B-235185 August 18, 1989

B-235185 August 18, 1989

Employee questions GAO decisions under which airline bonus tickets earned through a combination of official and personal travel must be turned over to the government. The employee is advised that our decisions are based on the general rule that a federal employee is obligated to accoun for any gift, gratuity, or benefit received from private sources in connection with the performance of official duty The same rule applies to other kinds of promotional travel benefits earned by an employee on official travel, such as bonus lodging points.

The Honorable Owen B. Pickett House of Representatives

Dear Mr. Pickett:

This is in response to your inquiry of March 30, 1989, on behalf of Mr. William H. Fick, a civilian employee of the United States Navy. Mr. Fick's questions concern frequent flyer credits and other incentives earned while on official travel

First, Mr. Fick objects to our decisions holding that airline bonus tickets earned by employees through a combination of official and personal travel must be turned over to the government. He suggests that this rule effectively bars personal use of travel bonuses because airlines permit only one bonus account per person, in which mileage earned on official and personal trips is combined.

In our decisions concerning airline bonuses, we have state that any federal employee who wants to participate in a bonus program and retain benefits for private use should make certain that the only trips credited to his bonus account are those paid from personal funds. See, for example, Discount Coupons, 63 Comp.Gen. 229 at 231 (1984)

If, under the bonus account system Mr. Fick describes, an employee's credits for personal and official mileage are automatically credited to a single account, the employee no alternative but to transfer to the government any bonus earned on the combined mileage. The basis for this requirement is the general rule that a federal employee must account for any gift, gratuity, or benefit received from private sources incident to the performance of official duty, and any payments tendered to the employee are viewed as having been received on behalf of the government. Discount Coupons, cited above, at 230; B-199656, July 15, 1981. While as a general proposition all bonuses an employee obtains by redeeming mileage credits become the property of the government, we have recognized that agencies should have flexibility to allow employees to use certain the items are of nominal intrinsic value. Government-wide ethics regulations allow employees to keep promotional material, such as pens, pencils, note pads, calendars and other items of nominal intrinsic value. See 5 C.F.R. Sec. 735.202(b)(4)(1988). Free coffee and newspapers are examples of items of nominal intrinsic value.

We trust this information is of assistance to you in responding to Mr. Fick's concerns. We have enclosed copies of the decisions and regulations cited above.

Sincerely yours,

James F. Hinchman General Counsel

Enclosures