A-63386, SEPTEMBER 14, 1935, 15 COMP. GEN. 208

A-63386: Sep 14, 1935

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THAT IS. FOR PAYMENTS OF SALARIES IN THE AMOUNTS OF $5.75 AND $4.95 (SHOULD HAVE BEEN $4.05) FOR THE 31ST DAY OF MAY. WHOSE COMPENSATION WAS FIXED ON A MONTHLY BASIS OF $172.50 AND $121.50. THE FORMER WAS PAID $57.50 FOR "10 DAYS FROM MAY 22 TO MAY 31. THE DISALLOWANCES WERE MADE BECAUSE OF THE REQUIREMENTS OF SECTION 6 OF THE ACT OF JUNE 30. THE 31ST DAY OF ANY CALENDAR MONTH IS TO BE EXCLUDED. AS THE PROJECT AT THAT TIME WAS A LOCAL CORPORATION FORMED BY THE SECRETARY OF THE INTERIOR UNDER AUTHORITY OF EXECUTIVE ORDER NO. 6209 DATED JULY 21. PAYMENTS WERE MADE IN ACCORDANCE WITH INSTRUCTIONS AS ISSUED DIRECT FROM THE WASHINGTON OFFICE. THE SAID EMPLOYEES WERE PAID THE PROPER AMOUNTS CALCULATED AND DUE AT THAT TIME.

A-63386, SEPTEMBER 14, 1935, 15 COMP. GEN. 208

COMPUTATION OF COMPENSATION - FEDERAL CORPORATIONS THE ANNUAL AND MONTHLY COMPENSATION OF EMPLOYEES OF A FEDERAL CORPORATION MUST BE COMPUTED PURSUANT TO THE TERMS OF SECTION 6 OF THE ACT OF JUNE 30, 1906, 34 STAT. 763, THAT IS, ON THE BASIS OF 30 DAYS FOR EACH CALENDAR MONTH.

DECISION BY COMPTROLLER GENERAL MCCARL, SEPTEMBER 14, 1935:

REVIEW HAS BEEN REQUESTED OF THE ACTION OF THIS OFFICE IN DISALLOWING CREDIT IN THE ACCOUNTS OF ALFRED WALLERSTEIN, TREASURER, JERSEY HOMESTEADS, INC., FOR PAYMENTS OF SALARIES IN THE AMOUNTS OF $5.75 AND $4.95 (SHOULD HAVE BEEN $4.05) FOR THE 31ST DAY OF MAY, 1934, TO MAC ADLERMAN, ACCOUNTANT, AND ESTHER KIXMAN, SECRETARY, WHOSE COMPENSATION WAS FIXED ON A MONTHLY BASIS OF $172.50 AND $121.50, RESPECTIVELY. THE FORMER WAS PAID $57.50 FOR "10 DAYS FROM MAY 22 TO MAY 31, INCLUSIVE," AND THE LATTER $20.25 FOR "5 DAYS FROM MAY 27 TO MAY 31, INCLUSIVE," COMPUTED AS 10/30 (NOT 10/31 ( OF $172.50 AND 5/30 (NOT 5/31 ( OF $121.50. THE DISALLOWANCES WERE MADE BECAUSE OF THE REQUIREMENTS OF SECTION 6 OF THE ACT OF JUNE 30, 1906, 34 STAT. 763, THAT IN COMPUTING COMPENSATION OF PERSONS IN THE SERVICE OF THE UNITED STATES ON AN ANNUAL OR MONTHLY BASIS, THE 31ST DAY OF ANY CALENDAR MONTH IS TO BE EXCLUDED.

IN CONNECTION WITH THE REQUEST FOR REVIEW OF THE ACTION, THE FOLLOWING ADMINISTRATIVE STATEMENT HAS BEEN PRESENTED:

EMPLOYEES PAID IN ACCORDANCE WITH INSTRUCTION NO. 11 ISSUED ON MAY 16, 1934, SAID AUTHORIZATION SIGNED BY R. J. DILLON, COMPTROLLER. COPY OF SAME ENCLOSED. THIS INSTRUCTION REVISED ON JUNE 29, 1934, BY INSTRUCTION NO. 22. AS THE PROJECT AT THAT TIME WAS A LOCAL CORPORATION FORMED BY THE SECRETARY OF THE INTERIOR UNDER AUTHORITY OF EXECUTIVE ORDER NO. 6209 DATED JULY 21, 1933, AND PAYMENTS WERE MADE IN ACCORDANCE WITH INSTRUCTIONS AS ISSUED DIRECT FROM THE WASHINGTON OFFICE, THE SAID EMPLOYEES WERE PAID THE PROPER AMOUNTS CALCULATED AND DUE AT THAT TIME.

INSTRUCTION NO. 11, DATED MAY 16, 1934, REFERRED TO IN THE QUOTED ADMINISTRATIVE STATEMENT, IS AS FOLLOWS: TO ACCOUNTANTS OF LOCAL CORPORATIONS. SUBJECT: METHOD OF COMPUTING ANNUAL SALARIES.

ANNUAL SALARIES ARE TO BE COMPUTED AS FOLLOWS:

1. THE AMOUNT DUE AND PAYABLE FOR A CALENDAR MONTH IS ONE-TWELFTH ( 1/12 ( OF THE NET ANNUAL SALARY.

2. IF AMOUNT EARNED IN ANY MONTH IS FOR A FRACTIONAL PART OF A MONTH, THE AMOUNT TO BE PAID SHALL BE COMPUTED ON A THIRTY-DAY BASIS. IN DETERMINING THE AMOUNT DUE SUNDAYS AND HOLIDAYS ARE TO BE INCLUDED.

EXAMPLE:

ANNUAL SALARY GROSS, $1,440.00--- NET, $1,296.00 EMPLOYED MAY 7TH-- (MAY 7 TO 31 INCL., 25 DAYS). 25 DAYS OR 25/30 OF ONE MONTH AT $108.00 PER MONTH--- $90.00.

R. J. DILLON,

COMPTROLLER.

PARAGRAPHS NOS. 1 AND 2 OF INSTRUCTION NO. 11 WERE CORRECT, BUT THE EXAMPLE WAS INCORRECT. ON A 30-DAY BASIS, THE PERIOD MAY 7 TO 31, INCLUSIVE, IS 24 DAYS ONLY, THE 31ST BEING EXCLUDED. LIKEWISE, IN THE 2 CASES HERE INVOLVED, THE PERIOD FROM MAY 22 TO 31, INCLUSIVE, WAS, FOR PAY PURPOSES, 9 DAYS, NOT 10 DAYS, AND THE PERIOD FROM MAY 27 TO 31, INCLUSIVE, WAS 4 DAYS, NOT 5 DAYS. SEE IN THIS CONNECTION THE PROVISION IN SECTION 6 OF THE ACT OF JUNE 30, 1906, WHICH READS:

* * * ANY PERSON ENTERING THE SERVICE OF THE UNITED STATES DURING A THIRTY-ONE DAY MONTH AND SERVING UNTIL THE END THEREOF SHALL BE ENTITLED TO PAY FOR THAT MONTH FROM THE DATE OF ENTRY TO THE THIRTIETH DAY OF SAID MONTH, BOTH DAYS INCLUSIVE; * * *.

REGARDING THE STATEMENT THAT THE "PROJECT AT THAT TIME WAS A LOCAL CORPORATION, ETC., " FROM WHICH APPARENTLY IT IS INTENDED TO BE INFERRED THAT THE STATUTORY RULE FOR COMPUTING COMPENSATION WOULD NOT BE APPLICABLE, REFERENCE IS MADE TO THE FOLLOWING IN DECISION OF JULY 12, 1935, A-61949, TO THE SECRETARY OF THE INTERIOR:

SUBSISTENCE HOMESTEADS WERE PROVIDED FOR UNDER SECTION 208 OF THE NATIONAL INDUSTRIAL RECOVERY ACT OF JUNE 16, 1933, 48 STAT. 205. THE PRESIDENT DELEGATED HIS AUTHORITY UNDER SAID SECTION TO THE SECRETARY OF THE INTERIOR BY EXECUTIVE ORDER NO. 6209, DATED JULY 21, 1933. ANY ORGANIZATION CREATED BY THE SECRETARY OF THE INTERIOR UNDER SAID STATUTE, WHETHER A CORPORATION OR OTHER FORM OF FEDERAL AGENCY, IS IN THE "CIVIL BRANCH OF THE UNITED STATES GOVERNMENT" AND THE PERSONNEL THEREOF IS SUBJECT TO THE STATUTORY PROHIBITION AGAINST ADMINISTRATIVE PROMOTION. THERE IS NO MERIT IN THE CONTENTION THAT THE FIRST FORM OF SUBSISTENCE HOMESTEADS ORGANIZATION WAS NOT A FEDERAL AGENCY IN THE "CIVIL BRANCH OF THE UNITED STATES GOVERNMENT," OR THAT THE APPOINTMENT OF MRS. GRAY, EFFECTIVE JULY 6, 1934, INCIDENT TO THE CHANGE OF THE FORM OF THE ORGANIZATION, WAS AN ORIGINAL APPOINTMENT IN THE FEDERAL SERVICE.

LIKEWISE THE COMPENSATION OF THE EMPLOYEES HERE INVOLVED SHOULD HAVE BEEN COMPUTED PURSUANT TO THE TERMS OF THE ACT OF 1906, SUPRA, AND THE DISALLOWANCES MUST BE AND ARE AFFIRMED, EXCEPT THAT THE DISALLOWANCE IN THE CASE OF ESTHER KIXMAN WILL BE ADJUSTED TO $4.05.