U.S. Department of the Treasury

DATE: August 12, 2015

SUBJECT: Claims for Loss or Damage to Personal Property

1. PURPOSE. This Directive establishes policies for paying and settling Treasury employee claims for personal property lost, stolen, or damaged incident to service with the Department. Also, this Directive authorizes the issuance of Treasury Department Publication (TD P) 32-13, "Policies and Procedures for Employees' Claims for Loss or Damage to Personal Property Incident to Service," by the Deputy Chief Financial Officer.
2. SCOPE. This Directive applies to all bureaus, offices, and organizations in the Department of the Treasury, including the offices of inspectors general within the Department. The provisions of this directive shall not be construed to interfere with or impede the authorities or independence of the Department’s inspectors general.
3. POLICY. It is the policy of the Department of the Treasury to adjudicate employees' personal property claims in an equitable and fair manner in accordance with applicable law and TD P 32-13.
4. BACKGROUND. The Military Personnel and Civilian Employees' Claims Act of 1964, as amended, codified at 31 U.S.C. 3721, authorizes an agency head to settle and pay an agency employee up to $40,000 for loss of, or damage to, personal property used incident to service with the agency. The Secretary's authority to decide individual claims has been delegated to the head of each bureau by Treasury Order (TO) 101-15. A claim may be paid or the property replaced in-kind if it meets the statutory criteria prescribed in 31 U.S.C. 3721. The claim is payable from the bureau's appropriation current at the time the Government's liability is determined.
5. STATUTORY CRITERIA. The statutory criteria for allowing a claim under the Act(31 U.S.C. 3721(f)) are as follows.
   1. The claim is substantiated.
   2. The head of the bureau determines that possession of the property was reasonable or useful under the circumstances.
   3. No part of the loss was caused by any negligent or wrongful act of the claimant or an employee or agent of the claimant.
6. FILING OF CLAIMS. A claim may be filed by any present or former officer or employee of the Department whose claim arose out of an incident occurring before their separation. All claims shall be filed with the cognizant bureau official to whom settlement authority is delegated, in accordance with this Directive and TD P 32-13.
7. LIMITATION OF ATTORNEY'S FEES. Notwithstanding any contract, no more than ten percent of a settlement amount may be paid to any agent or attorney of the claimant for services rendered in connection with the claim. The settlement amount shall be determined exclusive of such fees.
8. SUBROGATION.
   1. Upon payment of a claim, the claimant shall assign to the Department all right, title and interest the claimant may have against a carrier, insurer, foreign country or other party for loss or damage of personal property for which a settlement was received.
   2. In addition, the claimant shall furnish the Department with any evidence that may be necessary to enforce the claim against the carrier, insurer, foreign country or other party.
   3. Upon receipt of any payment from a carrier, insurer, foreign country or other party for the same loss or damage, the claimant will pay such proceeds to the Department. The amount received should be forwarded by the claimant to the appropriate organization accounting office for deposit to the appropriation from which the initial payment was made.
9. SETTLEMENT OF CLAIM. Pursuant to TO 101-15, the authority to decide individual claims has been delegated to the head of each bureau. Pursuant to this Directive, the head of each bureau may further delegate such authority to any subordinate officer or employee, as long as that employee is at least two supervisory levels above the claimant. Settlement of a claim under this direction and 31 U.S.C. 3721 is final and conclusive.
10. RESPONSIBILITIES. The Deputy Chief Financial Officer and Heads of Bureaus, as it relates to their respective bureaus, shall:
    1. implement the policies and procedures set forth in this Directive and TD P 32-13; and
    2. designate a person to receive and process claims filed by employees.
11. SUPPLY OF FORMS AND PUBLICATION.
    1. Treasury Directive Form (TD F) 32-13.1 and TD F 32-13.2 (found in Appendix D of TD P 32-13) may be obtained from the Green http://thegreen.treas.gov/policies/forms ‘Policies and Resources’ section.
    2. Treasury Directive Publication (TD P) 32-13 may be obtained from the Green http://thegreen.treas.gov/policies ‘Policies and Resources’ section, Treasury Directive Publication.
12. AUTHORITIES.
    1. The Military Personnel and Civilian Employee's Claims Act of 1964, P.L. 88-558, as amended, codified at 31 U.S.C.3721.
    2. TO 101-15, "Claim for Damage to or Loss of Personal Property."
13. CANCELLATION. Treasury Directive 32-13, dated May 25, 1995, is superseded.
14. OFFICES OF PRIMARY INTEREST. Office of the Deputy Chief Financial Officer, Office of the Assistant Secretary for Management.