B-85584, APR. 27, 1965
Highlights
EQUIPMENT TO POSTMASTERS OF FOURTH-CLASS OFFICES WHEN THESE ITEMS ARE FURNISHED FREE BY THE FEDERAL GOVERNMENT OR A STATE GOVERNMENT. THE 15 PERCENT RENTAL ALLOWANCE WAS ALLOWED ALL FOURTH-CLASS POSTMASTERS WHOSE OFFICE WAS LOCATED IN SPACE FURNISHED BY GOVERNMENTAL AGENCIES. THE PAYMENT OF THE 15 PERCENT RENTAL ALLOWANCE IS AT THE DISCRETION OF THE POSTMASTER GENERAL.'. WE HAVE REVIEWED 39 U.S.C. 3544 (H) AS AMENDED BY PUBLIC LAW 88-426. IT IS OUR OPINION THAT THE LAW ALLOWS THE POSTMASTER GENERAL NO DISCRETION IN THIS MATTER. IT IS APPARENT THAT THE LAW CONTEMPLATES THAT A POSTMASTER AT A FOURTH- CLASS OFFICE WOULD BE ENTITLED TO AN ALLOWANCE FOR QUARTERS. EQUIPMENT ONLY WHEN HE IS REQUIRED TO FURNISH SUCH ITEMS.
B-85584, APR. 27, 1965
TO THE HONORABLE POSTMASTER GENERAL:
BY LETTER DATED NOVEMBER 20, 1964, MR. WILLIAM M. MCMILLAN, ASSISTANT POSTMASTER GENERAL, BUREAU OF OPERATIONS, INFORMED MR. LLOYD G. SMITH, ASSISTANT DIRECTOR OF OUR CIVIL ACCOUNTING AND AUDITING DIVISION, OF THE ACTION THE POST OFFICE DEPARTMENT PROPOSED TO TAKE IN ANSWER TO OUR INQUIRY OF SEPTEMBER 24, 1964, CONCERNING THE PAYMENT OF ALLOWANCES FOR QUARTERS, FIXTURES, AND EQUIPMENT TO POSTMASTERS OF FOURTH-CLASS OFFICES WHEN THESE ITEMS ARE FURNISHED FREE BY THE FEDERAL GOVERNMENT OR A STATE GOVERNMENT. SUBSEQUENTLY, ON JANUARY 19, 1965, THE DEPARTMENT ISSUED REGIONAL LETTER NO. 65-15 INSTRUCTING THE POSTAL REGIONS TO DISCONTINUE EFFECTIVE JULY 3, 1965, PAYMENT OF THE 15 PERCENT RENTAL ALLOWANCE TO POSTMASTERS OF FOURTH-CLASS OFFICES LOCATED IN QUARTERS FURNISHED WITHOUT CHARGE BY A STATE OR FEDERAL AGENCY OR A QUASI-GOVERNMENT INSTITUTION. REGARDING THE DEPARTMENT'S LEGAL AUTHORITY TO PAY THE RENTAL ALLOWANCE TO SUCH POSTMASTERS, REGIONAL LETTER NO. 65-15 STATES AS FOLLOWS:
"UNDER PREVIOUS LAW, THE 15 PERCENT RENTAL ALLOWANCE WAS ALLOWED ALL FOURTH-CLASS POSTMASTERS WHOSE OFFICE WAS LOCATED IN SPACE FURNISHED BY GOVERNMENTAL AGENCIES. UNDER PUBLIC LAW 88-426, THE PAYMENT OF THE 15 PERCENT RENTAL ALLOWANCE IS AT THE DISCRETION OF THE POSTMASTER GENERAL.'
WE HAVE REVIEWED 39 U.S.C. 3544 (H) AS AMENDED BY PUBLIC LAW 88-426, APPROVED AUGUST 14, 1964, AND IT IS OUR OPINION THAT THE LAW ALLOWS THE POSTMASTER GENERAL NO DISCRETION IN THIS MATTER. PUBLIC LAW 88 426 AMENDED 39 U.S.C. 3544 (H) TO READ AS FOLLOWS:
"WHEN REQUIRED BY THE POSTMASTER GENERAL A POSTMASTER AT A FOURTH CLASS OFFICE SHALL, AND ANY OTHER POSTMASTER IN PFS LEVEL 5 WHEN PERMITTED BY THE POSTMASTER GENERAL MAY, FURNISH QUARTERS, FIXTURES, AND EQUIPMENT FOR AN OFFICE ON AN ALLOWANCE BASIS. THE ALLOWANCE FOR THIS PURPOSE SHALL BE AN AMOUNT EQUAL TO 15 PERCENTUM OF THE BASIC COMPENSATION FOR THE POSTMASTER AT THE OFFICE.'
IT IS APPARENT THAT THE LAW CONTEMPLATES THAT A POSTMASTER AT A FOURTH- CLASS OFFICE WOULD BE ENTITLED TO AN ALLOWANCE FOR QUARTERS, FIXTURES, AND EQUIPMENT ONLY WHEN HE IS REQUIRED TO FURNISH SUCH ITEMS. THEREFORE, ANY ALLOWANCE PAYMENTS FOR PERIODS AFTER AUGUST 14, 1964, MADE TO POSTMASTERS WHO DID NOT FURNISH THESE ITEMS SHOULD BE RECOVERED BY THE DEPARTMENT. ADDITION, THE DEPARTMENT'S REGULATIONS SHOULD BE REVISED TO PROHIBIT IMMEDIATELY ANY FURTHER ALLOWANCE PAYMENTS TO POSTMASTERS OF FOURTH-CLASS OFFICES WHERE THE FEDERAL GOVERNMENT OR A STATE GOVERNMENT FURNISHES QUARTERS, FIXTURES, AND EQUIPMENT WITHOUT COST.
PLEASE ADVISE US OF ANY ACTION TAKEN BY THE DEPARTMENT TO REVISE ITS REGULATIONS IN COMPLIANCE WITH THIS LETTER AND OF ANY AMOUNTS COLLECTED FROM POSTMASTERS WHO RECEIVED ALLOWANCE PAYMENTS AFTER AUGUST 14, 1964, BUT DID NOT FURNISH THE REQUIRED QUARTERS, FIXTURES, AND EQUIPMENT.