PROCEEDINGS

	IN THE CASE OF:  

	BOARD DATE:           1 June 2000                   
	DOCKET NUMBER:   AR1999034871

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

	Mr. Carl W. S. Chun
Ms. Rosa M. Chandler		Director
Analyst	

  The following members, a quorum, were present:

	Mr. James C. Hise		Chairperson	
	Mr. Raymond V. O’Connor Jr.		Member	
	Mr. Melvin H. Meyer		Member	

	The applicant and counsel if any, did not appear before the Board.

	The Board considered the following evidence:

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

FINDINGS:

1.  The applicant has exhausted or the Board has waived the requirement for exhaustion of all administrative remedies afforded by existing law or regulations.

2.  The applicant requests, in effect that all monies collected on her debt to the government be refunded to her.

3.	The applicant states, in effect, that monies that were collected after her 
commander signed her DA Form 3508-R (Application for Remission or Cancellation of Indebtedness) should be refunded to her.  She was informed that only monies collected prior to her commander signing the application could not be refunded.  In support of her request, she submits Leave and Earnings Statements from 1 April 1998-31 August 1999, a copy of her DA Form 3508-R, and a copy of DA Form 2823 (Sworn Statement), both dated 14 June 1999.

4.	The applicant’s military records show that she was indebted to the US 
Government for a total of $4,011.42, (other records show this amount to be $4,054.00) as a result of being paid basic allowance for housing (BAH) from April 1998-April 1999 while she was assigned in Korea and her family remained in base housing at Fort Riley, Kansas.  

5.  A sworn statement made by the applicant shows that in May 1998, she became aware that she was being paid BAH.  She made a pay inquiry in May and then again in June 1998 as a result of receiving the BAH.  Further, she contends her servicing finance office gave her erroneous information.  After a while she thought no more about the monies due to the fact that she was promoted from pay grade E-4 to pay grade E-5 enroute to Korea and thought the additional pay that she was receiving was due to her promotion.

6.  In June 1999, the government began to collect for the indebtedness.  Her Leave and Earnings Statements show that during the 1-30 June 1999 pay period $732.65 was deducted from her pay.  During the 1-31 July 1999 pay period $221.18 was deducted from her pay, and during the 1-31 August 1999 pay period $91.97 was deducted from her pay.  Her Leave and Earnings Statements show that the government recouped $1,045.80.  This sum is $9.00 less than the sum that PERSCOM shows the government recouped.

7.  On 14 June 1999, the applicant submitted a DA Form 3508-R in which she requested remission of her indebtedness due to hardship reasons.  On the very same day her commander signed the request recommending approval.

8.  On 11 November 1999, the applicant’s request for remission or cancellation of indebtedness was approved by the US Total Army Personnel Command (PERSCOM) in the amount of $2,986.20.  However, since $1,054.80 of the indebtedness was collected prior to the commander’s signature on the application, it could not be considered for remission or cancellation UP paragraph 1-11b, Army Regulation 600-4.

9.  In connection with this application, the Defense Finance and Accounting Service (DFAS) has opined to the Board, in essence, that the applicant admits that she was aware of the debt from the very beginning.  The DFAS does not believe that the applicant was aggressive enough in taking steps or actions to stop incurring the debt through her chain of command, her finance officer, or the inspector general.  Nor did she save the overpayment and agree to pay it back when called to do so.  The DFAS believes the applicant should accept responsibility for the debt incurred and not be reimbursed for the portion of the debt already collected.  If in fact the Board rules in favor of reimbursement, the DFAS recommends that she only be reimbursed $679.48, which is one half of the monies collected during the month of June and all of the monies collected during the month of July and August 1999.

10.  The above advisory opinion was referred to the applicant for comment or rebuttal, but she failed to respond.

11.  Army Regulation 600-4 serves as the authority for processing applications for remission of indebtedness.  It states, in pertinent part, that a debt to the government may be canceled if it is determined that based on the information received, an injustice or hardship, or both exists.  It also states that the soldier's awareness of policy and procedures will be considered as well as whether or not the soldier inquired of proper authority and was told that the payment was correct.  The Commander PERSCOM is the final approval authority for such cases.  However, Paragraph 3-3 provides that the finance office will stop collection upon the date of the local commander’s signature on the application.  In this case the date was 14 June 1999.  DFAS does not reaccredit payments collected after that date, if they were not collected by DFAS. 

CONCLUSIONS:

1.  The applicant's debt in the amount of $4,011.42 to the government was a valid debt.  

2.  The applicant admits that she was first aware of being over paid in May 1998.

3.  The Board finds that she neglected to save the monies so that she could repay the debt or to aggressively pursue the matter to ensure that the debt ceased to occur. 

4.  The Board notes that the applicant requested remission or cancellation of 
indebtedness totaling $4,011.42.  However, the government recouped 
$1,045.80 prior to the request being approved and her pay records being updated.

5.  Army Regulations provides that the PERSCOM is the approval authority for the remission or cancellation of indebtedness.  The local commander recommends approval of the remission or cancellation of indebtedness.  The date a commander signs the request for remission or indebtedness application is the effective date of relief for finance collection action.  Therefore, the Board finds that the applicant is entitled to reimbursement of only one half of the monies collected in the month of June due to the fact that her commander did not sign her DA Form 3508-R until 14 June 1999.  However, she is entitled to reimbursement of all of the monies collected during the months of July and August 1999.  Accordingly, she is entitled to be reimbursed $679.48.

6.  In view of the foregoing, the applicant’s records should be corrected, but only, as recommended below.

RECOMMENDATION:

1.  That all of the Department of the Army records related to this case be corrected by authorizing the individual concerned reimbursement of $679.48 as a result of the monies being collected after the debt to the government had been remitted. 

2.  That so much of the application as is in excess of the foregoing be denied.

BOARD VOTE:  

__jch___  __rvo____  __mhm__  GRANT AS STATED IN RECOMMENDATION

________  ________  ________  GRANT FORMAL HEARING

________  ________  ________  DENY APPLICATION

		    __James C. Hise___
		        CHAIRPERSON

INDEX

CASE ID	AR1999034871	
SUFFIX		
RECON		
DATE BOARDED	20000601	
TYPE OF DISCHARGE	N/A	
DATE OF DISCHARGE		
DISCHARGE AUTHORITY	N/A	
DISCHARGE REASON		
BOARD DECISION	(DENY)	
REVIEW AUTHORITY		
ISSUES         1.	128.1000	
2.		
3.		
4.		
5.		
6.