B-111642, SEPTEMBER 12, 1952, 32 COMP. GEN. 134

B-111642, SEPTEMBER 12, 1952, 32 COMP. GEN. 134

AWARDS - MERITORIOUS SERVICE - TRAVEL AND MISCELLANEOUS EXPENSES IN CONNECTION WITH AWARD CEREMONIES TRAVEL AND MISCELLANEOUS EXPENSES INCURRED BY OFFICERS AND EMPLOYEES FOR THE PURPOSE OF PARTICIPATING IN CEREMONIES HELD AT A DEPARTMENT CONVOCATION IN HONORARY RECOGNITION OF EXCEPTIONAL OR MERITORIOUS SERVICE UNDER THE INCENTIVE AWARDS PROGRAM AUTHORIZED BY SECTION 14 OF THE ACT OF AUGUST 2, 1946, AS AMENDED, MAY BE CONSIDERED A DIRECT AND ESSENTIAL EXPENSE OF THE AWARD, AND WITHIN THE SCOPE AND MEANING OF THE PHRASE "TO INCUR NECESSARY EXPENSES" AS USED IN THE STATUTE. THE CASH AWARD LIMITATION OF $25,000 FOR INCENTIVE AWARDS UNDER SECTION 14 OF THE ACT OF AUGUST 2, 1946, AS AMENDED, RELATES ONLY TO CASH AWARDS FOR SUGGESTIONS WHICH RESULT IN IMPROVEMENTS OR ECONOMY IN GOVERNMENT OPERATIONS, AND THEREFORE, EXPENDITURES INCIDENT TO THE HONORARY RECOGNITION OF EXCEPTIONAL OR MERITORIOUS SERVICE ARE NOT PROPERLY CHARGEABLE AGAINST SAID CASH AWARD LIMITATION.

COMPTROLLER GENERAL WARREN TO THE SECRETARY OF THE INTERIOR, SEPTEMBER 12, 1952:

REFERENCE IS MADE TO LETTER OF AUGUST 27, 1952, FROM THE ADMINISTRATIVE ASSISTANT SECRETARY, REQUESTING AN OPINION (1) AS TO WHETHER SECTION 14 OF THE ACT OF AUGUST 2, 1946, 60 STAT. 809, AS AMENDED, 5 U.S.C.A. 116A, AUTHORIZES THE INCURRING OF TRAVEL AND MISCELLANEOUS EXPENSES BY FIELD EMPLOYEES OF THE DEPARTMENT OF THE INTERIOR INCIDENT TO THE PRESENTATION TO THEM OF THE DEPARTMENT'S DISTINGUISHED SERVICE AWARD AT DEPARTMENT CONVOCATIONS HELD IN WASHINGTON, D.C., AND (2) IF SUCH EXPENDITURES ARE AUTHORIZED, WHETHER THEY ARE CHARGEABLE AGAINST THE DEPARTMENTAL CASH AWARD LIMITATION OF $25,000.

IT IS EXPLAINED IN THE LETTER THAT, UNDER THE DEPARTMENT OF THE INTERIOR INCENTIVE AWARDS PROGRAM, CONSIDERABLE IMPORTANCE ATTACHES TO THE DISTINGUISHED SERVICE AWARD, THE HIGHEST MADE TO AN EMPLOYEE FOR AN OUTSTANDING OR EXCEPTIONAL CONTRIBUTION TO THE PUBLIC SERVICE WITHIN AND BEYOND THE CALL OF DUTY. ALSO, IT STATED THAT THE HONOR CONFERRED IS SO GREAT YOU FEEL THAT CEREMONIES FOR PRESENTING SUCH AWARDS SHOULD BE MADE AT THE SECRETARIAL LEVEL AT DEPARTMENT CONVOCATIONS WHICH ARE HELD IN WASHINGTON, THE NEXT SUCH CONVOCATION BEING SCHEDULED FOR SEPTEMBER 23, 1952.

SECTION 14 OF THE ACT OF AUGUST 2, 1946, 60 STAT. 809, SUPRA, PROVIDES, IN PERTINENT PART, AS FOLLOWS:

THE HEAD OF EACH DEPARTMENT IS AUTHORIZED, UNDER SUCH RULES AND REGULATIONS AS THE PRESIDENT MAY PRESCRIBE, TO PAY CASH AWARDS TO CIVILIAN OFFICERS AND EMPLOYEES (OR TO THEIR ESTATES) WHO MAKE MERITORIOUS SUGGESTIONS WHICH WILL RESULT IN IMPROVEMENT OR ECONOMY IN THE OPERATIONS OF HIS DEPARTMENT AND WHICH HAVE BEEN ADOPTED FOR USE AND TO INCUR NECESSARY EXPENSES FOR THE HONORARY RECOGNITION OF EXCEPTIONAL OR MERITORIOUS SERVICE: PROVIDED, THAT NO AWARD SHALL BE PAID TO ANY OFFICER OR EMPLOYEE FOR ANY SUGGESTION WHICH REPRESENTS A PART OF THE NORMAL REQUIREMENTS OF THE DUTIES OF HIS POSITION. WITH THE EXCEPTION OF THE WAR AND NAVY DEPARTMENTS, THE AMOUNT OF ANY ONE AWARD SHALL NOT EXCEED $1,000 AND THE TOTAL OF CASH AWARDS PAID DURING ANY FISCAL YEAR IN ANY DEPARTMENT SHALL NOT EXCEED $25,000. PAYMENTS MAY BE MADE FROM THE APPROPRIATION FOR THE ACTIVITY PRIMARILY BENEFITING OR MAY BE DISTRIBUTED AMONG APPROPRIATIONS FOR ACTIVITIES BENEFITING AS THE HEAD OF THE DEPARTMENT DETERMINES. EXECUTIVE ORDER NO. 9817 OF DECEMBER 31, 1946, ISSUED PURSUANT TO THE ABOVE-QUOTED ACT, PROVIDES, IN SECTIONS 5 AND 8, THAT:

SEC. 5. A DEPARTMENT MAY PROVIDE FOR THE PURCHASE AND AWARD OF APPROPRIATE CERTIFICATES, MEDALS, OR OTHER EMBLEMS, IN HONORARY RECOGNITION OF SERVICE WHICH IS DETERMINED BY THE HEAD OF THE DEPARTMENT TO BE EXCEPTIONAL OR MERITORIOUS. * * * * * * * *

SEC. 8. THE TOTAL OF CASH AWARDS PAID DURING ANY FISCAL YEAR IN ANY DEPARTMENT (EXCEPT THE WAR AND NAVY DEPARTMENTS) SHALL NOT EXCEED $25,000. CASH AWARDS AND EXPENSES FOR HONORARY RECOGNITION FOR EXCEPTIONAL OR MERITORIOUS SERVICE MAY BE PAID FROM THE APPROPRIATION FOR THE ACTIVITY PRIMARILY BENEFITING OR MAY BE DISTRIBUTED AMONG APPROPRIATIONS FOR ACTIVITIES BENEFITING AS THE HEAD OF THE DEPARTMENT DETERMINES.

NOTHING HAS BEEN FOUND IN THE HEARINGS, REPORTS OR DEBATES ON THE BILL WHICH BECAME THE ACT OF AUGUST 2, 1946, RELATING TO THE INTENDED SCOPE OF THE PHRASE "TO INCUR NECESSARY EXPENSES," BUT SUCH LANGUAGE, WHEN READ TOGETHER WITH THE REGULATIONS OF THE PRESIDENT, SEEMS TO EVIDENCE A STATUTORY RECOGNITION OF SUITABLE AWARDS AT APPROPRIATE CEREMONIES. ALSO, IT APPEARS THAT TRAVEL AND MISCELLANEOUS EXPENSES INCURRED BY OFFICERS AND EMPLOYEES OF YOUR DEPARTMENT FOR THE PURPOSE OF PARTICIPATING IN CEREMONIES IN HONORARY RECOGNITION OF EXCEPTIONAL OR MERITORIOUS SERVICE REASONABLY MAY BE CONSIDERED A DIRECT AND ESSENTIAL EXPENSE OF AWARD, AND WITHIN THE SCOPE AND MEANING OF THE PHRASE "TO INCUR NECESSARY EXPENSES" AS USED IN THE STATUTE. ACCORDINGLY, NO OBJECTION WILL BE RAISED BY THIS OFFICE TO PAYMENT OF OTHERWISE PROPER AND REASONABLE TRAVELING AND MISCELLANEOUS EXPENSES INCIDENT TO THE AWARD OF THE DEPARTMENT OF THE INTERIOR DISTINGUISHED SERVICE AWARD, TO PROPERLY DESIGNATED PERSONNEL AT DEPARTMENT CONVOCATIONS HELD IN WASHINGTON, D.C.

WITH RESPECT TO THE SECOND QUESTION, THE CASE WARD LIMITATION OF $25,000 PROVIDED FOR UNDER SECTION 14 OF THE ACT OF AUGUST 2, 1946, SUPRA, RELATES ONLY TO CASH AWARDS FOR SUGGESTIONS RESULTING IN IMPROVEMENTS OR ECONOMY IN GOVERNMENT OPERATIONS. CONSEQUENTLY EXPENDITURES INCIDENT TO THE HONORARY RECOGNITION OF EXCEPTIONAL OR MERITORIOUS SERVICE ARE NOT PROPERLY CHARGEABLE TO THE DEPARTMENTAL CASH AWARD LIMITATION ESTABLISHED THEREUNDER.