A-79471, SEPTEMBER 14, 1936, 16 COMP. GEN. 236

A-79471: Sep 14, 1936

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TENNESSEE VALLEY AUTHORITY - CLAIMS AND PAY ROLL PAYMENTS - SUPPORTING DATA THE TENNESSEE VALLEY AUTHORITY IS NOT EXEMPTED FROM THE PROVISIONS OF SECTION 3 OF THE ACT OF MARCH 5. ARE SUBJECT TO AUDIT BY THE GENERAL ACCOUNTING OFFICE AND SHOULD BE SUPPORTED BY EVIDENCE NECESSARY TO SHOW THEIR CORRECTNESS AND LEGALITY. THERE SHOULD BE FURNISHED IN CONNECTION WITH PAYMENTS TO EMPLOYEES OF THE TENNESSEE VALLEY AUTHORITY PAID BY THE HOUR THE TOTAL NUMBER OF SERVICE HOURS FOR A PAY PERIOD DURING WHICH SUCH EMPLOYEES ARE REQUIRED TO WORK. WHERE THE HOURS WORKED ARE IN EXCESS OF THE TOTAL NUMBER OF SERVICE HOURS FOR THE PAY PERIOD. PROPER EXPLANATION SHOULD APPEAR ON THE PAY ROLL SHOWING THE DAYS ON WHICH THE OVERTIME WAS WORKED.

A-79471, SEPTEMBER 14, 1936, 16 COMP. GEN. 236

TENNESSEE VALLEY AUTHORITY - CLAIMS AND PAY ROLL PAYMENTS - SUPPORTING DATA THE TENNESSEE VALLEY AUTHORITY IS NOT EXEMPTED FROM THE PROVISIONS OF SECTION 3 OF THE ACT OF MARCH 5, 1928, 45 STAT. 193, REQUIRING THAT THE REASONABLE VALUE OF QUARTERS, SUBSISTENCE, ETC., FURNISHED EMPLOYEES "SHALL BE DETERMINED AND CONSIDERED AS A PART OF THE COMPENSATION IN FIXING THE SALARY RATE OF SUCH CIVILIANS," AND SUCH DETERMINATION SHOULD BE IN ADVANCE, BASED UPON THE REASONABLE VALUE OF ALLOWANCES FURNISHED, AND, IF PRACTICABLE, BE FIXED ON THE SAME BASIS AS THE SALARY OF THE EMPLOYEE CONCERNED. CLAIMS PAYMENTS MADE FROM APPROPRIATED MONEYS UNDER THE ADMINISTRATIVE DIRECTION OF THE TENNESSEE VALLEY AUTHORITY, INCLUDING PAYMENTS ON CLAIMS FOR AMOUNTS DUE DECEASED OR INCOMPETENT EMPLOYEES, ARE SUBJECT TO AUDIT BY THE GENERAL ACCOUNTING OFFICE AND SHOULD BE SUPPORTED BY EVIDENCE NECESSARY TO SHOW THEIR CORRECTNESS AND LEGALITY. THE PAY ROLLS OF THE TENNESSEE VALLEY AUTHORITY SHOULD SHOW THE DESIGNATIONS OR TITLES OF POSITIONS, THE SALARY GRADES, THE TOTAL SALARY RATES--- CONSIDERATION TO BE GIVEN THE PROVISIONS OF THE CLASSIFICATION ACT OF 1923 AS EXTENDED TO THE FIELD SERVICE BY SECTION 2 OF THE BROOKHART SALARY ACT, 46 STAT. 1005, IN ESTABLISHING THE GRADES--- AND IN CASES OF SUPPLEMENTAL PAYMENTS TO EMPLOYEES, THE VOUCHER NUMBER ON WHICH ORIGINALLY PAID, THE DATE OF PAYMENT, AND THE NAME OF THE DISBURSING OFFICER CONCERNED. THERE SHOULD BE FURNISHED IN CONNECTION WITH PAYMENTS TO EMPLOYEES OF THE TENNESSEE VALLEY AUTHORITY PAID BY THE HOUR THE TOTAL NUMBER OF SERVICE HOURS FOR A PAY PERIOD DURING WHICH SUCH EMPLOYEES ARE REQUIRED TO WORK, AND WHERE THE HOURS WORKED ARE IN EXCESS OF THE TOTAL NUMBER OF SERVICE HOURS FOR THE PAY PERIOD, PROPER EXPLANATION SHOULD APPEAR ON THE PAY ROLL SHOWING THE DAYS ON WHICH THE OVERTIME WAS WORKED.

ACTING COMPTROLLER GENERAL ELLIOTT TO THE TREASURER, TENNESSEE VALLEY AUTHORITY, SEPTEMBER 14, 1936:

REFERENCE IS MADE TO LETTER OF THE AUDIT DIVISION OF THIS OFFICE TO YOU DATED MAY 27, 1936, AS FOLLOWS:

IN THE EXAMINATION OF YOUR ACCOUNT FOR THE MONTH OF JULY 1935, THE FOLLOWING DISCREPANCIES HAVE BEEN NOTED:

DEDUCTIONS FOR MEALS, DORMITORY, ETC., HAVE BEEN MADE ON NUMEROUS VOUCHERS. THIS OFFICE SHOULD BE FURNISHED WITH A SCHEDULE SHOWING THE RATES USED IN DETERMINING THE AMOUNT TO BE DEDUCTED UNDER EACH HEAD.

AMOUNTS DUE DECEASED OR INCOMPETENT EMPLOYEES HAVE BEEN PAID TO THE INDIVIDUALS CLAIMING SAME, UNDER FORM NO. 1055 ATTACHED TO THE VOUCHERS, WHEREAS GENERAL REGULATIONS NO. 42, SUPPLEMENT NO. 1, 7 COMP. GEN. 848, 849, PRESCRIBES THAT CLAIMS OF WHATEVER CHARACTER AGAINST THE UNITED STATES COVERING AMOUNTS DUE DECEASED OR INCOMPETENT EMPLOYEES ARE FOR THE GENERAL ACCOUNTING OFFICE TO ADJUST BY DIRECT SETTLEMENT.

EMPLOYEES ON A PER ANNUM BASIS HAVE BEEN PAID AT VARIOUS RATES. IT IS REQUESTED THAT THIS OFFICE BE FURNISHED A SCHEDULE OF RATES OF PAY FOR THE DIFFERENT DESIGNATIONS SHOWN.

NUMEROUS VOUCHERS CONTAIN PAYMENTS WHICH APPEAR TO BE SUPPLEMENTAL TO PRIOR PAYMENTS TO THE EMPLOYEES. IN EACH OF SUCH CASES CITATION TO THE ORIGINAL VOUCHER BY DISBURSING OFFICER'S VOUCHER NUMBER, DATE OF PAYMENT AND THE NAME OF THE DISBURSING OFFICER WHO MADE THE PAYMENT, SHOULD BE FURNISHED.

WHERE EMPLOYEES ARE PAID ON AN HOURLY BASIS, THE TOTAL NUMBER OF SERVICE HOURS FOR THE PAY PERIOD SHOULD BE SHOWN. IN CASE THE HOURS WORKED EXCEED THE TOTAL NUMBER OF SERVICE HOURS, THE DAYS INDICATING THE NUMBER OF HOURS PER DAY ON WHICH SERVICES WERE PERFORMED SHOULD BE SHOWN.

IT IS ALSO NOTED THAT MANY PAYMENTS HAVE BEEN MADE TO EMPLOYEES WITHOUT A SHOWING ON THE PAY ROLLS OF THEIR DESIGNATIONS. THE DESIGNATION OF EACH EMPLOYEE IS REQUIRED.

THE FOREGOING CIRCUMSTANCES ARE BROUGHT TO YOUR NOTICE WITH A VIEW TO AVOIDING THE SUSPENSION OF SIMILAR ITEMS IN VOUCHERS SUBMITTED TO THIS OFFICE IN FUTURE ACCOUNTS, AND YOUR EARLY REPLY ADVISING THIS OFFICE OF THE ACTION TAKEN IN THIS REGARD WILL BE APPRECIATED.

THE FOLLOWING REPLY, DATED JULY 17, 1936, WAS RECEIVED FROM THE COMPTROLLER OF THE TENNESSEE VALLEY AUTHORITY:

THIS IS IN REPLY TO YOUR LETTER OF MAY 27, ADDRESSED TO MRS. F. D. GOODRICH, TREASURER, AND REFERRED BY HER TO THIS OFFICE FOR REPLY. THIS LETTER YOU BRING TO OUR ATTENTION SEVERAL DISCREPANCIES NOTED IN OUR ACCOUNTS SUBMITTED FOR THE MONTH OF/JULY 1935, AND YOU REQUEST THAT WE INFORM YOU REGARDING ANY ACTION TAKEN BY US WITH A VIEW TOWARD AVOIDING SUCH DISCREPANCIES ON FUTURE ACCOUNTS SUBMITTED BY US.

TAKING THESE VARIOUS DISCREPANCIES IN ORDER, AS LISTED IN YOUR LETTER, YOU STATE FIRST: ,DEDUCTIONS FOR MEALS, DORMITORY, ETC., HAVE BEEN MADE ON NUMEROUS VOUCHERS. THIS OFFICE SHOULD BE FURNISHED WITH A SCHEDULE SHOWING THE RATES USED IN DETERMINING THE AMOUNT TO BE DEDUCTED UNDER EACH HEAD.'

SUCH A SCHEDULE COULD BE FURNISHED BY US, BUT WE QUESTION ITS USEFULNESS UNLESS YOU ARE ALSO FURNISHED WITH ADDITIONAL INFORMATION WHICH WILL ENABLE YOU TO DETERMINE THE CORRECT RATE TO BE APPLIED.

AT THE PRESENT TIME PRICES OF DORMITORY ROOMS AND MEALS VARY ACCORDING TO THE LOCATION OF THE CAMP. WITHIN THE SAME CAMP DEDUCTIONS FOR MEALS WILL VARY ACCORDING TO THE NUMBER OF MEALS MISSED DURING THE PAY-ROLL PERIOD. PRICES FOR DORMITORY ROOMS ALSO VARY ACCORDING TO THE LOCATION OF THE ROOMS (CORNER OR OUTSIDE), THE NUMBER OF OCCUPANTS, ET CETERA. NEEDLESS TO SAY, THERE ALSO WILL BE WIDE VARIATION IN RATES FOR HOUSE RENTAL AND VARIOUS OTHER CHARGES APPEARING AS PAY-ROLL DEDUCTIONS. OUR FIELD OFFICES REGULARLY CHECK THESE MATTERS.

IT THEREFORE APPEARS THAT IN ORDER FOR YOU TO VERIFY ALL PAY-ROLL DEDUCTIONS, IT WILL BE NECESSARY FOR YOU TO HAVE NOT ONLY THE SCHEDULES SHOWING VARIOUS RATES OF CHARGES, BUT ALSO A GREAT AMOUNT OF DETAILED INFORMATION REGARDING NUMBER OF MEALS TAKEN BY EMPLOYEES, LOCATION AND NUMBER OF OCCUPANTS IN DORMITORY ROOMS, LOCATION AND TYPE OF HOUSES, KWH CONSUMPTION OF ELECTRICITY, AND THE LIKE. IN THE PAST OUR PROCEDURE WAS ACCEPTED BY THE FIELD AUDITORS OF THE GENERAL ACCOUNTING OFFICE.

THE SECOND POINT RAISED IN YOUR LETTER HAS TO DO WITH THE SETTLEMENT OF CLAIMS FOR AMOUNTS DUE DECEASED OR INCOMPETENT EMPLOYEES DIRECTLY BY THE TENNESSEE VALLEY AUTHORITY, RATHER THAN BY SUBMITTING THESE CLAIMS TO THE GENERAL ACCOUNTING OFFICE FOR SETTLEMENT.

AS STATED BY US ON PREVIOUS OCCASIONS, THE TENNESSEE VALLEY AUTHORITY MAINTAINS THAT IT IS AUTHORIZED TO SETTLE CLAIMS DIRECT RATHER THAN BY SUBMITTING THEM TO THE GENERAL ACCOUNTING OFFICE FOR ADJUSTMENT AND SETTLEMENT.

SECTION FOUR OF THE TENNESSEE VALLEY AUTHORITY ACT PROVIDES THAT THE CORPORATION MAY SUE AND BE SUED IN ITS CORPORATE NAME. THE POWER TO SETTLE AND COMPROMISE CLAIMS IS NECESSARILY IMPLIED NOT ONLY FROM THE SECTION OF THE TVA ACT MENTIONED ABOVE, BUT FROM THE VERY NATURE OF THE AUTHORITY AS AN INDEPENDENT CORPORATE ENTITY. TO ESTABLISH A CORPORATION TO ENGAGE IN WIDESPREAD ACTIVITIES, AND TO IMPOSE UPON IT THE LIABILITY TO SUE WHILE DENYING TO IT THE CORRESPONDING POWER TO PROTECT ITSELF BY COMPROMISE WOULD BE AN ACT OF FOLLY. NO SUCH INTENTION MAY REASONABLY BE IMPUTED TO CONGRESS. THE LANGUAGE OF THE ACT IS NOT ONLY SUSCEPTIBLE OF A DIFFERENT INTERPRETATION BUT A DIFFERENT CONSTRUCTION IS REQUIRED BY THE DECISION OF THE UNITED STATES SUPREME COURT IN THE CASE OF UNITED STATES EX REL. SKINNER AND EDDY CORPORATION V. MCCARL, 275 U.S. 1, 48 SUP.CT. 12, WHICH CLEARLY SUSTAINS THE POSITION OF THE AUTHORITY.

THE NEXT SECTION OF YOUR LETTER REQUESTS THAT YOUR OFFICE BE FURNISHED WITH A SCHEDULE OF RATES OF PAY FOR THE DIFFERENT DESIGNATIONS SHOWN ON OUR ANNUAL PAYROLLS.

WE ARE UNABLE TO COMPLY WITH THIS REQUEST AS AT THE PRESENT TIME THE DESIGNATIONS USED ON OUR PAYROLLS FOR EMPLOYEES ON AN ANNUAL BASIS ARE NOT RELATED TO THE RATES OF PAY. IN OTHER WORDS, DIFFERENT EMPLOYEES MAY RECEIVE VARYING RATES OF PAY ALTHOUGH SHOWN ON THE PAYROLLS UNDER THE SAME DESIGNATION.

AT THE PRESENT TIME OUR PERSONNEL DEPARTMENT IS WORKING ON A SYSTEM OF STANDARD DESIGNATIONS WHICH WILL BE RELATED TO RATES OF PAY AND WHICH THEREFORE MAY BE USED FOR VERIFYING THE RATES SHOWN ON PAYROLLS. YOUR OFFICE WILL BE FURNISHED WITH A COPY OF THIS SCHEDULE OF DESIGNATIONS AS SOON AS IT IS COMPLETED AND ADOPTED.

YOUR LETTER NEXT REFERS TO VOUCHERS COVERING PAYMENTS WHICH APPEAR TO BE SUPPLEMENTAL TO PRIOR PAYMENTS TO EMPLOYEES, AND WHICH DO NOT CARRY THE PROPER CITATION TO THE ORIGINAL VOUCHER SHOWING THE DISBURSING OFFICER'S VOUCHER NUMBER, DATE OF PAYMENT, AND THE NAME OF THE DISBURSING OFFICER WHO MADE THE PAYMENT.

THIS CONDITION EVIDENTLY OCCURS WHERE SHORT-FORM PAYROLL VOUCHERS ARE PREPARED TO PROVIDE PAYMENT TO EMPLOYEES FOR A PORTION OF TIME OCCURRING DURING TRANSFER WHEN THEIR NAMES ARE DROPPED FROM ONE PAYROLL AND BEFORE THEY ARE ENTERED ON THE PAYROLL OF ANOTHER DIVISION, AND FOR OTHER PURPOSES, SUCH AS ERROR IN THE ORIGINAL PAYROLL VOUCHER, ET CETERA. ARE ARRANGING TO SHOW THE INFORMATION REQUESTED ON THESE VOUCHERS IN THE FUTURE.

YOU NEXT REQUEST THAT WHERE EMPLOYEES ARE PAID ON AN HOURLY BASIS, THE TOTAL NUMBER OF SERVICE HOURS FOR THE PAY PERIOD SHOULD BE SHOWN, AND THAT IN CASE THE HOURS WORKED EXCEED THE TOTAL NUMBER OF SERVICE HOURS, THE DAYS INDICATING THE NUMBER OF HOURS PER DAY ON WHICH SERVICES WERE RENDERED SHOULD BE SHOWN.

VERIFICATION OF PAYMENTS MADE ON HOURLY PAYROLLS ARE REGULARLY MADE BY OUR FIELD OFFICERS. THIS PROCEDURE WAS ACCEPTED AS SATISFACTORY BY FIELD AUDITORS FROM THE GENERAL ACCOUNTING OFFICE ENGAGED IN EXAMINATION OF OUR ACCOUNTS.

SUBMISSION BY US OF THE INFORMATION REQUESTED BY YOU WOULD INVOLVE A COMPLETE REORGANIZATION OF OUR PAYROLL FORMS, AND CONSIDERABLE CHANGE IN OUR FIELD PAYROLL PROCEDURE.

THE NEXT PARAGRAPH OF YOUR LETTER STATES THAT MANY PAYMENTS HAVE BEEN MADE TO EMPLOYEES WITHOUT A SHOWING ON THE PAYROLLS OF THEIR DESIGNATIONS, AND YOU REQUEST THE DESIGNATION OF EACH EMPLOYEE BE SUPPLIED.

THIS STATEMENT EVIDENTLY REFERS TO OUR SHORT-FORM PAYROLLS WHICH WE FIND HAVE NOT ALWAYS CARRIED SUCH DESIGNATIONS IN THE PAST. WE ARE THEREFORE ARRANGING TO SEE THAT THESE DESIGNATIONS ARE SHOWN IN ACCORDANCE WITH YOUR REQUEST.

THE ACT OF AUGUST 12, 1935, 49 STAT. 597, PROVIDES THAT--- WITH A CERTAIN EXCEPTION NOT HERE INVOLVED--- ALL FUNDS MADE AVAILABLE FOR THE USE OF THE TENNESSEE VALLEY AUTHORITY "SHALL BE * * * ACCOUNTED FOR AS ONE FUND.'

PURSUANT TO SECTION 3622, REVISED STATUTES, AS AMENDED BY THE BUDGET AND ACCOUNTING ACT OF JUNE 10, 1921, 42 STAT. 24, THERE IS REQUIRED TO BE TRANSMITTED TO THE GENERAL ACCOUNTING OFFICE THE ACCOUNTS OF ACCOUNTABLE OFFICERS OF THE UNITED STATES "WITH THE VOUCHERS NECESSARY TO THE CORRECT AND PROMPT SETTLEMENT THEREOF.' SEE LETTER TO YOU DATED APRIL 23, 1936, A -51298. ALL VOUCHERS TRANSMITTED WITH THE ACCOUNTS, INCLUDING PAY ROLLS, MUST BE IN SUCH FORM AND SUPPORTED BY SUCH EVIDENCE AS TO FACILITATE THE PERFORMANCE OF THE AUDIT FUNCTION IMPOSED BY LAW UPON THIS OFFICE.

IN LETTER DATED NOVEMBER 6, 1935, A-44024, THE CHAIRMAN OF THE BOARD OF DIRECTORS, TENNESSEE VALLEY AUTHORITY, WAS ADVISED:

YOU WILL APPRECIATE, OF COURSE, THAT INASMUCH AS IT IS THE RESPONSIBILITY OF THIS OFFICE TO ALLOW OR DISALLOW CREDIT FOR PAYMENTS APPEARING IN AN ACCOUNT, IT IS FOR THIS OFFICE TO DETERMINE WHAT PROOFS ARE NECESSARY TO JUSTIFY ALLOWANCE OF CREDIT.

IT IS NOT TO BE ASSUMED THAT THE ACCOUNTABLE OFFICER OF THE AUTHORITY IS WITHOUT KNOWLEDGE OF ACCOUNTABILITY REQUIREMENTS BUT IF DOUBT SHOULD ARISE AS TO WHAT IS NECESSARY IN ANY UNUSUAL CIRCUMSTANCE OR CONDITION THE MATTER MAY BE SUBMITTED HERE. OTHERWISE, ANY LACK OF PROPER AND SATISFACTORY SUPPORT FOR PAYMENTS APPEARING IN THE ACCOUNT WILL NECESSITATE A WITHHOLDING OF CREDIT UNTIL PROPERLY AND DULY SUPPORTED AS TO CORRECTNESS AND LEGALITY.

THE ACCOUNTABLE OFFICER WILL BE ADVISED OF ANY EXCEPTIONS DETERMINED TO BE NECESSARY BY THIS OFFICE, AND AS THEY ARISE IN THE EXAMINATION OF THE ACCOUNTS BY THIS OFFICE, IN ORDER THAT SUCH EXCEPTIONS MAY BE ADMINISTRATIVELY RESPONDED TO, AND ONLY SUCH EXCEPTIONS AS ARE FOUND ULTIMATELY TO REQUIRE DISALLOWANCE WILL BE NECESSARY FOR LISTING AS UNAUTHORIZED PAYMENTS IN THE AUDIT REPORT. AS TO THESE, THE ACCOUNTABLE OFFICER WILL HAVE BEEN FULLY ADVISED AND YOUR AUTHORITY AFFORDED OPPORTUNITY TO MAKE FULL EXPLANATION.

A COPY HEREOF IS BEING TRANSMITTED TO THE ACCOUNTABLE OFFICER OF THE AUTHORITY AND THE COOPERATION OF ALL CONCERNED WILL BE APPRECIATED.

PURSUANT TO THE LAST PORTION OF THE QUOTED LETTER, THE LETTER OF MAY 27, 1936, TO YOU WAS TO ADVISE YOU OF THE EVIDENCE DEEMED ESSENTIAL TO SUPPORT YOUR CLAIM OF CREDIT FOR THE PAYMENTS FOR PERSONAL SERVICE ENGAGED BY THE TENNESSEE VALLEY AUTHORITY. IN THE AUDIT OF ACCOUNTS THIS OFFICE IS REQUIRED BY LAW TO DETERMINE THE LEGALITY OF EXPENDITURES OF APPROPRIATED FUNDS INDEPENDENTLY OF THE ADMINISTRATIVE OFFICE, AND MAY NOT, THEREFORE, ACCEPT THE UNSUPPORTED CONCLUSIONS OF THE ADMINISTRATIVE AUDITORS AS TO THE CORRECTNESS OR LEGALITY OF PAYMENTS. HENCE, THERE MUST BE FURNISHED THIS OFFICE, WITH THE ACCOUNTS OF THE DISBURSING OFFICER, SUFFICIENT DATA TO PERMIT AN INDEPENDENT AUDIT. WITH THE ACCOUNTS SO FAR RECEIVED FROM THE TENNESSEE VALLEY AUTHORITY THERE HAS NOT ALWAYS BEEN FURNISHED SUFFICIENT INFORMATION TO AUTHORIZE ALLOWANCE OF CREDIT FOR THE PAYMENTS INVOLVED AND THE LETTER FROM THE COMPTROLLER OF THE TENNESSEE VALLEY AUTHORITY WOULD SEEM TO INDICATE EITHER A MISUNDERSTANDING OF THE AUDIT FUNCTIONS OF THIS OFFICE OR A FAILURE TO COMPREHEND THE NATURE OF THE DETAILED INFORMATION NECESSARY TO DETERMINE CREDIT FOR PAYMENTS FROM APPROPRIATED FUNDS.

REFERRING TO THE SECOND PARAGRAPH OF OFFICE LETTER OF MAY 27, 1936, SUPRA, YOUR ATTENTION IS INVITED TO SECTION 3 OF THE ACT OF MARCH 5, 1928, 45 STAT. 193, AS FOLLOWS:

THE HEAD OF AN EXECUTIVE DEPARTMENT OR INDEPENDENT ESTABLISHMENT, WHERE, IN HIS JUDGMENT, CONDITIONS OF EMPLOYMENT REQUIRE IT, MAY CONTINUE TO FURNISH CIVILIANS EMPLOYED IN THE FIELD SERVICE WITH QUARTERS, HEAT, LIGHT, HOUSEHOLD EQUIPMENT, SUBSISTENCE, AND LAUNDRY SERVICE; AND APPROPRIATIONS FOR THE FISCAL YEAR 1929 AND THEREAFTER OF THE CHARACTER HERETOFORE USED FOR SUCH PURPOSES ARE HEREBY MADE AVAILABLE THEREFOR: PROVIDED, THAT THE REASONABLE VALUE OF SUCH ALLOWANCES SHALL BE DETERMINED AND CONSIDERED AS PART OF THE COMPENSATION IN FIXING THE SALARY RATE OF SUCH CIVILIANS.

NOTE PARTICULARLY THE REQUIREMENT IN THE PROVISO WITH RESPECT TO DETERMINATION OF THE ,REASONABLE VALUE" OF THE ALLOWANCES WHICH REASONABLE VALUE IS TO BE CONSIDERED AS PART OF THE COMPENSATION. NOTHING APPEARS IN THE TENNESSEE VALLEY AUTHORITY ACT, AS AMENDED, TO EXEMPT PERSONNEL PAYMENTS MADE BY THE TENNESSEE VALLEY AUTHORITY FROM THE REQUIREMENTS OF THE QUOTED STATUTE. IN FIXING THE TOTAL SALARY RATE OF A POSITION THERE MUST BE INCLUDED THE DETERMINED VALUE OF THE ALLOWANCES FURNISHED IN KIND, THAT IS, QUARTERS, SUBSISTENCE, ETC., AND ONLY THE NET AMOUNT AFTER DEDUCTION OF THE DETERMINED VALUE OF SUCH ALLOWANCES IS AUTHORIZED TO BE PAID IN CASH TO THE EMPLOYEES. THE VALUE OF ALLOWANCES FURNISHED IN KIND, PARTICULARLY QUARTERS, SHOULD BE THE VALUE TO THE EMPLOYEES, THAT IS, THE AMOUNT AN EMPLOYEE IN A SIMILAR SALARY STATUS WOULD BE RELIEVED FROM PAYING COMMERCIALLY. THE VALUE OF QUARTERS SHOULD NOT NECESSARILY BE BASED UPON THE INVESTMENT OF THE GOVERNMENT IN THE BUILDING, NOR THE RENTAL VALUE TO THE GOVERNMENT. THE RATES--- THAT IS, THE REASONABLE VALUE TO THE EMPLOYEE--- SHOULD BE DETERMINED IN ADVANCE AND, IF PRACTICABLE, FIXED ON THE SAME BASIS AS THE SALARY RATE, VIZ, PER ANNUM, PER DIEM, ETC. THE BASIS MAY BE EITHER ON FULL TIME OR WHEN ON ACTUAL DUTY, AND IF THE DETERMINATION IS ON THE BASIS OF FULL TIME, NO DEDUCTION SHOULD BE MADE IN FAVOR OF THE EMPLOYEE WHO IS ABSENT AND DOES NOT UTILIZE AVAILABLE ALLOWANCES. IN EITHER EVENT, A FIXED VALUE SHOULD BE DETERMINED, STATED IN SCHEDULES OR REGULATIONS TRANSMITTED TO THIS OFFICE, AND REGULARLY DEDUCTED ON THE PAY ROLLS. THERE SHOULD BE UNIFORMITY AND REGULARITY IN SUCH MATTERS. SEE 5 COMP. GEN. 236; ID. 957; 6 ID. 120; ID. 332; ID. 484; 7 ID. 336; 8 ID. 628; 9 ID. 528; AND 10 ID. 493.

REFERENCE IS MADE TO THE THIRD PARAGRAPH OF OFFICE LETTER OF MAY 27, 1936. NOTWITHSTANDING THE FACT THAT THE TENNESSEE VALLEY AUTHORITY MAY BE SUED AND MAY HAVE THE AUTHORITY TO SETTLE CERTAIN CLAIMS FILED AGAINST IT, ALL PAYMENTS MADE UNDER ITS ADMINISTRATIVE DIRECTION FROM APPROPRIATED MONEYS, INCLUDING PAYMENTS ON CLAIMS FOR AMOUNTS DUE DECEASED OR INCOMPETENT EMPLOYEES, ARE, OF COURSE, SUBJECT TO AUDIT BY THIS OFFICE AND THE ACCOUNTS IN WHICH CREDIT FOR SUCH PAYMENTS IS CLAIMED SHOULD CONTAIN SUCH EVIDENCE AND SUPPORTING PAPERS AS ARE NECESSARY TO SHOW THAT SUCH PAYMENTS ARE CORRECT AND LEGAL. OTHERWISE, CREDIT FOR THE PAYMENTS MAY NOT BE ALLOWED IN THE SETTLEMENT OF THE ACCOUNT.

IT IS UNDERSTOOD FROM THE QUOTED LETTER FROM THE COMPTROLLER THAT THE PAY -ROLL DEFECTS POINTED OUT IN PARAGRAPHS 4 AND 7 OF THE LETTER OF MAY 27, REGARDING THE ABSENCE OF SALARY SCHEDULES AND DESIGNATION OF POSITIONS, ARE SOON TO BE CORRECTED. THE PAY ROLLS SHOULD SHOW THE DESIGNATION OR TITLE OF THE POSITION, THE SALARY GRADE (PRESUMABLY CLASSIFICATION ACT GRADES), THE TOTAL SALARY RATES, AND THE AMOUNTS DEDUCTED FROM THE TOTAL SALARY RATE OF THE EMPLOYEE CONCERNED AS REPRESENTING THE VALUE OF ALLOWANCES FURNISHED IN KIND FOR EACH PAY PERIOD, AND THIS OFFICE SHOULD BE FURNISHED THE SCHEDULE OR OTHER ADMINISTRATIVE ORDER PRESCRIBING THE DETERMINED VALUE OF ALLOWANCES AND THE METHOD USED ADMINISTRATIVELY IN DETERMINING THE AMOUNT TO BE DEDUCTED. IN CONNECTION WITH THIS MATTER THERE WOULD SEEM TO BE FOR CONSIDERATION THE PROVISIONS OF THE CLASSIFICATION ACT OF 1923 AS EXTENDED TO THE FIELD SERVICE BY SECTION 2 OF THE BROOKHART SALARY ACT OF JULY 3, 1930 (46 STAT. 1005).

IT IS UNDERSTOOD THE OBJECTION RAISED IN THE FIFTH PARAGRAPH OF THE OFFICE LETTER OF MAY 27 IS TO BE MET.

REFERRING TO THE SIXTH PARAGRAPH OF SAID LETTER, YOU ARE ADVISED THAT IT IS NECESSARY FOR THIS OFFICE TO BE FURNISHED THE TOTAL NUMBER OF SERVICE HOURS FOR A PAY PERIOD DURING WHICH EMPLOYEES PAID BY THE HOUR ARE REQUIRED TO WORK AND THAT IN CASE THE HOURS WORKED ARE SHOWN TO EXCEED THE TOTAL NUMBER OF SERVICE HOURS THUS STATED FOR PAY PERIOD, AN EXPLANATION SHOULD APPEAR IN THE ,REMARKS" COLUMN OF THE PAY ROLL, GIVING THE DAYS ON WHICH THE OVERTIME WAS WORKED.

PROMPT COMPLIANCE WITH THE REQUIREMENTS HEREIN MENTIONED WILL FACILITATE THE SETTLEMENT OF YOUR ACCOUNTS.