A-44052, AUGUST 29, 1932, 12 COMP. GEN. 297

A-44052: Aug 29, 1932

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PUBLIC HEALTH SERVICE OFFICERS SERVING WITH THE PANAMA CANAL AS THE TOTAL OF PAY AND ALLOWANCES WHICH MILITARY AND NAVAL OFFICERS RECEIVE AS COMPENSATION IS REQUIRED TO BE DEDUCTED FROM THEIR COMPENSATION AS EMPLOYEES OF THE PANAMA CANAL. THERE IS NO AUTHORITY FOR THE PANAMA CANAL TO APPLY THE FURLOUGH OR THE 8 1/3 PERCENT DEDUCTIONS REQUIRED BY SECTION 101 (B) OR 105 (D) OF THE ECONOMY ACT TO ANY PART OF SUCH OFFICERS' COMPENSATION THAT IS NOT PAID FROM PANAMA CANAL FUNDS. NOTWITHSTANDING THAT NO DEDUCTIONS ARE MADE BY THE MILITARY OR NAVAL DISBURSING OFFICERS FROM THE RENTAL AND SUBSISTENCE ALLOWANCES PAID TO SUCH OFFICERS. THERE IS REQUIRED TO BE DEDUCTED BY THE PANAMA CANAL FROM THE COMPENSATION PAYABLE FROM THE PANAMA CANAL APPROPRIATIONS.

A-44052, AUGUST 29, 1932, 12 COMP. GEN. 297

ECONOMY ACT - FURLOUGH DEDUCTIONS - ARMY, NAVY, AND PUBLIC HEALTH SERVICE OFFICERS SERVING WITH THE PANAMA CANAL AS THE TOTAL OF PAY AND ALLOWANCES WHICH MILITARY AND NAVAL OFFICERS RECEIVE AS COMPENSATION IS REQUIRED TO BE DEDUCTED FROM THEIR COMPENSATION AS EMPLOYEES OF THE PANAMA CANAL, THERE IS NO AUTHORITY FOR THE PANAMA CANAL TO APPLY THE FURLOUGH OR THE 8 1/3 PERCENT DEDUCTIONS REQUIRED BY SECTION 101 (B) OR 105 (D) OF THE ECONOMY ACT TO ANY PART OF SUCH OFFICERS' COMPENSATION THAT IS NOT PAID FROM PANAMA CANAL FUNDS, NOTWITHSTANDING THAT NO DEDUCTIONS ARE MADE BY THE MILITARY OR NAVAL DISBURSING OFFICERS FROM THE RENTAL AND SUBSISTENCE ALLOWANCES PAID TO SUCH OFFICERS.

COMPTROLLER GENERAL MCCARL TO THE GOVERNOR OF THE PANAMA CANAL, AUGUST 29, 1932:

THERE HAS BEEN RECEIVED YOUR LETTER OF AUGUST 12, 1932, REQUESTING DECISION OF A QUESTION PRESENTED AS FOLLOWS:

* * * WHETHER, UNDER THE PROVISIONS OF PART II OF THE LEGISLATIVE APPROPRIATION ACT, APPROVED JUNE 30, 1932, AND WITH SPECIAL REFERENCE TO THE TERM "COMPENSATION" CONTAINED IN SECTION 104 (B) OF TITLE I, THERE IS REQUIRED TO BE DEDUCTED BY THE PANAMA CANAL FROM THE COMPENSATION PAYABLE FROM THE PANAMA CANAL APPROPRIATIONS, AND IMPOUNDED UNDER THE PROVISIONS OF SECTION 110, 8 1/3 PERCENT OF THE VALUE OF THE ALLOWANCES FOR SUBSISTENCE, QUARTERS, HEAT AND LIGHT GRANTED TO OFFICERS OF THE ARMY, NAVY, AND PUBLIC HEALTH SERVICE SERVING WITH THE PANAMA CANAL IN ADDITION TO 8 1/3 PERCENT OF THE ACTUAL AMOUNT PAID TO SUCH OFFICERS FROM PANAMA CANAL APPROPRIATIONS.

SECTION 4 OF THE PANAMA CANAL ACT OF AUGUST 24, 1912, 37 STAT. 561, PROVIDES:

* * * THE PRESIDENT IS AUTHORIZED THEREAFTER TO COMPLETE, GOVERN, AND OPERATE THE PANAMA CANAL AND GOVERN THE CANAL ZONE, OR CAUSE THEM TO BE COMPLETED, GOVERNED, AND OPERATED, THROUGH A GOVERNOR OF THE PANAMA CANAL AND SUCH OTHER PERSONS AS HE MAY DEEM COMPETENT TO DISCHARGE THE VARIOUS DUTIES CONNECTED WITH THE COMPLETION, CARE, MAINTENANCE, SANITATION, OPERATION, GOVERNMENT, AND PROTECTION OF THE CANAL AND CANAL ZONE. IF ANY OF THE PERSONS APPOINTED OR EMPLOYED AS AFORESAID SHALL BE PERSONS IN THE MILITARY OR NAVAL SERVICE OF THE UNITED STATES, THE AMOUNT OF THE OFFICIAL SALARY PAID TO ANY SUCH PERSON SHALL BE DEDUCTED FROM THE AMOUNT OF SALARY OR COMPENSATION PROVIDED BY OR WHICH SHALL BE FIXED UNDER THE TERMS OF THIS ACT. THE GOVERNOR OF THE PANAMA CANAL SHALL BE APPOINTED BY THE PRESIDENT, BY AND WITH THE ADVICE AND CONSENT OF THE SENATE, COMMISSIONED FOR A TERM OF FOUR YEARS, AND UNTIL HIS SUCCESSOR SHALL BE APPOINTED AND QUALIFIED. HE SHALL RECEIVE A SALARY OF TEN THOUSAND DOLLARS A YEAR. ALL OTHER PERSONS NECESSARY FOR COMPLETION, CARE, MANAGEMENT, MAINTENANCE, SANITATION, GOVERNMENT, OPERATION, AND PROTECTION OF THE PANAMA CANAL AND CANAL ZONE SHALL BE APPOINTED BY THE PRESIDENT OR BY HIS AUTHORITY, REMOVABLE AT HIS PLEASURE, AND THE COMPENSATION OF SUCH PERSONS SHALL BE FIXED BY THE PRESIDENT, OR BY HIS AUTHORITY, UNTIL SUCH TIME AS CONGRESS MAY BY LAW REGULATE THE SAME, BUT SALARIES OR COMPENSATION FIXED HEREUNDER BY THE PRESIDENT SHALL IN NO INSTANCE EXCEED BY MORE THAN TWENTY-FIVE PERCENTUM THE SALARY OR COMPENSATION PAID FOR THE SAME OR SIMILAR SERVICES TO PERSONS EMPLOYED BY THE GOVERNMENT IN CONTINENTAL UNITED STATES. * *

BY DECISION OF SEPTEMBER 6, 1921, 1 COMP. GEN. 113, IT WAS HELD:

DURING THE PERIOD AN OFFICER OF THE NAVY IS EMPLOYED BY THE PANAMA CANAL, ALL AMOUNTS RECEIVED UNDER HIS COMMISSION IN THE NAVY, WHETHER DENOMINATED PAY OR ALLOWANCES, EITHER IN HIS OWN RIGHT, OR BY REASON OF MAINTAINING DEPENDENTS, ARE CONSTRUED AS "OFFICIAL SALARY" WITHIN THE MEANING OF THE ACT OF AUGUST 24, 1912, 37 STAT., 561, AND MUST BE DEDUCTED, AS DIRECTED BY PROVISIONS OF THAT STATUTE, FROM THE COMPENSATION PAID HIM BY THE PANAMA CANAL.

THERE IS SPECIFICALLY EXCEPTED FROM THE DEFINITION OF "COMPENSATION" IN SECTION 104 (B) OF THE ECONOMY ACT, 47 STAT. 400,"ALLOWANCES FOR SUBSISTENCE, QUARTERS, HEAT, LIGHT AND TRAVEL.' ACCORDINGLY, SUBSISTENCE AND RENTAL ALLOWANCES OF ARMY, NAVY, OR PUBLIC HEALTH SERVICE OFFICERS ARE NOT TO BE CONSIDERED AS A PART OF SALARY OR COMPENSATION IN COMPUTING DEDUCTIONS UNDER SECTIONS 101 OR 105 OF TITLE I OF THE ECONOMY ACT. SEE DECISION OF JULY 14, 1932, A-43204, 12 COMP. GEN. 37.

SECTION 110 OF THE ECONOMY ACT PROVIDES:

THE APPROPRIATIONS OR PORTIONS OF APPROPRIATIONS UNEXPENDED BY REASON OF THE OPERATION OF THIS TITLE SHALL NOT BE USED FOR ANY PURPOSE, BUT SHALL BE IMPOUNDED AND RETURNED TO THE TREASURY.

AN ARMY OR NAVAL OFFICER EMPLOYED BY THE PANAMA CANAL RECEIVES HIS ARMY OR NAVY PAY AND ALLOWANCES THROUGH THE PROPER ARMY OR NAVY DISBURSING OFFICER, AND ANY DEDUCTIONS REQUIRED BY THE ECONOMY ACT FROM AMOUNTS SO RECEIVED ARE MADE BY THE PROPER ARMY OR NAVAL AUTHORITIES, AS THE CASE MAY BE. AS THE TOTAL OF PAY AND ALLOWANCES WHICH AN ARMY OR NAVAL OFFICER RECEIVES AS COMPENSATION IS REQUIRED TO BE DEDUCTED FROM HIS COMPENSATION AS AN EMPLOYEE OF THE PANAMA CANAL, THERE IS NO AUTHORITY FOR THE PANAMA CANAL TO APPLY THE FURLOUGH DEDUCTIONS OF SECTION 101 (B) OR THE 8 1/3 PERCENT REDUCTION REQUIRED BY SECTION 105 (D) OF THE ECONOMY ACT TO ANY PART OF THE OFFICER'S COMPENSATION THAT IS NOT PAID FROM PANAMA CANAL APPROPRIATIONS. YOUR SUBMISSION IS ANSWERED ACCORDINGLY.