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B-270715 1 (1996-07-23)

handle is hein.gao/gaocrptaeaq0001 and id is 1 raw text is: Comptroller General of the United States Washington, D.C. 20548 Decision Matter of: Defense Finance and Accounting Service: Making Payments to Assignees Under a Lease Agreement After Improper Payment Has Been Made to Assignor File: B-270715 Date: July 23, 1996 DIGEST 1. Although lease assignment did not comply with the notice requirement of the Assignment of Claims Act, the record establishes that the agency was aware of, assented to and recognized the assignment of the payments under the lease contract. Therefore, the agency should pay money owed under contract to the assignees but improperly paid to the assignor. See cases cited. 2. When an agency pays a party other than the assignee when an assignment has been recognized, it pays at its peril. Therefore, assignee is entitled to payment even though the agency has not yet recovered the erroneous payments from the assignor. 3. The making of the payment to the assignees does not relieve the Air Force accountable officers of liability for the erroneous payment. As a result of 31 U.S.C. § 3528(d), Air Force certifying officers are not statutorily liable for improper certifications, and hence not subject to relief from liability by the Comptroller General. The liability and relief therefrom, if any, of Air Force certifying officers is governed by Air Force regulation. 4. Under 31 U.S.C. § 3526, an agency's accounts must be settled within 3 years of the date when they are substantially complete and ready for audit. For purposes of an improper payment to an assignor (instead of to the assignee), an agency's accounts are substantially complete and ready for audit as of the date of payment. To protect the governments rights to collect from any accountable officers liable for the improper payment and to permit consideration of any requests for relief, pursuant to 31 U.S.C. § 3526(g), we are suspending the statute of limitations with regard to this matter. DECISION The Defense Finance and Accounting Service (DFAS), Department of Defense, requests an advance decision on the propriety of a payment made to a 909723

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