A-60227, FEBRUARY 27, 1935, 14 COMP. GEN. 660

A-60227: Feb 27, 1935

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REIMBURSEMENT TO SUCH ATTACHES FOR LOSSES IS TO BE CALCULATED UPON THE NET COMPENSATION AFTER DEDUCTING CONTRIBUTIONS TO THE RETIREMENT OR OTHER FUNDS. THE LOSS IS THAT CALCULATED ON THE BASIS OF CONVERSION INTO FOREIGN CURRENCY OF THE EMPLOYEE'S NET PAY AND ALLOWANCES.'. IT WILL BE NOTED THE ABOVE SPECIFICALLY PROVIDES THAT NAVAL ATTACHES AND EMPLOYEES ATTACHED TO THEIR OFFICES ARE GOVERNED BY PARAGRAPH 3 (A) OF THE EXECUTIVE ORDER. WHICH PROVIDES: "THE LOSS ABOVE REFERRED TO IS THAT CALCULATED ON THE BASIS OF CONVERSION INTO FOREIGN CURRENCY OF THE EMPLOYEE'S NET SALARY AND NET ALLOWANCES. UNDER WHICH CERTAIN DEDUCTIONS ARE ENUMERATED. THAT EXCHANGE RELIEF WILL BE COMPUTED UPON THE PAY AND ALLOWANCES LESS DEDUCTIONS FOR RETIREMENT FUND.

A-60227, FEBRUARY 27, 1935, 14 COMP. GEN. 660

EXCHANGE LOSSES - COMPENSATION OF NAVAL ATTACHES AS EXECUTIVE ORDER NO. 6928 EXCEPTS THE COMPENSATION OF NAVAL ATTACHES FROM THE PROVISION OF NET PAY AND ALLOWANCES AND PROVIDES FOR REIMBURSEMENT TO SUCH ATTACHES FOR CURRENCY APPRECIATION LOSSES AS IN THE CASE OF EMPLOYEES RECEIVING A NET SALARY AS DEFINED IN THE ORDER, REIMBURSEMENT TO SUCH ATTACHES FOR LOSSES IS TO BE CALCULATED UPON THE NET COMPENSATION AFTER DEDUCTING CONTRIBUTIONS TO THE RETIREMENT OR OTHER FUNDS, OR ON ACCOUNT OF PERCENTAGE REDUCTION IN COMPENSATION, BUT WITHOUT DEDUCTING ALLOTMENTS, FINES, FORFEITURES, ETC.

COMPTROLLER GENERAL MCCARL TO THE SECRETARY OF THE NAVY, FEBRUARY 27, 1935:

THERE HAS BEEN RECEIVED YOUR LETTER OF FEBRUARY 6, 1935, REQUESTING DECISION UPON THE FOLLOWING QUESTION:

REFERENCE: (A) AMENDMENT OF EXECUTIVE ORDER NO. 6657-A OF MARCH 27, 1934, AS AMENDED APPROVED BY THE PRESIDENT DECEMBER 24, 1934.

(B) ACT OF MARCH 26, 1934, PUBLIC, NO. 129, 73D CONGRESS.

1. PARAGRAPH 3 (B) OF REFERENCE (A) PROVIDES:

"IN CASE OF EMPLOYEES SERVING UNDER THE WAR AND NAVY DEPARTMENTS (WITH THE EXCEPTION OF MILITARY AND NAVAL ATTACHES AND OTHER EMPLOYEES ATTACHED TO THEIR OFFICES WHO SHALL BE GOVERNED BY PARAGRAPH (A) OF THIS SECTION), THE LOSS IS THAT CALCULATED ON THE BASIS OF CONVERSION INTO FOREIGN CURRENCY OF THE EMPLOYEE'S NET PAY AND ALLOWANCES.'

IT WILL BE NOTED THE ABOVE SPECIFICALLY PROVIDES THAT NAVAL ATTACHES AND EMPLOYEES ATTACHED TO THEIR OFFICES ARE GOVERNED BY PARAGRAPH 3 (A) OF THE EXECUTIVE ORDER, WHICH PROVIDES:

"THE LOSS ABOVE REFERRED TO IS THAT CALCULATED ON THE BASIS OF CONVERSION INTO FOREIGN CURRENCY OF THE EMPLOYEE'S NET SALARY AND NET ALLOWANCES, EXCEPT AS PROVIDED IN PARAGRAPHS (B), (C), (D), AND (E) OF THIS SECTION.'

2. IT WOULD APPEAR THEREFORE, THAT THE DEFINITION OF THE TERM "NET PAY AND ALLOWANCES" IN PARAGRAPH 3 (G) OF THE EXECUTIVE ORDER, UNDER WHICH CERTAIN DEDUCTIONS ARE ENUMERATED, HAS NO APPLICATION TO NAVAL ATTACHES OR EMPLOYEES IN THEIR OFFICES. IT WOULD ALSO APPEAR THAT THE DEFINITIONS "NET SALARY" AND "NET ALLOWANCES" DO APPLY TO SUCH PERSONNEL. PARAGRAPH 3 (G) OF THE EXECUTIVE ORDER DEFINES "NET SALARY" AS

"THE BASE SALARY LESS ANY DEDUCTIONS FOR CONTRIBUTION TO THE RETIREMENT OR OTHER FUND, OR ON ACCOUNT OF PERCENTAGE DEDUCTIONS IN COMPENSATION.' THE SPECIFIC PROVISIONS OF PARAGRAPH 3 OF THE EXECUTIVE ORDER APPEAR TO REQUIRE, IN THE CASE OF NAVAL ATTACHES AND EMPLOYEES ATTACHED TO THEIR OFFICES, THAT EXCHANGE RELIEF WILL BE COMPUTED UPON THE PAY AND ALLOWANCES LESS DEDUCTIONS FOR RETIREMENT FUND, HOSPITAL FUND, AND PERCENTAGE DEDUCTIONS. IT IS NOT BELIEVED THAT ALLOTMENTS AND OTHER SUNDRY CHECK AGES SHOULD BE DEDUCTED.

3. IT IS REQUESTED THAT THE VIEWS EXPRESSED HEREIN BE REFERRED TO THE COMPTROLLER GENERAL OF THE UNITED STATES FOR DECISION, WHETHER PAYMENTS OF EXCHANGE RELIEF IN THE CASE OF NAVAL ATTACHES AND EMPLOYEES ATTACHED TO THEIR OFFICES, COMPUTED ON THIS BASIS WILL BE PASSED IN THE AUDIT OF THE ACCOUNTS OF NAVAL ATTACHES.

THE EXECUTIVE ORDER NO. 6928 OF DECEMBER 24, 1934, EXCEPTS NAVAL ATTACHES FROM THE PROVISIONS OF PARAGRAPH 3 (B) OF THE ORDER WHICH REFERS TO NET PAY AND ALLOWANCES AND REQUIRES THEIR LOSSES TO BE CALCULATED UNDER PARAGRAPH 3 (A), WHICH REFERS TO NET SALARY AND NETALLOWANCES. SECTION 3 (G) DEFINES THE RESPECTIVE TERMS, AS FOLLOWS:

THE TERM "NET SALARY" MEANS THE BASE SALARY LESS ANY DEDUCTION FOR CONTRIBUTION TO THE RETIREMENT OR OTHER FUND OR ON ACCOUNT OF PERCENTAGE DEDUCTIONS IN COMPENSATION.

THE TERM "NET ALLOWANCES" MEANS ALLOWANCES PAID TO THE EMPLOYEE.

THE TERM "NET PAY AND ALLOWANCES" MEANS THE EMPLOYEE'S FULL PAY, INCLUDING EXTRA OR ADDITIONAL PAY, AND ALL ALLOWANCES (OTHER THAN THOSE FURNISHED IN KIND) LESS DEDUCTIONS THEREFROM ON ACCOUNT OF ALLOTMENTS, FINES AND FORFEITURES, CLOTHING, HOSPITAL, CIVIL SERVICE RETIREMENT FUND, PERCENTAGE DEDUCTIONS IN COMPENSATION, AND OTHER SUNDRY CHECK AGES.

ACCORDINGLY, LOSSES DUE TO THE APPRECIATION OF FOREIGN CURRENCY IN THE CASE OF COMPENSATION OF NAVAL ATTACHES, ARE TO BE CALCULATED UPON THE NET COMPENSATION, DESCRIBED AS "NET SALARY" FOR THAT PURPOSE BY THE EXECUTIVE ORDER, AFTER DEDUCTING CONTRIBUTIONS TO THE RETIREMENT OR OTHER FUND OR ON ACCOUNT OF PERCENTAGE DEDUCTIONS IN COMPENSATION, BUT WITHOUT DEDUCTING ALLOTMENTS, FINES, FORFEITURES, ETC. ..END :