A-43732, OCTOBER 13, 1932, 12 COMP. GEN. 398

A-43732, OCTOBER 13, 1932, 12 COMP. GEN. 398

ECONOMY ACT - LEGISLATIVE FURLOUGH - ALLOWANCES IN KIND AN EMPLOYEE SUBJECT TO LEGISLATIVE FURLOUGH MUST HAVE DEDUCTED FROM HIS CASH COMPENSATION FOR THE YEAR NOT ONLY 8 1/3 PERCENT OF HIS TOTAL SALARY (INCLUDING ALLOWANCES FURNISHED IN KIND) BUT ALSO THE FULL FIXED VALUE OF THE QUARTERS OCCUPIED BY OR RESERVED FOR HIM DURING HIS ABSENCE ON LEGISLATIVE FURLOUGH REGARDLESS OF WHETHER HIS ABSENCE ON LEGISLATIVE FURLOUGH IS TAKEN IN ONE FULL CALENDAR MONTH OR FOR TWO OR MORE SHORTER PERIODS. 12 COMP. GEN. 187 MODIFIED.

COMPTROLLER GENERAL MCCARL TO THE SECRETARY OF WAR, OCTOBER 13, 1932:

IN DECISION TO YOU AUGUST 5, 1932, QUESTION 3 AND THE ANSWER THERETO WERE GIVEN AS FOLLOWS:

"/3) IN THE EVENT THE TOTAL COMPENSATION, INCLUDING VALUATION OF SUBSISTENCE AND QUARTERS, IS TO BE REGARDED AS COMPENSATION FOR THE PURPOSE OF APPLYING THE PROVISIONS OF THE ECONOMY ACT, A RULING IS REQUESTED AS TO ACTION TO BE TAKEN IN THE SITUATION DESCRIBED BELOW:

"UNDER EXISTING RULES AND PRACTICE AN EMPLOYEE ON ANNUAL LEAVE HAS BEEN CHARGED, PRIOR TO THE FISCAL YEAR 1933, WITH THE DETERMINED VALUE OF QUARTERS MAINTAINED FOR HIM ON GOVERNMENT PLANT EVEN THOUGH HE DID NOT OCCUPY THOSE QUARTERS. IF THIS SAME RULE IS NOW APPLIED TO CASES WHERE AN EMPLOYEE IS ON ADMINISTRATIVE FURLOUGH WITHOUT PAY FOR AN ENTIRE PAY PERIOD, THIS WILL RESULT IN THE EMPLOYEE ACTUALLY OWING THE GOVERNMENT THE VALUE OF THE QUARTERS FOR A PERIOD DURING WHICH HE RECEIVED NO COMPENSATION WHATEVER FROM THE GOVERNMENT. ANY EMPLOYEE, WHETHER HE TAKES HIS FURLOUGH WITHOUT PAY IN ONE-MONTH PERIOD OR INTERMITTENTLY THROUGHOUT THE YEAR, WILL HAVE HAD MADE FROM HIS COMPENSATION DURING THE FISCAL YEAR NOT ONLY THE DEDUCTION OF ONE MONTH'S GROSS PAY, BUT AN ADDITIONAL AMOUNT EQUAL TO THE CHARGE NORMALLY MADE FOR QUARTERS FOR A PERIOD OF ONE MONTH. SHALL DEDUCTION BE MADE FOR THE VALUATION OF QUARTERS DURING THE PERIOD OF ABSENCE ON THE ECONOMY ACT LEGISLATIVE FURLOUGH WITHOUT PAY?

3. IF AN EMPLOYEE IS IN A NONPAY STATUS, WHETHER ON ADMINISTRATIVE OR LEGISLATIVE FURLOUGH, OR LEAVE OF ABSENCE WITHOUT PAY, HE WOULD NOT BE ENTITLED TO FREE GOVERNMENT QUARTERS, THE DETERMINED VALUE OF WHICH IS REQUIRED BY LAW, TO BE CONSIDERED AS PART OF "COMPENSATION.' YOU ARE ADVISED, THEREFORE, THAT AN EMPLOYEE ON ADMINISTRATIVE FURLOUGH WITHOUT PAY SHOULD BE CHARGED THE FULL DETERMINED VALUE OF THE GOVERNMENT QUARTERS OCCUPIED FOR THE PERIOD OF SUCH FURLOUGH. IN VIEW OF THE PROVISIONS OF THE REGULATIONS REFERRED TO, AN EMPLOYEE ON LEGISLATIVE FURLOUGH, FROM WHOSE COMPENSATION THERE ALREADY WOULD BE DEDUCTED AND IMPOUNDED 8 1/3 PERCENT OF THE DETERMINED VALUE OF QUARTERS IN THE TOTAL DEDUCTION BASED ON THE TOTAL SALARY RATE FOR THE POSITION, SHOULD BE CHARGED THE REMAINDER OF THE DETERMINED VALUE OF THE QUARTERS OCCUPIED, OR 91 2/3 PERCENT THEREOF. HOWEVER, IF THE LEGISLATIVE FURLOUGH IS TAKEN IN ONE PERIOD, THAT IS, A FULL CALENDAR MONTH, NOT ONLY WOULD NO PAY ACCRUE FOR THAT MONTH BUT THE FIXED VALUE OF THE QUARTERS, ETC., FURNISHED, TOGETHER WITH THE RETIREMENT DEDUCTION FOR THAT MONTH WOULD BE FOR DEDUCTING FROM PAY THEREAFTER ACCRUING.

IT WAS NOT INTENDED BY SAID DECISION TO REDUCE THE VALUE OF THE QUARTERS FURNISHED OR TO RELIEVE THE EMPLOYEE FROM PAYING THE FULL FIXED VALUE OF QUARTERS OCCUPIED BY OR RESERVED FOR HIM WHILE IN A NONPAY STATUS. THE SENTENCE IN SAID DECISION WHICH READS---

* * * IN VIEW OF THE PROVISIONS OF THE REGULATIONS REFERRED TO, AN EMPLOYEE ON LEGISLATIVE FURLOUGH, FROM WHOSE COMPENSATION THERE ALREADY WOULD BE DEDUCTED AND IMPOUNDED 8 1/3 PERCENT OF THE DETERMINED VALUE OF QUARTERS IN THE TOTAL DEDUCTION BASED ON THE TOTAL SALARY RATE FOR THE POSITION, SHOULD BE CHARGED THE REMAINDER OF THE DETERMINED VALUE OF THE QUARTERS OCCUPIED, OR 91 2/3 PERCENT THEREOF.

WAS INTENDED MERELY TO PREVENT A DOUBLE DEDUCTION ON ACCOUNT OF QUARTERS. IT IS NOW FOUND, HOWEVER, THAT A LITERAL APPLICATION OF THE RULE STATED IN SAID SENTENCE WOULD RESULT IN THE TOTAL DEDUCTIONS FOR THE YEAR ON ACCOUNT OF QUARTERS BEING LESS THAN THE FULL VALUE OF THE QUARTERS FOR ONE MONTH, WHEREAS IT WAS INTENDED THAT AN EMPLOYEE SUBJECT TO THE LEGISLATIVE FURLOUGH MUST HAVE DEDUCTED FROM HIS CASH COMPENSATION FOR THE YEAR NOT ONLY 8 1/3 PERCENT OF HIS TOTAL SALARY (INCLUDING ALLOWANCES FURNISHED IN KIND) BUT, ALSO, THE FULL FIXED VALUE FOR ONE MONTH OF THE QUARTERS OCCUPIED BY OR RESERVED FOR HIM, REGARDLESS OF WHETHER HIS ABSENCE ON SUCH LEGISLATIVE FURLOUGH IS FOR ONE FULL CALENDAR MONTH, OR FOR TWO OR MORE SHORTER PERIODS. THE DECISION OF AUGUST 5, 1932, 12 COMP. GEN. 187, IS MODIFIED ACCORDINGLY.