B-202057, JULY 8, 1981, 60 COMP.GEN. 580

B-202057, JULY 8, 1981, 60 COMP.GEN. 580

FUNDS - IMPREST - AVAILABILITY - PLANTS, ART OBJECTS, ETC. PURCHASES REGULATION RESTRICTING PURCHASE OF PERSONAL CONVENIENCE ITEMS DOES NOT PROHIBIT PURCHASE OF DECORATIVE PLANTS, ETC., FOR GENERAL OFFICE USE, WHEN A NEED FOR SUCH ITEMS IS DETERMINED BY AGENCY OFFICIAL AND DECORATIONS ARE PERMANENT ADDITIONS TO OFFICE DECOR AND RESULT IN IMPROVED PRODUCTIVITY AND MORALE. DETERMINATION OF NECESSITY AND APPROPRIATENESS IS FOR AGENCY OFFICIAL AND FACT THAT OFFICES IN QUESTION OCCUPY LEASED SPACE IN PRIVATELY OWNED BUILDING IS IRRELEVANT TO DETERMINATION WHETHER DECORATING EXPENSES WERE PROPER. COMPATIBILITY WITH AGENCY MISSION IS STANDARD TO BE USED.

MATTER OF: PURCHASE OF DECORATIVE ITEMS WITH IMPREST FUNDS, JULY 8, 1981:

THIS IS AN ADVANCE DECISION TO JOSEPHINE MONTOYA, AUTHORIZED CERTIFYING OFFICER OF THE BUREAU OF INDIAN AFFAIRS (BIA), CONCERNING THE PROPRIETY OF CERTIFYING A RECONSTRUCTED REPLENISHMENT VOUCHER IN FAVOR OF VERNON TSOODLE. MR. TSOODLE IS THE CASHIER AT THE ANDARKO AREA OFFICE OF THE BIA, AND IN SEPTEMBER 1977, HE MADE $194.51 IN IMPREST CASH DISBURSEMENTS FOR PLANTS, VASES AND HANDICRAFT ITEMS WHICH WERE USED TO DECORATE THE ANDARKO AREA OFFICE. RELYING ON 41 C.F.R. 101-26.103-2(1980), QUOTED IN FULL BELOW, THE CERTIFYING OFFICER HAS DENIED CERTIFICATION. WE DISAGREE WITH THE MORE RESTRICTIVE INTERPRETATION OF THE REGULATIONS, AND THE VOUCHER TO REIMBURSE THE IMPREST FUND MAY BE CERTIFIED FOR PAYMENT.

THE REGULATION GOVERNING PURCHASES OF ART OBJECTS, PLANTS, ETC., FOR GOVERNMENT OFFICES IS FOUND AT 41 C.F.R. 101-26.103-2. IT READS AS FOLLOWS:

GOVERNMENT FUNDS MAY BE EXPENDED FOR PICTURES, OBJECTS OF ART, PLANTS, OR FLOWERS (BOTH ARTIFICIAL AND REAL), OR ANY OTHER SIMILAR TYPE ITEMS WHEN SUCH ITEMS ARE INCLUDED IN A PLAN FOR THE DECORATION OF FEDERAL BUILDINGS APPROVED BY THE AGENCY RESPONSIBLE FOR THE DESIGN AND CONSTRUCTION OF FEDERAL BUILDINGS APPROVED BY THE AGENCY RESPONSIBLE FOR THE DESIGN AND CONSTRUCTION. DETERMINATIONS AS TO THE NEED FOR PURCHASING SUCH ITEMS FOR USE IN SPACE ASSIGNED TO ANY AGENCY ARE JUDGMENTS RESERVED TO THE AGENCY. DETERMINATION WITH RESPECT TO PUBLIC SPACE SUCH AS CORRIDORS AND LOBBIES ARE RESERVED TO THE AGENCY RESPONSIBLE FOR OERATION OF THE BUILDING. EXCEPT AS OTHERWISE AUTHORIZED BY LAW, GOVERNMENT FUNDS SHALL NOT BE EXPENDED FOR PICTURES, OBJECTS OF ART, PLANTS, FLOWERS (BOTH ARTIFICIAL AND REAL), OR ANY OTHER SIMILAR TYPE ITEMS INTENDED SOLELY FOR THE PERSONAL CONVENIENCE OR TO SATISFY THE PERSONAL DESIRE OF AN OFFICIAL OR EMPLOYEE. THESE ITEMS FALL INTO THE CATEGORY OF "LUXURY ITEMS" SINCE THEY DO NOT CONTRIBUTE TO THE FULFILLMENTS OF MISSIONS NORMALLY ASSIGNED TO FEDERAL AGENCIES.

ACCORDING TO ITS SUBMISSION, BIA IS SATISFIED THAT THERE WAS A NEED FOR THE ITEMS, ESPECIALLY IN WINDOWLESS OFFICES AS DESCRIBED BY THE AREA DIRECTOR, AND THAT THE PURCHASES WERE NOT FOR THE PERSONAL CONVENIENCE OF INDIVIDUAL EMPLOYEES. HOWEVER, THE LETTER IMPLIES THAT THE OTHER REQUIREMENTS OF THE REGULATION WERE NOT MET. THE ANDARKO AREA OFFICE OCCUPIES LEASED SPACE IN A PRIVATELY OWNED BUILDING AND, THEREFORE, NO PLAN COULD HAVE EXISTED FOR THE DECORATION OF THE ENTIRE BUILDING, BUT ONLY FOR SPACE OCCUPIED BY BIA. SECONDLY, THE AGENCY RESPONSIBLE FOR DESIGN AND CONSTRUCTION OF THE BUILDING COULD NOT HAVE APPROVED THE PURCHASES, SINCE THE BUILDING WAS PRIVATELY OWNED.

WE HAVE NEVER BEFORE CONSTRUED THIS REGULATION, BUT IT SEEMS OBVIOUS TO US THAT THE FIRST SENTENCE IN THE QUOTED SECTION APPLIES TO NEW FEDERAL CONSTRUCTION AND TO MAJOR RENOVATIONS OF EXISTING FEDERAL BUILDINGS. THE SECOND SENTENCE, HOWEVER, LEAVES DETERMINATIONS AS TO THE NEED TO PURCHASE SUCH ITEMS IN "SPACE ASSIGNED TO ANY AGENCY" TO THE DISCRETION OF THE OCCUPYING AGENCY. IT SEEMS CLEAR THAT THIS SENTENCE CONTRASTS EXISTING SPACE, INCLUDING LEASED SPACE, WITH NEWLY CONSTRUCTED OR RENOVATED SPACE AND DOES NOT REQUIRE REFERENCE TO AN AGENCY RESPONSIBLE FOR DESIGN AND CONSTRUCTION.

WE HAVE TRADITIONALLY ALLOWED SUCH IMPROVEMENTS WHERE THEY WOULD CONTRIBUTE TO A PLEASANT WORKING ATMOSPHERE, THUS IMPROVING MORALE AND EFFICIENCY. 51 COMP.GEN. 797(1972); B-178225, APRIL 11, 1973; B-148562, JUNE 12, 1962. THE REGULATION IS IN ACCORD WITH OUR VIEW, PROVIDING THAT PERSONAL CONVENIENCE ITEMS ARE CATEGORICALLY INCONSISTENT WITH AGENCY MISSIONS, BUT THAT OTHER DECORATIONS MAY, IN APPROPRIATE CIRCUMSTANCES, BE COMPATIBLE WITH WORK RELATED OBJECTIVES. SUCH EXPENDITURES HAVE BEEN DISALLOWED BY THIS OFFICE ONLY WHERE THEY WERE PERSONAL IN NATURE (B-187246, JUNE 15, 1977) OR WHERE THE DECORATIONS WERE SEASONAL AND NOT FOR PERMANENT USE (52 COMP.GEN. 504(1972)).

THUS, EXPENDITURES FOR DECORATIVE ITEMS ARE AUTHORIZED WHEN THEIR PURCHASE IS CONSISTENT WITH WORK RELATED OBJECTIVES AND THE AGENCY MISSION, AND THE DECISION AS TO NECESSITY RESTS WITHIN THE AGENCY'S DISCRETION PURSUANT TO THE REGULATION'S TERMS.

SINCE THIS KIND OF EXPENDITURE COULD BE SUBJECT TO ABUSE, WE SUGGEST THAT SOME UNIFORM GUIDANCE ON COSTS AND TYPES OF APPROVED DECORATIONS BE OFFERED TO BIA CASHIERS WHO MAY BE ASKED TO MAKE DISBURSEMENTS FOR OFFICE DECORATIONS IN THE FUTURE. NEVERTHELESS, WE HAVE NO BASIS TO OBJECT TO THESE DISBURSEMENTS ON THE BASIS OF THE INFORMATION PROVIDED, AND THE VOUCHER, IF OTHERWISE CORRECT, MAY BE CERTIFIED FOR PAYMENT TO REIMBURSE THE IMPREST FUND.