B-32680, MARCH 18, 1943, 22 COMP. GEN. 910

B-32680: Mar 18, 1943

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ON BEHALF OF EMPLOYEES ENGAGED IN THE CONDUCT OF THE COURSES MAY BE INCLUDED AS AN ITEM OF "COST OF COURSES" WHERE IT IS ADMINISTRATIVELY DETERMINED THAT SUCH EMPLOYEES ARE OTHERWISE WITHIN THE CONTEMPLATION OF THE STATES' WORKMEN'S COMPENSATION ACTS. SUCH ITEM OF EXPENSE IS INCLUDED IN PLANS DULY AUTHORIZED AND APPROVED AS REQUIRED BY THE APPROPRIATION ACT. IS TO BE PAID FROM FEDERAL FUNDS APPROPRIATED FOR THE PURPOSE. THE FISCAL-YEAR APPROPRIATION AVAILABLE FOR THE "COST OF COURSES" AT THE TIME AN EMPLOYEE INCURS A COMPENSABLE INJURY IS TO BE CONSIDERED AS OBLIGATED WITH THE COST OF COMPENSATION. - MAY NOT ACTUALLY BE MADE UNTIL AFTER THE EXPIRATION OF THE FISCAL YEAR WITHIN WHICH THE INJURY WAS INCURRED.

B-32680, MARCH 18, 1943, 22 COMP. GEN. 910

WORKMEN'S COMPENSATION - STATE, ETC., EMPLOYEES CONDUCTING DEFENSE TRAINING COURSES - APPROPRIATION AVAILABILITY; ETC. UNDER THE LABOR-FEDERAL SECURITY APPROPRIATION ACT, 1943, APPROPRIATING FUNDS FOR PAYMENT TO STATES AND OTHER AGENCIES FOR THE COST OF VOCATIONAL, ETC., COURSES FOR THE TRAINING OF DEFENSE WORKERS, THE COST OF SECURING WORKMEN'S COMPENSATION INSURANCE--- WHETHER BY WAY OF REIMBURSEMENT FOR PREMIUMS PAID OR FOR LOSSES SUFFERED WHERE THE STATE ACTS AS SELF-INSURER- -- ON BEHALF OF EMPLOYEES ENGAGED IN THE CONDUCT OF THE COURSES MAY BE INCLUDED AS AN ITEM OF "COST OF COURSES" WHERE IT IS ADMINISTRATIVELY DETERMINED THAT SUCH EMPLOYEES ARE OTHERWISE WITHIN THE CONTEMPLATION OF THE STATES' WORKMEN'S COMPENSATION ACTS, AND SUCH ITEM OF EXPENSE IS INCLUDED IN PLANS DULY AUTHORIZED AND APPROVED AS REQUIRED BY THE APPROPRIATION ACT. WHERE A STATE OR OTHER AGENCY--- ENGAGED IN THE CONDUCT OF DEFENSE TRAINING COURSES THE COST OF WHICH, INCLUDING WORKMEN'S COMPENSATION, IS TO BE PAID FROM FEDERAL FUNDS APPROPRIATED FOR THE PURPOSE--- ACTS AS SELF -INSURER UNDER THE APPLICABLE WORKMEN'S COMPENSATION LAW WITH RESPECT TO ITS EMPLOYEES CONDUCTING THE COURSES, THE FISCAL-YEAR APPROPRIATION AVAILABLE FOR THE "COST OF COURSES" AT THE TIME AN EMPLOYEE INCURS A COMPENSABLE INJURY IS TO BE CONSIDERED AS OBLIGATED WITH THE COST OF COMPENSATION, EVEN THOUGH THE COMPENSATION AWARD--- WHETHER IN THE FORM OF A LUMP SUM PAYMENT OR PERIODIC PAYMENTS--- MAY NOT ACTUALLY BE MADE UNTIL AFTER THE EXPIRATION OF THE FISCAL YEAR WITHIN WHICH THE INJURY WAS INCURRED. IN VIEW OF THE PROVISIONS OF 31 U.S.C. 713 WITH RESPECT TO THE COVERING INTO THE TREASURY OF UNEXPENDED APPROPRIATION BALANCES, PERIODIC WORKMEN'S COMPENSATION PAYMENTS, EXTENDING OVER A NUMBER OF YEARS, WHICH ARE REQUIRED TO BE MADE TO AN EMPLOYEE OF A STATE OR OTHER AGENCY INJURED DURING THE FISCAL YEAR 1943 WHILE CONDUCTING DEFENSE TRAINING COURSES--- THE COST OF WHICH, INCLUDING WORKMEN'S COMPENSATION PAYMENTS, IS PAYABLE FROM THE LABOR - FEDERAL SECURITY APPROPRIATION, 1943--- MAY BE MADE FROM THE SAID 1943 APPROPRIATION ONLY DURING THAT YEAR AND FOR TWO FISCAL YEARS THEREAFTER; SUBSEQUENT THERETO THE MATTER IS FOR THE CONSIDERATION OF THE CONGRESS UNDER 31 U.S.C. 714. WHERE PERIODIC WORKMEN'S COMPENSATION PAYMENTS EXTENDING OVER A NUMBER OF YEARS ARE REQUIRED TO BE MADE TO AN EMPLOYEE OF A STATE OR OTHER AGENCY INJURED WHILE CONDUCTING DEFENSE TRAINING COURSES--- THE COST OF WHICH, INCLUDING WORKMEN'S COMPENSATION PAYMENTS, IS PAYABLE FROM FEDERAL FUNDS APPROPRIATED FOR THE PURPOSE--- SUCH PERIODIC PAYMENTS MAY BE COMMUTED TO A LUMP SUM, IN ACCORDANCE WITH ESTABLISHED ACTUARIAL TABLES, TO ENABLE THE STATE OR OTHER AGENCY TO MAKE THE PERIODIC PAYMENTS TO THE INJURED EMPLOYEE, BUT ANY PORTION OF THE COMMUTED LUMP SUM NOT REQUIRED TO BE DISBURSED FOR THE PURPOSE SHOULD BE REFUNDED TO THE GOVERNMENT.

ACTING COMPTROLLER GENERAL ELLIOTT TO THE CHAIRMAN, WAR MANPOWER COMMISSION, MARCH 18, 1943:

I HAVE YOUR LETTER OF FEBRUARY 20, 1943, AS FOLLOWS:

IN THE PRACTICAL APPLICATION OF CERTAIN GENERAL PRINCIPLES ENUNCIATED IN YOUR OPINION OF JANUARY 14, 1941 (B-14386, 20 COMP. GEN. 370) REGARDING THE AVAILABILITY FOR EXPENDITURE BEYOND THE FISCAL YEAR OF FEDERAL FUNDS PAID TO STATES AND OTHER AGENCIES UNDER APPROPRIATIONS FOR THE EDUCATION AND TRAINING OF DEFENSE WORKERS, QUESTIONS HAVE ARISEN ON WHICH WE SHOULD LIKE TO HAVE YOUR ADVICE.

THE LABOR-FEDERAL SECURITY APPROPRIATION ACT, 1943 ( PUBLIC LAW 647, 77TH CONGRESS, 2D SESSION), UNDER THE HEADING " EDUCATION AND TRAINING, DEFENSE WORKERS ( NATIONAL DEFENSE)," APPROPRIATES MONEY FOR THE PAYMENT TO STATES, THEIR SUBDIVISIONS AND OTHER AGENCIES "FOR THE COST OF * * * COURSES.' PAYMENTS ARE MADE THROUGH CERTIFICATION TO THE SECRETARY OF THE TREASURY BY THE U.S. COMMISSIONER OF EDUCATION IN ACCORDANCE WITH REGULATIONS PROMULGATED BY THE COMMISSIONER AND APPROVED BY THE PRESIDENT. SECTION 2.1 (M) OF THE REGULATIONS SO PROMULGATED (7 F.R. 6436) DEFINES "COST OF COURSES" AS MEANING "ALL EXPENDITURES NECESSARY FOR ORGANIZATION, ADMINISTRATION, SUPERVISION, INSTRUCTION, AND MAINTENANCE AND OPERATION OF PLANT IN CONDUCTING THE COURSES PURSUANT TO AN APPROVED PLAN.' THERE FOLLOWS AN ENUMERATION OF SPECIFIC ITEMS OF EXPENDITURE WHICH MAY BE INCLUDED, AMONG THEM "INSURANCE, INCLUDING WORKMEN'S COMPENSATION.' WE TAKE IT THAT THE ITEMS SO SPECIFIED MAY BE CONSIDERED ILLUSTRATIVE OF THE MOST COMMON EXPENDITURES, AND THAT THE ENUMERATION DOES NOT NECESSARILY EXCLUDE PROPER ITEMS NOT SPECIFICALLY MENTIONED NOR DOES IT MAKE MANDATORY UNDER ALL CIRCUMSTANCES THE ALLOWANCE OF ITEMS WHICH ARE SPECIFICALLY MENTIONED. EVEN APART FROM THE EXPRESS INCLUSION OF WORKMEN'S COMPENSATION FOR EMPLOYEES IN THE SAID REGULATIONS WE WOULD REGARD THE COST THEREOF AS A PROPER ITEM FOR CONSIDERATION UNDER "COST OF COURSES: " WITNESS, FOR EXAMPLE, THE PROVISION OF THE CONSTITUTION OF THE STATE OF NEW YORK ( ARTICLE I, SECTION 18), AUTHORIZING LEGISLATIVE ENACTMENT FOR "THE PAYMENT * * * BY EMPLOYERS * * * EITHER DIRECTLY OR THROUGH A STATE OR OTHER SYSTEM OF INSURANCE OR OTHERWISE" OF COMPENSATION TO EMPLOYEES AND THEIR DEPENDENTS, AND DECLARING THAT "ALL MONIES PAID BY AN EMPLOYER TO HIS EMPLOYEES OR THEIR LEGAL REPRESENTATIVES, BY REASON OF THE ENACTMENT OF ANY OF THE LAWS HEREIN AUTHORIZED, SHALL BE HELD TO BE A PROPER CHARGE IN THE COST OF OPERATING THE BUSINESS OF THE EMPLOYER.'

THE MOST COMMON METHOD OF PROVIDING THE WORKMEN'S COMPENSATION REQUIRED BY STATE LAW IS BY PROCURING AN INSURANCE POLICY FROM A STOCK OR MUTUAL INSURANCE COMPANY OR FROM A STATE FUND IN CONSIDERATION OF THE PAYMENT OF AN ANNUAL PREMIUM. HOWEVER, UNDER AN ALTERNATIVE PROCEDURE GENERALLY AVAILABLE TO PRIVATE EMPLOYERS OF DEMONSTRATED FINANCIAL ABILITY AND TO THE STATE, ITS POLITICAL SUBDIVISIONS AND AGENCIES, SUCH AN EMPLOYER MAY ACT AS A "SELF-INSURER," IN ACCORDANCE WITH WHICH PROCEDURE PAYMENT OF THE COMPENSATION PRESCRIBED BY LAW IS MADE DIRECTLY BY THE EMPLOYER TO THE INJURED EMPLOYEE OR HIS DEPENDENTS. SIMILAR TO THE POLICY OF THE FEDERAL GOVERNMENT IN PROVIDING WORKMEN'S COMPENSATION INSURANCE FOR ITS EMPLOYEES THROUGH THE UNITED STATES EMPLOYEES' COMPENSATION COMMISSION, IT IS THE ESTABLISHED STATUTORY POLICY OF MANY STATE GOVERNMENTAL UNITS TO ACT AS SELF-INSURERS IN PROVIDING WORKMEN'S COMPENSATION FOR EMPLOYEES RATHER THAN TO PAY PREMIUMS TO PRIVATE INSURANCE COMPANIES OR TO A STATE FUND. AND EVEN WHERE A CHOICE OF THE METHOD OF WORKMEN'S COMPENSATION INSURANCE IS PERMISSIBLE, SUCH GOVERNMENTAL UNITS AND OTHER PUBLIC AGENCIES FREQUENTLY SELECT THE OPTION OF SELF-INSURANCE BECAUSE EXPERIENCE OVER PERIODS OF YEARS HAS PROVED THAT SUBSTANTIAL ECONOMIES MAY BE EFFECTED THEREBY.

WHILE THERE WOULD NOT SEEM TO BE ANY QUESTION AS TO THE BASIC PROPRIETY OF ALLOWING UNDER "COST OF COURSES" PAYMENTS MADE UNDER SUCH A SYSTEM OF SELF-INSURANCE TO EMPLOYEES INJURED IN THE CONDUCT OF AUTHORIZED COURSES, PROBLEMS ARISE BY REASON OF THE LIMITED AVAILABILITY OF THE APPROPRIATION TO THE FISCAL YEAR ENDING JUNE 30, 1943. FREQUENTLY THE AMOUNT OF COMPENSATION PAYABLE IS NOT DEFINITELY ASCERTAINABLE AND AN AWARD MAY NOT BE MADE UNTIL SOME TIME AFTER THE DATE OF THE INJURY. FURTHERMORE, THE BENEFITS PRESCRIBED BY LAW MAY BE PAYABLE IN WEEKLY OR OTHER PERIODIC SUMS, AND MAY EXTEND OVER A CONSIDERABLE TIME RUNNING INTO MONTHS OR EVEN YEARS. PROVISION IS MADE IN SOME CASES FOR COMMUTATION TO A SINGLE LUMP- SUM PAYMENT OF SUCH PERIODIC SUMS, BUT IN OTHER CASES SUCH COMMUTATION MAY NOT BE AVAILABLE TO THE EMPLOYER OR INSURANCE COMPANY.

OUR QUESTIONS RELATE TO THE EFFECT OF THE FISCAL YEAR LIMITATION OF THE FEDERAL APPROPRIATION ON COMPENSATION PAYABLE BY A STATE OR OTHER AGENCY ACTING AS A SELF-INSURER WHERE THE PAYMENT IS MADE, OR IS REFERABLE TO A DATE, SUBSEQUENT TO JUNE 30, 1943. SPECIFICALLY, ASSUMING THE EMPLOYEE IS INJURED IN THE COURSE OF ACTIVITIES DIRECTLY RELATING TO THE DEFENSE TRAINING PROGRAM FOR THE FISCAL YEAR 1943, AND THE STATE OR OTHER AGENCY ACTS AS A SELF-INSURER AS REQUIRED OR PERMITTED BY STATE LAW, ARE FEDERAL FUNDS AVAILABLE FOR THE PAYMENT (1) OF A LUMP SUM REQUIRED BY LAW WHERE THE AMOUNT IS NOT DEFINITELY ASCERTAINABLE OR THE AWARD IS NOT MADE UNTIL AFTER JUNE 30, 1943; (2) OF A COMMUTED LUMP SUM DECREED OR ALLOWED UNDER STATE LAW IN LIEU OF PERIODIC PAYMENTS EXTENDING BEYOND JUNE 30, 1943; (3) OF PERIODIC SUMS SUBSEQUENT TO JUNE 30, 1943, WHERE COMMUTATION INTO A SINGLE LUMP-SUM PAYMENT TO THE EMPLOYEE OR HIS DEPENDENTS IS NOT AVAILABLE UNDER STATE LAW TO THE EMPLOYER OR INSURANCE COMPANY? (4) AS AN ALTERNATIVE TO THE METHOD DESCRIBED IN QUESTION (3), WHERE COMMUTATION OF PERIODIC PAYMENTS INTO A SINGLE LUMP-SUM PAYMENT TO THE EMPLOYEE OR HIS DEPENDENTS IS NOT AVAILABLE TO THE EMPLOYER OR INSURANCE COMPANY, ARE FEDERAL FUNDS NEVERTHELESS AVAILABLE FOR PAYMENT TO THE STATE OR OTHER AGENCY OF A SUM SUFFICIENT TO ENABLE IT TO MAKE THE PERIODIC PAYMENTS TO THE INJURED EMPLOYEE OR HIS DEPENDENTS SUBSEQUENT TO JUNE 30, 1943, SAID SUM TO BE COMPUTED IN ACCORDANCE WITH ESTABLISHED DISCOUNT AND ACTUARIAL PRINCIPLES AND TABLES?

THE LABOR-FEDERAL SECURITY APPROPRIATION ACT, 1943, APPROVED JULY 2, 1942, 56 STAT. 578, UNDER TITLE II, SUBHEADING " EDUCATION AND TRAINING, DEFENSE WORKERS ( NATIONAL DEFENSE)," APPROPRIATED FUNDS AS FOLLOWS:

PAYMENTS TO STATES, AND SO FORTH (NATIONAL DEFENSE): FOR PAYMENT TO STATES, SUBDIVISIONS THEREOF, OR OTHER PUBLIC AGENCIES OPERATING PUBLIC EDUCATIONAL FACILITIES, AND, WHERE HEREINAFTER AUTHORIZED, TO VOCATIONAL SCHOOLS EXEMPT FROM TAXATION UNDER SECTION 101 (6) OF THE INTERNAL REVENUE CODE, COLLEGES AND UNIVERSITIES, FOR THE FURTHERANCE OF THE EDUCATION AND TRAINING OF DEFENSE WORKERS, THROUGH CERTIFICATION FROM TIME TO TIME, IN ACCORDANCE WITH REGULATIONS PROMULGATED BY THE UNITED STATES COMMISSIONER OF EDUCATION (HEREINAFTER REFERRED TO AS THE " COMMISSIONER") UNDER THE SUPERVISION AND DIRECTION OF THE FEDERAL SECURITY ADMINISTRATOR AND APPROVED BY THE PRESIDENT, BY THE COMMISSIONER TO THE SECRETARY OF THE TREASURY OF THE NAME OF SUCH AGENCY OR THE NAME OF SUCH SCHOOL, COLLEGE, OR UNIVERSITY TO WHOM PAYMENT IS TO BE MADE, AND THE AMOUNT TO BE PAID, SUCH PAYMENT TO BE MADE PRIOR TO AUDIT AND SETTLEMENT BY THE GENERAL ACCOUNTING OFFICE AS FOLLOWS:

(1) FOR THE COST OF VOCATIONAL COURSES OF LESS THAN COLLEGE GRADE PROVIDED BY SUCH AGENCIES IN VOCATIONAL SCHOOLS, INCLUDING VOCATIONAL SCHOOLS EXEMPT FROM TAXATION UNDER SECTION 101 (6) OF THE INTERNAL REVENUE CODE, OR BY SUCH VOCATIONAL SCHOOLS PURSUANT TO PLANS SUBMITTED BY THEM AND APPROVED BY THE COMMISSIONER, WHICH PLANS SHALL INCLUDE COURSES SUPPLEMENTARY TO EMPLOYMENT IN OCCUPATIONS ESSENTIAL TO THE NATIONAL DEFENSE, PRE-EMPLOYMENT AND REFRESHER COURSES FOR WORKERS PREPARING FOR SUCH OCCUPATIONS AND SELECTED FROM THE PUBLIC EMPLOYMENT OFFICE REGISTERS, AND FOR THE COST OF VOCATIONAL COURSES (EITHER BY CLASSES OR BY INDIVIDUALS) OF LESS THAN COLLEGE GRADE IN PRIVATE VOCATIONAL SCHOOLS (REGARDLESS OF TAX LIABILITY) AND IN OTHER PRIVATE FACILITIES WHERE EQUIPMENT FOR TRAINING IS AVAILABLE, INCLUDING NOT TO EXCEED $5,000,000 FOR PAYMENT TO SUCH AGENCIES FOR RENTAL OF ADDITIONAL SPACE FOUND NECESSARY BY THE COMMISSIONER FOR CARRYING OUT THE APPROVED PLANS, $94,000,000.

(2) FOR THE COST OF SHORT COURSES OF COLLEGE GRADE PROVIDED BY DEGREE- GRANTING COLLEGES AND UNIVERSITIES PURSUANT TO PLANS SUBMITTED BY THEM AND APPROVED BY THE COMMISSIONER, WHICH PLANS SHALL BE FOR COURSES DESIGNED TO MEET THE SHORTAGE OF ENGINEERS, CHEMISTS, PHYSICISTS, AND PRODUCTION SUPERVISORS IN FIELDS ESSENTIAL TO THE NATIONAL DEFENSE, AND SUCH PLANS MAY PROVIDE FOR REGIONAL COORDINATION OF THE DEFENSE TRAINING PROGRAM OF THE PARTICIPATING COLLEGES AND UNIVERSITIES, $30,000,000: PROVIDED, THAT ONLY COLLEGES AND UNIVERSITIES WHICH OPERATE UNDER CHARTERS WHICH EXEMPT THEIR EDUCATIONAL PROPERTY FROM TAXATION AND PUBLIC DEGREE-GRANTING EDUCATIONAL INSTITUTIONS SHALL BE ELIGIBLE TO RECEIVE FUNDS HERE FROM: PROVIDED FURTHER, THAT NOT TO EXCEED 20 PERCENTUM OF THE AMOUNT ALLOTTED TO ANY SCHOOL SHALL BE ALLOTTED TO IT FOR EXPENDITURE FOR PURCHASE AND RENTAL OF ADDITIONAL EQUIPMENT AND LEASING OF ADDITIONAL SPACE FOUND BY THE COMMISSIONER NECESSARY TO CARRY OUT ITS APPROVED PLAN.

(3) FOR THE COST OF VOCATIONAL COURSES OF LESS THAN COLLEGE GRADE AND RELATED INSTRUCTION PROVIDED BY SUCH AGENCIES FOR OUT-OF-SCHOOL RURAL PERSONS, WHO HAVE ATTAINED THE AGE OF SEVENTEEN AND WHO, IF UNEMPLOYED, HAVE FILED A REGISTRATION CARD WITH A PUBLIC EMPLOYMENT OFFICE, AND FOR NONRURAL PERSONS WHO OTHERWISE MEET THE ABOVE REQUIREMENTS, AND WHOSE TRAINING IS NOT FEASIBLE UNDER SUBDIVISIONS (1) AND (2) HEREOF, SUCH COURSES AND INSTRUCTION TO BE PROVIDED PURSUANT TO PLANS SUBMITTED BY SUCH AGENCIES AND APPROVED BY THE COMMISSIONER, AND FOR THE COST OF SUCH VOCATIONAL COURSES IN THE PRODUCTION OF FARM COMMODITIES AND IN THE REPAIR, OPERATION, AND CONSTRUCTION OF FARM MACHINERY AND EQUIPMENT (TO BE APPROVED BY THE CHAIRMAN OF THE WAR MANPOWER COMMISSION) AS MAY BE NECESSARY TO MEET THE NEEDS OF FARMERS IN OBTAINING THE PRODUCTION GOALS OF THOSE FARM COMMODITIES DESIGNATED FROM TIME TO TIME IN THE FARM DEFENSE PROGRAM AND PROMULGATED BY THE SECRETARY OF AGRICULTURE, $15,000,000, OF WHICH NOT TO EXCEED 20 PERCENTUM SHALL BE AVAILABLE FOR PAYMENT TO SUCH AGENCIES FOR PURCHASE AND RENTAL OF EQUIPMENT AND RENTAL OF SPACE FOUND NECESSARY BY THE COMMISSIONER FOR CARRYING OUT THE APPROVED PLANS.

SECTION 2.1 (M) OF THE REGULATIONS PROMULGATED PURSUANT TO THE AUTHORITY CONFERRED IN SAID ACT (7 FED. REG. 6436) DEFINES THE TERM "COST OF COURSES" AND STATES THAT IT MAY INCLUDE EXPENSES FOR SUCH ITEMS AS "INSURANCE, INCLUDING WORKMEN'S COMPENSATION," AND THIS OFFICE HAS HELD GENERALLY, THAT WORKMEN'S COMPENSATION INSURANCE MAY BE CONSIDERED AS A PART OF THE COST OF LABOR. A-80613, OCTOBER 19, 1936; B-7813, FEBRUARY 6, 1940; B-11239, JULY 23, 1940. ACCORDINGLY, THERE WOULD APPEAR TO BE NO OBJECTION TO THE INCLUSION OF THE ITEM OF WORKMEN'S COMPENSATION AS "COST OF COURSES" WHERE IT HAS BEEN ADMINISTRATIVELY DETERMINED THAT SUCH EXPENSE SHOULD BE INCURRED BY THE UNITED STATES IN ORDER TO CARRY OUT THE PURPOSES OF THE ABOVE ACT. AND, THAT BEING THE CASE, THERE LIKEWISE WOULD APPEAR TO BE NO OBJECTION TO THE INCURRENCE OF SUCH OBLIGATION IN ACCORDANCE WITH THE MANNER REQUIRED BY STATE LAW OR ADOPTED BY THE STATE THAT IS, WHETHER BY WAY OF REIMBURSEMENT FOR PREMIUMS PAID OR FOR LOSSES SUFFERED WHERE THE STATE ACTS AS SELF-INSURER.

THE ASSUMPTIONS SET FORTH IN THE LAST PARAGRAPH OF YOUR LETTER MUST BE CONSIDERED AS SUBJECT TO THE UNDERSTANDING THAT IT HAS BEEN ADMINISTRATIVELY DETERMINED THAT THE EMPLOYEES ENGAGED IN THE CONDUCT OF COURSES ARE SUCH AS OTHERWISE WOULD BE WITHIN THE CONTEMPLATION OF THE WORKMEN'S COMPENSATION ACTS OF THE STATES IN WHICH THEY ARE EMPLOYED AND THAT THE PERMISSIBLE ITEM OF EXPENSE OF WORKMEN'S COMPENSATION IS INCLUDED IN PLANS DULY AUTHORIZED AND APPROVED IN ADVANCE BY THE COMMISSIONER OF EDUCATION, AS SPECIFICALLY REQUIRED BY LAW.

AS TO PAYMENTS MADE UNDER THE SELF-INSURANCE SYSTEM THERE IS FOR CONSIDERATION SECTION 3690, REVISED STATUTES, 31 U.S.C. 712, WHICH PROVIDES:

EXCEPT AS OTHERWISE PROVIDED BY LAW, ALL BALANCES OF APPROPRIATIONS CONTAINED IN THE ANNUAL APPROPRIATION BILLS AND MADE SPECIFICALLY FOR THE SERVICE OF ANY FISCAL YEAR, AND REMAINING UNEXPENDED AT THE EXPIRATION OF SUCH FISCAL YEAR, SHALL ONLY BE APPLIED TO THE PAYMENT OF EXPENSES PROPERLY INCURRED DURING THAT YEAR, OR TO THE FULFILLMENT OF CONTRACTS PROPERLY MADE WITHIN THAT YEAR; AND BALANCES NOT NEEDED FOR SUCH PURPOSES SHALL BE CARRIED TO THE SURPLUS FUND * * *.

IT WOULD SEEM APPARENT THAT THE RIGHT TO CLAIM COMPENSATION, IF THE INJURY BE COMPENSABLE WITHIN THE TERMS OF THE WORKMEN'S COMPENSATION ACTS, RELATES BACK TO THE DATE OF THE INJURY. HENCE, THE APPROPRIATION THEN AVAILABLE FOR PAYMENTS TO STATES AND OTHER AGENCIES FOR THE "COST OF COURSES" IS, IN EFFECT, OBLIGATED WITH THE COST OF COMPENSATION AT THAT TIME, EVEN THOUGH THE EXACT EXTENT OF SUCH OBLIGATION REMAINS FOR FUTURE DETERMINATION. THEREFORE, WHILE THE AWARD MAY NOT ACTUALLY BE MADE UNTIL AFTER THE EXPIRATION OF THE FISCAL YEAR WITHIN WHICH THE INJURY WAS INCURRED, PAYMENT SHOULD BE MADE FROM THE APPROPRIATION OR APPROPRIATIONS OBLIGATED AT THE TIME THE INJURY OCCURRED. QUESTION (1) IS ANSWERED ACCORDINGLY. BASED ON THE SAME PRINCIPLE THERE WOULD APPEAR TO BE NO OBJECTION TO THE PAYMENT OF A COMMUTED LUMP SUM DECREED OR AUTHORIZED IN LIEU OF PERIODIC PAYMENTS WHERE IT IS DETERMINED, UNDER THE APPLICABLE STATE LAW, THAT UPON THE FACTS AND CIRCUMSTANCES APPEARING IN A PARTICULAR CASE THAT FORM OF SETTLEMENT SHOULD BE MADE. ACCORDINGLY, QUESTION (2) IS ANSWERED IN THE AFFIRMATIVE.

WITH RESPECT TO QUESTION (3) ATTENTION IS INVITED TO SECTIONS 713 AND 714, TITLE 31, U.S.C., AS FOLLOWS:

SECTION 713. AFTER THE ST DAY OF JULY, IN EACH YEAR, THE SECRETARY OF THE TREASURY SHALL CAUSE ALL UNEXPENDED BALANCES OF APPROPRIATIONS WHICH SHALL HAVE REMAINED UPON THE BOOKS OF THE TREASURY FOR TWO FISCAL YEARS TO BE CARRIED TO THE SURPLUS FUND AND COVERED INTO THE TREASURY * * *.

SECTION 714. IT SHALL BE THE DUTY OF THE GENERAL ACCOUNTING OFFICE TO CONTINUE TO RECEIVE, EXAMINE, AND CONSIDER THE JUSTICE AND VALIDITY OF ALL CLAIMS UNDER APPROPRIATIONS THE BALANCES OF WHICH HAVE BEEN EXHAUSTED OR CARRIED TO THE SURPLUS FUND UNDER THE PROVISIONS OF SECTION 713 OF THIS TITLE * * *. THE SECRETARY OF THE TREASURY SHALL, AT THE COMMENCEMENT OF EACH SESSION OF CONGRESS, REPORT THE AMOUNT DUE EACH CLAIMANT WHOSE CLAIM HAS BEEN ALLOWED IN WHOLE OR IN PART TO THE SPEAKER OF THE HOUSE OF REPRESENTATIVES AND THE PRESIDING OFFICER OF THE SENATE, WHO SHALL LAY THE SAME BEFORE THEIR RESPECTIVE HOUSES FOR CONSIDERATION * * *.

IN THE SITUATION COVERED BY YOUR THIRD QUESTION PAYMENTS EXTENDING OVER A PERIOD OF YEARS COULD BE MADE FROM THE 1943 FISCAL YEAR APPROPRIATION ONLY DURING THAT YEAR AND FOR TWO FISCAL YEARS THEREAFTER. SUBSEQUENT THERETO THE MATTER WOULD BE FOR THE CONSIDERATION OF THE CONGRESS UNDER SECTION 714, SUPRA. UNDER SUCH CIRCUMSTANCES, THE ALTERNATIVE METHOD SUGGESTED IN QUESTION (4) WOULD APPEAR TO BE PREFERABLE IF COUPLED WITH A PROVISION IN THE APPROVED PLAN FOR REIMBURSEMENT OF SUCH PART OF THE COMMUTED AMOUNT NOT REQUIRED TO BE PAID TO THE INJURED EMPLOYEE OR DEPENDENT BY THE STATE OR OTHER AGENCY.