GCA Title 4, Chapter 14
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CHAPTER 14 ACCOUNTABILITY OF DISBURSING AND CERTIFYING OFFICERS
Article 1. Accountable Officers. Article 2. Bonds of Public Officers.
ARTICLE 1 ACCOUNTABLE OFFICERS
SOURCE: This entire Article 1 was repealed and reenacted by P.L. 26-35:IV:7. § 14101. Purpose. § 14102. Scope. § 14103. Policy. § 14104. Definitions. § 14105. Disbursement of Public Funds. § 14106. Types of Accountable Officers. § 14107. Designating a Certifying Officer. § 14108. Certifying Officer’s Delegation of Authority. § 14109. Liability of Accountable Officers. § 14110. Violations of Appropriations and Transfers. § 14111. Standard of Care for Accountable Officers. § 14112. Protection and Relief from Liability. § 14113. Obtaining Relief from Liability. § 14114. Statutory Standard for Relief. § 14115. Bases for Relief. § 14116. Procedures. § 14117. Violations. § 14118. Inconsistent Laws Superseded. § 14119. Severability.
§ 14101. Purpose .
This Chapter establishes the parameters of the position of an Accountable Officer.
§ 14102. Scope .
The provisions of this Chapter apply to all government of Guam Agencies including the Legislative, Executive and Judicial Branches and all autonomous and semi-autonomous agencies which are authorized Certifying Officers and Accountable Officers in general. The concept of accountability and relief discussed in this Chapter apply to all Accountable Officers.
§ 14103. Policy .
It is the policy of the government of Guam that Accountable Officers shall assure the legality, propriety and correctness of collections and disbursements of public funds.
§ 14104. Definitions .
For the purpose of this Article, the following words and phrases have been defined to mean: (a) ’ Accountable Officer .’ Any government of Guam officer or employee who, by reason of the person’s employment, is responsible for or has custody of government funds or who physically handles government funds, even if only once or occasionally, and is accountable for those funds while in the individual’s possession. The functional titles of an Accountable Officer includes: (1) ’ Certifying Officer ’ shall mean a person who is responsible for determining and certifying legality of the disbursement of public funds. The officer does not have physical possession of the funds. (2) ’ Disbursing Officer ’ shall mean a person who disburses funds and renders accounts in accordance with laws and regulations governing disbursement of public funds. The officer has physical possession or control of the funds. (3) ’ Cashier ’ shall mean a person who is appointed to perform limited cash disbursing functions or other cash-handling operations to assist a finance officer. (4) ’ Collecting Officer ’ shall mean a person who is authorized to receive or collect money for the government.
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(b) > Appropriation = shall mean any appropriation made by I Liheslaturan Guåhan [Guam Legislature] within any fund of the government of Guam. (c) ’ Fund ’ shall mean as used in this Chapter the General Fund and all special and trust funds. This includes impress fund cash held at personal risk. (d) > Improper payment = shall mean a disbursement of public funds by a disbursing officer or subordinate that is found by an appropriate authority to be illegal, improper or incorrect. Improper payments result from fraud, forgery, alteration of vouchers, improper certifications and other improper practices. Improper payments can be caused by human and/or mechanical error during the payment process. (e) > Relief = shall mean an administrative decision made by government of Guam officers authorized by law to make such a decision that absolves the accountable officer from liability for a loss.
§ 14105. Disbursement of Public Funds.
All public funds of the government of Guam shall not be disbursed, except as provided in this Chapter and by the persons designated or delegated by the authority of the law and in accordance with applicable Federal and Guam laws.
§ 14106. Types of Accountable Officers.
(a) Certifying Officer. A person who certifies that payment vouchers are correct and ready for payment. The officer does not have physical possession of the funds. A certifying officer is responsible for the existence and correctness of the facts stated in the certificate or voucher or supporting papers, the legality of the proposed payment under the appropriation or fund involved, the correctness of the computations on the certified voucher, and making good to the government of Guam the amount of any illegal, improper or incorrect payment resulting from: (1) any false, inaccurate or misleading certification made by the officer; or (2) any payment prohibited by law or which did not represent a legal obligation under the appropriation or fund involved.
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(b) Disbursing Officer. A disbursing officer is responsible for disbursing funds only upon, and in accordance with duly certified vouchers and is required to give bond in favor of the government of Guam pursuant to the provision of Article 2 of this Chapter, examining vouchers as necessary to ensure that they are in the proper form, duly certified and approved and correctly computed on the basis of the facts certified. (c) Cashier. This person is appointed to perform limited cash disbursing functions or other cash-handling operations to assist a finance officer. (d) Collecting Officer. This person is authorized to receive or collect money for the government.
§ 14107. Designating a Certifying Officer.
Upon approval by the Director of the Department of Administration; the Administrative Director of the Superior Court of Guam; the Executive Officer of the Supreme Court of Guam; or the Executive Director of I Liheslaturan Guåhan [Guam Legislature] for each of their respective organizations only, an employee can be designated as a Certifying Officer. To accomplish this, all required forms (Designation for Certifying Officers) must be completed by the employee, approved by the designated official and forwarded to the Treasurer of Guam. To designate Certifying Officers, the approving official must have a delegated authority form (Delegation of Authority) on file with the Treasurer of Guam. The Treasurer of Guam must maintain an automated system to manage all delegations and designations of authority for disbursement related functions. Designations of Certifying Officers are valid for two (2) years from the effective date unless revoked earlier. Upon the respective approval by the Director of the Department of Administration for the Executive Branch, the Director of I Liheslaturan Guåhan [Guam Legislature] for the Legislative Branch, as specified in the Judicial Council of the Superior Court of Guam policies for the Superior Court of Guam, and the Executive Director for the Guam Supreme Court, an employee can be designated as a Certifying Officer for their respective entity. SOURCE: Amended by P.L. 26-55:15.
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§ 14108. Certifying Officer’s Delegation of Authority .
The Certifying Officer may delegate the authority to determine and certify the legality of the disbursement of public funds but final responsibility for certification shall remain with the Certifying Officer. Whenever the Certifying Officer delegates such authority he shall, within ten (10) days after such an appointment, file a copy of the appointment with the Disbursing Officer for the department, establishment or agency, and with the Treasurer of Guam indicating the name and position of the appointed officer or employee.
§ 14109. Liability of Accountable Officers .
(a) Strict liability denotes that the accountable officer is an insurer of the funds. (b) An accountable officer is automatically liable when the loss occurs. (1) A certifying officer is not liable unless an improper payment has been made on the basis of the certified voucher. Liability arises automatically at the moment of the improper payment. (2) The liability of a certifying officer shall be enforced in the same manner and to the same extent as provided by law with respect to the enforcement of the liability of disbursing and other accountable officers. A certifying officer shall be required to make restitution to the government of Guam for the amount of any illegal, improper or incorrect payment resulting from any false, inaccurate or misleading certificates made by the certifying officer, as well as for any payment prohibited by law or which did not represent a legal obligation under the appropriation or fund involved.(3) A disbursing officer, cashier or other officer who has physical possession or control of government funds is automatically liable when the physical loss occurs or erroneous payment is made. (c) There may be more than one liable accountable officer: (1) because more than one person was negligent: the employee whose error caused the loss and the supervisor who entrusted funds to an unqualified employee. (2) because their positions make both of them accountable: the employee who makes the actual payment and the officer in whose name the account is held.
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(3) Relief must apply for all accountable officers. (d) An accountable officer is only liable for funds in the possession of the government of Guam. (1) Interest and penalty charges on amounts owed to the government of Guam are not in its possession, so the officer is not liable for them. (2) A time discount lost through failure to submit the voucher within the stated time is not within the possession of the government of Guam; thereby, the officer is not liable for the loss. (3) An officer is liable for submitting a voucher for the full amount during the period in which a time discount is available, because the voucher is inaccurate. (e) Check Cashing. (1) All agencies of the government of Guam may have authority to grant relief to an accountable officer in cases involving check cashing. (2) If the agency declines to adjust the officer’s account, the case will be sent to the government of Guam Accounting Office for relief as an erroneous payment but not a physical loss. The Comptroller may grant relief for an illegal, improper or incorrect payment if the payment was not the result of bad faith or lack of reasonable care by the disbursing officer. Relief may be denied if the head of the agency did not carry out diligent collection efforts. The Comptroller may grant relief for the physical loss or deficiency of funds if he finds that the officer was carrying out official duties when the funds were lost and the loss was neither the result of an incorrect or illegal payment nor the result of fault or negligence on the part of the official.
§ 14110. Violations of Appropriations and Transfer.
It is unlawful for an officer, clerk or other person charged with disbursements of public funds appropriated by I Liheslatura (Guam Legislature) to exceed the amounts and purposes stated in the appropriation or to change or shift appropriations from one (1) item to another. Only I Liheslaturan Guåhan (Guam Legislature) in any appropriation act may authorize transfers. An officer, clerk or other person violating the provisions of this Section is guilty of malfeasance in office. They are subject to suspension and investigation of conduct. Upon conviction, the person is
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guilty of a misdemeanor and must be fined in the discretion of the court or imprisoned not more than three (3) years. No agency shall contract or agree to spend any money for goods or services or in settlement of a lawsuit or claim in excess of the amount appropriated by I Liheslatura (the Legislature) to that Agency for such goods, services, claim, or settlement, and BBMR shall not allot funds to that agency for the payment of any amount towards such goods, services, claim, or settlement if the total amount of the goods, services, claim, or settlement is more than the amount appropriated or amount allotted by BBMR. Any contract or agreement made in violation hereof shall be void. Any agency head or certifying officer who knowingly contracts or agrees to spend any money in excess of said appropriations shall be guilty of a misdemeanor. SOURCE: Amended by P.L. 31-233:XII:12(a) (Sept. 7, 2012).
§ 14111. Standard of Care for Accountable Officers.
(a) Due Care. (1) An accountable officer must exercise the highest degree of care in the performance of duty. (2) An accountable officer is not liable for acts of God or the public enemy. (3) Neither lack of fault nor negligence affects an accountable officer’s legal liability. It may provide a basis for granting relief from the obligation to repay the amount of the loss or erroneous payment. (b) Proving Due Care. (1) The loss of funds entrusted to an accountable officer raises a rebuttable presumption of negligence. The accountable officer bears the burden of affirmatively proving the use of the requisite degree of care. The reasonable care standard does not vary with age or experience. (2) Regulations dictate the accountable officer’s actions in most instances. Failure to follow the regulations will result in a finding of negligence and a denial of relief if the negligence caused the loss. (3) If there are no regulations governing the specific actions of the accountable officer, the Comptroller will apply a reasonable person standard. That is, did the accountable officer do what a reasonably prudent and careful person would have done to take care of the person’s
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own funds or property of like description under like circumstances? Mere agency determination that an accountable officer is faultless is insufficient. There must be sufficient evidence included in the request for relief for the Comptroller to independently make the same determination as the agency. (c) Standard of Care Required of a Supervisor. The supervisor must maintain a system of controls to prevent losses and erroneous payments and take steps to ensure that controls are implemented. The supervisor must subst