Charles E. Grassley: “Mr. Hamre states and I quote: The department routinely writes checks on accounts that are in the red. Indeed, even when…”

“Mr. Hamre states and I quote: The department routinely writes checks on accounts that are in the red. Indeed, even when accounts have been in a deficit status for some time, Department procedures permit continued expenditure of funds against those negative balances. That Mr. Hamre should have to issue such an order is a disgrace. It castes doubt and distrust on DFAS and its Director, Mr. Springett. Writing checks on accounts that are in the red violates Federal statutory law. It violates DOD regulations, and it violates commonsense practices. To repeatedly and routinely write bad checks is careless and irresponsible. Comptroller General Bowsher says "such practices are inexcusable and must not be tolerated." A consensus was reached at Senator Glenn's April 12 hearing: Someone must be held accountable for what is happening. Deputy DOD IG Vander Schaaf and Comptroller General Bowsher both suggested in testimony that senior officials in accounting and finance are responsible. Madam President, Mr. Bowsher has offered to conduct an investigation to determine more precisely where accountability lies. The law requires that much. Under title 31 of the United States Code, Mr. Bowsher had broad responsibilities to ensure that expenditures are recorded, accounts are accurate, and accountability of assets is maintained. He is authorized to settle accounts and to recover public money illegally or erroneously paid.”