A-56342, JULY 11, 1934, 14 COMP. GEN. 29

A-56342: Jul 11, 1934

Additional Materials:

Contact:

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

 

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

WAS SUBMITTED TO CONGRESS AT $481. WITH THE PROVISO THAT THIS AMOUNT WOULD BE SUFFICIENT IF THE BASIC PAY OF EMPLOYEES WAS TO BE SUBJECT TO A 10 PERCENT DEDUCTION WITHOUT AN IMPOUNDING REQUIREMENT THEREON. - "THERE IS HEREBY APPROPRIATED SO MUCH AS MAY BE NECESSARY FOR THE PAYMENT OF SUMS DUE AND PAYABLE OUT OF THE TREASURY OF THE UNITED STATES BY REASON OF THE DIMINUTION UNDER THIS TITLE IN THE PERCENTAGE OF REDUCTION OF COMPENSATION. LIMITATIONS ON AMOUNTS FOR PERSONAL SERVICES ARE HEREBY RESPECTIVELY INCREASED IN PROPORTION TO THE INCREASE IN APPROPRIATIONS FOR PERSONAL SERVICES MADE IN THIS SUBSECTION. * * *" THE QUESTION ARISES AS TO WHETHER. ARE DETERMINED. WILL BE $482. IF APPROPRIATION LIMITATION WERE INCREASED TO $508.

A-56342, JULY 11, 1934, 14 COMP. GEN. 29

COMPENSATION - ADMINISTRATIVE PROMOTIONS - 5-PERCENT INCREASE IN DETERMINING THE SAVINGS AS OF JULY 1, 1934, AVAILABLE FOR ADMINISTRATIVE PROMOTIONS IN PERSONNEL APPROPRIATIONS MADE BY THE APPROPRIATION ACTS FOR THE FISCAL YEAR 1935 ON A 90-PERCENT BASIS, THERE MAY BE INCLUDED A SUFFICIENT AMOUNT APPROPRIATED FROM THE INDEFINITE APPROPRIATION PROVIDED BY SECTION 21 (E) OF THE ACT OF MARCH 28, 1934, 48 STAT. 522, TO EQUAL THE 5-PERCENT INCREASE IN COMPENSATION AUTHORIZED BY SECTION 21 (A) OF THE SAME STATUTE, BASED NOT ON THE TOTAL AMOUNT OF THE REGULAR APPROPRIATION BUT ONLY ON THE AMOUNT OF SALARY COMMITMENTS AS OF JULY 1, 1934. GENERALLY THE REGULAR APPROPRIATIONS FOR 1935 MAY BE INCREASED UNDER THE PROVISIONS OF SECTION 21 (E) IN THE AMOUNT NECESSARY UNDER THE SAME PROCEDURE AS APPLICABLE WITH RESPECT TO THE APPROPRIATION FOR 1934. FOR THE PRESENT, THE TOTAL AMOUNT NECESSARY FOR SALARIES FOR THE FISCAL YEAR 1935 MAY BE CHARGED TO THE REGULAR APPROPRIATION FOR SUCH SALARIES.

COMPTROLLER GENERAL MCCARL TO THE PUBLIC PRINTER, JULY 11, 1934:

THERE HAS BEEN RECEIVED YOUR LETTER OF JUNE 22, 1934, AS FOLLOWS:

THE ESTIMATE FOR SALARIES, OFFICE OF SUPERINTENDENT OF DOCUMENTS, FISCAL YEAR 1935, WAS SUBMITTED TO CONGRESS AT $481,612, WITH THE PROVISO THAT THIS AMOUNT WOULD BE SUFFICIENT IF THE BASIC PAY OF EMPLOYEES WAS TO BE SUBJECT TO A 10 PERCENT DEDUCTION WITHOUT AN IMPOUNDING REQUIREMENT THEREON. CONGRESS APPROPRIATED THE ABOVE $481,612 (SEE PUBLIC ACT 268, 73D CONG.).

PUBLIC ACT 141, SEVENTY-THIRD CONGRESS, SECTION 21 (2), REQUIRES THE PERCENTAGE REDUCTION ON BASIC SALARIES IN 1935 SHALL NOT EXCEED 5 PERCENT. THIS AUTOMATICALLY SETS UP A FURTHER OBLIGATION OF $26,756 FOR SALARIES IN OFFICE OF SUPERINTENDENT OF DOCUMENTS FOR FISCAL YEAR 1935.

SECTION 21 (E), SUPRA, DIRECTS---

"THERE IS HEREBY APPROPRIATED SO MUCH AS MAY BE NECESSARY FOR THE PAYMENT OF SUMS DUE AND PAYABLE OUT OF THE TREASURY OF THE UNITED STATES BY REASON OF THE DIMINUTION UNDER THIS TITLE IN THE PERCENTAGE OF REDUCTION OF COMPENSATION, AND OTHER AMENDMENTS TO EXISTING LAWS MADE HEREBY; AND LIMITATIONS ON AMOUNTS FOR PERSONAL SERVICES ARE HEREBY RESPECTIVELY INCREASED IN PROPORTION TO THE INCREASE IN APPROPRIATIONS FOR PERSONAL SERVICES MADE IN THIS SUBSECTION. * * *"

THE QUESTION ARISES AS TO WHETHER, UNDER THE PROVISIONS OF ABOVE SECTION 21 (E), THE LIMITATION OF $481,612 IN LEGISLATIVE ACT FOR THE FISCAL YEAR 1935 FOR SALARIES, OFFICE OF SUPERINTENDENT OF DOCUMENTS, MAY BE INCREASED ON JULY 1, 1935, BY $26,756 OF THE INDEFINITE APPROPRIATION TO A TOTAL OF $508,368, THE AMOUNT REQUIRED ON BASIS OF 5 PERCENT DEDUCTION IN BASIC PAY, AND THAT TOTAL SUM BECOME THE BASIC FACTOR IN DETERMINING WHAT, IF ANY, APPOINTMENTS AND ADMINISTRATIVE PROMOTIONS MAY BE MADE IN THE OFFICE OF SUPERINTENDENT OF DOCUMENTS AFTER THE FULL YEARLY COMPENSATION OF ALL POSITIONS, BOTH FILLED AND VACANT, IN THAT OFFICE ON JULY 1, 1934, ARE DETERMINED. FOR INSTANCE, THE FULL YEARLY COMPENSATION OF ALL SUCH POSITIONS ON JULY 1, 1934, PREDICATED ON BASIC PAY LESS 5 PERCENT, WILL BE $482,429, WHICH WOULD, IF APPROPRIATION LIMITATION WERE INCREASED TO $508,368, LEAVE A BALANCE OF $25,939 AVAILABLE FOR APPOINTMENTS OR ADMINISTRATIVE PROMOTIONS THROUGHOUT THE FISCAL YEAR 1935, ALL TO BE FIGURED ON AN ANNUAL BASIS.

YOUR DECISION ON THIS QUESTION, AND ALSO ADVICE AS TO THE PROCEDURE UNDER WHICH THE LIMITATION ON AMOUNT FOR PERSONAL SERVICES IN FISCAL YEAR 1935 MAY BE INCREASED UNDER THE AUTHORITY OF SECTION 21 (E), SUPRA, IS REQUESTED.

SECTION 24 OF SAID ACT OF MARCH 28, 1934 (48 STAT. 523), IN WHICH ALSO APPEARS SECTION 21 (E), QUOTED IN YOUR LETTER, PROVIDES AS FOLLOWS:

(2) SECTION 7 (PROHIBITING ADMINISTRATIVE PROMOTIONS) OF THE TREASURY- POST OFFICE APPROPRIATION ACT, FISCAL YEAR 1934, IS AMENDED BY ADDING AFTER THE FIRST PROVISO THEREOF A COLON AND THE FOLLOWING: "PROVIDED FURTHER, THAT ADMINISTRATIVE PROMOTIONS MAY BE MADE DURING THE FISCAL YEAR 1935 TO THE EXTENT THAT FUNDS ARE AVAILABLE THEREFOR, ON AN ANNUAL BASIS, FROM SAVINGS MADE IN THE AMOUNTS APPORTIONED FOR PERSONAL SERVICES FROM THE APPLICABLE APPROPRIATIONS FOR THE FISCAL YEAR 1935.'

IN DECISION OF JUNE 9, 1934, A-54807, 13 COMP. GEN. 419, IT WAS HELD AS FOLLOWS:

THE PURPOSE AND INTENT OF THAT PORTION OF SECTION 24 OF THE ACT OF MARCH 28, 1934, PUBLIC, NO. 141, AMENDING SECTION 7 OF THE ACT OF MARCH 3, 1933, 47 STAT. 1515, APPEARS TO BE TO PERMIT THE USE OF 1935 APPROPRIATIONS EXCLUSIVELY AVAILABLE FOR SALARY PAYMENTS, OR ADMINISTRATIVELY APPORTIONED FOR SALARY PAYMENTS ON AN ANNUAL BASIS FROM APPROPRIATION ITEMS AVAILABLE ALSO FOR OTHER PURPOSES, BY THE USE OF ANY SAVINGS THAT MAY BE MADE, ON AN ANNUAL BASIS, BY ADMINISTRATIVE ECONOMIES IN THE USE OF SUCH ANNUAL PERSONNEL APPROPRIATIONS OR ANNUAL ADMINISTRATIVE APPORTIONMENTS FOR PERSONNEL.

CONSEQUENTLY, AS A PREREQUISITE TO ANY SUCH ADMINISTRATIVE PROMOTIONS DURING THE FISCAL YEAR 1935, THERE MUST BE A SHOWING OF THE AMOUNT SPECIFICALLY APPROPRIATED OR APPORTIONED FOR PERSONAL SERVICES FOR THE PARTICULAR OFFICE OR ACTIVITY INVOLVED, AND A SHOWING AS TO THE AMOUNT THEREOF NECESSARY TO PAY THE SALARIES FOR AN ENTIRE YEAR OF ALL POSITIONS, WHETHER FILLED OR VACANT, EXISTING ON JULY 1, 1934. THE DIFFERENCE, IF ANY, BETWEEN SAID TWO AMOUNTS MAY BE REGARDED AS A SAVING AVAILABLE FOR PROMOTIONS WITHIN THE MEANING OF THE PROVISION IN QUESTION. LIKEWISE, ANY SAVINGS RESULTING FROM THE NONFILLING OF VACANCIES EXISTING ON JULY 1, 1934, OR WHICH MAY OCCUR DURING THE FISCAL YEAR, PROVIDED IMPOUNDING THEREOF BE WAIVED BY THE PRESIDENT, AND ANY SAVINGS RESULTING FROM REDUCTIONS IN SALARIES OR FROM ABSENCES WITHOUT PAY, WHETHER VOLUNTARY OR INVOLUNTARY, WILL BE AVAILABLE FOR SUCH PROMOTIONS. HOWEVER, IN DETERMINING TO WHAT EXTENT PROMOTIONS MAY BE MADE FROM SUCH SAVINGS, THE AVAILABILITY IS TO BE CONSIDERED ON AN ANNUAL BASIS. FOR INSTANCE, IF AT THE BEGINNING OF THE SECOND QUARTER THERE CAN BE SHOWN A SAVING IN A PARTICULAR OFFICE OF $1,200 FOR THE ENTIRE FISCAL YEAR, THAT ENTIRE AMOUNT MAY NOT BE EXPENDED IN PROMOTIONS FOR THE THREE REMAINING QUARTERS BY GIVING EIGHT PROMOTIONS OF $200 EACH EFFECTIVE OCTOBER 1, 1934. IN OTHER WORDS, PROMOTIONS ARE NOT AUTHORIZED TO SUCH AN EXTENT THAT THE ENTIRE COMMITMENTS AT ANY ONE TIME WOULD, WHEN CONSIDERED ON AN ANNUAL BASIS, EXCEED THE TOTAL AMOUNT APPROPRIATED OR APPORTIONED FOR THE PARTICULAR SERVICE FOR THE ENTIRE FISCAL YEAR.

AS SECTIONS 21 (A) AND (E) AND 24 APPEAR IN THE SAME STATUTE, IT IS NOT TO BE PRESUMED THE CONGRESS INTENDED THAT SAVINGS MUST FIRST BE USED TO ABSORB THE 5-PERCENT INCREASE IN COMPENSATION REQUIRED BY THE SAME STATUTE EFFECTIVE JULY 1, 1934, BEFORE BEING AVAILABLE FOR APPOINTMENTS OR ADMINISTRATIVE PROMOTIONS ON AN ANNUAL BASIS. ACCORDINGLY, IN DETERMINING THE SAVINGS IN THE APPROPRIATION FOR "SALARIES, OFFICE OF THE SUPERINTENDENT OF DOCUMENTS, 1935," AS OF JULY 1, 1934, PURSUANT TO THE PROCEDURE STATED IN THE DECISION OF JUNE 9, 1934, THE "AMOUNT SPECIFICALLY APPROPRIATED * * * FOR PERSONAL SERVICES" (QUOTING FROM SAID DECISION) MAY INCLUDE A SUFFICIENT AMOUNT APPROPRIATED BY SECTION 21 (E) OF SAID ACT TO EQUAL THE 5-PERCENT INCREASE BASED NOT ON THE TOTAL AMOUNT OF APPROPRIATION, AS APPARENTLY PROPOSED BY YOU, BUT ONLY ON THE AMOUNT OF SALARY COMMITMENTS AS OF JULY 1, 1934. FOR INSTANCE, YOU STATE THAT THE SALARY COMMITMENTS AS OF JULY 1, 1934,"PREDICATED ON BASIC PAY LESS 5 PERCENT" ARE $482,429, OR 95 PERCENT OF THE AGGREGATE OF TOTAL SALARY RATES. HENCE, 90 PERCENT OF THE AGGREGATE OF TOTAL OR BASIC SALARY RATES WOULD BE $482,429 MINUS $25,391, OR $457,038, THE AMOUNT OF SALARY COMMITMENTS AS OF JULY 1, 1934, UNDER THE REGULAR APPROPRIATION. THEREFORE, IN DETERMINING THE AMOUNT OF SAVINGS AVAILABLE FOR PURPOSES OF PROMOTION THERE IS TO BE ADDED TO THE REGULAR APPROPRIATION OF $481,612 ONLY $25,391 AND NOT $26,756 AS PROPOSED IN YOUR SUBMISSION. THE AGGREGATE THUS OBTAINED, TO WIT, $507,003, MINUS $482,429, THE AMOUNT OF COMMITMENTS ON AN ANNUAL BASIS AS OF JULY 1, 1934, LEAVES A BALANCE OF $24,574 TO BE CONSIDERED AS SAVINGS ON AN ANNUAL BASIS AS OF JULY 1, 1934, IN DETERMINING WHETHER OR TO WHAT EXTENT ADMINISTRATIVE PROMOTIONS OR APPOINTMENTS MAY BE MADE.

GENERALLY THE REGULAR APPROPRIATIONS FOR 1935 MAY BE INCREASED UNDER THE PROVISIONS OF SECTION 21 (E) IN THE AMOUNT NECESSARY UNDER THE SAME PROCEDURE AS APPLICABLE WITH RESPECT TO THE APPROPRIATION FOR 1934. FOR THE PRESENT THE TOTAL AMOUNT NECESSARY FOR SALARIES FOR THE FISCAL YEAR 1935 MAY BE CHARGED TO THE REGULAR APPROPRIATION FOR SUCH SALARIES.