National Transportation Safety Board--Insurance for Employees Traveling on Official Business
Highlights
The National Transportation Safety Board (NTSB) improperly used its appropriated funds to purchase accident insurance for its employees on official travel. NTSB does not have an appropriation specifically available for such a purpose, and the expenditures cannot be justified as a necessary expense. Because NTSB has no appropriation available to purchase accident insurance, the payments NTSB made constitute violations of the Antideficiency Act. NTSB must report the violations to the President and Congress, with a copy of the report to the Comptroller General.
B-309715, National Transportation Safety Board--Insurance for Employees Traveling on Official Business, September 25, 2007
Decision
Matter of: National Transportation Safety Board—Insurance for Employees Traveling on Official Business
DIGEST
The National Transportation Safety Board (NTSB) improperly used its appropriated funds to purchase accident insurance for its employees on official travel. NTSB does not have an appropriation specifically available for such a purpose, and the expenditures cannot be justified as a necessary expense. Because NTSB has no appropriation available to purchase accident insurance, the payments NTSB made constitute violations of the Antideficiency Act. NTSB must report the violations to the President and Congress, with a copy of the report to the Comptroller General.
DECISION
The National Transportation Safety Board (NTSB) has requested a decision under 31 U.S.C. sect. 3529 regarding whether NTSB properly used its appropriated funds to purchase accidental death and dismemberment insurance for its employees traveling on official business and, if not, whether such payments constituted violations of the Antideficiency Act, 31 U.S.C. sect. 1341. Letter from Steven E. Goldberg, Chief Financial Officer, NTSB, to David M. Walker, Comptroller General of the United States, Re: Request for Advisory Opinion Under 31 U.S.C. sect. 3529 Concerning Payment of Insurance Coverage for NTSB Employees, June 19, 2007 (Goldberg Letter). We conclude that NTSB's appropriation was not available to purchase such insurance and that NTSB's payments for the insurance violated the Antideficiency Act.
Our practice when rendering decisions is to obtain the views of the relevant federal agencies. GAO, Procedures and Practices for Legal Decisions and Opinions, GAO-06-1064SP (
BACKGROUND
NTSB employees fly in official travel status on various types of commercial and government aircraft, both as ticketed and non-ticketed passengers, to transportation accident sites around the world. Goldberg Letter, at 1. In the aftermath of a 1996 crash of an Air Force airplane in
To allay these concerns, NTSB purchased an accidental death and dismemberment insurance policy in 1998 for its employees who travel on official business and renewed it regularly until 2006.[2]
In September 2006, NTSB extended the policy until September 2007; however, on the advice of counsel, NTSB did not pay the invoice for that year and canceled the policy retroactively to
DISCUSSION
Appropriated funds are available only for the objects for which they were made unless otherwise provided by law. 31 U.S.C. sect. 1301(a). However, each item of expenditure need not be specified in an appropriations act. B-306748,
As a general matter, accident insurance while in official travel status is a personal expense to be borne by the employee. 47 Comp. Gen. 319 (1967); B-128981,
We have not objected to the use of appropriated funds to cover what would otherwise be personal expenses where the benefit accruing to the government outweighs the personal nature of the expense. E.g., B-288266,
In one case, we concluded that the General Services Administration could accept accident insurance coverage for federal employees when the insurance was merely incidental to a statutorily authorized travel agent contract or a contract for travel cards. B-222234,
When an agency's appropriation is not available for a certain purpose, and the agency has no other funds available for that purpose, any payments the agency makes or obligations it incurs for that purpose violate the Antideficiency Act, 31 U.S.C. sect. 1341(a).[3] B-302710,
CONCLUSION
NTSB improperly used its appropriated funds to purchase accident insurance for its employees on official travel. NTSB does not have an appropriation specifically available for such a purpose, and the purchase cannot be justified as a necessary expense. Because NTSB has no appropriation available to purchase accident insurance, the payments NTSB made constitute violations of the Antideficiency Act. NTSB must report the violation to the President and Congress, with a copy to the Comptroller General.
Gary L. Kepplinger
General Counsel
[1] The Federal Tort Claims Act allows waiver of the federal government's sovereign immunity in cases where federal employees are negligent while acting within the scope of their employment. 28 U.S.C. sect. 1346(b).
[2] NTSB renewed the policy on a yearly basis until July 2002, when it renewed the policy for 3 years. E-mail from Linda L. Lewis, Assistant General Counsel, NTSB, to Wesley Dunn, Senior Staff Attorney, GAO, Subject: NTSB Insurance Opinion, Aug. 24, 2007; Letter from Laura A. Cincotta, Assistant Vice President, Marsh USA Inc., to Donald P. Libera, Jr., Deputy Chief Financial Officer, NTSB, Subject: Group Business Travel Accident Insurance Life Insurance Company of
[3] Section 1341(a) provides in part, An officer or employee of the