A-12324, JUNE 3, 1926, 5 COMP. GEN. 957

A-12324, JUNE 3, 1926, 5 COMP. GEN. 957

COMPENSATION, ALLOWANCES - VALUE OF ALLOWANCES IN KIND FURNISHED FIELD EMPLOYEES UNDER SECTION 3 OF THE ACT OF MARCH 2, 1926, 44 STAT. 161, EFFECTIVE JULY 1, 1926, THE PROCEDURE WILL BE TO FIRST FIX THE PROPER GRADE AND SALARY RATE FOR FIELD POSITIONS ON THE BASIS OF THE DUTIES INVOLVED, FROM WHICH SALARY RATE MUST BE DEDUCTED THE DETERMINED VALUE OF ANY ITEM OR ITEMS OF ALLOWANCES FURNISHED IN KIND AND THE REMAINDER ONLY PAID IN CASH, THE TOTAL SALARY RATE, INCLUDING BOTH THE CASH AND THE DETERMINED VALUE OF THE ALLOWANCES, TO BE REGARDED AS THE COMPENSATION FOR THE POSITION FOR ALL PURPOSES, INCLUDING THE BASIS ON WHICH RETIREMENT DEDUCTIONS ARE TO BE MADE. PAY ROLLS FOR FIELD EMPLOYEES COVERING PERIODS SUBSEQUENT TO JULY 1, 1926, MUST SHOW THE GRADE AND DESIGNATION OF THE POSITION, THE TOTAL SALARY RATE, THE "DETERMINED" REASONABLE VALUE OF THE ALLOWANCES FURNISHED IN KIND, AND THE AMOUNT DEDUCTED AS REPRESENTING THE VALUE OF THE ALLOWANCES FURNISHED IN KIND DURING THE PERIOD COVERED BY THE PAY ROLLS. THE REASONABLE VALUE OF THE ALLOWANCES FURNISHED IN KIND TO FIELD EMPLOYEES AFTER JULY 1, 1926, IS NOT NECESSARILY TO BE LIMITED TO THE COST OF THE ALLOWANCES TO THE GOVERNMENT, BUT THE BASIS IS TO BE THE REASONABLE VALUE TO THE EMPLOYEE DURING THE PARTICULAR PERIOD AND IN THE PARTICULAR LOCALITY WHERE EMPLOYED. WHILE THE POSITION AND SALARY OF AN OFFICER OR EMPLOYEE ARE FOR CONSIDERATION IN DETERMINING THE REASONABLE VALUE TO HIM OF THE ITEM--- PARTICULARLY QUARTERS--- FURNISHED, THERE IS NO AUTHORITY FOR FIXING A SCHEDULE OF VALUES FOR ALL ITEMS--- PARTICULARLY SUBSISTENCE- -- BASED SOLELY ON THE SALARY OF THE POSITION HELD.

DECISION BY COMPTROLLER GENERAL MCCARL, JUNE 3, 1926:

IN THE AUDIT OF ACCOUNTS OF DISBURSING OFFICERS OF THE BUREAUS OR DEPARTMENTS HAVING A FIELD PERSONNEL, THERE IS FOR CONSIDERATION THE BASIS ON WHICH HEADS OF DEPARTMENTS OR INDEPENDENT ESTABLISHMENTS MAY CONTINUE TO FURNISH CIVILIANS EMPLOYED IN THE FIELD WITH QUARTERS, HEAT, LIGHT, HOUSEHOLD EQUIPMENT, SUBSISTENCE, AND LAUNDRY SERVICE ON AND AFTER JULY 1, 1926.

SECTION 3 OF THE ACT OF MARCH 2, 1926, 44 STAT. 161, PROVIDES AS FOLLOWS:

THE HEAD OF AN EXECUTIVE DEPARTMENT OR INDEPENDENT ESTABLISHMENT, WHERE, IN HIS JUDGMENT, CONDITIONS OF EMPLOYMENT REQUIRE IT, MAY CONTINUE TO FURNISH CIVILIANS EMPLOYED IN THE FIELD SERVICE WITH QUARTERS, HEAT, LIGHT, HOUSEHOLD EQUIPMENT, SUBSISTENCE, AND LAUNDRY SERVICE; AND APPROPRIATIONS FOR THE FISCAL YEAR 1927 OF THE CHARACTER HERETOFORE USED FOR SUCH PURPOSES ARE HEREBY MADE AVAILABLE THEREFOR: PROVIDED, THAT THE REASONABLE VALUE OF SUCH ALLOWANCES SHALL BE DETERMINED AND CONSIDERED AS PART OF THE COMPENSATION IN FIXING THE SALARY RATE OF SUCH CIVILIANS.

THIS PROVISION WAS ENACTED TO MEET THE OBJECTIONS MADE BY THIS OFFICE TO THE EXISTING PRACTICE OF FURNISHING LIVING ACCOMMODATIONS IN KIND TO FIELD EMPLOYEES WITHOUT SPECIFIC AUTHORITY OF LAW. 5 COMP. GEN. 37; ID. 156. AS STATED IN THOSE DECISIONS, THERE WERE TWO GENERAL PRACTICES IN FORCE: FIRST, THE PRACTICE OF FURNISHING SUCH LIVING ACCOMMODATIONS FREE OF CHARGE IN ADDITION TO THE TOTAL SALARY RATE FIXED FOR THE POSITION WHICH WAS PAID IN CASH; SECOND, THE PRACTICE OF FURNISHING SUCH LIVING ACCOMMODATIONS BUT DEDUCTING THE VALUE THEREOF FROM THE TOTAL SALARY RATE FIXED FOR THE POSITION. THE FORMER WAS HELD TO BE UNLAWFUL IN ANY CASE AND DIRECTED TO BE DISCONTINUED, AND IT IS PRESUMED THE PRACTICE WAS DISCONTINUED AS REQUIRED. THE LATTER PRACTICE WAS AUTHORIZED TO BE CONTINUED UNTIL JUNE 30, 1926. SECTION 3 OF THE ACT OF MARCH 2, 1926, SUPRA, COVERS THE SITUATION WITH RESPECT TO THE FISCAL YEAR 1927.

FOR THE PURPOSE OF THIS DECISION THE STATUTORY PROVISION MAY BE CONSIDERED AS DIVIDED INTO TWO PARTS. THE FIRST PART, CONSISTING OF ALL EXCEPT THE PROVISO, IS THE AUTHORIZATION FOR CONTINUANCE OF THE PAST PRACTICE OF USING APPROPRIATIONS TO FURNISH THE ITEMS THEREIN MENTIONED TO CIVILIAN EMPLOYEES IN THE FIELD SERVICE. THIS PROVIDES A STATUTORY BASIS FOR A PRACTICE WHICH HAS IN THE PAST BEEN BASED MERELY ON CUSTOM OR REGULATION. THE SECOND PART COMPRISES THE PROVISO AND IS THE PROVISION FOR CONSIDERATION HERE IN DETERMINING THE PRACTICAL EFFECT THE FURNISHING OF SUCH ITEMS WILL HAVE UPON THE AMOUNT OF COMPENSATION TO BE PAID IN CASH. UNDER THE PROVISO THE REASONABLE VALUE OF THE ALLOWANCES FURNISHED IN KIND SHALL BE DETERMINED AND CONSIDERED AS PART OF THE COMPENSATION IN FIXING THE SALARY RATE OF CIVILIAN POSITIONS IN THE FIELD. THE PROCEDURE SHOULD BE TO FIRST FIX THE PROPER GRADE AND SALARY RATE FOR THE FIELD POSITION ON THE BASIS OF THE DUTIES INVOLVED. SEE SECTION 2 OF THE ACT OF MARCH 2, 1926, 44 STAT. 161. THEN THERE SHOULD BE DETERMINED THE REASONABLE VALUE OF ANY ITEM OR ITEMS OF ALLOWANCE FURNISHED IN KIND. THIS AMOUNT MUST BE DEDUCTED FROM THE TOTAL SALARY RATE FOR THE POSITION AND ONLY THE REMAINDER PAID IN CASH. IN THIS CONNECTION IT IS PROPER TO NOTE THAT THE TOTAL SALARY RATE, INCLUDING BOTH THE CASH AND THE DETERMINED VALUE OF THE ALLOWANCES FURNISHED IN KIND, IS TO BE REGARDED AS THE COMPENSATION FOR THE POSITION FOR ALL PURPOSES, INCLUDING THE BASIS ON WHICH RETIREMENT DEDUCTIONS ARE TO BE MADE. 4 COMP. GEN. 1051. ACCORDINGLY, THE PAY ROLLS MUST SHOW THE GRADE AND DESIGNATION OF THE POSITION, THE TOTAL SALARY RATE, THE "DETERMINED" REASONABLE VALUE OF THE ALLOWANCES FURNISHED IN KIND, AND THE AMOUNT DEDUCTED AS REPRESENTING THE VALUE OF THE ALLOWANCES FURNISHED IN KIND DURING THE PERIOD COVERED BY THE PAY ROLLS. FOR USE IN AUDITING THE PAY ROLLS THERE SHOULD BE FILED IN THE GENERAL ACCOUNTING OFFICE COPIES OF ADMINISTRATIVE REGULATIONS OR ORDERS FIXING THE REASONABLE VALUE OF ALLOWANCES FURNISHED IN KIND AS A PART OF COMPENSATION TO FIELD EMPLOYEES.

SPECIFIC ATTENTION IS DIRECTED TO THE REQUIREMENT OF THE STATUTE THAT THE "REASONABLE VALUE" OF THE ALLOWANCES IN KIND MUST BE DETERMINED. WHILE NO REGULATION OR ORDER PROMULGATED BY ADMINISTRATIVE OFFICES EFFECTIVE JULY 1, 1926, HAS BEEN RECEIVED FOR CONSIDERATION, CERTAIN REGULATIONS NOW IN FORCE HAVE BEEN EXAMINED AND SHOW A TENDENCY ON THE PART OF ADMINISTRATIVE OFFICES TO FIX TOO LOW A VALUE ON ALLOWANCES FURNISHED IN KIND TO FIELD EMPLOYEES. THE WORD ,REASONABLE" MEANS THAT THE VALUE MAY NOT BE FIXED AT A NOMINAL SUM, NOR AT SO LOW A RATE OR SO HIGH A RATE AS TO BE OUT OF ALL PROPORTION TO THE VALUE OF THE ALLOWANCES FURNISHED. THE VALUE IS NOT NECESSARILY TO BE LIMITED TO THE COST OF THE ALLOWANCES TO THE GOVERNMENT, BUT THE BASIS IS TO BE THE REASONABLE VALUE TO THE EMPLOYEE DURING THE PARTICULAR PERIOD AND IN THE PARTICULAR LOCALITY WHERE EMPLOYED. 5 COMP. GEN. 236, 238. WHILE THE POSITION AND SALARY OF THE OFFICER OR EMPLOYEE ARE FOR CONSIDERATION IN DETERMINING THE REASONABLE VALUE TO HIM OF THE ITEM--- PARTICULARLY QUARTERS--- FURNISHED, THERE IS NO AUTHORITY FOR FIXING A SCHEDULE OF VALUES FOR ALL ITEMS--- PARTICULARLY SUBSISTENCE--- BASED SOLELY ON THE SALARY OF THE POSITION HELD. AN INSTANCE OF THIS ERRONEOUS BASIS WOULD APPEAR UNDER THE REGULATIONS PROMULGATED BY THE BUREAU OF INDIAN AFFAIRS UNDER DATE OF NOVEMBER 30, 1925.

THE CLASSIFICATION ACT OF 1923 PROVIDES THAT THE PERSONNEL CLASSIFICATION BOARD SHALL DETERMINE THE VALUE OF ALLOWANCES FURNISHED IN KIND TO CIVILIAN EMPLOYEES IN THE DISTRICT OF COLUMBIA, AND WHILE NO STATUTE SPECIFICALLY ESTABLISHES OR DESIGNATES AN AGENCY TO DETERMINE THE VALUE OF ALLOWANCES FURNISHED IN KIND TO CIVILIAN EMPLOYEES IN THE FIELD, IT IS POSSIBLE THAT THE PERSONNEL CLASSIFICATION BOARD WILL RENDER SUCH AID AS MAY BE REQUESTED IN THE MATTER. THE ADMINISTRATIVE OFFICES SHOULD, SO FAR AS PRACTICABLE, COOPERATE WITH EACH OTHER IN ESTABLISHING A STANDARD VALUE FOR THE SAME OR SIMILAR ALLOWANCES IN THE SAME LOCALITIES.

FURTHER CONSIDERATION WILL BE GIVEN TO PARTICULAR CASES IF AND WHEN SUBMITTED.