RECORD OF PROCEEDINGS


      IN THE CASE OF:


      BOARD DATE:        19 JANUARY 2005
      DOCKET NUMBER:  AR2004105346


      I certify that hereinafter is recorded the true and complete record
of the proceedings of the Army Board for Correction of Military Records in
the case of the above-named individual.

|     |Mr. Carl W. S. Chun               |     |Director             |
|     |Mr. Kenneth H. Aucock             |     |Analyst              |


      The following members, a quorum, were present:

|     |Mr. Bernard Ingold                |     |Chairperson          |
|     |Mr. Larry Bergquit                |     |Member               |
|     |Ms. Delia Trimble                 |     |Member               |

      The Board considered the following evidence:

      Exhibit A - Application for correction of military records.

      Exhibit B - Military Personnel Records (including advisory opinion,
if any).

THE APPLICANT'S REQUEST, STATEMENT, AND EVIDENCE:

1.  The applicant requests cancellation of her indebtedness to the
government.

2.  The applicant states that she was overpaid for BAH (basic allowance for
housing).  When the error was discovered in the system and the pay
corrected, the system again overpaid her.  She does not dispute the debt to
the government; however, states that the overpayment was neither her fault
nor any error on her part.  She was paid at the "with dependent" rate.  She
submitted a waiver while still in the Army National Guard; however, it was
not acted upon prior to her discharge from the Army National Guard.

3.  The applicant provides a copy of a memorandum from the Human Resources
Command, a copy of a pay adjustment authorization, a copy of a Property and
Fiscal Office, North Dakota National Guard memorandum, a copy of an
application for remission or cancellation of indebtedness, a copy of a
memorandum in support of her request, a copy of the applicant's sworn
statement, a copy of a sworn statement from a military pay technician,
copies of finance computer printouts, and copies of the applicant's leave
and earnings statements.

CONSIDERATION OF EVIDENCE:

1.  The applicant's official military personnel file (OMPF) is unavailable.
 The available evidence is that submitted by the applicant.

2.  In a 10 September 2003 sworn statement a military pay technician for
the United States Property and Fiscal Office (USPFO), North Dakota National
Guard stated that information on the applicant, married to an active duty
Air Force member, was erroneously loaded [in the finance system] in October
2002 at the BAH with dependents rate.  The applicant was receiving $237.00
a pay period instead of the correct amount of $147.50 per pay period.  Her
office was notified of the error in August 2003 when the Counter Drug
Office [where the applicant worked] requested that her pay be corrected.
An audit revealed that the applicant had been erroneously receiving pay at
the BAH with dependents rate resulting in an overpayment of $1608.00.  Her
BAH pay was corrected starting on 15 August 2003.

3.  In a 3 October 2003 sworn statement, the applicant acknowledged that
she had been overpaid for BAH.  She stated that she did not notice any
drastic increase in her BAH amount on her LES.  She spent the money.  She
received the money in good faith, without fault, and without prior
knowledge or reason to suspect an error.  She requested that the debt
resulting from the overpayment be cancelled, or at the very least the five
percent interest on the debt be waived.

4.  On 30 October 2003 the applicant applied for cancellation of her
indebtedness.  In a 15 December 2003 memorandum the Counter Drug
Coordinator endorsed the applicant's request that any interest accrued on
the debt be waived.  The applicant was supported by the USPFO for North
Dakota, who confirmed the circumstances of her indebtedness, and who stated
that the applicant's debt had been deferred until her application for a
waiver had been submitted to the Human Resources Command.  In a 6 February
2004 memorandum the Financial Manager of the USPFO for North Dakota stated
that the applicant and supervisor requested that the recoupment of $100.00
per pay period be initiated and that the interest penalty be waived.  He
concurred.

5.  On 10 February 2004 the Human Resources Command returned her request
without action because she had been discharged from the Army National
Guard. That command advised her to apply to this Board if she felt that an
injustice had occurred.

6.  In the processing of this case an advisory opinion was obtained from
the National Guard Bureau.  That agency recommended that the BAH
overpayment be collected, but the interest be forgiven, and that a payment
plan be proposed to DFAS (Defense Finance and Accounting Office) to collect
the debt.  The opinion was forwarded to the applicant on 24 June 2004 for
her information and possible comment.  She failed to respond.

DISCUSSION AND CONCLUSIONS:

1.  It is difficult to believe that the applicant failed to notice the
relatively substantial increase in her BAH.  Nonetheless, the overpayment
of her BAH resulting in her indebtedness was not her fault.

2.  However, the applicant had the benefit of the money resulting from the
overpayment.  She is indebted to the government.  The money she owes should
be paid back to the government.

3.  In all fairness, however, any interest on the debt should not be
collected.  She owes the money; however, the overpayment of her BAH
allowance was not her fault.  She should not have to pay the interest of
the debt.

4.  Noted on her behalf are requests that a payment plan be set up for the
applicant with DFAS to satisfy this indebtedness.  The applicant, herself,
however, did not so request in her application to this Board.  In this
respect, the applicant herself should resolve any payment plan issue with
DFAS.

5.  The applicant's request to cancel her indebtedness to the government is
not warranted and is denied.

6.  Her request that the interest on her debt be waived, however, is
accepted.  In this respect the record should be corrected to show that
Human Resources Command received her request for relief of indebtedness in
a timely manner and approved cancellation of the collection of interest on
the debt before she was discharged from the Army National Guard.

BOARD VOTE:

________  ________  ________  GRANT FULL RELIEF

___BI ___  ___LB __  __DT ___  GRANT PARTIAL RELIEF

________  ________  ________  GRANT FORMAL HEARING

________  ________  ________  DENY APPLICATION

BOARD DETERMINATION/RECOMMENDATION:

1.  The Board determined that the evidence presented was sufficient to
warrant a recommendation for partial relief.  As a result, the Board
recommends that the record be corrected to show that Human Resources
Command received her request for relief of indebtedness in a timely manner
and approved cancellation of interest on the debt before she was discharged
from the Army National Guard.

2.  The Board further determined that the evidence presented is
insufficient to warrant a portion of the requested relief.  As a result,
the Board recommends denial of so much of the application that pertains to
cancellation of her indebtedness to the government resulting from an
overpayment of her BAH allowance.




                                  _____ Bernard Ingold_______
                                            CHAIRPERSON



                                    INDEX

|CASE ID                 |AR2004105346                            |
|SUFFIX                  |                                        |
|RECON                   |YYYYMMDD                                |
|DATE BOARDED            |20040119                                |
|TYPE OF DISCHARGE       |(HD, GD, UOTHC, UD, BCD, DD, UNCHAR)    |
|DATE OF DISCHARGE       |YYYYMMDD                                |
|DISCHARGE AUTHORITY     |AR . . . . .                            |
|DISCHARGE REASON        |                                        |
|BOARD DECISION          |PARTIAL GRANT                           |
|REVIEW AUTHORITY        |                                        |
|ISSUES         1.       |128.10                                  |
|2.                      |                                        |
|3.                      |                                        |
|4.                      |                                        |
|5.                      |                                        |
|6.                      |                                        |


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