B-160277, NOVEMBER 18, 1966, 46 COMP. GEN. 424

B-160277, NOVEMBER 18, 1966, 46 COMP. GEN. 424

VEHICLES - RENTAL - PROOF OF PAYMENT BY EMPLOYEE THE INVOICES SUBMITTED BY AN EMPLOYEE FOR THE RENTAL OF TWO AUTOMOBILES ON OFFICIAL BUSINESS MAY NOT BE ACCEPTED AS "RECEIPTS" UNDER SECTION 11.1 OF THE STANDARDIZED GOVERNMENT TRAVEL REGULATIONS ABSENT AN INDICATION OF PAYMENT, THE INVOICES INDICATING CREDIT WAS EXTENDED TO THE EMPLOYEE ON THE BASIS HE WAS TRAVELING ON OFFICIAL BUSINESS AND WAS AUTHORIZED TO LEASE A VEHICLE, THE GOVERNMENT COULD BE HELD LIABLE IN THE EVENT OF NONPAYMENT BY THE EMPLOYEE. THEREFORE, AS THE INVOICES ARE NOT "RECEIPTS", REIMBURSEMENT MAY NOT BE MADE UNTIL THE EMPLOYEE FURNISHES SATISFACTORY EVIDENCE OF PAYMENT OF THE CHARGES.

TO MATILDA UDOFF, UNITED STATES DEPARTMENT OF COMMERCE, NOVEMBER 18, 1966:

YOUR LETTER OF OCTOBER 19, 1966, REFERENCE 121.16, REQUESTS OUR DECISION WHETHER YOU MAY CERTIFY FOR PAYMENT THE RECLAIM TRAVEL VOUCHER TRANSMITTED THEREWITH IN FAVOR OF JOHN W. WRIGHT FOR $233.69, REPRESENTING THE COST OF HIRING TWO AUTOMOBILES WHILE TRAVELING ON OFFICIAL BUSINESS.

MR. W. WRIGHT HAS FURNISHED INVOICES OF THE HERTZ AND AVIS RENT-A CAR COMPANIES COVERING RENTAL OF THE TWO AUTOMOBILES. BOTH INVOICES SHOW THE AMOUNTS AND BASIS OF THE CHARGES INCURRED AND ARE STAMPED "CHARGE;, MR. W. WRIGHT STATES THAT HE DID NOT UTILIZE A PERSONAL CREDIT CARD IN EITHER TRANSACTION, BUT EXPRESSES THE VIEW THAT OUR DECISION 39 COMP. GEN. 164 IS APPLICABLE TO THE FACTS OF HIS CASE. HOWEVER, YOU EXPRESS DOUBT IN THE MATTER AND QUESTION WHETHER THE TWO INVOICES MAY BE ACCEPTED BY YOU AS "RECEIPTS" UNDER SECTION 11.1 OF THE STANDARDIZED GOVERNMENT TRAVEL REGULATIONS WHICH PROVIDES, IN PERTINENT PART, AS FOLLOWS:

RECEIPTS REQUIRED.--- RECEIPTS FOR ALLOWABLE CASH EXPENDITURES IN AMOUNTS IN EXCESS OF $15, PLUS ANY APPLICABLE TAX, WHEN PRACTICABLE TO OBTAIN THEM, WILL BE REQUIRED FOR:

E. HIRE OF SPECIAL CONVEYANCE SUCH AS LIVERY, BOAT, AUTOMOBILE (NOT TAXICABS LOCALLY), AIRCRAFT, ETC. (SEE SEC. 3.4.) LIVERY AND OTHER SPECIAL TRANSPORTATION RECEIPTS MUST DESCRIBE THE SERVICE HIRED, THE SERVICE RENDERED, AND THE RATE OF COMPENSATION BY THE DAY, HOUR, OR OTHER UNIT, AS MAY HAVE BEEN AGREED. IF THE SUBSISTENCE OF DRIVER OR TEAM IS INCLUDED IN THE COST, THAT FACT MUST BE STATED. A RECEIPTED BILL OR OTHER FORM OF RECEIPT WILL BE ACCEPTED, PROVIDED, IT IS MADE OUT TO SHOW THE PERIOD AND SERVICE RENDERED, OR ARTICLES PURCHASED, AND THE UNIT PRICE.

WE BELIEVE THAT THERE IS A SIGNIFICANT DISTINCTION BETWEEN THE FACTS OF THE PRESENT CASE AND THOSE INVOLVED IN 39 COMP. GEN. 164. IN THE CITED DECISION, THE RENTAL OF THE AUTOMOBILE WAS CHARGED TO THE EMPLOYEE'S PERSONAL DINERS CLUB MEMBERSHIP ACCOUNT. THE DINERS CLUB, THEREFORE, WAS THE PARTY TO WHOM THE HERTZ COMPANY WOULD LOOK FOR PAYMENT OF THE OBLIGATION, AND THE EMPLOYEE, IN TURN, WAS UNDER CONTRACTUAL OBLIGATION TO THE DINERS CLUB. WE HELD THAT UNDER THOSE FACTS THE HERTZ INVOICE COULD BE ACCEPTED AS A RECEIPT UNDER SECTION 11.1 OF THE REGULATIONS QUOTED ABOVE.

WE POINTED OUT IN THE DECISION THAT:

IT MUST APPEAR ALSO, FROM THE NATURE OF THE TRANSACTION, AS IT DOES HERE, THAT THE GOVERNMENT COULD NOT BE HELD LIABLE TO THE VENDOR OR THE DINERS CLUB IN THE EVENT OF NONPAYMENT OF THE OBLIGATION BY THE TRAVELER.

IN THE PRESENT CASE, THE FACTS INDICATE THAT BOTH CAR RENTAL AGENCIES WERE WILLING TO EXTEND CREDIT TO THE EMPLOYEE ON THE BASIS THAT HE WAS TRAVELING ON OFFICIAL GOVERNMENT BUSINESS AND WAS SPECIFICALLY AUTHORIZED TO LEASE A VEHICLE IN THE COURSE OF SUCH BUSINESS. IN THAT REGARD, WE NOTE THAT BOTH INVOICES CONTAIN REFERENCES TO THE UNITED STATES DEPARTMENT OF COMMERCE.

UNDER THE CIRCUMSTANCES WE CANNOT SAY WITH SUFFICIENT CERTAINTY THAT THE GOVERNMENT COULD NOT BE HELD LIABLE ON EITHER INVOICE IN THE EVENT OF NONPAYMENT BY THE EMPLOYEE. THEREFORE, IN ACCORDANCE WITH OUR DECISION 39 COMP. GEN. 164, THE TWO INVOICES MAY NOT BE ACCEPTED BY YOU AS ,RECEIPTS" AND REIMBURSEMENT THEREFOR MAY NOT BE MADE UNTIL THE EMPLOYEE HAS FURNISHED SATISFACTORY EVIDENCE OF PAYMENT OF THE CHARGES.

THE VOUCHER, WHICH IS RETURNED HEREWITH, MAY NOT BE CERTIFIED FOR PAYMENT.