PROCEEDINGS

	IN THE CASE OF:  

	BOARD DATE:           16 January 2003                   
	DOCKET NUMBER:   AR2002074808

	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		Director	
	Ms. Rosa M. Chandler		Analyst	

  The following members, a quorum, were present:

	Mr. Raymond V. O'Connor, Jr.		Chairperson	
	Mr. Arthur A. Omartian		Member	
	Ms. Marla J. Troup		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 the $4,038.12 debt that she incurred as a result of being erroneously paid by the Defense Finance and Accounting Service (DFAS) be remitted or cancelled.

3.  The applicant states that she should not be held liable for a debt that was incurred as a result of an obvious administrative error made by a third party.  She states that she enlisted in the United States Army Reserve (USAR) in May 1996, and, in August 1996, she was ordered to active duty for training.  On 17 October 1996, she was separated from active duty by reason of pregnancy after 7 weeks of basic training.  On 8 June 2000, she enlisted in the Regular Army (RA) and she provided her recruiter all of the pertinent documents from her prior service at the time of enlistment.  However, her basic active service date (BASD) was entered incorrectly as June 1996 at the military processing station or during basic training.  Her unit's administrative section informed her that her BASD was incorrect.  She would have brought the error to the attention of DFAS, had she known about it.  She is a single parent and she cannot afford to be without a paycheck.  The applicant submits in support of her request an undated memorandum, Notification of Indebtedness to the U.S. Government; a DD Form 139 (Pay Adjustment Authorization); memoranda, dated 3 January 2002 and 16 May 2002; a DA Form 3508-R (Application for Remission or Cancellation of Indebtedness); a Leave and Earnings Statement; and a DA Form 1506 (Statement of Service-for Computation of Length of Service for Pay Purposes).

4.  The applicant’s military records show that, prior to the period of service under review, she served in the USAR in an active duty status from 29 August 1996 until she was separated under the provisions of Army Regulation 635-200, due to failure to meet procurement medical fitness standards (pregnancy) with an uncharacterized discharge on 17 October 1996. 

5.  On 8 June 2000, the applicant enlisted in the Regular Army for 4 years; for military occupational specialty (MOS) 92Y, Unit Supply Specialist; for a cash bonus of $6,000.00; the Army College Fund; and in pay grade E-4.  The applicant is currently assigned to the United States Army Armor Center, Fort Knox, Kentucky.  

6.  In October 2001, the DFAS, Military Pay Office, Fort Knox, Kentucky, informed the applicant that her BASD was changed from 8 June 1996 to 8 June 2000.  She was also provided a pay adjustment authorization, which indicated that she owed the U.S. Government the difference of $1,738.92 in pay for the period 8 June 2000-31 December 2000 and the difference of $2,299.20 for the period from 1 January 2001-31 August 2001.  The sum total of the debt incurred equaled $4,038.12.

7.  On 3 January 2002, the applicant’s commander signed her Application for Remission or Cancellation of Indebtedness.  On the same date, he forwarded a memorandum to DFAS, Fort Knox and further recommended that the applicant's request for remission/ cancellation of indebtedness be approved.  The applicant's commander stated that the debt was a burden unfairly placed on the applicant; that the applicant was not at fault; that the reception battalion incorrectly entered her BASD and caused overpayment; that when the applicant was informed of the overpayment, she attempted to correct the problem; that DFAS continued to over pay her for an additional 3 months; that it was the Government's responsibility to avoid placing soldiers in financial hardship; that the applicant had never been disciplined for failure to pay bills or for poor conduct; and that she understood the Army's policy on credit obligations.  The applicant's commander also recommended that, if DFAS determined the applicant was responsible for part or all of the debt, repayment be made over a 24-month period.

9.  On 16 May 2002, the U.S. Total Army Personnel Command (PERSCOM), Alexandria, Virginia, approved the applicant's request for remission or cancellation of a partial amount of the debt incurred $2,019.06.  PERSCOM stated that it was determined that there were no grounds to remit or cancel the remaining portion of the debt on the basis of injustice or hardship.  The applicant was also advised that she should contact DFAS to arrange for repayment of the outstanding balance of $2,019.06. 

10.  Army Regulation 600-4 (Remission or Cancellation of Indebtedness for Enlistee Members), serves as the authority for processing applications for remission or cancellation 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. 

CONCLUSIONS:

1.  This Board concludes that the applicant's debt in the amount of $4,038.12 to the government was a valid debt. 

2.  The Board has noted that the evidence available indicates that the applicant was erroneously overpaid $4,038.12 and that PERSCOM remitted or cancelled $2,019.06 of the debt.

3.  The Board finds that the applicant was a newly enlisted soldier; that most likely, she would not have known that she was being overpaid until she was informed; and that the error was due to no fault of her own.  Therefore, in the interest of equity, the remaining portion of the debt in the amount of $2,019.06 should be remitted or cancelled. 

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

RECOMMENDATION:

That all of the Department of the Army records related to this case be corrected by showing that the applicant's debt to the US Government in the amount of $2,019.06 is remitted or cancelled.

BOARD VOTE:  

__rvo___  __aao___  __mjt___  GRANT AS STATED IN RECOMMENDATION

________  ________  ________  GRANT FORMAL HEARING

________  ________  ________  DENY APPLICATION

		Raymond V. O'Connor, Jr.
		______________________
		        CHAIRPERSON

INDEX

CASE ID	AR2002074808	
SUFFIX		
RECON		
DATE BOARDED	20020116	
TYPE OF DISCHARGE		
DATE OF DISCHARGE		
DISCHARGE AUTHORITY		
DISCHARGE REASON		
BOARD DECISION	(GRANT)	
REVIEW AUTHORITY		
ISSUES         1.	128.1000	
2.		
3.		
4.		
5.		
6.