B-122358, OCTOBER 3, 1955, 35 COMP. GEN. 183

B-122358, OCTOBER 3, 1955, 35 COMP. GEN. 183

APPROPRIATIONS - OBLIGATION - TRANSPORTATION OF HOUSEHOLD GOODS - SECTION 1311, SUPPLEMENTAL APPROPRIATION ACT, 1955 TRANSACTIONS INVOLVING REIMBURSEMENT ON A COMMUTED BASIS FOR THE TRANSPORTATION OF THE HOUSEHOLD EFFECTS OF GOVERNMENT EMPLOYEES DO NOT BECOME VALID APPROPRIATION OBLIGATIONS UNTIL THE EXPENDITURES ARE ACTUALLY MADE AND THERE IS NO AUTHORITY FOR RECORDING SUCH TRANSACTIONS AS OBLIGATIONS UNDER SECTION 1311, SUPPLEMENTAL APPROPRIATION ACT, 1955, ON EVIDENCE OF THE ISSUANCE OF AN ORDER AUTHORIZING THE TRANSPORTATION OF HOUSEHOLD EFFECTS. NEITHER TRAVEL ORDERS NOR EXECUTED NOTIFICATION OF TRAVEL FORMS USED FOR CONTINUOUS OR FOREIGN TRAVEL CONSTITUTE DOCUMENTARY EVIDENCE OF THE INCURRENCE OF APPROPRIATION OBLIGATIONS AND, THEREFORE, EXPENDITURES FOR OFFICIAL TRAVEL MAY NOT BE RECORDED AS AN OBLIGATION UNTIL THE TRAVEL IS ACTUALLY PERFORMED, OR UNTIL A TICKET IS PURCHASED, PROVIDED THE TICKET PURCHASED IS FOR TRAVEL TO BE PERFORMED IN THE SAME FISCAL YEAR. ESTIMATED COSTS OF TRANSPORTATION MAY BE TENTATIVELY RECORDED AS AN APPROPRIATION OBLIGATION WITHIN THE CURRENT FISCAL YEAR AT THE TIME THE TRAVEL ORDERS ARE ISSUED, WHERE IT IS ADMINISTRATIVELY DETERMINED TO BE DESIRABLE, PROVIDED AN ADJUSTMENT TO THE ACTUAL OBLIGATION IS MADE PERIODICALLY AND PRIOR TO THE SUBMISSION OF THE REPORT REQUIRED BY SECTION 1311 (B) OF THE SUPPLEMENTAL APPROPRIATION ACT, 1955.

TO THE SECRETARY OF COMMERCE, OCTOBER 3, 1955:

REFERENCE IS MADE TO LETTER DATED JUNE 15, 1955, FROM THE ASSISTANT SECRETARY OF COMMERCE FOR ADMINISTRATION REFERRING TO OFFICE DECISIONS OF MARCH 4, 1955, B-121982, 34 COMP. GEN. 418, AND MARCH 21, 1955, B 122358, 34 COMP. GEN. 459, AND REQUESTING FURTHER ADVICE WITH REGARD TO THE POSSIBLE EFFECT OF SECTION 1311 (A) (7) OF THE SUPPLEMENTAL APPROPRIATION ACT, 1955, PUBLIC LAW 663, APPROVED AUGUST 26, 1954, 68 STAT. 800, 830, 31 U.S.C. 200 (A) (7), ON THE PROCEDURES OF THE CIVIL AERONAUTICS ADMINISTRATION FOR THE RECORDATION OF OBLIGATIONS FOR TRAVEL AND TRANSPORTATION EXPENSES.

SECTION 1311 (A) (7) PROVIDES AS FOLLOWS:

AFTER THE DATE OF ENACTMENT HEREOF NO AMOUNT SHALL BE RECORDED AS AN OBLIGATION OF THE GOVERNMENT OF THE UNITED STATES UNLESS IT IS SUPPORTED BY DOCUMENTARY EVIDENCE OF---

(7) EMPLOYMENT OR SERVICES OF PERSONS OR EXPENSES OF TRAVEL IN ACCORD WITH LAW, AND SERVICES PERFORMED BY PUBLIC UTILITIES: OR

IN THE ASSISTANT SECRETARY'S LETTER OF JUNE 15, 1955, IT IS STATED THAT OUR MARCH 21 DECISION (B-122358) HELD, WITH RESPECT TO REIMBURSEMENT UPON A COMMUTED BASIS FOR TRANSPORTATION OF AN EMPLOYEE'S HOUSEHOLD EFFECTS, THAT OBLIGATIONS CAN BE REPORTED UNDER SECTION 22 OF BUDGET-TREASURY REGULATION NO. 1 FOR THE ANTICIPATED AMOUNT OF SUCH EXPENSES IF THE ORDER COVERING THE TRANSPORTATION HAD ACTUALLY BEEN ISSUED TO THE EMPLOYEE. IS FURTHER STATED THAT APPLYING THE ABOVE RULE LITERALLY, THE OBLIGATION WOULD BE REPORTED UNDER SECTION 22 FOR THE MONTH DURING OR FOLLOWING THE ISSUANCE OF THE ORDER AND WOULD BE RECORDED UNDER SECTION 1311 (A) ON THE DOCUMENTARY EVIDENCE REPRESENTED IN THE ORDER ITSELF. A DECISION IS REQUESTED AS TO WHETHER YOUR DEPARTMENT IS CORRECT IN THIS INTERPRETATION OF OUR DECISION.

THAT DECISION WAS IN RESPONSE TO A LETTER DATED DECEMBER 14, 1954, FROM THE ACTING SECRETARY OF COMMERCE REQUESTING, IN PART, A DECISION AS TO WHETHER INFORMAL DOCUMENTS SUCH AS TELETYPE OR TELEGRAPH MESSAGES REQUESTING THAT FUNDS BE OBLIGATED IN CONNECTION WITH TRAVEL AND TRANSPORTATION OF EMPLOYEES, THEIR DEPENDENTS AND HOUSEHOLD EFFECTS, MAY BE CONSIDERED AS MEETING THE DOCUMENTARY REQUIREMENTS OF SECTION 1311 (A). THE CIVIL AERONAUTICS ADMINISTRATION HAD BEEN USING THESE MESSAGES AS A BASIS FOR OBLIGATING THE ANTICIPATED COSTS INCIDENT TO THE TRANSFER BETWEEN REGIONS OF EMPLOYEES, THEIR DEPENDENTS AND HOUSEHOLD EFFECTS EVEN THOUGH ACTUAL TRAVEL ORDERS HAD NOT BEEN ISSUED TO THE EMPLOYEES. CAA STATED IN A MEMORANDUM ENCLOSED IN THE ACTING SECRETARY'S LETTER THAT THESE OBLIGATIONS WERE RECORDED FROM THE MESSAGES UNDER THE CONCEPT STATED IN SECTION 22 OF BUDGET-TREASURY REGULATION NO. 1, PROVIDING FOR THE INCLUSION OF "THE ANTICIPATED AMOUNT TO BE PAID UNDER ORDERS ACTUALLY ISSUED TO THE EMPLOYEE.'

IT WAS STATED IN THE DECISION OF MARCH 21, 1955 (B-122358) THAT THIS CONCEPT OF OBLIGATIONS WAS APPLICABLE ONLY IN THE CASE OF REIMBURSEMENTS TO AN EMPLOYEE (UPON A COMMUTED BASIS) FOR TRANSPORTATION OF HIS HOUSEHOLD EFFECTS AND, EVEN IN THAT CASE, THE ORDERS ARE REQUIRED TO HAVE BEEN ACTUALLY ISSUED. THIS STATEMENT WAS MADE MERELY TO SHOW THAT THE PRACTICE FOLLOWED BY CAA WAS NOT EVEN IN ACCORD WITH BUDGET-TREASURY REGULATION NO. 1. OBLIGATIONS FOR TRAVEL UNDER BUDGET-TREASURY REGULATIONS NO. 1, AS DISTINGUISHED FROM TRANSPORTATION OF HOUSEHOLD EFFECTS, ARE RESTRICTED TO TRANSPORTATION PURCHASED AND REIMBURSEMENTS EARNED. THE DECISION HELD THAT THE CONGRESS, IN ENACTING SECTION 1311, HAD NO SPECIFIC INTENT TO RELAX ANY OF THE RULES ESTABLISHED BY PRIOR DECISIONS OF THE GENERAL ACCOUNTING OFFICE RELATING TO OBLIGATIONS FOR TRAVEL AND TRANSPORTATION AND THAT SINCE THE ACTIONS UPON WHICH THE MESSAGES WERE BASED WERE NOT RECOGNIZED BY OUR DECISIONS AS BEING SUFFICIENT TO INCUR AN OBLIGATION, THEY COULD NOT BE CONSIDERED AS MEETING THE DOCUMENTARY EVIDENCE REQUIREMENTS OF SECTION 1311 (A). HENCE, IN DETERMINING THE FISCAL YEAR APPROPRIATION PROPERLY CHARGEABLE, EFFECT WAS STILL REQUIRED TO BE GIVEN TO PRIOR OFFICE DECISIONS HOLDING THAT EXPENSES OF TRANSPORTATION OF AN EMPLOYEE'S HOUSEHOLD EFFECTS--- WHERE HE IS REIMBURSED UPON A COMMUTED BASIS--- DO NOT BECOME VALID OBLIGATIONS UNTIL THE EXPENSES ARE ACTUALLY PAID BY THE EMPLOYEE. 28 COMP. GEN. 337; AND 31 ID. 472.

A DECISION IS ALSO REQUESTED AS TO WHETHER OBLIGATIONS FOR TRAVEL AND RELATED EXPENSES, OTHER THAN THOSE INVOLVING DOMESTIC TRANSPORTATION OF HOUSEHOLD EFFECTS, CAN BE RECORDED UNDER SECTION 1311 (A) ON THE SOLE BASIS OF THE ISSUANCE OF THE TRAVEL ORDERS. IT IS STATED IN THE LETTER OF JUNE 15, 1955, THAT IN CONNECTION WITH CIVIL AERONAUTICS ADMINISTRATION ANNUAL TRAVEL ORDERS, A NOTIFICATION OF TRAVEL (FORM) IS SUBMITTED MONTHLY FOR CONTINUOUS OR FOREIGN TRAVEL AND IS SUBMITTED INDIVIDUALLY FOR EMERGENCY OR OCCASIONAL TRAVEL. THE FORM CONTAINS AN ESTIMATE OF THE ANTICIPATED EXPENSES OF THE TRAVEL. IT IS REQUESTED THAT IN THE EVENT WE DETERMINE THE TRAVEL ORDER ITSELF DOES NOT CONSTITUTE THE DOCUMENTATION REQUIRED BY SECTION 1311 (A), WE ADVISE AS TO WHETHER THE ADDITIONAL EVIDENCE SUPPLIED IN THE NOTIFICATION OF TRAVEL FORM FULFILLS THAT REQUIREMENT.

THE ACCOUNTING OFFICERS CONSISTENTLY HAVE HELD THAT THE ISSUANCE OF A TRAVEL OR TRANSPORTATION ORDER, IN ITSELF, DOES NOT CONSTITUTE A CONTRACTUAL OBLIGATION. SUCH ORDERS MERELY CONSTITUTE AUTHORIZATION FOR THE PERSONS SPECIFIED THEREIN TO INCUR THE OBLIGATIONS. SEE 1 COMP. GEN. 655; 20 ID. 436; 27 ID. 25. THE OBLIGATION IS NOT INCURRED UNTIL THE TRAVEL IS ACTUALLY PERFORMED OR UNTIL A TICKET IS PURCHASED, PROVIDED IN THE LATTER CASE THE TRAVEL IS TO BE PERFORMED IN THE SAME FISCAL YEAR THE TICKET IS PURCHASED. SEE GENERALLY, IN CONNECTION WITH OBLIGATING APPROPRIATIONS FOR TRAVEL AND RELATED EXPENSES, 23 COMP. GEN. 197; 26 ID. 131, ID. 961; 27 ID. 764; 30 ID. 25, ID. 147.

ACCORDINGLY, AND SINCE THE CONGRESS IN ENACTING SECTION 1311 DID NOT INTEND TO RELAX ANY OF THE RULES ESTABLISHED BY PRIOR DECISIONS OF THIS OFFICE FOR DETERMINING WHEN AN OBLIGATION IS INCURRED FOR VARIOUS TYPES OF TRAVEL AND RELATED EXPENSES, IT MUST BE HELD THAT NEITHER THE TRAVEL ORDERS NOR THE NOTIFICATION OF TRAVEL FORM USED UNDER CAA ANNUAL TRAVEL ORDERS CONSTITUTE, IN THEMSELVES, DOCUMENTARY EVIDENCE OF OBLIGATIONS INCURRED.

IT MAY BE STATED, HOWEVER, THAT WE HAVE NO OBJECTION TO RECORDING TENTATIVELY AS OBLIGATIONS THE ESTIMATED COST OF TRANSPORTATION TO BE PURCHASED AND REIMBURSEMENTS THEREFOR TO BE EARNED, INCLUDING REIMBURSEMENTS FOR TRANSPORTATION OF HOUSEHOLD EFFECTS, WITHIN THE CURRENT FISCAL YEAR AT THE TIME THE TRAVEL ORDERS ARE ACTUALLY ISSUED WHERE IT IS ADMINISTRATIVELY DETERMINED DESIRABLE IN ORDER TO AVOID CERTAIN ADDITIONAL ACCOUNTING REQUIREMENTS; BUT ALL ESTIMATED AMOUNTS FOR TRAVEL AND RELATED EXPENSES SO RECORDED SHOULD BE ADJUSTED TO ACTUAL OBLIGATIONS PERIODICALLY AND, IN ANY EVENT, PRIOR TO THE SUBMISSION OF THE REPORT ON OBLIGATIONS REQUIRED BY SUBSECTION (B) OF SECTION 1311.