B-130538, FEB. 13, 1957

B-130538: Feb 13, 1957

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DEPARTMENT OF LABOR: REFERENCE IS MADE TO YOUR LETTER OF DECEMBER 31. SERVICES AND FACILITIES PROVIDED FOR BY THE CONTRACTOR WERE TO BE FURNISHED UPON A REIMBURSABLE BASIS. THE LETTER OF APPROVAL STATES THAT IT IS UNDERSTOOD THAT THE ABOVE LIMITATIONS ARE BASED UPON AN ESTIMATE OF TWO TRAINEES AND STIPULATES AS FOLLOWS: "THE TOTAL DIRECT COST TO FOA UNDER THIS LETTER OF APPROVAL. WILL NOT EXCEED $7. IT IS STATED IN YOUR LETTER THAT WITH THE EXCEPTION OF THREE ITEMS. THE VOUCHER AND SUPPORTING DOCUMENTS WERE FOUND TO BE IN ORDER. IT IS POINTED OUT. 400 AS SET FORTH IN THE ABOVE LETTER OF APPROVAL WAS NOT EXCEEDED. THE SUB- LIMITATIONS WERE EXCEEDED. AS FOLLOWS: (A) TRANSPORTATION SUB-LIMITATION OF $800 WAS EXCEEDED BY $16 (ACTUAL EXCESS AS ITEMIZED IN CONTRACTOR'S LETTER OF JUNE 10.

B-130538, FEB. 13, 1957

TO MR. JOHN T. GLAKAS, AUTHORIZED CERTIFYING OFFICER, DEPARTMENT OF LABOR:

REFERENCE IS MADE TO YOUR LETTER OF DECEMBER 31, 1956, TRANSMITTING A "NO PAY" VOUCHER FOR $7,399.81 IN FAVOR OF COUNTY TRUST COMPANY FOR DEPOSIT TO ST. JOHN'S COLLEGE, ILOC ACCOUNT, AND REQUESTING A DECISION AS TO THE PROPRIETY OF CREDITING THREE EXPENSE ITEMS INCLUDED IN THE ABOVE AMOUNT. THE AMOUNT OF THE VOUCHER REPRESENTS CREDIT CLAIMED FOR EXPENDITURES MADE BY ST. JOHN'S COLLEGE FROM FUNDS INITIALLY ADVANCED TO IT BY THE DEPARTMENT OF LABOR UNDER CONTRACT NO. TA-09-101-4283, DATED JUNE 23, 1954, AS AMENDED AND SUPPLEMENTED BY LETTER OF APPROVAL ACCEPTED BY THE CONTRACTOR UNDER DATE OF JULY 20, 1954.

UNDER THE ABOVE CONTRACT THE COLLEGE, AS CONTRACTOR, UNDERTOOK THE EXECUTION OF A COMPREHENSIVE TRAINING PROGRAM FOR A GROUP OF EUROPEAN TRADE UNION LEADERS, UNDER THE SPONSORSHIP OF THE FOREIGN OPERATIONS ADMINISTRATION PRODUCTIVITY AND TECHNICAL ASSISTANCE PROGRAM. THE PERSONNEL, SERVICES AND FACILITIES PROVIDED FOR BY THE CONTRACTOR WERE TO BE FURNISHED UPON A REIMBURSABLE BASIS. THE ABOVE LETTER OF APPROVAL STIPULATES THAT PURSUANT TO PARAGRAPH 6 OF THE CONTRACT, EFFECTIVE JULY 1, 1953, FOA WOULD MAKE AVAILABLE TO THE CONTRACTOR SUFFICIENT FUNDS AS SET FORTH BELOW TO DEFRAY THE FOLLOWING COSTS APPLICABLE TO THIS PROJECT:

(1) FOR NECESSARY TRANSPORTATION COSTS OF THE TEAM MEMBERS, NOT TO EXCEED $800.

(2) LIVING ALLOWANCE PAID TO TEAM MEMBERS AT THE RATE OF $12 PER DAY WHEN IN TRAVEL STATUS, NOT TO EXCEED $2,160.

(3) LIVING ALLOWANCE PAID TO TEAM MEMBERS AT THE RATE OF $8 PER DAY WHEN IN TRAVEL STATUS, NOT TO EXCEED $4,400.

ALSO, THE LETTER OF APPROVAL STATES THAT IT IS UNDERSTOOD THAT THE ABOVE LIMITATIONS ARE BASED UPON AN ESTIMATE OF TWO TRAINEES AND STIPULATES AS FOLLOWS:

"THE TOTAL DIRECT COST TO FOA UNDER THIS LETTER OF APPROVAL, EXCLUSIVE OF COST REIMBURSED BY FOA UNDER PARAGRAPH 5 OF OUR AGREEMENT EFFECTIVE JULY 1, 1953, WILL NOT EXCEED $7,400.00; PROVIDED, HOWEVER, THAT THIS LIMITATION AND THE LIMITATIONS IN THE ABOVE PARAGRAPHS MAY BE MODIFIED WITH THE EXPRESS WRITTEN APPROVAL OF FOA, IF IT APPEARS TO THE SATISFACTION OF FOA THAT THE PROPER HANDLING OF THE PROJECT REQUIRES ADDITIONAL EXPENDITURES.'

IT IS STATED IN YOUR LETTER THAT WITH THE EXCEPTION OF THREE ITEMS, TWO OF WHICH EXCEEDED LIMITATIONS SET FORTH IN THE CONTRACT AND ONE WHICH REPRESENTS A PAYMENT BY THE CONTRACTOR TO A GOVERNMENT EMPLOYEE, THE VOUCHER AND SUPPORTING DOCUMENTS WERE FOUND TO BE IN ORDER. IT IS POINTED OUT, HOWEVER, THAT, WHILE THE TOTAL OVER-ALL LIMITATION OF $7,400 AS SET FORTH IN THE ABOVE LETTER OF APPROVAL WAS NOT EXCEEDED, THE SUB- LIMITATIONS WERE EXCEEDED, AS FOLLOWS:

(A) TRANSPORTATION SUB-LIMITATION OF $800 WAS EXCEEDED BY $16 (ACTUAL EXCESS AS ITEMIZED IN CONTRACTOR'S LETTER OF JUNE 10, 1955, IS SHOWN AS $15,81 BUT THE CONTRACTOR REQUESTED THAT THE CONTRACT BE AMENDED TO PROVIDE FOR NECESSARY TRANSPORTATION COSTS TO TEAM MEMBERS, NOT TO EXCEED $816).

(B) LIVING ALLOWANCES SUB-LIMITATION OF $6,560 WAS EXCEEDED BY $24

THE PAYMENT BY THE CONTRACTOR TO A GOVERNMENT EMPLOYEE REPRESENTS AN ITEM OF $6,20 FOR REIMBURSEMENT FOR TAXI FARE PAID BY THE GOVERNMENT EMPLOYEE FOR TRANSPORTATION OF HIMSELF AND TWO PARTICIPANTS FROM IDLEWILD AIRPORT TO THE PARK SHERATON.

AS TO THE EXCESS PAYMENTS FOR TRANSPORTATION AND LIVING ALLOWANCES, SINCE THE LETTER OF APPROVAL EXPRESSLY AUTHORIZES MODIFICATION OF THE CONTRACT BOTH AS TO THE OVER-ALL LIMITATION AND THE SUB-LIMITATIONS, AND SINCE THE OVER-ALL LIMITATION WAS NOT EXCEEDED OUR OFFICE WOULD NOT BE REQUIRED TO OBJECT TO CREDIT FOR THE PAYMENTS IN EXCESS OF THE SUB LIMITATIONS IF SUCH EXCESS PAYMENTS BE ADMINISTRATIVELY APPROVED AS REQUIRED BY THE LETTER OF APPROVAL.

WITH REGARD TO THE ITEM OF $6.20 FOR TAXI FARE, SINCE YOUR LETTER INDICATES THAT THE FARE WAS PROPERLY CHARGEABLE TO THE PROJECT, THERE IS NO DOUBT THAT SUCH EXPENDITURE WOULD HAVE BEEN A PROPER ITEM FOR CREDITING IF IT HAD BEEN PAID DIRECTLY BY THE CONTRACTOR TO THE TAXI DRIVER. WOULD APPEAR THAT THE GOVERNMENT EMPLOYEE FOLLOWED THE ONLY PRACTICAL METHOD AND THE CONTRACTOR SHOULD NOT BE DEPRIVED OF REIMBURSEMENT BY REASON THEREOF. ACCORDINGLY, AND SINCE THE PAYMENT BY THE CONTRACTOR TO THE GOVERNMENT EMPLOYEE UNDER THE CIRCUMSTANCES IF THIS CASE DOES NOT APPEAR TO BE LEGALLY OBJECTIONABLE, CREDIT FOR THIS ITEM LIKEWISE MAY BE ALLOWED.