Request for Reconsideration

GAO was asked to reconsider a decision which held that the Merit Systems Protection Board (MSPB) is prohibited from accepting reimbursement from Federal agencies, employees, or employees' unions for travel expenses of hearing officers. MSPB prefers to hold the hearings in the appellant's home area because all of the parties involved are typically located in the same general area. Thus, the entire appeals process is less time consuming and more cost efficient if conducted in that area. However, due to budget cuts, MSPB is not always able to afford the expense of sending its hearing officers to the employee's home area. As various agencies, employees, and employee unions have offered to pay travel expenses of the hearing officers, MSPB requested a GAO decision on the legality of accepting reimbursement from these sources. GAO ruled that MSPB could not legally accept reimbursement for hearing officers' travel expenses from employing agencies or from employees or their unions because: (1) conducting the hearings is a statutory function of MSPB for which it receives appropriations; (2) reimbursement by an employing agency would constitute an unauthorized transfer of appropriations; and (3) acceptance of funds from an employee or union, without specific statutory authority, would be improper augmentation of MSPB appropriations. GAO received requests from MSPB and several other affected agencies to reconsider this decision. All of the parties stressed that the cost to the Government as a whole would be far less if a single hearing officer travels to an appellant's home area than if the employing agency sent its personnel and witnesses to a MSPB field office. In addition, because of recent reductions-in-force actions, the case load of the hearings officers is due to increase, thereby multiplying the overall cost to the Government. GAO was aware of no authority for MSPB to accept reimbursement from other Federal agencies, or from employees or their unions. MSPB could seek statutory authority to accept donations to supplement its appropriations to hold hearings at the employees' home sites on a reimbursable basis. However, it would be preferable for Congress to provide adequate funding for MSPB. The inadequacy of the MSPB appropriation to enable MSPB to carry out its function in a manner most economical to the Government does not change the law. Accordingly, GAO must affirm its prior decision.