Guam § 14115 - Bases for Relief.

§ 14115. Bases for Relief.

(a) Relief is a matter of equity and is fact specific.

(b) Because an accountable officer is strictly liable, a loss or deficiency

raises a refutable presumption of negligence. The accountable officer must

affirmatively show that there was no negligence, bad faith or fraud.

(1) Negligence.

(A) Gross negligence is not required for liability. Simple

negligence on the part of the accountable officer is sufficient to

bar relief.

(B) If there is negligence, it must be the proximate cause of

the loss.

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(C) The Comptroller can allow relief when it is shown that

more than one (1) person had access to the funds or that there is

pervasive laxity in the security procedures of the office and that

laxity is the proximate cause of the loss.

(D) Relief may not always be granted in cases of pervasive

laxity because an accountable officer has a duty to report security

weaknesses to appropriate supervisory personnel, and to make the

best of the security conditions available, however inadequate. The

determination of whether to grant relief may turn on whether that

duty has been breached.

(2) Bad Faith or Fraud.

(A) The officer is liable only for the amount of the

overpayment.

(B) The use of due care is the basis of relief. Relief will not

be granted on the basis of:

(i) inadequate training or inexperience; however,

entrusting funds to an inexperienced or incapable subordinate

may make a supervisor equally liable for the loss;

(ii) hardship of repayment by the accountable officer;

(iii) heavy workload; or

(iv) an exemplary work history.

(c) Statute of Limitations.

(1) The accountable officer's account is considered settled after a

three (3) year period.

(2) The Comptroller is without authority to grant relief after the

three (3) year period. An agency must therefore report financial

irregularities to the Comptroller within two (2) years of the time it

receives a substantially complete account.

(3) The statute of limitations only applies to cases involving

erroneous payments made by accountable officers; and does not apply

to losses from disbursements involving fraud or criminal activity,

(A) on the part of the accountable officer, by the terms of the

statute,

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(B) or on the part of a subordinate personnel, which are

considered physical losses.

(d) Physical Losses. The Comptroller considers the agency to have

received an account at the time the agency's accounts are substantially

complete, whether or not they are properly documented or filed, or at the

later of:

(1) when an accountable officer certifies a periodic statement of

accountability, or

(2) when an agency receives the information placing it on notice

that a deficiency exists:

(A) if the deficiency is the result of a duplicate payment or

forgery, when the agency receives notice of the loss from the

Treasury,

(B) if the deficiency is the result of fraud, embezzlement or

criminal activity, when the loss is discovered and reported to the

appropriate agency officials,

(C) a delay in receiving documentation supporting the

statement of accountability will suspend the running of the statute:

(i) Only the Comptroller, not the agency, can suspend

the running of the statute of limitations. An agency's attempt

to hold the officer liable will not toll the statute.

(ii) Liability must be established within the three (3)

year period. Collection of the deficiency from the officer

need not start or finish within the three (3) year period.