BNUMBER:  B-271859
DATE:  September 26, 1996
TITLE:  [Letter]

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B-271859

 September 26, 1996

Mr. William Duff
1560 Oneco Ave.
Winter Park, FL 32789

Dear Mr. Duff:

This responds to your April 15, 1996, request that we relieve you of 
liability for the loss of $107.25 which occurred while you were the 
disbursing officer aboard the USS Underwood.  In accordance with 
Section 8.10 of title 7, GAO Policy and Procedures Manual for Guidance 
of Federal Agencies (copy enclosed), GAO does not review military 
disbursing officer physical loss relief requests on a case-by-case 
basis.  The availability of relief is to be determined by the 
Secretary of Defense or the appropriate Secretary of the military 
department incurring the loss.  See         B-198451, Feb. 5, 1981. 

Relief of military disbursing officers for physical losses is governed 
by 31 U.S.C.  sec.  3527(b).  Section 3527(b) requires that the Secretary 
of Defense or the appropriate Secretary of the military department 
determine that the loss (1) occurred in the line of duty, (2) without 
fault or negligence on the part of the disbursing officer, and (3) was 
not the result of an improper payment.  In military physical loss 
relief requests in which these administrative determinations are made, 
the granting of relief follows automatically.  In a 1981 letter, we 
advised the heads of military departments that they do not need to 
submit physical loss relief requests to GAO.  B-198451, Feb. 5, 1981.

We suggest that you submit your request to the Secretary of the Navy.
 
Sincerely yours,

Gary L. Kepplinger
Associate General Counsel

Enclosure

B-271859

September 26, 1996

DIGEST

Disbursing officer who requested relief under 31 U.S.C.  sec.   3527(b) for 
the physical loss of $107.25 was referred to the Secretary of the 
Navy.  In accordance with 
Section 8.10 of title 7, GAO Policy and Procedures Manual for Guidance 
of Federal Agencies, GAO does not review military disbursing officer 
physical loss cases on a case-by-case basis.