Effective Date: July 10, 2017
Expiration Date: November 10, 2022
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13.1.1 A loss or deficiency is a shortage of public funds in an account, including imprest or similar funds, resulting from such things as (1) theft (burglary, robbery, embezzlement, etc.), (2) loss in shipment, and (3) destruction by fire, accident, or natural disaster. An unexplained shortage (i.e., a shortage of funds with no apparent reason or explanation) is also treated as a physical loss.
13.1.2 Improper Payments. An improper payment is any payment that should not have been made or that was made in an incorrect amount under statutory, contractual, administrative, or other legally applicable requirements. Refer to NPR 9010.3, Financial Management and Internal Control, for additional information regarding improper payments.
13.1.3 Reporting Physical Loss/Deficiency of Funds. If it is determined that a physical loss/deficiency or improper payment has occurred, NASA will follow the reporting requirements identified in the May 18, 1993, revision to Title 7, "Fiscal Guidance," Transmittal Sheet No. 7-43, of GAO's Policy and Procedures Manual for Guidance of Federal Agencies. Chapter 8, Settlement of Accounts and Relief of Accountable Officers, of this document includes requirements for documenting and reporting fiscal irregularities as well as both Agency and GAO responsibilities for determining whether or not relief can be granted to Certifying and Disbursing officers. The document can be found at: http://www.gao.gov/assets/80/76194.pdf.
13.1.4 Internal Report on Physical Loss/Deficiencies
18.104.22.168 The Center CFO shall make an internal NASA report on each loss/deficiency to the Agency CFO and DCFO(F).
22.214.171.124 Each internal NASA report should include:
a. Type of loss/deficiency.
d. Names and positions of the COs and others involved.
e. Reference to pertinent supporting documents.
f. Description of how the loss/deficiency occurred.
g. Description of the procedural deficiencies, if known, that caused the loss/deficiency and the corrective action taken or to be taken.
h. Information on any recoupment already made or being considered.
126.96.36.199 Documentation for resolution of irregularities will be filed with the internal NASA report on irregularities and includes:
a. Whether the questioned items were proper.
b. Whether recovery was made from the recipient or CO.
188.8.131.52 If waived (granted relief), documentation will also include:
a. Amount waived.
b. Statute allowing the waiver.
c. Credit granted was authorized by law.
d. Any administrative determinations required by the applicable relief statute, when relief is granted by NASA.
e. Other authorized administrative actions to resolve the loss/deficiency.
f. Any determinations denying relief.
13.2.1 If a CO is found liable for the loss/deficiency, NASA should report the following repayments in a report to GAO:
184.108.40.206 Single Repayment. If the CO's indebtedness is liquidated promptly by a single repayment, the repayment should be reported to GAO on a copy of the invoice.
220.127.116.11 Installment Repayments. When repayments are to be made in installments, the specific arrangements with the CO will be reported to the GAO. The OCFO will report installment repayments on a copy of the invoice as of June 30 and December 31, within 15 days of those dates. Other dates for reporting repayments are permissible if agreed to by GAO.
18.104.22.168 Timely Resolution of Irregularity. If repayment occurs within two (2) years after the date transactions are made available to GAO for audit, reporting to GAO is not necessary.
13.3.1 If a physical loss/deficiency is not resolved within two (2) years after the date the transactions are made available to GAO for audit, a copy of the internal report will be submitted to GAO by the OCFO or its designee. Reports to GAO are not needed if:
a. The loss/deficiency is $100 or less.
b. Duplicate check losses under $3,000.
c. The unrecovered portion of the loss is subject to routine ongoing collection mechanisms agreed to by the debtor.
13.4.1 The two principal statutes authorizing administrative relief from liability for the physical loss or deficiency of public funds are 31 U.S.C. §§ 3527(a) and 3527(b). Before relief may be considered, two threshold conditions should be satisfied: The loss will be a physical loss or deficiency and not an improper payment and the person for whom relief is desired must be an "accountable officer."
13.4.2 A CO may not escape the liability for losses resulting from an erroneous certification due to the inability to personally ascertain that the invoices were correctly stated or to rely upon the statements and computations of subordinates or others. A CO relying on actions of another employee is held responsible for losses resulting from an erroneous certification unless it is shown that the facts could not have been known in the reasonable exercise of care and diligence.
13.4.3 COs will not be held liable for payments made in accordance with advance settlement decisions issued by NASA Officials. 13.4.4 Relief for a physical loss of funds less than $3,000. The NSSC Executive Director may grant relief from liability due to physical loss of funds for either a CO or an accountable officer for physical loss of funds less than $3,000 provided that:
a. Upon discovery of the loss, the CO took every practical effort to recover the loss and advised the NSSC Executive Director of the occurrence of the loss.
b. NSSC Executive Director has:
(1) Examined the facts.
(2) Made a concerted effort to find and affix responsibility.
(3) Assured steps have been taken to recover the amount.
c. If a determination is made that, the responsibility for the physical loss/deficiency should not be placed on any employee or employees, the NSSC Executive Director should seek relief from liability for the CO from Agency CFO and DCFO(F).
13.4.5 For physical losses/deficiencies of $3,000 or higher the NSSC Executive Director shall submit a request for relief to the Agency CFO and DCFO(F). The request will be submitted by the end of the two-year period or sooner. The request will include:
a. A copy of the NASA internal report.
b. Description of collection actions taken.
c. Identification of an appropriation or fund to be charged if an account adjustment is deemed necessary.
d. Information showing that there was a reasonable basis for relying on the procedures and controls in an automated system if the relief requested is based on a contention that the loss resulted from such reliance.
e. Any administrative determinations required by the applicable relief statute.
f. Written statement by the CO or a notation by NASA that the CO chooses not to submit a separate statement.
13.4.6 If adjustment of accounts is deemed necessary by NASA, the request should indicate which appropriation or fund is to be charged, name and symbol.
13.5.1 The Comptroller General will grant relief or issue an exception to the request for relief from liability for irregularities. An exception will require repayment be made by the accountable officer and the repayment reported to GAO.
13.5.2 Standards of relief for physical loss of funds are:
a. The loss occurred while the officer was performing official duties or that the loss resulted from an act or omission by one of the officer's subordinates.
b. The loss was not the result of fault or negligence on the part of the accountable officer.
c. The loss was not the result of an improper payment.
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