B-164356, JUN. 12, 1968

B-164356: Jun 12, 1968

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IT IS STATED THAT AID IS CONTINUALLY PRESSED WITH THE PROBLEM OF CONSOLIDATING FUNCTIONS WITH THE DEPARTMENT OF STATE IN ITS OVERSEAS INSTALLATIONS WHICH RESULTS IN THE ASSIGNMENT OF PERSONNEL FROM EACH OF THE AGENCIES TO PERFORM A SINGLE FUNCTION. SUCH ASSIGNMENTS AS WELL AS WHEN PERSONNEL ARE ON DETAIL TO AID FROM OTHER FEDERAL AGENCIES. IN A NUMBER OF INSTANCES THE BASIC SALARY OF THE EMPLOYEE IS PAID BY THE PARENT AGENCY. WHEREAS ALLOWANCES AND OTHER BENEFITS ARE PAID BY THE AGENCY TO WHICH THE EMPLOYEE IS DETAILED. IT IS ASSERTED. O-BRIEN STATES THAT AID IS EXPLORING THE POSSIBILITY OF ISSUING A SINGLE SF-50. WHEN AN AID EMPLOYEE IS DETAILED TO ANOTHER AGENCY OR VICE VERSA. CITING THE APPROPRIATION AND ALLOTMENT THAT WILL BE CHARGEABLE FOR THE EMPLOYEE'S SALARY DURING THE PERIOD OF THE DETAIL.

B-164356, JUN. 12, 1968

TO MR. SECRETARY:

A LETTER DATED MAY 3, 1968, ADDRESSED TO THE GENERAL COUNSEL, CIVIL SERVICE COMMISSION, BY MR. F. J. O-BRIEN, OFFICE OF THE CONTROLLER, AGENCY FOR INTERNATIONAL DEVELOPMENT (AID), HAS BEEN FORWARDED HERE FOR OUR CONSIDERATION AND REPLY SINCE THE QUESTION RAISED BY MR. O-BRIEN INVOLVES A MATTER OF FISCAL PROCEDURE MORE PROPERLY WITHIN OUR JURISDICTION.

IT IS STATED THAT AID IS CONTINUALLY PRESSED WITH THE PROBLEM OF CONSOLIDATING FUNCTIONS WITH THE DEPARTMENT OF STATE IN ITS OVERSEAS INSTALLATIONS WHICH RESULTS IN THE ASSIGNMENT OF PERSONNEL FROM EACH OF THE AGENCIES TO PERFORM A SINGLE FUNCTION. SUCH ASSIGNMENTS AS WELL AS WHEN PERSONNEL ARE ON DETAIL TO AID FROM OTHER FEDERAL AGENCIES, RESULT IN A SIGNIFICANT INCREASE IN PAPER WORK CONNECTED WITH THE PROCESSING OF REIMBURSEMENT CLAIMS FOR SALARIES AND RELATED EXPENSES OF SUCH EMPLOYEES. IN A NUMBER OF INSTANCES THE BASIC SALARY OF THE EMPLOYEE IS PAID BY THE PARENT AGENCY, WHEREAS ALLOWANCES AND OTHER BENEFITS ARE PAID BY THE AGENCY TO WHICH THE EMPLOYEE IS DETAILED. THIS, IT IS ASSERTED, RESULTS IN MULTIPLE ACCOUNTING OPERATIONS FOR A SINGLE EMPLOYEE.

TO SIMPLIFY THESE ADMINISTRATIVE OPERATIONS MR. O-BRIEN STATES THAT AID IS EXPLORING THE POSSIBILITY OF ISSUING A SINGLE SF-50, NOTIFICATION OF PERSONNEL ACTION, WHEN AN AID EMPLOYEE IS DETAILED TO ANOTHER AGENCY OR VICE VERSA, CITING THE APPROPRIATION AND ALLOTMENT THAT WILL BE CHARGEABLE FOR THE EMPLOYEE'S SALARY DURING THE PERIOD OF THE DETAIL, THUS DIRECTLY ELIMINATING THE NECESSITY FOR CUMBERSOME BILLING OPERATIONS. THE RELATED PAYROLLING FUNCTION DURING THE PERIOD OF DETAIL WOULD BE ACCOMPLISHED BY THE AGENCY TO WHICH THE EMPLOYEE IS DETAILED AND FOR OPERATIONAL PURPOSES THE EMPLOYEE, DURING THE PERIOD OF DETAIL, WOULD BE AN EMPLOYEE OF SUCH AGENCY.

IN BRIEF, MR. O-BRIEN ASKS, IN EFFECT, WHETHER THE COMPENSATION OF AN EMPLOYEE ON DETAIL TO ANOTHER AGENCY ON A REIMBURSABLE BASIS MAY BE PAID TO THE EMPLOYEE DIRECTLY BY THE AGENCY TO WHICH HE IS DETAILED.

THE PROCEDURE PROPOSED ABOVE WOULD RESULT IN THE PAYING AGENCY CLASSIFYING SUCH SALARY PAYMENTS AS OBJECT II, PERSONNEL COMPENSATION, INSTEAD OF OBJECT 25, SERVICES OF OTHER AGENCIES. WHEN REFLECTED IN BUDGET SCHEDULES, PERSONNEL COMPENSATION WOULD NOT BE COMPARABLE WITH PERSONNEL STATISTICS SHOWN IN THE BUDGET UNDER "PERSONNEL SUMMARY" EITHER IN THE PAYING AGENCY'S SCHEDULES OR IN THE SCHEDULES OF THE AGENCY FROM WHICH DETAILED. THE EMPLOYEE WOULD BE IN THE "PERSONNEL COMPENSATION" SCHEDULE OF ONE AGENCY AND IN THE "PERSONNEL SUMMARY" OF ANOTHER.

WE WOULD HAVE NO OBJECTION FROM AN ACCOUNTING STANDPOINT TO THE ADOPTION OF THE PROPOSAL; HOWEVER, BECAUSE OF THE EFFECT ITS ADOPTION WOULD HAVE ON PERSONNEL CEILINGS AND BUDGET SCHEDULES WE BELIEVE THE MATTER FIRST SHOULD BE CLEARED WITH THE CIVIL SERVICE COMMISSION AND THE BUREAU OF THE BUDGET.