[Comments on Matters Related to U.S. Embassies' Acquisition of Support Services From Local Employee Associations]

B-226729: Published: May 18, 1987. Publicly Released: Jul 20, 1987.

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GAO reviewed whether the Department of State was obligated to recover and return to the Treasury excess severance benefit payments set aside for civilian personnel employed abroad. GAO found that State was authorized to recover any payments made to employee associations for severance pay, since: (1) it was liable for severance benefit payments; (2) the arrangements with the employee associations were not genuine contracts but administrative mechanisms; and (3) the associations could not transfer the funds through voluntary donation or involuntary levy to a central fund.

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