B-114204, MAY 14, 1953, 32 COMP. GEN. 521

B-114204: May 14, 1953

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THE ACCRUAL OF ANNUAL LEAVE PROPERLY IS FOR CONSIDERATION IN THE ADJUSTMENT OF COST FOR THE INTERDEPARTMENTAL OR INTERAGENCY SERVICES. SO THAT UPON SEPARATION OF THE EMPLOYEE FROM THE SERVICE AT THE CONCLUSION OF SAID ASSIGNMENT THE WORKING FUND MAY NOT BE CHARGED WITH THE VALUE OF THE EMPLOYEE'S LEAVE WHICH WAS ACCRUED PRIOR TO SAID ASSIGNMENT. THE ANNUAL LEAVE ACCRUED BY AN EMPLOYEE PRIOR TO ASSIGNMENT TO A WORKING FUND PAYROLL OF AGENCY MAY NOT BE CHARGED TO THE WORKING FUND AND UPON SEPARATION OF THE EMPLOYEE FROM THE SERVICE ONLY THE VALUE OF THAT PORTION OF TERMINAL LEAVE ACCRUED WHILE ON THE WORKING FUND PAYROLL IS CHARGEABLE TO THE WORKING FUND AND PRIOR ACCRUED LEAVE IS CHARGEABLE TO THE APPROPRIATION OF THE AGENCY FROM WHICH PAID PRIOR TO ASSIGNMENT TO THE WORKING FUND PAYROLL.

B-114204, MAY 14, 1953, 32 COMP. GEN. 521

WORKING FUNDS - CHARGES - ANNUAL LEAVE - LEAVE ACCRUED PRIOR TO ASSIGNMENT TO WORKING FUND PAYROLL UNDER SECTION 601 OF THE ECONOMY ACT OF 1932, WHICH AUTHORIZES THE FURNISHING OF SERVICES BY ONE GOVERNMENT AGENCY FOR ANOTHER, THE ACCRUAL OF ANNUAL LEAVE PROPERLY IS FOR CONSIDERATION IN THE ADJUSTMENT OF COST FOR THE INTERDEPARTMENTAL OR INTERAGENCY SERVICES, AND THEREFORE, THE VALUE OF ANNUAL LEAVE ACCRUED BY EMPLOYEES WHILE ON A WORKING FUND PAYROLL MAY BE CHARGED TO THE WORKING FUND. ANNUAL LEAVE ACCRUED BY AN EMPLOYEE PRIOR TO ASSIGNMENT OR TRANSFER TO A WORKING FUND PAYROLL OF AGENCY BEARS NO RELATION TO THE SERVICE TO BE PERFORMED WHILE ON THAT PAYROLL, SO THAT UPON SEPARATION OF THE EMPLOYEE FROM THE SERVICE AT THE CONCLUSION OF SAID ASSIGNMENT THE WORKING FUND MAY NOT BE CHARGED WITH THE VALUE OF THE EMPLOYEE'S LEAVE WHICH WAS ACCRUED PRIOR TO SAID ASSIGNMENT. THE ANNUAL LEAVE ACCRUED BY AN EMPLOYEE PRIOR TO ASSIGNMENT TO A WORKING FUND PAYROLL OF AGENCY MAY NOT BE CHARGED TO THE WORKING FUND AND UPON SEPARATION OF THE EMPLOYEE FROM THE SERVICE ONLY THE VALUE OF THAT PORTION OF TERMINAL LEAVE ACCRUED WHILE ON THE WORKING FUND PAYROLL IS CHARGEABLE TO THE WORKING FUND AND PRIOR ACCRUED LEAVE IS CHARGEABLE TO THE APPROPRIATION OF THE AGENCY FROM WHICH PAID PRIOR TO ASSIGNMENT TO THE WORKING FUND PAYROLL. THE ANNUAL LEAVE ACCRUED BY AN EMPLOYEE PRIOR TO TRANSFER FROM ONE AGENCY TO ANOTHER FOR THE SOLE PURPOSE OF PERFORMING WORK FINANCED BY A WORKING FUND MAY NOT BE CHARGED UPON SEPARATION OF THE EMPLOYEE FROM THE SERVICE AT THE CONCLUSION OF SUCH ASSIGNMENT TO THE WORKING FUND BUT MUST BE CHARGED TO THE APPROPRIATION OF THE AGENCY TO WHICH EMPLOYEE WAS TRANSFERRED AND FROM WHICH EMPLOYEES DOING COMPARABLE WORK ARE PAID.

COMPTROLLER GENERAL WARREN TO THE CHAIRMAN, INTERSTATE COMMERCE, COMMISSION, MAY 14, 1953:

REFERENCE IS MADE TO YOUR LETTER OF MARCH 11, 1953, SUBMITTING FOR CONSIDERATION CERTAIN QUESTIONS THAT HAVE ARISEN IN CONNECTION WITH THE ADMINISTRATION OF THE WORKING FUND CONSISTING OF MONEYS ADVANCED TO THE INTERSTATE COMMERCE COMMISSION BY THE DEFENSE TRANSPORT ADMINISTRATION TO COVER THE COMMISSION'S EXPENSES IN THE RENDITION OF ITS SERVICES TO THE DEFENSE TRANSPORT ADMINISTRATION.

THE SITUATIONS INVOLVED AND THE RELATED QUESTIONS ARE STATED IN YOUR LETTER AS FOLLOWS:

FIRST, WITH RESPECT TO AN EMPLOYEE WHO WAS TRANSFERRED FROM ANOTHER GOVERNMENT AGENCY TO THIS COMMISSION FOR THE PURPOSE OF PERFORMING WORK FOR D.T.A. AND WHOSE ENTIRE SALARY AND EXPENSES HAVE BEEN AND ARE BEING PAID FROM THE WORKING FUND: WHEN HIS SERVICE FROM SUCH EMPLOYMENT IS TERMINATED AND HE LEAVES THE GOVERNMENT SERVICE, WOULD THE WORKING FUND BE CHARGEABLE WITH THE TOTAL AMOUNT OF HIS TERMINAL LEAVE, OR ONLY WITH THE PORTION THEREOF ACCRUED WHILE ON THE WORKING FUND PAYROLL? IF THE TOTAL AMOUNT OF TERMINAL LEAVE PAYABLE UPON HIS TERMINATION OF SUCH EMPLOYMENT IS NOT CHARGEABLE TO THE WORKING FUND, WHICH ONE OF THE COMMISSION'S THREE APPROPRIATIONS LISTED THEREUNDER SHOULD BE CHARGED?

INTERSTATE COMMERCE COMMISSION--- GENERAL EXPENSES

INTERSTATE COMMERCE COMMISSION--- RAILROAD SAFETY

INTERSTATE COMMERCE COMMISSION--- LOCOMOTIVE INSPECTION

SECOND, WITH RESPECT TO AN EMPLOYEE PAID FROM THE COMMISSION'S APPROPRIATION GENERAL EXPENSES WHO TRANSFERRED TO THE WORKING FUND TO PERFORM WORK FOR D.T.A.:WHEN HIS TERMINATION FROM SUCH EMPLOYMENT IS NOT CHARGEABLE TO THE WORKING FUND, WHICH ONE OF THE COMMISSION'S THREE APPROPRIATIONS, MENTIONED ABOVE, SHOULD BE CHARGED?

THIRD, WITH RESPECT TO AN EMPLOYEE PAID FROM THE COMMISSION'S APPROPRIATION GENERAL EXPENSES WHO TRANSFERRED TO THE WORKING FUND TO PERFORM WORK FOR D.T.A., AND WHO LATER IS TRANSFERRED BACK TO THE WORK AND PAYROLL UNDER THE COMMISSION'S APPROPRIATION GENERAL EXPENSES.: SHOULD THE COMMISSION CHARGE THE WORKING FUND WITH THE VALUE OF THE EMPLOYEE'S ANNUAL LEAVE ACCRUED AT THE TIME OF HIS TRANSFER BACK TO THE COMMISSION'S PAYROLL WHICH IS IN EXCESS OF THAT ACCRUED AT THE TIME HE WAS TRANSFERRED TO THE WORKING FUND?

THE DEFENSE TRANSPORT ADMINISTRATION WAS ESTABLISHED PURSUANT TO EXECUTIVE ORDER NO. 10161, SEPTEMBER 9, 1950, ISSUED UNDER AUTHORITY OF THE DEFENSE PRODUCTION ACT OF 1950, 64 STAT. 798. THE ADMINISTRATOR OF DEFENSE TRANSPORT ADMINISTRATION IS THE COMMISSIONER OF THE INTERSTATE COMMERCE COMMISSION IN CHARGE OF THE BUREAU OF SERVICE OF THE COMMISSION. HOWEVER, THE DEFENSE TRANSPORT ADMINISTRATION IS AN INDEPENDENT AGENCY. SEE SUPPLEMENTAL APPROPRIATION ACT, 1953, JULY 15, 1952, 66 STAT. 637, 655. THUS, THE QUESTIONS PRESENTED INVOLVE THE RENDITION OF SERVICES BY ONE AGENCY OF THE GOVERNMENT TO ANOTHER, AND, THEREFORE, THERE IS FOR CONSIDERATION SECTION 601 OF THE ECONOMY ACT OF 1932, 31 U.S.C. 686, AUTHORIZING SUCH SERVICES AND, AMONG OTHER THINGS, THE ADVANCEMENT OF FUNDS THEREFOR, PROVIDED "PROPER ADJUSTMENTS ON THE BASIS OF THE ACTUAL COST OF THE * * * SERVICES PERFORMED, PAID FOR IN ADVANCE, SHALL BE MADE AS MAY BE AGREED UPON BY THE * * * OFFICES NCERNED.'

THIS OFFICE HAS RECOGNIZED, THAT UNDER SECTION 601 OF THE ECONOMY ACT, 47 STAT. 417, THE ACCRUAL OF ANNUAL LEAVE PROPERLY IS FOR CONSIDERATION IN THE ADJUSTMENT OF COST OF INTERDEPARTMENTAL OR INTERAGENCY SERVICES. SEE 17 COMP. GEN. 571; 24 ID. 775; AND 30 ID. 453. IN VIEW OF THE LATTER DECISION, THE WORKING FUND MAY BE CHARGED WITH THE VALUE OF THE ANNUAL LEAVE ACCRUING TO INTERSTATE COMMERCE COMMISSION EMPLOYEES WHILE PERFORMING SERVICES FOR DEFENSE TRANSPORT ADMINISTRATION. BUT THE FIRST AND SECOND SITUATIONS SET FORTH IN YOUR LETTER INVOLVE, ALSO, LEAVE ACQUIRED PRIOR TO THE COMMENCEMENT OF SUCH SERVICE. IN THE FIRST SITUATION, THE EMPLOYEE WAS TRANSFERRED FROM ANOTHER GOVERNMENT AGENCY FOR THE PURPOSE OF PERFORMING WORK FOR THE DEFENSE TRANSPORT ADMINISTRATION. IN THE SECOND SITUATION THE EMPLOYEE WAS TAKEN OFF REGULAR DUTIES OF THE COMMISSION AND ASSIGNED TO WORK PAID FROM THE WORKING FUND. WHILE PARTICULAR EMPHASIS APPEARS TO BE PLACED UPON THE FACT THAT THE SALARY OF THE FIRST EMPLOYEE WS PAID FROM FUNDS ADVANCED UNDER THE WORKING FUND DURING THE ENTIRE COURSE OF THE EMPLOYMENT, ACTUALLY NO DISTINCTION SHOULD BE DRAWN BETWEEN THE EMPLOYEES. THE FIRST ONE IS AN EMPLOYEE OF THE COMMISSION NO LESS THAN THE SECOND ONE. IN BOTH INSTANCES THE VALUE OF THE LEAVE ACQUIRED PRIOR TO COMMENCEMENT OF WORK PERFORMED FOR THE DEFENSE TRANSPORT ADMINISTRATION BEARS NO RELATION TO SUCH SERVICE AND MAY NOT PROPERLY BE CONSIDERED AS A PART OF THE COST THEREOF. HENCE, THERE APPEARS NO JUSTIFICATION FOR THE TRANSFER OF THE LIABILITY ASSUMED BY THE COMMISSION FOR SUCH PRIOR ACCRUED LEAVE, AT THE TIME OF EMPLOYMENT, TO THE WORKING FUND AS AN ITEM OF COST. SEE 24 COMP. GEN. 775. AS TO THE APPROPRIATION TO BE CHARGED WITH THE PRIOR ACCRUED LEAVE, IT MAY BE STATED THAT, IN THE CASE OF THE FIRST EMPLOYEE, THE APPROPRIATION PROPERLY CHARGEABLE IS THE ONE FROM WHICH AN EMPLOYEE DOING COMPARABLE WORK FOR THE COMMISSION ORDINARILY WOULD BE PAID. IN THE CASE OF THE SECOND EMPLOYEE, THE GENERAL EXPENSES APPROPRIATION PROPERLY CHARGEABLE IS THE ONE FROM WHICH AN EMPLOYEE DOING COMPARABLE WORK FOR THE COMMISSION ORDINARILY WOULD BE PAID. IN THE CASE OF THE SECOND EMPLOYEE, THE GENERAL EXPENSES APPROPRIATION OF THE COMMISSION UNDER WHICH HE WAS PAID PRIOR TO ASSIGNMENT TO DEFENSE TRANSPORT ADMINISTRATION WORK IS THE APPROPRIATION PROPERLY CHARGEABLE WITH THE PRIOR ACCRUED LEAVE. YOUR FIRST TWO QUESTIONS ARE ANSWERED ACCORDINGLY.

AS TO THE THIRD SITUATION THE WORKING FUND MAY BE CHARGED WITH THE VALUE OF THE LEAVE CREDITS ACQUIRED WHILE PERFORMING THE DEFENSE TRANSPORT ADMINISTRATION WORK.