Appendix B to Part 284 - Standards for Waiver Determinations
32:2.1.1.1.61.0.1.6.35 : Appendix B
Appendix B to Part 284 - Standards for Waiver Determinations A.
Standards
1. Generally, persons who receive a payment erroneously from the
Government acquire no right to the money. They are bound in equity
and good conscience to make restitution. If a benefit is bestowed
by mistake, no matter how careless the act of the Government may
have been, the recipient must make restitution. In theory,
restitution results in no loss to the recipient because the
recipient received something for nothing. However, 10 U.S.C. 2774,
32 U.S.C. 716, and 5 U.S.C. 5584 provide authority to waive, under
certain conditions debts individuals owe the Government that are
the result of erroneous payments of pay and allowances (including
travel and transportation allowances). A waiver is not a matter of
right. It is available to provide relief as a matter of equity, if
the circumstances warrant.
2. Debts may be waived only when collection would be against
equity and good conscience and would not be in the best interests
of the United States. There must be no indication the erroneous
payment was solely or partially the result of the fraud,
misrepresentation, fault, or lack of good faith of the
applicant.
3. The fact that an erroneous payment is solely the result of
administrative error or mistake on the part of the Government is
not sufficient basis in and of itself for granting a waiver.
4. A waiver usually is not appropriate when a recipient knows,
or reasonably should know, that a payment is erroneous. The
recipient has a duty to notify an appropriate official and to set
aside the funds for eventual repayment to the Government, even if
the Government fails to act after such notification.
5. A waiver generally is not appropriate when a recipient of a
significant unexplained increase in pay or allowances, or of any
other unexplained payment of pay or allowances, does not attempt to
obtain a reasonable explanation from an appropriate official. The
recipient has a duty to ascertain the reason for the payment and to
set aside the funds in the event that repayment should be
necessary.
6. A waiver may be inappropriate in cases where a recipient
questions a payment (which ultimately is determined to be
erroneous) and is mistakenly advised by an appropriate official
that the payment is proper, if under the circumstances the
recipient knew or reasonably should have known that the advice was
erroneous.
7. Financial hardship is not a factor for consideration in
determining whether a waiver is appropriate.
8. Waiver determinations under these standards depend on the
facts in each case.