A-49651, JUNE 29, 1933, 12 COMP. GEN. 666

A-49651: Jun 29, 1933

Additional Materials:

Contact:

Edda Emmanuelli Perez
(202) 512-2853
EmmanuelliPerezE@gao.gov

 

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

IS NEVERTHELESS SUBJECT TO THE 15 PERCENT REDUCTION UNDER THE TERMS OF THE ACT OF MARCH 20. THE ANNUAL AND SICK LEAVE OF ABSENCE FOR EMPLOYEES OF THE FEDERAL HOME LOAN BANK BOARD IS SUBJECT BOTH BEFORE AND AFTER JULY 1. THE TOTAL EXPENSE OF THE BOARD IS ASSESSED AGAINST THE 12 FEDERAL HOME LOAN BANKS AND PAID BY THEM. (1) WILL YOU PLEASE ADVISE US WHETHER OR NOT THE PROVISIONS OF RECENT LEGISLATION REQUIRING REDUCTION IN SALARY OF 15 PERCENT OR OTHERWISE WILL APPLY TO SALARIES OF THE MEMBERS OF THIS BOARD OR TO EMPLOYEES AFTER JULY 1. 1933? (2) WILL YOU ALSO PLEASE ADVISE WHETHER OR NOT THE STATUTORY PROVISIONS FOR ANNUAL LEAVE AND SICK LEAVE WILL APPLY TO MEMBERS OF THIS BOARD AND TO EMPLOYEES OF THE BOARD AFTER JULY 1.

A-49651, JUNE 29, 1933, 12 COMP. GEN. 666

ECONOMY ACT, AMENDED - FEDERAL HOME LOAN BANK BOARD - PERCENTAGE REDUCTION - LEAVES OF ABSENCE THE TOTAL COMPENSATION RATE OF MEMBERS AND EMPLOYEES OF THE FEDERAL HOME LOAN BANK BOARD, DERIVED ON AND AFTER JULY 1, 1933, FROM SOURCES OTHER THAN THE FEDERAL TREASURY, IS NEVERTHELESS SUBJECT TO THE 15 PERCENT REDUCTION UNDER THE TERMS OF THE ACT OF MARCH 20, 1933. 12 COMP. GEN. 655, DISTINGUISHED. THE ANNUAL AND SICK LEAVE OF ABSENCE FOR EMPLOYEES OF THE FEDERAL HOME LOAN BANK BOARD IS SUBJECT BOTH BEFORE AND AFTER JULY 1, 1933, TO THE CONDITIONS AND LIMITATIONS OF SECTION 215 OF THE ECONOMY ACT AND THE EXECUTIVE ORDER OF FEBRUARY 9, 1933, GOVERNING THE GRANTING OF SICK LEAVE.

COMPTROLLER GENERAL MCCARL TO THE CHAIRMAN OF THE FEDERAL HOME LOAN BANK BOARD, JUNE 29, 1933:

CONSIDERATION HAS BEEN GIVEN TO LETTER OF JUNE 24, 1933, SIGNED BY YOUR GENERAL COUNSEL, PRESUMABLY BY YOUR DIRECTION, AS FOLLOWS:

THE FEDERAL HOME LOAN BANK ACT, IN SECTION 19 THEREOF, AUTHORIZES THIS BOARD TO EMPLOY AND FIX COMPENSATION "WITHOUT REGARD TO THE PROVISIONS OF OTHER LAWS APPLICABLE TO THE EMPLOYMENT OR COMPENSATION OF OFFICERS, EMPLOYEES, ATTORNEYS, AND AGENTS OF THE UNITED STATES.' AFTER JULY 1, 1933, THE TOTAL EXPENSE OF THE BOARD IS ASSESSED AGAINST THE 12 FEDERAL HOME LOAN BANKS AND PAID BY THEM.

(1) WILL YOU PLEASE ADVISE US WHETHER OR NOT THE PROVISIONS OF RECENT LEGISLATION REQUIRING REDUCTION IN SALARY OF 15 PERCENT OR OTHERWISE WILL APPLY TO SALARIES OF THE MEMBERS OF THIS BOARD OR TO EMPLOYEES AFTER JULY 1, 1933?

(2) WILL YOU ALSO PLEASE ADVISE WHETHER OR NOT THE STATUTORY PROVISIONS FOR ANNUAL LEAVE AND SICK LEAVE WILL APPLY TO MEMBERS OF THIS BOARD AND TO EMPLOYEES OF THE BOARD AFTER JULY 1, 1933?

SECTIONS 17, 18, AND 19 OF THE FEDERAL HOME LOAN BANK ACT OF JULY 22, 1932, 47 STAT. 736-737, PROVIDE, IN PART, AS FOLLOWS:

SEC. 17. * * * EACH OF THE MEMBERS OF THE BOARD SHALL RECEIVE A SALARY AT THE RATE OF $10,000 PER ANNUM: PROVIDED, THAT DURING THE FISCAL YEAR 1933 THE SALARY SHALL BE $9,000 PER ANNUM. * *

SEC. 18. (A) THERE IS HEREBY AUTHORIZED TO BE APPROPRIATED THE SUM OF NOT TO EXCEED $300,000 FOR SALARIES. * * *

(B) * * * ALL EXPENSES OF THE BOARD INCURRED IN CARRYING OUT THE PROVISIONS OF THIS ACT, AS DETERMINED BY IT, BEGINNING JULY 1, 1933, SHALL BE PAID FROM THE PROCEEDS OF SUCH ASSESSMENTS, AND IF ANY DEFICIENCY SHALL OCCUR IN SUCH FUND AT ANY TIME BETWEEN SUCH SEMIANNUAL ASSESSMENTS THE BOARD SHALL HAVE POWER TO MAKE AN IMMEDIATE ASSESSMENT AGAINST THE BANKS TO COVER SUCH DEFICIENCY ON THE SAME BASIS AS THE ORIGINAL ASSESSMENT. ANY SURPLUS SHALL REMAIN FROM ANY ASSESSMENT AFTER THE EXPIRATION OF THE SEMIANNUAL PERIOD FOR WHICH IT WAS LEVIED, SUCH SURPLUS MAY BE DEDUCTED FROM THE NEXT FOLLOWING ASSESSMENT.

SEC. 19. THE BOARD SHALL HAVE POWER TO SELECT, EMPLOY, AND FIX THE COMPENSATION OF SUCH OFFICERS, EMPLOYEES, ATTORNEYS, AND AGENTS AS SHALL BE NECESSARY FOR THE PERFORMANCE OF ITS DUTIES UNDER THIS ACT WITHOUT REGARD TO THE PROVISIONS OF OTHER LAWS APPLICABLE TO THE EMPLOYMENT OR COMPENSATION OF OFFICERS, EMPLOYEES, ATTORNEYS, AND AGENTS OF THE UNITED STATES. NO SUCH OFFICER, EMPLOYEE, ATTORNEY, OR AGENT SHALL BE PAID COMPENSATION AT A RATE IN EXCESS OF THE RATE PROVIDED IN THE CASE OF MEMBERS OF THE BOARD. * * *

IN DECISION OF OCTOBER 31, 1932, A-44731, IT WAS HELD THAT, PURSUANT TO THE TERMS OF SECTIONS 105 (D) AND 803 OF THE ECONOMY ACT, THE SALARIES OF THE MEMBERS OF THE FEDERAL HOME LOAN BANK BOARD AS FIXED AT $9,000 FOR THE FISCAL YEAR 1933 BY THE ABOVE QUOTED STATUTE WERE SUBJECT TO THE 8 1/3 PERCENT REDUCTION. THE SALARIES OF EMPLOYEES OF THE BOARD, ALSO, WERE SUBJECT TO THE COMPENSATION REDUCTION PROVISIONS OF THE ECONOMY ACT OF JUNE 30, 1932.

SECTION 2, TITLE II, OF THE ACT OF MARCH 20, 1933, 48 STAT. 12,PROVIDES AS FOLLOWS:

SEC. 2. FOR THAT PORTION OF THE FISCAL YEAR 1933 BEGINNING WITH THE FIRST DAY OF THE CALENDAR MONTH FOLLOWING THE MONTH DURING WHICH THIS ACT IS ENACTED, AND FOR THE FISCAL YEAR ENDING JUNE 30, 1934, THE COMPENSATION OF EVERY OFFICER OR EMPLOYEE SHALL BE DETERMINED AS FOLLOWS:

(A) THE COMPENSATION WHICH SUCH OFFICER OR EMPLOYEE WOULD RECEIVE UNDER THE PROVISIONS OF ANY EXISTING LAW, SCHEDULE, REGULATION, EXECUTIVE ORDER, OR DEPARTMENTAL ORDER SHALL FIRST BE DETERMINED AS THOUGH THIS TITLE (EXCEPT SECTION 4) HAD NOT BEEN ENACTED.

(B) THE COMPENSATION AS DETERMINED UNDER SUBPARAGRAPH (A) OF THIS SECTION SHALL BE REDUCED BY THE PERCENTAGE, IF ANY, DETERMINED IN ACCORDANCE WITH SECTION 3 OF THIS TITLE.

ON THE DATE OF THIS ACT, MARCH 20, 1933, THE COMPENSATION RATES OF ALL MEMBERS AND EMPLOYEES OF THE BOARD HAD BEEN FIXED UNDER THE PROVISIONS OF "EXISTING LAW, SCHEDULE, REGULATION, EXECUTIVE ORDER, OR DEPARTMENTAL ORDER" AND, ACCORDINGLY, BECAME SUBJECT TO THE 15 PERCENT REDUCTION REQUIRED BY THE EXECUTIVE ORDER ISSUED PURSUANT TO SECTION 3 OF THE ACT OF MARCH 20, 1933, NOTWITHSTANDING THE FIXING OF SUCH COMPENSATION RATES WAS NOT CONTROLLED BY THE CLASSIFICATION ACT. THE SITUATION HERE IS ESSENTIALLY DIFFERENT FROM THAT WITH RESPECT TO EMPLOYEES ENGAGED BY THE FEDERAL COORDINATOR OF TRANSPORTATION UNDER SECTION 2 OF THE EMERGENCY RAILROAD TRANSPORTATION ACT OF JUNE 16, 1933, CONSIDERED IN DECISION OF JUNE 20, 1933, A-49565, 12 COMP. GEN. 655, WHEREIN IT WAS HELD THAT THERE WAS ON MARCH 20, 1933, NO EXISTING LAW, SCHEDULE, REGULATION, EXECUTIVE ORDER, OR DEPARTMENTAL ORDER BY WHICH THE COMPENSATION OF SUCH EMPLOYEES COULD BE DETERMINED AND, THEREFORE, THAT THE 15 PERCENT REDUCTION WAS NOT APPLICABLE TO THEM. WHILE IN BOTH INSTANCES THE INITIAL FIXING OF THE COMPENSATION RATES OF THE EMPLOYEES WAS NOT SUBJECT TO THE CLASSIFICATION ACT OR ANY OTHER FEDERAL STATUTE, THE COMPENSATION RATES OF EMPLOYEES OF THE FEDERAL HOME LOAN BANK BOARD WERE FIXED BY ADMINISTRATIVE REGULATION OR ORDER PRIOR TO MARCH 20, 1933, WHEREAS THE COMPENSATION RATES OF EMPLOYEES ENGAGED BY THE FEDERAL COORDINATOR OF TRANSPORTATION WERE FIXED ADMINISTRATIVELY AFTER THAT DATE.

IN DECISION OF APRIL 7, 1933, 12 COMP. GEN. 580, 582, IT WAS HELD:

UNDER THE DEFINITION IN SECTION 1 OF THE SAME ACT "ANY PERSON RENDERING SERVICES IN OR UNDER ANY BRANCH OR SERVICE OF THE UNITED STATES GOVERNMENT OR THE GOVERNMENT OF THE DISTRICT OF COLUMBIA," WITH THE FIVE EXCEPTIONS THEREIN MADE, ARE OFFICERS OR EMPLOYEES WHOSE TOTAL COMPENSATION, REGARDLESS OF THE SOURCE FROM WHICH PAID, IS SUBJECT TO THE 15 PERCENT REDUCTION IN ACCORDANCE WITH THE TERMS OF THE EXECUTIVE ORDER OF MARCH 28, 1933, ISSUED PURSUANT TO SECTION 3 OF THE ACT. THAT IS TO SAY, IF THE DUTIES AND RESPONSIBILITIES OF AN OFFICE OR POSITION ARE PERFORMED FOR OR UNDER THE SUPERVISION OF THE FEDERAL GOVERNMENT, AND THE BASIC RATE OF COMPENSATION IS FIXED UNDER "ANY EXISTING (FEDERAL) LAW, SCHEDULE, REGULATION, EXECUTIVE ORDER, OR DEPARTMENTAL ORDER," THE INCUMBENT THEREOF IS A FEDERAL OFFICER OR EMPLOYEE WITHIN THE MEANING OF SECTION 1 (A) OF TITLE II OF THE ACT OF MARCH 20, 1933, AND THE COMPENSATION IS SUBJECT TO THE 15 PERCENT REDUCTION UNDER SECTION 3 OF SAID TITLE.

HOWEVER, AS THE IMPOUNDING PROVISIONS OF THE ACT OF MARCH 20, 1933, RELATE ONLY TO ,APPROPRIATIONS OR PORTIONS OF APPROPRIATIONS UNEXPENDED BY REASON OF THE OPERATION OF THIS ACT" (QUOTING FROM SECTION 8), NO PART OF THE SALARY OF A FEDERAL OFFICER OR EMPLOYEE WHICH IS PAID FROM PRIVATE OR STATE FUNDS WILL BE IMPOUNDED IN THE FEDERAL TREASURY. ACCORDINGLY, ALL PRIVATE OR STATE INTERESTS WHICH CONTRIBUTE THE WHOLE OR ANY PART OF THE COMPENSATION OF FEDERAL OFFICERS OR EMPLOYEES SHOULD BE REQUIRED ON AND AFTER APRIL 1, 1933, TO CONTRIBUTE 15 PERCENT LESS OF THE TOTAL COMPENSATION OF EACH OFFICER AND EMPLOYEE AS OF MARCH 31, 1933; THAT IS TO SAY, THE SAVING WITH RESPECT TO THE 15 PERCENT REDUCTION ON THEIR SHARE OF THE COMPENSATION WILL INURE TO THEIR BENEFIT.

ACCORDINGLY, QUESTION (1) IS ANSWERED IN THE AFFIRMATIVE.

REFERRING TO QUESTION (2), YOU ARE ADVISED THAT SUCH ANNUAL- AND SICK- LEAVE REGULATIONS AS HAVE BEEN OR MAY BE ADOPTED BY THE FEDERAL HOME LOAN BANK BOARD UNDER AUTHORITY OF SECTION 17 OF THE ACT OF JULY 22, 1932, SUPRA, ARE SUBJECT, BOTH BEFORE AND AFTER JULY 1, 1933, TO THE CONDITIONS AND LIMITATIONS OF SECTION 215 OF THE ECONOMY ACT AND THE EXECUTIVE ORDER NO. 6021, DATED FEBRUARY 9, 1933, GOVERNING THE GRANTING OF SICK LEAVE. THE FACT THAT THE COMPENSATION OF THE PERSONNEL WILL BE DERIVED ON AND AFTER JULY 1, 1933, FROM SOURCES OTHER THAN THE FEDERAL TREASURY WILL NOT EXEMPT THE PERSONNEL FROM THE STATUTORY PROVISIONS CONTROLLING THE GRANTING OF LEAVE OF ABSENCE. OF COURSE, THE MEMBERS OF THE BOARD ARE NOT SUBJECT TO THE LAWS AND REGULATIONS RELATING TO HOURS OF WORK AND LEAVES OF ABSENCE OF EMPLOYEES.