A-87116, JUNE 28, 1937, 16 COMP. GEN. 1122

A-87116: Jun 28, 1937

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1936 - TRANSFERS OF FUNDS TO COVER ACCRUED LEAVE OF EMPLOYEES TRANSFERRED THE TRANSFER FROM ONE BRANCH OF THE SERVICE TO ANOTHER OF A SUM SUFFICIENT TO COVER THE ACCRUED LEAVE OF A TRANSFERRED CIVILIAN EMPLOYEE IS UNAUTHORIZED. IS AS FOLLOWS: IN THE ADMINISTRATION OF APPROPRIATIONS FOR RIVERS AND HARBORS AND FLOOD CONTROL. IT IS NECESSARY IN ORDER TO DETERMINE ACCURATELY THE COST OF LABOR INVOLVED IN THE PERFORMANCE OF WORK. THAT IS. DUE WEIGHT IS THEREFORE GIVEN TO THIS ELEMENT BY ADDING TO THE CURRENT LABOR COSTS CHARGEABLE TO WORK IN PROGRESS A PREDETERMINED PERCENTAGE SUFFICIENT TO ABSORB THE COST OF NON- EFFECTIVE TIME. THE AMOUNT SO ABSORBED IS CREDITED TO A CLEARING ACCOUNT TO WHICH IS CHARGED THE COST OF SUCH NON-EFFECTIVE TIME AS IT OCCURS.

A-87116, JUNE 28, 1937, 16 COMP. GEN. 1122

LEAVES OF ABSENCE - ACT, MARCH 14, 1936 - TRANSFERS OF FUNDS TO COVER ACCRUED LEAVE OF EMPLOYEES TRANSFERRED THE TRANSFER FROM ONE BRANCH OF THE SERVICE TO ANOTHER OF A SUM SUFFICIENT TO COVER THE ACCRUED LEAVE OF A TRANSFERRED CIVILIAN EMPLOYEE IS UNAUTHORIZED.

ACTING COMPTROLLER GENERAL ELLIOTT TO THE SECRETARY OF WAR, JUNE 28, 1937:

YOUR LETTER OF JUNE 17, 1937, IS AS FOLLOWS:

IN THE ADMINISTRATION OF APPROPRIATIONS FOR RIVERS AND HARBORS AND FLOOD CONTROL, THE CORPS OF ENGINEERS HAS ESTABLISHED A UNIFORM SYSTEM OF COST- KEEPING. THIS SYSTEM EMBRACES THE ALLOCATION OF THE USUAL ELEMENTS OF COSTS (LABOR, MATERIAL, PLANT, AND OVERHEAD) TO VARIOUS PROJECTS, FEATURES, AND UNITS OF WORK PERFORMED. IT IS NECESSARY IN ORDER TO DETERMINE ACCURATELY THE COST OF LABOR INVOLVED IN THE PERFORMANCE OF WORK, TO CONSIDER THE ELEMENT OF NON-EFFECTIVE TIME OF EMPLOYEES, THAT IS, ANNUAL LEAVE, SICK LEAVE, AND HOLIDAY TIME. DUE WEIGHT IS THEREFORE GIVEN TO THIS ELEMENT BY ADDING TO THE CURRENT LABOR COSTS CHARGEABLE TO WORK IN PROGRESS A PREDETERMINED PERCENTAGE SUFFICIENT TO ABSORB THE COST OF NON- EFFECTIVE TIME. THE AMOUNT SO ABSORBED IS CREDITED TO A CLEARING ACCOUNT TO WHICH IS CHARGED THE COST OF SUCH NON-EFFECTIVE TIME AS IT OCCURS. THIS METHOD IS SATISFACTORY AND ACCOMPLISHES THE DESIRED RESULT AS LONG AS AN EMPLOYEE REMAINS WITH THE CORPS OF ENGINEERS.

UNDER THE PROVISIONS OF EXECUTIVE ORDER PRESCRIBING UNIFORM LEAVE REGULATIONS, DATED JULY 9, 1936, A MAXIMUM OF 60 DAYS ANNUAL AND 90 DAYS TRANSFERRED FROM ONE DEPARTMENT TO ANOTHER THE ACCRUED LEAVE TO HIS CREDIT IS TRANSFERRED WITH HIM. SINCE NO PROVISION IS MADE FOR TRANSFERRING THE MONEY VALUE OF SUCH ACCRUED LEAVE, SALARY PAYMENTS DURING THE PERIODS, OR PERIODS, FOR WHICH THE LEAVE IS ACTUALLY GRANTED MUST BE CHARGED TO THE WORK UNDER THE DEPARTMENT TO WHICH THE EMPLOYEE IS TRANSFERRED. THIS IS AN IMPROPER CHARGE TO SUCH WORK AND MAY RESULT IN DISTORTED COSTS.

ASSUMING THAT AN EMPLOYEE WHOSE SALARY IS $3,600 PER ANNUM HAS EARNED AND HAS TO HIS CREDIT THE MAXIMUM AMOUNT OF LEAVE AT THE TIME HE IS TRANSFERRED FROM DEPARTMENT A TO DEPARTMENT B AND THAT THIS EMPLOYEE ACTUALLY TAKES HIS ACCRUED LEAVE WHILE HE IS EMPLOYED UNDER DEPARTMENT B-- - IN SUCH CASES IT IS APPARENT THAT THE WORK UNDER DEPARTMENT B WILL BE BURDENED WITH THE COST OF 150 DAYS' LEAVE (APPROXIMATELY 5 MONTHS AT $300 PER MONTH, OR $1,500) WHICH IS AN APPROPRIATE CHARGE TO THE WORK THE EMPLOYEE PERFORMED WHILE HE WAS EMPLOYED UNDER DEPARTMENT A.

YOUR DECISION IS THEREFORE REQUESTED ON THE FOLLOWING QUESTION: WHEN AN EMPLOYEE IS TRANSFERRED FROM ONE DEPARTMENT TO ANOTHER, MAY A SUM SUFFICIENT TO COVER THE ACCRUED LEAVE TO HIS CREDIT BE TRANSFERRED BETWEEN THE APPROPRIATIONS OF THE DEPARTMENTS INVOLVED, PROVIDED AN ADVANCE AGREEMENT HAS BEEN MADE TO THAT EFFECT?

A SALARY OF AN EMPLOYEE WHILE ON LEAVE IS PAYABLE FROM THE CURRENT APPROPRIATION OTHERWISE AVAILABLE FOR HIS COMPENSATION WHEN WORKING. THE FACT THAT THE RIGHT TO SUCH LEAVE MAY HAVE ACCRUED IN SOME OTHER BRANCH OF THE SERVICE DOES NOT AUTHORIZE AUGMENTING THE AVAILABLE APPROPRIATION BY A TRANSFER OF FUNDS FROM THE BRANCH OF THE SERVICE IN WHICH HE WAS FORMERLY EMPLOYED. YOUR QUESTION IS ACCORDINGLY ANSWERED IN THE NEGATIVE.