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B-186565 1 (1977-01-27)

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                              Busan SeUling
                                      Div. Pers.

         THU  COMPTROLLB UMNNItAL
.        OP   THU UNIVED STATUS
         WAUMINUTON. D.C. 2D648
 SAITIO
                                        *


AT:  An. -1 .0


MATTER OF: waiver of everpeymUnts-RS Scholarship Pregram-
               Physical  ominatios   to tasligible employees


CIGEST:


Collecti  at arresns   psYayts,  emep: thin
ter traval, made to two IRS scholarship reciptents
Ia excess of amout permitted under IRS Scholar-
ship ?rogrme regulation my be considered for
niYver state cverpaymencs emcrred through admia-
istretivi error without fault on part of the
stadents,  fployme  should not be charged for
payments a.da by IS for physical examinations
to IRS employees who were under 40 years of
ago and not entitled under ItS policy to receive
the eaminatlos  free Of charge mince erroneous
payments were managemest axpessas and not pay-
meats of pSy or allowacee within unaing
et 5 U.S.C. s 5586(.).


     This decision is in response to a request dated March 26, 1976,
from Florence M. Oakley,j a authorised certifying officer of the
Department of the Treastry, Internal Ravonue Service, id-Atlantic
Regis,  regarding the waitver of coilection of erromeous paymento
made to or an behalf of certain erployee under two distinct
programs administered by the Internal Revenue Service (IRS):
the IRS Scholarship Program and the Employee Health Maintenance
Program.   *. . .-

     The record shovs that the Philadelphl District Office of
IRS sponsored two students, Gregory D. Powell and Gloria E.
Washington, purauant to the IRS Scholarship Program, Federal
Personnel Manual (FPM), chapter 308. Although FPN chapter 308
pices  no dollar limitation on the amount which may be explnded
by the agency annually par student, IRS regulation. require that
the cost for sab  student'including salary is wot to exceed
$5,000 per year.  (IN Ob.243(2)   and 0308.27.) Each district
particlpactng in the SchI!larship Program is required to set up
memorandm  accounts and determine that the $5,0V limitation
is not exceeded.  (RC4UA-Kmorandum No. 0213-1.) The record
indicates that the Philadelpcia District did not maintain the
required memorandum accounts for fiscal year 1975 which resulted
In the overpayment to or on behalf of its two acholars in the
amounts et $162.22 and $919.84, respectively.


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