The statutory standard must be followed. The request for relief must be sent by the agency head, and must contain evidence sufficient for the Comptroller General to independently determine that the standards for relief have been met. Relief for disbursing officers is governed by 31 U.S.C. 3527. The distinction is important because it determines which agency may grant relief. Military departments may grant relief for physical losses, but only the Comptroller General may grant relief for erroneous payments.
Erroneous payments result from the disbursement of public funds.
Losses from cashing checks, whether from fraud or insufficient funds, are disbursements, and are therefore treated as erroneous payments. Relief may be denied if collection action has not been diligently pursued. The Comptroller General may order the adjustment of the appropriate fund. The offset is required to be initiated immediately. If the officer requests it, the Comptroller General must report the debt to the Attorney General, who is required to institute legal action against the officer.