B-161180, NOV. 13, 1969

B-161180, NOV. 13, 1969

STATION ALLOWANCES--EXCESS LIVING COSTS OUTSIDE UNITED STATES, ETC.- COST BASIS SINCE REASONS ADVANCED BY ACTING ASSISTANT SECRETARY OF DEFENSE (MANPOWER AND RESERVE AFFAIRS) FOR FURTHER DELAY IN IMPLEMENTATION OF DECISION IN 47 COMP. GEN. 333 AFFORD NO LEGAL BASIS FOR CONTINUANCE OF ERRONEOUS PAYMENTS, COMPTROLLER GENERAL DOES NOT AGREE TO ANY INCREASES IN OVERSEAS HOUSING AND COST-OF-LIVING ALLOWANCES COMPUTED UNDER PRESENT METHOD, AND ABSENT CONGRESSIONAL ACTION EVIDENCING INTENT TO LEGALIZE PRESENT METHOD OF COMPUTATION DURING CURRENT SESSION, STEPS SHOULD BE TAKEN -- NO LATER THAN DEC. 31, 1969 -- TO IMPLEMENT AFOREMENTIONED DECISION ON STATION-TO- STATION BASIS AS STATIONS CURRENT REPORTS ARE REVIEWED BY PER DIEM, TRAVEL AND TRANSPORTATION ALLOWANCE COMMITTEE UNDER APPENDIX D OF JOINT TRAVEL REGULATIONS, OR ALLOWANCE PAYMENTS WILL BE SUBJECT TO QUESTION IN DISBURSING OFFICERS' ACCOUNTS.

TO MR. SECRETARY:

REFERENCE IS MADE TO LETTER OF OCTOBER 20, 1969, FROM THE ACTING ASSISTANT SECRETARY OF DEFENSE (MANPOWER AND RESERVE AFFAIRS), RELATIVE TO PREVIOUS CORRESPONDENCE CONCERNING THE METHOD CURRENTLY BEING USED TO DETERMINE OVERSEAS HOUSING AND COST-OF-LIVING ALLOWANCES FOR MEMBERS OF THE UNIFORMED SERVICES, INCLUDING OUR DECISION B-161180 OF DECEMBER 11, 1967, 47 COMP. GEN. 333, IN WHICH WE ADVISED THE SECRETARY OF THE ARMY FOR THE REASONS STATED THAT THE USE OF SUCH METHOD IS NOT AUTHORIZED BY LAW. THE ACTING ASSISTANT SECRETARY PROPOSES THAT THE USE OF THE PRESENT METHOD BE CONTINUED INDEFINITELY.

BY LETTER B-161180 OF SEPTEMBER 8, 1969, WE INFORMED YOU OF THE HOLDING IN THE DECISION OF DECEMBER 11, 1967, AND OF THE CONTINUING DELAY BY THE PER DIEM, TRAVEL AND TRANSPORTATION ALLOWANCE COMMITTEE IN IMPLEMENTING THAT DECISION. ALSO, WE INFORMED YOU THAT BY DECISION B 161180 OF SEPTEMBER 8, 1969, WE HAD ADVISED THE SECRETARY OF THE AIR FORCE THAT WE DO NOT BELIEVE THERE IS SUFFICIENT JUSTIFICATION FOR APPROVAL BY US OF ANY FURTHER DELAY IN IMPLEMENTING THE DECISION OF DECEMBER 11, 1967.

IN THE LETTER OF OCTOBER 20, 1969, THE ACTING ASSISTANT SECRETARY HAS REQUESTED THAT REVISION OF THE METHOD OF COMPUTING THE ALLOWANCES TO CONFORM WITH THE LAW BE FURTHER DEFERRED DUE TO AN ANTICIPATED ADVERSE EFFECT ON MORALE OF THE MEMBERS CONCERNED AND THE FACT THAT A BILL, H.R. 14322, HAS BEEN INTRODUCED BY THE CHAIRMAN, HOUSE ARMED SERVICES COMMITTEE TO AMEND 37 U.S.C. 405 TO AUTHORIZE COMPUTATION OF THE ALLOWANCES BY THE PRESENT METHOD. ALSO, HE STATED THAT PENDING A RESOLUTION OF THE MATTER AND WITH OUR CONCURRENCE HE WOULD INSTRUCT THE CHAIRMAN OF THE PER DIEM, TRAVEL AND TRANSPORTATION ALLOWANCE COMMITTEE TO RESUME THE NORMAL ADJUSTMENT OF ALLOWANCES WHICH HAD BEEN SUSPENDED FOLLOWING RECEIPT OF THE DECISION OF SEPTEMBER 8, 1969.

AT A CONFERENCE HELD IN THIS OFFICE ON OCTOBER 31, 1969, THE MATTER WAS DISCUSSED WITH BRIGADIER GENERAL LEO E. BENADE, DEPUTY ASSISTANT SECRETARY OF DEFENSE, AND MEMBERS OF HIS STAFF. APPARENTLY, IT IS THE VIEW OF THE DEPARTMENT OF DEFENSE THAT SINCE COMPUTATION OF THE ALLOWANCES IN ACCORDANCE WITH THE LAW WILL GENERALLY RESULT IN SOME REDUCTIONS IN THE AMOUNTS PAYABLE WHICH IT ANTICIPATES WILL ADVERSELY AFFECT MORALE, THE MILITARY SERVICES SHOULD BE PERMITTED TO CONTINUE, INDEFINITELY, TO MAKE THE ILLEGAL PAYMENTS, DETERMINED BY THE PRESENT METHOD, AND TO INCREASE THE ILLEGAL RATES AND PAYMENTS EVEN FURTHER ON THE BASIS OF THE PRESENT METHOD. WITH RESPECT TO THIS VIEW IT MAY BE NOTED THAT REGARDLESS OF ANY ADVERSE MORALE IMPACT, THE PER DIEM, TRAVEL AND TRANSPORTATION ALLOWANCE COMMITTEE HAS REGULARLY REDUCED ALLOWANCES WHEN, DUE TO CHANGES IN LIVING COSTS, COMPUTATION BY THE PRESENT METHOD RESULTED IN SUCH A REDUCTION. PAYMENT OF THE ALLOWANCES WAS COMPLETELY DISCONTINUED IN VIETNAM ON THAT BASIS.

SINCE, IN OUR OPINION, THE REASONS ADVANCED FOR FURTHER DELAYING THE IMPLEMENTATION OF THE DECISION OF DECEMBER 11, 1967, AFFORD NO LEGAL BASIS FOR ANY LONGER CONTINUING TO MAKE ERRONEOUS PAYMENTS, WE DO NOT AGREE THAT THERE SHOULD BE ANY INCREASES IN THE RATES OF ALLOWANCES DETERMINED BY THE PRESENT METHOD OR THAT THERE SHOULD BE ANY MANNER OF FURTHER DELAY IN THE ORDERLY IMPLEMENTATION OF THE DECISION OF DECEMBER 11, 1967. IN THAT CONNECTION WE WERE ADVISED BY LETTER OF MARCH 10, 1969, FROM THE CHAIRMAN, PER DIEM, TRAVEL AND TRANSPORTATION ALLOWANCE COMMITTEE THAT STUDIES HAD BEEN MADE WHICH SHOULD ENABLE THE COMMITTEE TO IMPLEMENT OUR DECISION ON JULY 1, 1969.

ACCORDINGLY, UNLESS CONGRESS IN THE MEANTIME HAS TAKEN SOME AFFIRMATIVE ACTION INDICATING A STRONG LIKELIHOOD THAT DURING THE CURRENT SESSION LEGISLATION WILL BE ENACTED TO LEGALIZE THE PRESENT METHOD OF COMPUTING THE ALLOWANCES, STEPS SHOULD BE TAKEN TO IMPLEMENT, NO LATER THAN DECEMBER 31, 1969, THE DECISION OF DECEMBER 11, 1967, ON THE BASIS INDICATED IN OUR DECISION OF SEPTEMBER 8, 1969, THAT IS, ON A STATION-TO-STATION BASIS AS THE STATIONS CURRENT REPORTS ARE REVIEWED BY THE PER DIEM, TRAVEL AND TRANSPORTATION ALLOWANCE COMMITTEE UNDER APPENDIX D OF THE JOINT TRAVEL REGULATIONS. ALLOWANCE PAYMENTS MADE AFTER DECEMBER 31, 1969, UNDER THE PRESENT METHOD FOR ANY STATION WHOSE NEXT PERIODICAL REPORT OF COSTS, ETC., BECOMES DUE HEREAFTER IN ACCORDANCE WITH THE ESTABLISHED SCHEDULE WILL BE SUBJECT TO QUESTION IN THE DISBURSING OFFICERS' ACCOUNTS.