[Awards for Nonuse of Sick Leave]

The Department of Defense (DOD) requested a decision regarding whether it should: (1) pay for telephones originally intended for award to employees for nonuse of sick leave; and (2) implement a sick leave reduction program. GAO held that: (1) the purchase of the telephones for use as career service or honorary awards was a proper expenditure of appropriated funds; and (2) DOD should not implement a sick-leave reduction incentive program, since the Office of Personnel Management specifically recommended against such programs. Accordingly, DOD should pay for the telephones.