32 CFR Appendix E to Part 284, Processing a Waiver Application When the Debt Is More Than $1,500
Upon receipt of a waiver application, the Component concerned must:
1. Date stamp the application on the date received.
2. Determine whether the application was received within three years after the discovery of the erroneous payment. If the application was not timely, follow the procedures in paragraph B in this part.
3. Investigate the circumstances relating to the erroneous payment.
4. Refer the waiver application to the appropriate determining official (see paragraph C to this Appendix) who after applying the standards in Appendix B in this part may either:
i. Deny the application in its entirety, if appropriate, and follow the procedures in Appendix D to this part, or
ii. Refer the application with a recommendation that part or all of the application be granted to the DOHA for consideration and an initial determination under paragraph C to this Appendix. The determining official must send the entire record and prepare and submit a recommendation and administrative report (as explained in paragraphs D and E to this Appendix) with the application.
When the Component concerned determines that a waiver application was not received within three years after the erroneous payment was discovered, the Component must send the applicant a notice of untimely receipt.
1. The notice must:
i. Cite the applicable statute and explain the reasons for the finding of untimely receipt.
ii. State that the application was not received within the statutory time limit and may not be considered unless that finding is reversed on appeal.
iii. Explain that the applicant may submit a rebuttal to the finding of untimely receipt (as explained in paragraph B.2. to this Appendix.).
iv. State that the statutory time limit may not be extended or waived.
2. An applicant may submit a written rebuttal, signed by the applicant or the applicant's agent or attorney, to a notice of untimely receipt. The Component concerned must receive the rebuttal within 30 days of the date of the notice and may grant an extension of up to an additional 30 days for good cause shown. The rebuttal should:
i. Explain the points of, and reasons for, disagreement with the notice.
ii. Have any documents referred to in the rebuttal attached.
iii. Include or have attached statements (that are attested to be true and correct to the best of the individual's knowledge and belief) by the applicant or other persons in support of the rebuttal.
3. If the applicant does not submit a rebuttal within the time permitted, the notice of untimely receipt is a final action and the Component must return the application to the applicant with a notice that the finding is final and the application may not be considered.
4. If the applicant submits a timely rebuttal, the Component must consider the rebuttal:
i. If the Component finds that the application was received within the required time limit, the Component must reverse its finding of untimely receipt, notify the applicant in writing, and process the application on its merits.
ii. If the Component does not reverse the finding of untimely receipt, the Component must forward the record, including the application, notice of untimely receipt, and rebuttal, to the appropriate determining official (see paragraph C.1. of Appendix D to this part) for an initial determination on the issue of untimely receipt. The Component does not need to investigate the merits of the application before forwarding the record.
5. After making an initial determination on the issue of untimely receipt, the determining official must follow the procedures in Appendix D to this part. In addition, if the determining official finds that the application was timely, the official may:
i. Return the application to the Component concerned for processing on the merits according to this part, or
ii. Make a recommendation to the DOHA to grant all or part of the application as described in paragraph D to this Appendix.
The standards in Appendix B to this part must be applied when considering the merits of a waiver application. After making an initial determination, the DOHA must follow the procedures at paragraph F to this Appendix and may take the following actions regarding waiver applications referred under paragraph A.4.ii. or B.5.ii. to this Appendix:
1. Make an initial determination denying a waiver application in its entirety; or
2. Make an initial determination granting all or part of a waiver application.
Referrals to the DOHA must include the entire record along with the recommendation and administrative report described in paragraph E to this Appendix. The record and the report must be sent to: Defense Office of Hearings and Appeals, Claims Division, P.O. Box 3656, Arlington, VA 22203-1995.
The recommendation and administrative report required by paragraph D to this Appendix must describe the recommended action (and its reasons) and the following:
1. The names and mailing addresses of each employee, member, or other person from whom collection is sought, or a statement that the person cannot reasonably be located.
2. The aggregate amount of the debt, including an itemization showing the elements of the aggregate amount.
3. The date the erroneous payment was discovered.
4. The date the recipient was notified of the error and a statement of the erroneous amounts paid before and after receipt of such notice.
5. A summary of the facts and circumstances describing how the erroneous payment occurred; the recipient's knowledge of the erroneous nature of the payment; the steps taken by the recipient to bring the matter to the attention of the appropriate official; and the Component's response, if any.
6. A finding of whether there is any indication of fraud, misrepresentation, fault, or lack of good faith on the part of the applicant and the reasons for such a finding.
7. Legible copies or the originals of supporting documents, such as leave and earnings statements, notifications of personnel actions, travel authorizations and vouchers, and military orders.
8. Statements (that are attested to be true and correct to the best of the individual's knowledge and belief) of the applicant or other persons in support of the application.
After making an initial determination, the DOHA must:
1. Notify the applicant if all or part of the waiver application is denied. The notification must explain:
i. The determination and the reasons for it.
ii. The appropriate Component action to resolve the debt as a consequence of the determination if it is or becomes a final action (the finality of an initial determination is explained at paragraph G to this Appendix).
iii. The appeal process (as explained in Appendix F to this part) if the determination does not grant the entire application or does not contain a finding of timely receipt.
2. Notify the Component concerned when and if the determination is a final action. The notice must explain:
i. The determination and its the reasons.
ii. The appropriate Component action to resolve the debt as a consequence of the determination.
A final action is an initial determination that grants the entire waiver application or finds that the application was timely received. Also, an initial determination (including one of untimely receipt) is a final action if the determining official does not receive an appeal within 30 days of the date of the initial determination (plus any extension of up to 30 additional days granted by the determining official for good cause shown).