDERATION

	IN THE CASE OF:      

	BOARD DATE:           28 MARCH 2002                   
	DOCKET NUMBER:   AR2001056961

	I certify that hereinafter is recorded the record of consideration of the Army Board for Correction of Military Records in the case of the above-named individual.

	Mr. Carl W. S. Chun		Director	
	Ms. Gale J. Thomas		Analyst	

  The following members, a quorum, were present:

	Mr. Fred N. Eichorn		Chairperson	
	Mr. Lester Echols		Member	
	Mr. Thomas Lanyi		Member	

	The Board, established pursuant to authority contained in 10 U.S.C. 1552, convened at the call of the Chairperson on the above date.  In accordance with Army Regulation 15-185, the application and the available military records pertinent to the corrective action requested were reviewed to determine whether to authorize a formal hearing, recommend that the records be corrected without a formal hearing, or to deny the application without a formal hearing if it is determined that insufficient relevant evidence has been presented to demonstrate the existence of probable material error or injustice.

	The applicant requests correction of military records as stated in the application to the Board and as restated herein.

	The Board considered the following evidence:

	Exhibit A - Application for correction of military 
                records
	Exhibit B - Military Personnel Records (including
	            advisory opinion, if any)

APPLICANT REQUESTS:  That his records be corrected by refunding him a debt overpayment of $152.40.

APPLICANT STATES:  That the original debt for basic allowance for housing (BAH) overpayment occurred during the pay periods of October, November and December 1999 because finance was using an incorrect duty station zip code.  He received the first notice of a debt in February 2000, agreed to the collection of the debt and it was collected in February 2000, however the debt remained on his LES and was not removed.  He received a second debt notice in September 2000, submitted a cancellation request on 31 October 2000, which was denied on 5 March 2001.  

EVIDENCE OF RECORD:  The applicant's military records show:

The applicant received $540.00 for BAH in October, November and December 1999, which was later determined to have been an overpayment of $198.00 which resulted from finance using the incorrect duty zip code.

In the processing of this case an advisory opinion was obtained for the Defense Finance and Accounting Service (DFAS), Policy Team, System Liaison and Procedures Office, which states that the $152.46 represents a balance of an initial total over payment debt of $198.00 due to the overpayment of BAH as the result of a required zip code adjustment.  Due to accounting adjustments under the current pay system, it may appear that the applicant repaid the debt in full.  However, an accounting adjustment for the debt was posted to his January 2000 leave and earnings statement indicating his new BAH entitlement of $651.00, and a debt adjustment of $198.00 was set up.  The accounting adjustment for February 2000 was not able to collect the total $198.00.  They collected $45.54, and again set up a debt adjustment for the balance of $152.46, which was suspended for collection action.  The applicant was provided a copy of the Advisory Opinion and has not responded.

DFAS recommends disapproval of the applicant’s request stating, the applicant was erroneously paid $198.00 due to the fact that his BAH was paid based on an incorrect zip code which provided him money he was not due.  This overpayment does not become money that is due the soldier.  

On 9 February 2001, the applicant's request for remission or cancellation of his indebtedness was disapproved, and he was advised to seek prorating of his debt through the Defense Finance and Accounting Office. 

DISCUSSION:  Considering all the evidence, allegations, and information presented by the applicant, together with the evidence of record, applicable law and regulations, it is concluded:

1.  The applicant was overpaid BAH for the months of October, November and December 1999, as a result of an incorrect zip code.

2.  The Defense Finance and Accounting Office computed the applicant’s overpayment to be $198.00, $45.54 of which they recouped in February 2000, leaving a balance of $152.46.   

3.  The applicant’s indebtedness of $152.46 is valid, and there is no basis to refund him moneys he owed the Government.  

4.  In view of the foregoing, there is no basis for granting the applicant's request.

DETERMINATION:  The applicant has failed to submit sufficient relevant evidence to demonstrate the existence of probable error or injustice.

BOARD VOTE:

________  ________  ________  GRANT

________  ________  ________  GRANT FORMAL HEARING

__FNE __  ___LE___  __TL____  DENY APPLICATION

		    Carl W. S. Chun
		    Director, Army Board for Correction
    of Military Records

INDEX

CASE ID	AR2001056961	
SUFFIX		
RECON	YYYYMMDD	
DATE BOARDED	20020328	
TYPE OF DISCHARGE	(HD, GD, UOTHC, UD, BCD, DD, UNCHAR)	
DATE OF DISCHARGE	YYYYMMDD	
DISCHARGE AUTHORITY	AR .  .  .  .  .  	
DISCHARGE REASON		
BOARD DECISION	DENY	
REVIEW AUTHORITY		
ISSUES         1.	128.10	
2.		
3.		
4.		
5.		
6.