Request for Cost-of-Living Differential by Employee Detailed to Executive Agency

An Acting Director, Office of Budget, Industry and Trade Administration, Department of Commerce (DOC) asked if reimbursement may be made by an executive agency to an institution of higher learning for a cost-of-living difference for an employee detailed to an executive agency pursuant to legislation. The employee was detailed to the DOC from a university in Arizona. Under the agreement DOC was to reimburse the school the employee's salary ($21,000) and a $5,000 cost-of-living differential which the school would then grant the employee. The agreement also provided the employee and his family with travel and moving expenses. Several months after entering into the agreement the Office of Personal Management notified the Industry and Trade Administration (ITA) that legislation did not authorize the cost-of-living payment. When it had paid the employee $20,583.27 and received $19,500 from ITA, the school advised ITA that it would not make further payments to the employee. Legislation provides that a State or local Government employee on detail to an executive agency is not entitled to pay from the agency and that such a detail may be made with or without reimbursement by the executive agency for the pay of the employee during the assignment. This provision limits the pay an employee may receive from his institution to be reimbursed by the Federal agency. No other pay or salary the employee received from the school is mentioned, and GAO held that the cost-of-living differential may not be reimbursed to the school as pay under the legislation. GAO viewed the cost-of-living differential as similar to a per diem allowance. The legislation also provides that travel expenses and per diem allowances may not be provided during the same period of assignment. Therefore, the employee would not be entitled to both a per diem or cost of living allowance for the time of his assignment and for his family's travel and transportation expenses.