Chapter 14

COL100920124 GCA PUBLIC OFFICERS & EMPLOYEES CH. 14 ACCOUNTABILITY OF DISBURSING AND CERTIFYING OFFICERS 1CHAPTER 14 ACCOUNTABILITY OF DISBURSING AND CERTIFYING OFFICERS Article 1. Accountable Officers. Article 2. Bonds of Public Officers. ARTICLE 1 ACCOUNTABLE OFFICERS SOURCE: This entire Article 1 was repealed and reenacted b y P.L. 26-35:IV:7. § 14101. Purpose. § 14102. Scope. § 14103. Policy. § 14104. Definitions. § 14105. Disbursement of Public Funds. § 14106. Types of Accountable Officers. § 14107. Designating a Certifying Officer. § 14108. Certifying Officer's Delegation of Authori ty. § 14109. Liability of Accountable Officers. § 14110. Violations of Appropriations and Transfers . § 14111. Standard of Care for Accountable Officers. § 14112. Protection and Relief from Liability. § 14113. Obtaining Relief from Liability. § 14114. Statutory Standard for Relief. § 14115. Bases for Relief. § 14116. Procedures. § 14117. Violations. § 14118. Inconsistent Laws Superseded. § 14119. Severability. § 14101. Purpose . This Chapter establishes the parameters of the posi tion of an Accountable Officer. COL100920124 GCA PUBLIC OFFICERS & EMPLOYEES CH.

sistent Laws Superseded. § 14119. Severability. § 14101. Purpose . This Chapter establishes the parameters of the posi tion of an Accountable Officer. COL100920124 GCA PUBLIC OFFICERS & EMPLOYEES CH. 14 ACCOUNTABILITY OF DISBURSING AND CERTIFYING OFFICERS 2§ 14102. Scope . The provisions of this Chapter apply to all governm ent of Guam Agencies including the Legislative, Executive and J udicial Branches and all autonomous and semi-autonomous agencies which are a uthorized Certifying Officers and Accountable Officers in general. The concept of accountability and relief discussed in this Chapter apply to all A ccountable Officers. § 14103. Policy . It is the policy of the government of Guam that Acc ountable Officers shall assure the legality, propriety and correctnes s of collections and disbursements of public funds. § 14104. Definitions . For the purpose of this Article, the following word s and phrases have been defined to mean: (a) ' Accountable Officer .' Any government of Guam officer or employee who, by reason of the person's employment, is responsible for or has custody of government funds or who physicall y handles government funds, even if only once or occasionally , and

ficer or employee who, by reason of the person's employment, is responsible for or has custody of government funds or who physicall y handles government funds, even if only once or occasionally , and is accountable for those funds while in the individual's possessio n. The functional titles of an Accountable Officer includes: (1) ' Certifying Officer ' shall mean a person who is responsible for determining and certifying legality of the disb ursement of public funds. The officer does not have physical p ossession of the funds. (2) ' Disbursing Officer ' shall mean a person who disburses funds and renders accounts in accordance with laws and regulations governing disbursement of public funds. The officer has physical possession or control of the funds. (3) ' Cashier ' shall mean a person who is appointed to perform limited cash disbursing functions or other cash-han dling operations to assist a finance officer. (4) ' Collecting Officer ' shall mean a person who is authorized to receive or collect money for the government. COL100920124 GCA PUBLIC OFFICERS & EMPLOYEES CH. 14 ACCOUNTABILITY OF DISBURSING AND CERTIFYING OFFICERS 3(b) >Appropriation = shall mean any appropriation made

e or collect money for the government. COL100920124 GCA PUBLIC OFFICERS & EMPLOYEES CH. 14 ACCOUNTABILITY OF DISBURSING AND CERTIFYING OFFICERS 3(b) >Appropriation = shall mean any appropriation made by I Liheslaturan Guåhan [Guam Legislature] within any fund of the government of Guam. (c) ' Fund ' shall mean as used in this Chapter the General Fu nd and all special and trust funds. This includes impress fund cash held at personal risk. (d) >Improper payment = shall mean a disbursement of public funds by a disbursing officer or subordinate that is foun d by an appropriate authority to be illegal, improper or incorrect. Im proper payments result from fraud, forgery, alteration of vouchers, improp er certifications and other improper practices. Improper payments can be caused by human and/or mechanical error during the payment process. (e) >Relief = shall mean an administrative decision made by government of Guam officers authorized by law to ma ke such a decision that absolves the accountable officer from liability for a loss. § 14105. Disbursement of Public Funds. All public funds of the government of Guam shall no t be disbursed, except as provided in this Chapter and by the

accountable officer from liability for a loss. § 14105. Disbursement of Public Funds. All public funds of the government of Guam shall no t be disbursed, except as provided in this Chapter and by the perso ns designated or delegated by the authority of the law and in accord ance with applicable Federal and Guam laws. § 14106. Types of Accountable Officers. (a) Certifying Officer. A person who certifies that payment vouchers are correct and ready for payment. The officer does not have physical possession of the funds. A certifying officer is responsible for the existence and correctness of the facts stated in the certificate or voucher or supporting papers, the legality of the proposed payment under the appropriation or fund involved, the correctness of the computations on th e certified voucher, and making good to the government of Guam the amount of any illegal, improper or incorrect payment resulting from: (1) any false, inaccurate or misleading certificati on made by the officer; or (2) any payment prohibited by law or which did not represent a legal obligation under the appropriation or fund in volved. COL100920124 GCA PUBLIC OFFICERS & EMPLOYEES CH.

on made by the officer; or (2) any payment prohibited by law or which did not represent a legal obligation under the appropriation or fund in volved. COL100920124 GCA PUBLIC OFFICERS & EMPLOYEES CH. 14 ACCOUNTABILITY OF DISBURSING AND CERTIFYING OFFICERS 4(b) Disbursing Officer. A disbursing officer is res ponsible for disbursing funds only upon, and in accordance with duly certified vouchers and is required to give bond in favor of the govern ment of Guam pursuant to the provision of Article 2 of this Chapter, examini ng vouchers as necessary to ensure that they are in the proper form, duly ce rtified and approved and correctly computed on the basis of the facts certif ied. (c) Cashier. This person is appointed to perform li mited cash disbursing functions or other cash-handling operations to assi st a finance officer. (d) Collecting Officer. This person is authorized t o receive or collect money for the government. § 14107. Designating a Certifying Officer. Upon approval by the Director of the Department of Administration; the Administrative Director of the Superior Court of Gu am; the Executive Officer of the Supreme Court of Guam; or the Execut ive Director of I Liheslaturan

ector of the Department of Administration; the Administrative Director of the Superior Court of Gu am; the Executive Officer of the Supreme Court of Guam; or the Execut ive Director of I Liheslaturan Guåhan [Guam Legislature] for each of their respective organizations only, an employee can be designated a s a Certifying Officer. To accomplish this, all required forms (Designation for Certifying Officers) must be completed by the employee, approved by the designated official and forwarded to the Treasurer of Guam. To designate C ertifying Officers, the approving official must have a delegated authority form (Delegation of Authority) on file with the Treasurer of Guam. The Treasurer of Guam must maintain an automated system to manage all delegati ons and designations of authority for disbursement related functions. Desi gnations of Certifying Officers are valid for two (2) years from the effec tive date unless revoked earlier. Upon the respective approval by the Director of the Department of Administration for the Executive Branch, the Direct or of I Liheslaturan Guåhan [Guam Legislature] for the Legislative Branch, as specified in the Judicial Council of the Superior Court of Guam

nt of Administration for the Executive Branch, the Direct or of I Liheslaturan Guåhan [Guam Legislature] for the Legislative Branch, as specified in the Judicial Council of the Superior Court of Guam poli cies for the Superior Court of Guam, and the Executive Director for the G uam Supreme Court, an employee can be designated as a Certifying Officer for their respective entity. SOURCE: Amended by P.L. 26-55:15. COL100920124 GCA PUBLIC OFFICERS & EMPLOYEES CH. 14 ACCOUNTABILITY OF DISBURSING AND CERTIFYING OFFICERS 5§ 14108. Certifying Officer's Delegation of Authori ty . The Certifying Officer may delegate the authority t o determine and certify the legality of the disbursement of public funds but final responsibility for certification shall remain with the Certifying Officer. Whenever the Certifying Officer delegates such auth ority he shall, within ten (10) days after such an appointment, file a copy of the appointment with the Disbursing Officer for the department, establishmen t or agency, and with the Treasurer of Guam indicating the name and position of the appointed officer or employee. § 14109. Liability of Accountable Officers .

fficer for the department, establishmen t or agency, and with the Treasurer of Guam indicating the name and position of the appointed officer or employee. § 14109. Liability of Accountable Officers . (a) Strict liability denotes that the accountable o fficer is an insurer of the funds. (b) An accountable officer is automatically liable when the loss occurs. (1) A certifying officer is not liable unless an im proper payment has been made on the basis of the certified voucher . Liability arises automatically at the moment of the improper payment . (2) The liability of a certifying officer shall be enforced in the same manner and to the same extent as provided by l aw with respect to the enforcement of the liability of disbursing and other accountable officers. A certifying officer shall be required t o make restitution to the government of Guam for the amount of any illegal, i mproper or incorrect payment resulting from any false, inaccur ate or misleading certificates made by the certifying officer, as wel l as for any payment prohibited by law or which did not represent a lega l obligation under the appropriation or fund involved.(3) A disbursing officer, cashier or other officer

fying officer, as wel l as for any payment prohibited by law or which did not represent a lega l obligation under the appropriation or fund involved.(3) A disbursing officer, cashier or other officer who has physical possession or contro l of government funds is automatically liable when the physical los s occurs or erroneous payment is made. (c) There may be more than one liable accountable o fficer: (1) because more than one person was negligent: th e employee whose error caused the loss and the supervisor who entrusted funds to an unqualified employee. (2) because their positions make both of them accou ntable: the employee who makes the actual payment and the offic er in whose name the account is held. COL100920124 GCA PUBLIC OFFICERS & EMPLOYEES CH. 14 ACCOUNTABILITY OF DISBURSING AND CERTIFYING OFFICERS 6(3) Relief must apply for all accountable officers. (d) An accountable officer is only liable for funds in the possession of the government of Guam. (1) Interest and penalty charges on amounts owed to the government of Guam are not in its possession, so th e officer is not liable for them.

le for funds in the possession of the government of Guam. (1) Interest and penalty charges on amounts owed to the government of Guam are not in its possession, so th e officer is not liable for them. (2) A time discount lost through failure to submit the voucher within the stated time is not within the possession of the government of Guam; thereby, the officer is not liable for the lo ss. (3) An officer is liable for submitting a voucher f or the full amount during the period in which a time discount is avail able, because the voucher is inaccurate. (e) Check Cashing. (1) All agencies of the government of Guam may have authority to grant relief to an accountable officer in cases inv olving check cashing. (2) If the agency declines to adjust the officer's account, the case will be sent to the government of Guam Accounting O ffice for relief as an erroneous payment but not a physical loss. The Comptroller may grant relief for an illegal, improper or incorrect payment if the payment was not the result of bad faith or lack of reasonab le care by the disbursing officer. Relief may be denied if the he ad of the agency did not carry out diligent collection efforts.

nt if the payment was not the result of bad faith or lack of reasonab le care by the disbursing officer. Relief may be denied if the he ad of the agency did not carry out diligent collection efforts. The Com ptroller may grant relief for the physical loss or deficiency of funds if he finds that the officer was carrying out official duties when the f unds were lost and the loss was neither the result of an incorrect or ille gal payment nor the result of fault or negligence on the part of the of ficial. § 14110. Violations of Appropriations and Transfer. It is unlawful for an officer, clerk or other perso n charged with disbursements of public funds appropriated by I Lih eslatura (Guam Legislature) to exceed the amounts and purposes sta ted in the appropriation or to change or shift appropriations from one (1) i tem to another. Only I Liheslaturan Guåhan (Guam Legislature) in any appropriation act may authorize transfers. An officer, clerk or other pe rson violating the provisions of this Section is guilty of malfeasance in office. They are subject to suspension and investigation of conduct. Upon conv iction, the person is COL100920124 GCA PUBLIC OFFICERS & EMPLOYEES CH.

sions of this Section is guilty of malfeasance in office. They are subject to suspension and investigation of conduct. Upon conv iction, the person is COL100920124 GCA PUBLIC OFFICERS & EMPLOYEES CH. 14 ACCOUNTABILITY OF DISBURSING AND CERTIFYING OFFICERS 7guilty of a misdemeanor and must be fined in the di scretion of the court or imprisoned not more than three (3) years. No agency shall contract or agree to spend any mone y for goods or services or in settlement of a lawsuit or claim in excess of the amount appropriated by I Liheslatura (the Legislature) to that Agency for such goods, services, claim, or settlement, and BBMR sha ll not allot funds to that agency for the payment of any amount towards such g oods, services, claim, or settlement if the total amount of the goods, ser vices, claim, or settlement is more than the amount appropriated or amount allo tted by BBMR. Any contract or agreement made in violation hereof shal l be void. Any agency head or certifying officer who knowingly contracts or agrees to spend any money in excess of said appropriations shall be gui lty of a misdemeanor. SOURCE: Amended by P.L. 31-233:XII:12(a) (Sept. 7, 2012). § 14111.

ing officer who knowingly contracts or agrees to spend any money in excess of said appropriations shall be gui lty of a misdemeanor. SOURCE: Amended by P.L. 31-233:XII:12(a) (Sept. 7, 2012). § 14111. Standard of Care for Accountable Officers. (a) Due Care. (1) An accountable officer must exercise the highes t degree of care in the performance of duty. (2) An accountable officer is not liable for acts o f God or the public enemy. (3) Neither lack of fault nor negligence affects an accountable officer's legal liability. It may provide a basis for granting relief from the obligation to repay the amount of the loss or e rroneous payment. (b) Proving Due Care. (1) The loss of funds entrusted to an accountable o fficer raises a rebuttable presumption of negligence. The accountab le officer bears the burden of affirmatively proving the use of the requ isite degree of care. The reasonable care standard does not vary with age or experience. (2) Regulations dictate the accountable officer's a ctions in most instances. Failure to follow the regulations will result in a finding of negligence and a denial of relief if the negligence caused the loss.

ations dictate the accountable officer's a ctions in most instances. Failure to follow the regulations will result in a finding of negligence and a denial of relief if the negligence caused the loss. (3) If there are no regulations governing the speci fic actions of the accountable officer, the Comptroller will apply a r easonable person standard. That is, did the accountable officer do what a reasonably prudent and careful person would have done to take care of the person's COL100920124 GCA PUBLIC OFFICERS & EMPLOYEES CH. 14 ACCOUNTABILITY OF DISBURSING AND CERTIFYING OFFICERS 8own funds or property of like description under lik e circumstances? Mere agency determination that an accountable offic er is faultless is insufficient. There must be sufficient evidence in cluded in the request for relief for the Comptroller to independently mak e the same determination as the agency. (c) Standard of Care Required of a Supervisor. The supervisor must maintain a system of controls to prevent losses and erroneous payments and take steps to ensure that controls are implemented. The supervisor must substantiate these facts.

visor. The supervisor must maintain a system of controls to prevent losses and erroneous payments and take steps to ensure that controls are implemented. The supervisor must substantiate these facts. The errors of a subordin ate are not the errors of the supervisor if controls are in place to prevent mist akes. However, entrusting funds to an inexperienced or incapable employee may make the supervisor equally liable for the loss. (d) A disbursing officer is entitled to rely on inf ormation from a certifying officer: (1) which the disbursing officer has no way of know ing is incorrect; (2) unless the disbursing officer has reasonable do ubts as to the correctness of the facts on or attached to the vouc her. (e) An accountable officer must make adequate effor ts to collect any erroneous payments. Within three (3) months, the d ebt must be sent to the collection department or the Comptroller may deny r elief. Authority to deny relief based on lack of adequate collection efforts is discretionary, not mandatory. (1) The Comptroller is required to look to the coll ection regulations. (2) Generally, a single letter to a debtor is not s ufficient to show an attempt at collection. § 14112.

ionary, not mandatory. (1) The Comptroller is required to look to the coll ection regulations. (2) Generally, a single letter to a debtor is not s ufficient to show an attempt at collection. § 14112. Protection and Relief from Liability. (a) Advance Decisions from the Comptroller. The con tracting and procurement officers may submit to the Comptroller for advance decision, any question which affects the award of public cont racts and which requires a determination prior to award. COL100920124 GCA PUBLIC OFFICERS & EMPLOYEES CH. 14 ACCOUNTABILITY OF DISBURSING AND CERTIFYING OFFICERS 9(b) A certifying or disbursing officer or the head of an agency may request an opinion concerning the propriety of a ce rtification or disbursement. (c) If doubts remain and the amount is in excess of One Hundred Dollars ($100.00), request a decision from the Comp troller. (d) If the amount is less than One Hundred Dollars ($100.00), request advice from government of Guam Accounting Office. If doubts remain, seek advice from the Comptroller. (e) The liability of accountable officers is statut ory. Agencies cannot shield officers from liability through devices such as Memoranda of Understanding.

s remain, seek advice from the Comptroller. (e) The liability of accountable officers is statut ory. Agencies cannot shield officers from liability through devices such as Memoranda of Understanding. § 14113. Obtaining Relief from Liability. Relief may be granted if under the following circum stances and conditions: (a) (1) an improper certification was based on offi cial records, and (2) the officer did not know or could not by reason able diligence and inquiry have discovered that the info rmation was incorrect; or (b) (1) the obligation was incurred in good faith, (the officer had no reason to doubt his authority to make the ce rtification); (2) payment was not prohibited by law; (3) the government of Guam received some benefit; a nd (4) the agency made diligent efforts to collect the debt. § 14114. Statutory Standard for Relief. (a) The request for relief must be sent by the agen cy head and must contain evidence sufficient for the Comptroller to independently determine that the standards for relief have been met. Relie f for disbursing officers is governed by the statute distinguishing between phys ical losses and erroneous payments.

ller to independently determine that the standards for relief have been met. Relie f for disbursing officers is governed by the statute distinguishing between phys ical losses and erroneous payments. The distinction is important because it d etermines which agency may grant relief. Departments may grant relief for physical losses, but only the Comptroller may grant relief for erroneous paym ents. COL100920124 GCA PUBLIC OFFICERS & EMPLOYEES CH. 14 ACCOUNTABILITY OF DISBURSING AND CERTIFYING OFFICERS 10 (b) The authority of agencies to treat deficiencies as physical losses is limited: it includes loss by theft, burglary or in shipment; loss by fire, accident or natural disaster; a shortage or deficie ncy with absolutely no evidence to explain the discrepancy; and loss resul ting from fraud or embezzlement by subordinate personnel. (c) Erroneous Payments Result from the Disbursement of Public Funds. Losses from cashing checks, whether from fraud or i nsufficient funds, are disbursements and are therefore treated as erroneou s payments. Relief for improper payments is granted by the Comptroller, if the payment was not the result of bad faith or lack of due care on the part of the

nts and are therefore treated as erroneou s payments. Relief for improper payments is granted by the Comptroller, if the payment was not the result of bad faith or lack of due care on the part of the accountable officer. Relief may be denied if collection action has not b een diligently pursued. The Comptroller may order the adjustment of the app ropriate fund. If relief is denied, an offset of up to fifteen percent (15%) from the accountable officer's salary is specifically authorized to reco ver the debt owed as a result of the loss. The offset is required to be initiated immediately. (d) Superior Court of Guam. (1) The Superior Court of Guam shall have jurisdict ion over the claims of disbursing officers for relief from respo nsibility for the loss of government funds, vouchers or other papers in the l ine of duty. (2) Whenever the court finds that a loss by a disbu rsing officer was without the fault or negligence of the officer, it shall render a judgment requiring the government of Guam Accounting Office to credit the officer's accounts for that amount in settlement of the accounts. § 14115. Bases for Relief. (a) Relief is a matter of equity and is fact specif ic.

government of Guam Accounting Office to credit the officer's accounts for that amount in settlement of the accounts. § 14115. Bases for Relief. (a) Relief is a matter of equity and is fact specif ic. (b) Because an accountable officer is strictly liab le, a loss or deficiency raises a refutable presumption of negligence. The a ccountable officer must affirmatively show that there was no negligence, ba d faith or fraud. (1) Negligence. (A) Gross negligence is not required for liability. Simple negligence on the part of the accountable officer i s sufficient to bar relief. (B) If there is negligence, it must be the proximat e cause of the loss. COL100920124 GCA PUBLIC OFFICERS & EMPLOYEES CH. 14 ACCOUNTABILITY OF DISBURSING AND CERTIFYING OFFICERS 11 (C) The Comptroller can allow relief when it is sho wn that more than one (1) person had access to the funds or that there is pervasive laxity in the security procedures of the office and that laxity is the proximate cause of the loss. (D) Relief may not always be granted in cases of pe rvasive laxity because an accountable officer has a duty to report security weaknesses to appropriate supervisory personnel, an d to make the best of

) Relief may not always be granted in cases of pe rvasive laxity because an accountable officer has a duty to report security weaknesses to appropriate supervisory personnel, an d to make the best of the security conditions available, however inadequate. The determination of whether to grant relief may turn o n whether that duty has been breached. (2) Bad Faith or Fraud. (A) The officer is liable only for the amount of th e overpayment. (B) The use of due care is the basis of relief. Re lief will not be granted on the basis of: (i) inadequate training or inexperience; however, entrusting funds to an inexperienced or incapable s ubordinate may make a supervisor equally liable for the loss; (ii) hardship of repayment by the accountable offic er; (iii) heavy workload; or (iv) an exemplary work history. (c) Statute of Limitations. (1) The accountable officer's account is considered settled after a three (3) year period. (2) The Comptroller is without authority to grant r elief after the three (3) year period. An agency must therefore re port financial irregularities to the Comptroller within two (2) ye ars of the time it receives a substantially complete account.

t r elief after the three (3) year period. An agency must therefore re port financial irregularities to the Comptroller within two (2) ye ars of the time it receives a substantially complete account. (3) The statute of limitations only applies to case s involving erroneous payments made by accountable officers; an d does not apply to losses from disbursements involving fraud or cri minal activity, (A) on the part of the accountable officer, by the terms of the statute, COL100920124 GCA PUBLIC OFFICERS & EMPLOYEES CH. 14 ACCOUNTABILITY OF DISBURSING AND CERTIFYING OFFICERS 12 (B) or on the part of a subordinate personnel, whic h are considered physical losses. (d) Physical Losses. The Comptroller considers the agency to have received an account at the time the agency's accoun ts are substantially complete, whether or not they are properly document ed or filed, or at the later of: (1) when an accountable officer certifies a periodi c statement of accountability, or (2) when an agency receives the information placing it on notice that a deficiency exists: (A) if the deficiency is the result of a duplicate payment or forgery, when the agency receives notice of the los s from the

cy receives the information placing it on notice that a deficiency exists: (A) if the deficiency is the result of a duplicate payment or forgery, when the agency receives notice of the los s from the Treasury, (B) if the deficiency is the result of fraud, embez zlement or criminal activity, when the loss is discovered and reported to the appropriate agency officials, (C) a delay in receiving documentation supporting t he statement of accountability will suspend the runnin g of the statute: (i) Only the Comptroller, not the agency, can suspe nd the running of the statute of limitations. An agen cy's attempt to hold the officer liable will not toll the statut e. (ii) Liability must be established within the three (3) year period. Collection of the deficiency from the officer need not start or finish within the three (3) year period. § 14116. Procedures. Automation has changed the approach of government p rotection against legal liability. Requests should be supported by a ll documents and facts relevant to the decision. If the requesting offici al fails to present any known facts pertinent to the decision and the payment lat er becomes challenged and deemed illegal, improper or

ts and facts relevant to the decision. If the requesting offici al fails to present any known facts pertinent to the decision and the payment lat er becomes challenged and deemed illegal, improper or incorrect, the official will not be granted relief or protection against liability. The Head of an age ncy may delegate an agency official to advise Disbursing or Certifying Officers in cases involving payments of Twenty-five Dollars ($25.00) or less. Written notification of a recommendation should be provided by the agency off icial and the COL100920124 GCA PUBLIC OFFICERS & EMPLOYEES CH. 14 ACCOUNTABILITY OF DISBURSING AND CERTIFYING OFFICERS 13 recommendation should be attached to the voucher as supporting documentation in the event legal questions arise in the future. § 14117. Violations. In addition to any penalty contained in any other p rovisions of Guam law, any such officer, member or employee who shall knowingly and intentionally violate any of the provisions of this Chapter may be fined, suspended or removed from office or employment in t he manner provided by law. § 14118. Inconsistent Laws Superseded.

gly and intentionally violate any of the provisions of this Chapter may be fined, suspended or removed from office or employment in t he manner provided by law. § 14118. Inconsistent Laws Superseded. All laws and parts of laws of Guam inconsistent wit h this Chapter are superseded. § 14119. Severability. If any provision of this Law or its application to any person or circumstance is found to be invalid or contrary to law, such invalidity shall not affect other provisions or applications of this Law which can be given effect without the invalid provisions or applicatio n, and to this end the provisions of this Law are severable. ---------- COL100920124 GCA PUBLIC OFFICERS & EMPLOYEES CH. 14 ACCOUNTABILITY OF DISBURSING AND CERTIFYING OFFICERS 14 ARTICLE 2 BONDS OF PUBLIC OFFICERS § 14201. Bonding of Officers and Employees. § 14202. Amount of Bond Determined. § 14203. Filing and Approval of Bonds: Register of Bonds. § 14204. Payment of Premiums. § 14201. Bonding of Officers and Employees. Effective February 1, 1984, all officers and employ ees of the government of Guam who serve as certifying and/or disbursing o fficers or who handle public funds in any manner whatsoever shall be

ees. Effective February 1, 1984, all officers and employ ees of the government of Guam who serve as certifying and/or disbursing o fficers or who handle public funds in any manner whatsoever shall be prop erly bonded against any loss of money or other property which the said gove rnment of Guam shall sustain through any negligent, fraudulent or dishon est act or acts committed by any of such employees, acting alone or in collusion with others. SOURCE: GC § 6260, as added by P.L. 12-34, amended by P.L. 15-125 and further amended by P.L. 17-26. § 14202. Amount of Bond Determined. The amount of bond for each officer and employee of the government of Guam covered by this Subchapter, shall be determine d by the Director of Administration with the approval of the Governor. SOURCE: GC § 6261, as added by P.L. 12-34. § 14203. Filing and Approval of Bonds: Register of Bonds. (a) Every bond required by virtue of this Article, shall be filed in the office of the Director of Administration who shall approve such bonds as to form and execution and as to the sufficiency of the sureties thereon. (b) A proper register of such bonds shall be kept i n the office of the Director of Administration,

hall approve such bonds as to form and execution and as to the sufficiency of the sureties thereon. (b) A proper register of such bonds shall be kept i n the office of the Director of Administration, and a copy of the regis ter furnished to the Territorial Auditor by the Director of Administrati on. SOURCE: GC § 6262, as added by P.L. 12-34. NOTE: Office of the Territorial Auditor was abolished by P.L. 17-7. § 14204. Payment of Premiums. Funds shall be appropriated in the annual budgets o f the government of Guam to pay the cost of premiums covering bonds req uired by virtue of this Article. SOURCE: GC § 6263, as added by P.L. 12-34. COL100920124 GCA PUBLIC OFFICERS & EMPLOYEES CH. 14 ACCOUNTABILITY OF DISBURSING AND CERTIFYING OFFICERS 15 ----------