B-85584, SEP. 15, 1965, 45 COMP. GEN. 138

B-85584, SEP. 15, 1965, 45 COMP. GEN. 138

POST OFFICE DEPARTMENT - EMPLOYEES - POSTMASTERS - FOURTH-CLASS POST OFFICE FACILITIES - FURNISHED WITHOUT CHARGE THE ALLOWANCE AUTHORIZED UNDER 39 U.S.C. 3544 (H) TO BE PAID TO A POSTMASTER AT A FOURTH-CLASS OFFICE WHEN HE FURNISHES QUARTERS, FIXTURES, AND EQUIPMENT, DESIGNED TO REIMBURSE HIM IN PART FOR THE COST OF FURNISHING SUCH ITEMS, MAY NOT BE PAID TO A POSTMASTER FURNISHED FREE QUARTERS, FIXTURES, AND EQUIPMENT BY ANOTHER FEDERAL AGENCY OR BY A STATE GOVERNMENT, AND ANY ALLOWANCE PAYMENTS MADE AFTER AUGUST 14, 1964, TO A FOURTH-CLASS POSTMASTER WHO DOES NOT FURNISH QUARTERS, FIXTURES AND EQUIPMENT AT HIS PERSONAL EXPENSE ARE INVALID AND THE PAYMENTS SHOULD BE RECOVERED.

TO THE POSTMASTER GENERAL, SEPTEMBER 15, 1965:

YOUR DEPUTY POSTMASTER GENERAL'S LETTER OF AUGUST 1, 1965, REQUESTS RECONSIDERATION OF THE CONCLUSION STATED IN OUR LETTER OF APRIL 27, 1965, B-85584, WHICH WAS TO THE EFFECT THAT UNDER 39 U.S.C. 3544 (H), AS AMENDED BY PUBLIC LAW 88-426, 78 STAT. 400, 408, A POSTMASTER AT A FOURTH CLASS OFFICE WOULD NOT BE ENTITLED TO AN ALLOWANCE FOR QUARTERS, FIXTURES AND EQUIPMENT UNLESS HE ACTUALLY IS REQUIRED TO FURNISH SUCH ITEMS, AND THAT WHEN QUARTERS, FIXTURES AND EQUIPMENT ARE FURNISHED FREE TO THE POSTMASTER BY ANOTHER FEDERAL AGENCY OR BY A STATE GOVERNMENT THE POSTMASTER IS NOT ENTITLED TO THE ALLOWANCE.

WE CONCUR IN YOUR DEPARTMENT'S VIEW THAT WHEN A POSTMASTER OF A FOURTH CLASS OFFICE FURNISHES QUARTERS, FIXTURES OR EQUIPMENT HE WOULD BE ENTITLED TO THE ALLOWANCE. HOWEVER, WHEN HE FURNISHES NONE OF THESE ITEMS THERE IS NO LAWFUL BASIS UPON WHICH THE ALLOWANCE MAY BE PAID. WHEN ANOTHER FEDERAL AGENCY OR A STATE GOVERNMENT FURNISHES QUARTERS, INCLUDING FIXTURES AND EQUIPMENT FOR A FOURTH CLASS POST OFFICE, SUCH QUARTERS MUST BE REGARDED AS HAVING BEEN FURNISHED ON BEHALF OF THE POST OFFICE DEPARTMENT. THE SITUATION IS TANTAMOUNT TO ONE IN WHICH THE POSTMASTER GENERAL FURNISHES THE QUARTERS DIRECTLY. WE, THEREFORE, MUST SUSTAIN THE POSITION PREVIOUSLY TAKEN THAT UNDER SUCH CIRCUMSTANCES THE POSTMASTER INVOLVED IS NO MORE ENTITLED TO THE ALLOWANCE THAN IF THE QUARTERS, FIXTURES AND EQUIPMENT HAD BEEN FURNISHED DIRECTLY BY THE POST OFFICE DEPARTMENT.

THE LEGISLATIVE HISTORY OF PUBLIC LAW 88-426, REFERRED TO IN YOUR DEPUTY POSTMASTER GENERAL'S LETTER, IS NOT CONSIDERED TO BE CONTROLLING. THEREPORTS, AS WE INTERPRET THEM, MERELY RECOGNIZE THE OPTION ALLOWED TO THE POST OFFICE DEPARTMENT TO FURNISH QUARTERS. IN THE ABSENCE OF ANY REFERENCE IN THE STATUTE OR ITS LEGISLATIVE HISTORY CONCERNING THE FURNISHING OF QUARTERS WITHOUT COST BY A FEDERAL OR STATE GOVERNMENT AGENCY WE BELIEVE THAT THE BEST EVIDENCE OF THE LEGISLATIVE INTENT CONCERNING THE PROVISIONS IN QUESTION IS REFLECTED IN THE LEGISLATIVE HISTORY OF THE ORIGINAL ENACTMENT UPON THE SUBJECT (PUBLIC LAW 945, 70TH CONG., 39 U.S.C. 60A). THE PURPOSE OF THAT ACT, AS DISCLOSED BY H.REPT. NO. 1020, 70TH CONG., DATED MARCH 22, 1928, WAS TO DEFRAY A PORTION OF THE COST TO THE INDIVIDUAL POSTMASTER OF FURNISHING QUARTERS, FIXTURES AND EQUIPMENT. THAT REPORT READS IN PART AS FOLLOWS:

IN ORDER TO ASCERTAIN WHAT AMOUNT OF THEIR COMPENSATION WAS EXPENDED FOR THE FISCAL YEAR ENDED JUNE 30, 1925, FOR RENT FUEL, LIGHTING, AND EQUIPMENT, A QUESTIONNAIRE WAS SENT OUT TO THE MEMBERSHIP BY THE OFFICERS OF THE FOURTH-CLASS POSTMASTERS' ASSOCIATION * * *

ANALYZING THESE REPORTS IT IS FOUND THAT 18.46 PERCENT OF THE SALARIES WERE EXPENDED FOR RENT, FUEL AND LIGHT. ALLOWING 6 PERCENT INTEREST ON INVESTMENT AND 10 PERCENT DEPRECIATION OF EQUIPMENT VALUED AT $372,122, THE COST OF MAINTAINING THE OFFICES OF THESE 2,769 REPORTING POSTMASTERS IS INCREASED TO 21.8 PERCENT OF THEIR SALARIES. THE BILL PROPOSED TO GRANT AN ALLOWANCE OF 20 PERCENT, BUT THE COMMITTEE REDUCED THAT FIGURE TO 15 PERCENT AND UNANIMOUSLY RECOMMENDS THE ENACTMENT OF THE BILL AS AMENDED.

IT IS APPARENT FROM THE FOREGOING REPORT THAT THE ALLOWANCE WAS DESIGNED TO REIMBURSE THE POSTMASTER IN PART FOR THE COST TO HIM OF FURNISHING POST OFFICE QUARTERS, FIXTURES AND EQUIPMENT. THE PAYMENT OF AN ALLOWANCE TO A POSTMASTER FOR QUARTERS, FIXTURES AND EQUIPMENT WHICH HAS BEEN FURNISHED WITHOUT COST TO HIM BY ANOTHER GOVERNMENT AGENCY OR BY A STATE GOVERNMENT CLEARLY WOULD BE REPUGNANT TO THE ORIGINAL PURPOSE AND INTENT OF THE LEGISLATION TO REIMBURSE A POSTMASTER IN PART FOR QUARTERS, FIXTURES AND EQUIPMENT FURNISHED AT PERSONAL EXPENSE.

ACCORDINGLY, ANY ALLOWANCE PAYMENTS MADE AFTER AUGUST 14, 1964, IN A SITUATION IN WHICH THE POSTMASTER DOES NOT FURNISH QUARTERS, FIXTURES OR EQUIPMENT ARE INVALID AND RECOVERY OF SUCH PAYMENTS FROM THE POSTMASTERS INVOLVED SHOULD BE EFFECTED.