A-44958, OCTOBER 13, 1932, 12 COMP. GEN. 399

A-44958: Oct 13, 1932

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WHICH IS SAVED UNDER CERTAIN CONDITIONS BY SECTION 105 (E) OF THE ECONOMY ACT. WILL BE BASED ON THE AVERAGE RATE OF COMPENSATION RECEIVED DURING THAT PORTION OF THE CALENDAR YEAR 1931 THAT THE PARTICULAR POSTMASTER OR POSTAL EMPLOYEE OCCUPIED THE SAME POSITION HE IS HOLDING DURING THE FISCAL YEAR 1933. WAS THEN APPOINTED ASSISTANT POSTMASTER WITH SALARY OF $2. IS $2. WAS THEN APPOINTED SUPERINTENDENT OF MAILS AT $2. HIS SALARY AS SUPERINTENDENT OF MAILS WAS REDUCED TO $2. 700 PER ANNUM. (3) A NEW POSTMASTER WAS APPOINTED DECEMBER 1. WAS $1. - (D) IN THE CASE OF THE FOLLOWING PERSONS THE RATE OF COMPENSATION IS REDUCED AS FOLLOWS: IF MORE THAN $1. THIRD CLASSES WHOSE SALARIES OR ALLOWANCES ARE BASED ON GROSS POSTAL RECEIPTS.

A-44958, OCTOBER 13, 1932, 12 COMP. GEN. 399

ECONOMY ACT - POSTAL EMPLOYEES IN THE AUDIT OF POSTAL ACCOUNTS, COMPUTATION OF THE 91 2/3 PERCENT OF THE AVERAGE RATE OF COMPENSATION RECEIVED BY A POSTMASTER OR POSTAL EMPLOYEE DURING THE CALENDAR YEAR 1931, WHICH IS SAVED UNDER CERTAIN CONDITIONS BY SECTION 105 (E) OF THE ECONOMY ACT, WILL BE BASED ON THE AVERAGE RATE OF COMPENSATION RECEIVED DURING THAT PORTION OF THE CALENDAR YEAR 1931 THAT THE PARTICULAR POSTMASTER OR POSTAL EMPLOYEE OCCUPIED THE SAME POSITION HE IS HOLDING DURING THE FISCAL YEAR 1933.

COMPTROLLER GENERAL MCCARL TO THE POSTMASTER GENERAL, OCTOBER 13, 1932:

IN THE AUDIT OF ACCOUNTS, THERE ARISES A QUESTION OF THE PROPER BASIS FOR COMPUTING "91 2/3 PERCENTUM OF THE AVERAGE RATE OF COMPENSATION DURING THE CALENDAR YEAR 1931," UNDER THE PROVISIONS OF SECTION 105 OF THE ECONOMY ACT, IN THREE CASES AS FOLLOWS:

(1) AN ACTING POSTMASTER WITH SALARY OF $2,700 PER ANNUM SERVED FROM JANUARY 1, TO JULY 31, 1931, AND WAS THEN APPOINTED ASSISTANT POSTMASTER WITH SALARY OF $2,300 PER ANNUM, AND SERVED FROM AUGUST 1, TO DECEMBER 31, 1931. HIS SALARY AS ASSISTANT POSTMASTER FOR THE FISCAL YEAR 1933, IS $2,300 PER ANNUM.

(2) A CLERK WITH SALARY OF $2,100 PER ANNUM, SERVED FROM JANUARY 1 TO JUNE 30, 1931, AND WAS THEN APPOINTED SUPERINTENDENT OF MAILS AT $2,800 PER ANNUM, AND SERVED FROM JULY 1 TO DECEMBER 31, 1931, AT THAT RATE. JULY 1, 1932, HIS SALARY AS SUPERINTENDENT OF MAILS WAS REDUCED TO $2,700 PER ANNUM.

(3) A NEW POSTMASTER WAS APPOINTED DECEMBER 1, 1931, WITH SALARY OF $1,200 PER ANNUM. THE SALARY OF THE OFFICE FROM JANUARY 1 TO JUNE 30, 1931, WAS $1,500 PER ANNUM, AND FROM JULY 1 TO NOVEMBER 30, 1931, $1,200 PER ANNUM.

SECTION 105 OF THE ECONOMY ACT PROVIDES, IN PART, AS FOLLOWS:

SEC. 105. DURING THE FISCAL YEAR ENDING JUNE 30, 1933---

(D) IN THE CASE OF THE FOLLOWING PERSONS THE RATE OF COMPENSATION IS REDUCED AS FOLLOWS: IF MORE THAN $1,00 PER ANNUM BUT LESS THAN $10,000 PER ANNUM, 8 1/3 PERCENTUM; * * *

(5) POSTMASTERS AND POSTAL EMPLOYEES OF POST OFFICES OF THE FIRST, SECOND, AND THIRD CLASSES WHOSE SALARIES OR ALLOWANCES ARE BASED ON GROSS POSTAL RECEIPTS, AND POSTMASTERS OF THE FOURTH CLASS;

(E) SUBSECTIONS (C) AND (D) OF THIS SECTION SHALL NOT OPERATE (1) SO AS TO REDUCE ANY RATE OF COMPENSATION TO LESS THAN $1,000 PER ANNUM, OR (2) SO AS TO REDUCE THE RATE OF COMPENSATION OF ANY OF THE POSTMASTERS OR POSTAL EMPLOYEES PROVIDED FOR IN PARAGRAPH (5) OF SUBSECTION (D) OF THIS SECTION, TO A RATE WHICH IS LESS THAN 91 2/3 PERCENTUM OF HIS AVERAGE RATE OF COMPENSATION DURING THE CALENDAR YEAR 1931.

THE "AVERAGE RATE OF COMPENSATION DURING THE CALENDAR YEAR 1931" CLEARLY REFERS TO THE AVERAGE RATE OF COMPENSATION RECEIVED BY THE SAME POSTMASTER OR POSTAL EMPLOYEE IN THE SAME POSITION WHICH WAS SUBJECT TO CHANGE DURING THE CALENDAR YEAR BECAUSE OF FLUCTUATION IN THE AMOUNT OF POSTAL RECEIPTS. THERE IS INDICATED NO PURPOSE OR INTENT TO SAVE TO POSTMASTERS OR POSTAL EMPLOYEES 91 2/3 PERCENT OF THE AVERAGE RATE OF COMPENSATION RECEIVED BY MORE THAN ONE PERSON IN THE SAME POSITION OR BY THE SAME PERSON IN MORE THAN ONE POSITION OCCUPIED DURING THE CALENDAR YEAR 1931.

THEREFORE, IN THE AUDIT OF THE ACCOUNTS, COMPUTATION OF THE 91 2/3 PERCENT WILL BE BASED ON THE AVERAGE RATE OF COMPENSATION RECEIVED DURING THE PORTION OF THE CALENDAR YEAR 1931 THAT THE PARTICULAR POSTMASTER OR POSTAL EMPLOYEE OCCUPIED THE SAME POSITION HE IS HOLDING DURING THE FISCAL YEAR 1933.

ACCORDINGLY, IN CASE (1), THERE SHOULD BE DEDUCTED AND IMPOUNDED 8 1/3 PERCENT OF THE $2,300, OR $191.67; IN CASE (2), THERE SHOULD BE DEDUCTED AND IMPOUNDED THE DIFFERENCE BETWEEN 91 2/3 PERCENT OF $2,800, WHICH IS $2,566.67, AND $2,700, THE PRESENT SALARY, OR $133.33; AND IN CASE (3), THERE SHOULD BE DEDUCTED AND IMPOUNDED 8 1/3 PERCENT OF $1,200, OR $100.