Live Entertainment for National Black History Month

An advance decision was requested by the Nuclear Regulatory Commission (NRC) on whether appropriated funds may be used to pay for a jazz ensemble that performed at an agency Equal Employment Opportunity (EEO) special emphasis program. NRC legal staff advised NRC-EEO on January 3, 1979, that the expenditure was justified. On January 5, 1979, a GAO decision established the rule that certain live artistic presentations associated with EEO programs would be considered as employee entertainment and would not be proper expenditures of appropriated funds. The NRC legal staff stated that it did not become aware of the decision until February 15, 1979, the day of the program. Nevertheless, on March 2, 1979, the NRC legal staff advised the Controller, NRC, that payment for the jazz ensemble could be made because GAO, in an earlier decision, permitted an agency to expend appropriated funds for recorded music to be provided on a continuous basis at the work site. GAO held that the incentive music service of recorded music to increase employee productivity is not applicable to this case. Since NRC issued its purchase order to procure the services of the jazz ensemble for the program prior to actual knowledge of the GAO decision of January 5, 1979, however, payment may be made.