B-155690, MAR 27, 1972, 51 COMP GEN 606

B-155690, MAR 27, 1972, 51 COMP GEN 606

CHECKS - TRAVELERS - REIMBURSEMENT - MILITARY PERSONNEL REIMBURSEMENT TO MEMBERS OF THE UNIFORMED SERVICES FOR THE COST OF PURCHASING TRAVELER'S CHECKS, WHETHER THE RELATED TRAVEL IS PERFORMED WITHIN OR WITHOUT THE UNITED STATES, MAY BE AUTHORIZED WITHOUT REGARD TO THE VALUE OF THE CHECKS PURCHASED IN VIEW OF THE BROAD AUTHORITY FOR REIMBURSEMENT IN CONNECTION WITH THE TRAVEL OF MEMBERS AND THEIR DEPENDENTS, AND THE JOINT TRAVEL REGULATIONS AMENDED ACCORDINGLY, THUS BRINGING REIMBURSEMENT FOR THE COST OF TRAVELER'S CHECKS FOR TRAVEL WITHIN THE UNITED STATES IN LINE WITH THE LONG RECOGNITION THAT THE COST OF TRAVELER'S CHECKS INCIDENT TO TRAVEL OUTSIDE THE UNITED STATES IS A VALID EXPENSE. HOWEVER, THE AMENDMENT OF THE STANDARDIZED GOVERNMENT TRAVEL REGULATIONS TO ACCOMPLISH THE SAME UNIFORMITY IN REIMBURSING CIVILIAN EMPLOYEES FOR THE COST OF TRAVELER'S CHECKS IS A MATTER FOR CONSIDERATION BY THE ADMINISTRATOR OF THE GENERAL SERVICES ADMINISTRATION.

TO THE SECRETARY OF THE ARMY, MARCH 27, 1972:

WE REFER FURTHER TO LETTER DATED FEBRUARY 17, 1972, FROM THE DEPUTY AND ACTING ASSISTANT SECRETARY OF THE ARMY (MANPOWER AND RESERVE AFFAIRS), FORWARDED HERE BY LETTER OF FEBRUARY 23, 1972, FROM THE PER DIEM, TRAVEL AND TRANSPORTATION ALLOWANCE COMMITTEE (CONTROL NO. 72-6), REGARDING A REVISION OF PARAGRAPH M4412 AND ITEM 6, PARAGRAPH M7002-3, OF THE JOINT TRAVEL REGULATIONS, TO BECOME EFFECTIVE ON APRIL 1, 1972.

THE DEPUTY AND ACTING ASSISTANT SECRETARY STATES THAT THE EFFECT OF THE REGULATION CHANGES IS TO PERMIT REIMBURSEMENT FOR THE COST OF TRAVELER'S CHECKS WHETHER THE RELATED TRAVEL IS WITHIN OR WITHOUT THE UNITED STATES, AND ALSO TO PERMIT REIMBURSEMENT EVEN THOUGH THE VALUE OF THE CHECKS PURCHASED IS LESS THAN $100. IT IS EXPLAINED THAT NO REIMBURSEMENT PRESENTLY IS PERMITTED WHEN TRAVELER'S CHECKS OR SIMILAR INSTRUMENTS ARE USED INCIDENT TO TRAVEL TO, FROM, OR BETWEEN POINTS WITHIN THE UNITED STATES OR WHEN THE VALUE OF CHECKS PURCHASED FOR OTHER TRAVEL IS UNDER $100. IN THIS CONNECTION REFERENCE IS MADE TO THE STANDARDIZED GOVERNMENT TRAVEL REGULATIONS GOVERNING THE TRAVEL OF CIVILIAN EMPLOYEES, WHICH RESTRICT REIMBURSEMENT TO CASES INVOLVING TRAVEL OUTSIDE THE CONTINENTAL UNITED STATES BUT CONTAIN NO PROVISION AS TO THE MINIMUM VALUE OF SUCH INSTRUMENTS IN ORDER TO QUALIFY FOR REIMBURSEMENT.

IT IS STATED FURTHER THAT THE REASONS FOR SAFEGUARDING FUNDS INCIDENT TO OFFICIAL TRAVEL IN THE UNITED STATES APPEAR TO BE NO DIFFERENT THAN FOR TRAVEL IN OTHER AREAS AND THAT SUCH REASONS FORM THE BASIS OF THE ACTION OF THE SECRETARIES OF THE UNIFORMED SERVICES IN AUTHORIZING THE CHANGES INDICATED. IT IS INDICATED THAT WHILE OUR HOLDING IN 23 COMP. GEN. 212 (1943) PERMITS REGULATIONS AUTHORIZING REIMBURSEMENT FOR TRAVELER'S CHECKS CONNECTED WITH TRAVEL OUTSIDE THE UNITED STATES, IT LEAVES UNAFFECTED THE PROHIBITION AGAINST REIMBURSEMENT CONTAINED IN 4 COMP. GEN. 883 (1925), AS REGARDS TRAVEL WITHIN THE UNITED STATES.

ADDITIONALLY, IT IS STATED THAT A SIMILAR CHANGE REGARDING TRAVEL IN THE CONTINENTAL UNITED STATES HAS BEEN SUGGESTED FOR THE STANDARDIZED GOVERNMENT TRAVEL REGULATIONS, THE STATUTORY BASE OF VOLUME 2 OF THE JOINT TRAVEL REGULATIONS, WHICH GOVERN THE TRAVEL OF DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL. THEREFORE, DECISION ALSO IS REQUESTED REGARDING THE PROPRIETY OF AMENDMENT OF THE STANDARDIZED GOVERNMENT TRAVEL REGULATIONS TO PERMIT SUCH REIMBURSEMENT.

PAR. M4412, JTR, TO BECOME EFFECTIVE APRIL 1, 1972, PROVIDES AS FOLLOWS:

COSTS OF TRAVELER'S CHECKS OR SIMILAR INSTRUMENTS PURCHASED BY THE MEMBER FOR THE SAFE TRANSPORTATION OF PERSONAL FUNDS NECESSARY FOR NORMAL EXPENSES INCURRED INCIDENT TO TEMPORARY OR PERMANENT CHANGE-OF STATION TRAVEL ARE REIMBURSABLE PROVIDED THAT THE TOTAL VALUE OF SUCH INSTRUMENTS IS NOT MORE THAN THE PER DIEM AND TRAVEL EXPENSES ADMINISTRATIVELY ESTIMATED FOR THE ORDERED TRAVEL.

PAR. M7002-3, JTR, ALSO TO BECOME EFFECTIVE APRIL 1, 1972, PROVIDES THAT THE MEMBER IS ENTITLED TO REIMBURSEMENT FOR EXPENSES INCURRED INCIDENT TO THE TRANSPORTATION OF HIS DEPENDENTS, AS FOLLOWS:

6. COSTS OF TRAVELER'S CHECKS OR SIMILAR INSTRUMENTS PURCHASED FOR THE SAFE TRANSPORTATION OF PERSONAL FUNDS NECESSARY FOR NORMAL EXPENSES INCURRED IN CONNECTION WITH THE AUTHORIZED TRAVEL OF DEPENDENTS, PROVIDED THAT THE TOTAL VALUE OF SUCH INSTRUMENTS IS NOT MORE THAN THE REASONABLE ANTICIPATED TRAVEL EXPENSES OF THE AUTHORIZED DEPENDENT MOVEMENT;

THE STANDARDIZED GOVERNMENT TRAVEL REGULATIONS, SECTION 9.1, OFFICE OF MANAGEMENT AND BUDGET CIRCULAR NO. A-7, REVISED EFFECTIVE OCTOBER 10, 1971 (NOW UNDER THE AUTHORITY OF THE ADMINISTRATOR OF THE GENERAL SERVICES ADMINISTRATION MAKES PROVISION FOR ALLOWABLE EXPENSES AS FOLLOWS:

C. FEES RELATING TO TRAVEL OUTSIDE THE CONTINENTAL UNITED STATES. THE FOLLOWING ITEMS OF EXPENSE MAY BE AUTHORIZED OR APPROVED:

(3) TRAVELERS CHECKS. COSTS OF TRAVELERS CHECKS PURCHASED IN CONNECTION WITH TRAVEL OUTSIDE THE LIMITS OF THE CONTINENTAL UNITED STATES, NOT TO EXCEED THE AMOUNT REASONABLY NEEDED TO COVER THE REIMBURSABLE EXPENSES INCURRED.

AS NOTED IN THE REQUEST FOR DECISION, IN 4 COMP. GEN. 883, WE HELD THAT THE COST OF TRAVELER'S CHECKS WAS AN UNNECESSARY AND UNAUTHORIZED EXPENSE, WHETHER PRIVATE OR GOVERNMENT FUNDS WERE TO BE PROTECTED. IN 23 COMP. GEN. 212 (1943) IT WAS RECOGNIZED THAT AN EXPENSE INCURRED FOR TRAVELER'S CHECKS OR OTHER CREDIT ARRANGEMENTS WAS NECESSARY FOR CIVILIAN COMMERCIAL TRAVEL ABROAD, AND, ACCORDINGLY, THE STANDARDIZED GOVERNMENT TRAVEL REGULATIONS WERE AMENDED TO PROVIDE FOR REIMBURSEMENT OF THESE COSTS AS NECESSARY TRAVEL EXPENSES.

IN DECISION OF JANUARY 21, 1965, 44 COMP. GEN. 416, WE HELD THE COST OF TRAVELER'S CHECKS TO BE A VALID TRAVEL EXPENSE FOR TRAVEL OUTSIDE THE UNITED STATES FOR MEMBERS OF THE UNIFORMED SERVICES, AND THAT AMENDMENT OF THE JOINT TRAVEL REGULATIONS TO PROVIDE FOR THEIR REIMBURSEMENT IN CONNECTION WITH THE TRAVEL OF MEMBERS AND DEPENDENTS WAS PROPER UNDER THE PROVISIONS OF PARAGRAPHS 404(A) AND (D), AND 406(A) AND (C), TITLE 37, UNITED STATES CODE. WE SAID THAT IT LONG HAD BEEN RECOGNIZED THAT THE COST OF TRAVELER'S CHECKS WAS A VALID EXPENSE FOR TRAVEL OUTSIDE THE UNITED STATES AND IT WAS WITHIN THE POWER AND DISCRETION OF THE SECRETARIES CONCERNED TO PROMULGATE REGULATIONS AUTHORIZING REIMBURSEMENT TO MEMBERS FOR THE COST OF SUCH EXPENSES SHOULD THEY DEEM IT ADVISABLE AND NECESSARY TO DO SO.

WE ARE AWARE THAT TRAVEL-RELATED COSTS HAVE INCREASED CONSIDERABLY IN THE UNITED STATES SINCE 1925, REQUIRING TRAVELERS EITHER TO CARRY LARGE SUMS OF CASH WHICH ARE INCREASINGLY SUBJECT TO LOSS OR THEFT, OR TO RELY ON THE USE OF PERSONAL CHECKS, TO MEET SUCH COSTS. SINCE TRAVEL OFTEN IS PERFORMED IN AREAS OF THE COUNTRY WHERE INDIVIDUAL TRAVELERS ARE UNKNOWN, IT MAY BE DIFFICULT TO CASH A PERSONAL CHECK OR USE ONE TO PAY FOR REQUIRED GOODS OR SERVICES AND AS A MATTER OF NECESSITY, IT HAS BECOME A COMMON PRACTICE FOR TRAVELERS IN THIS COUNTRY TO USE TRAVELER'S CHECKS, OR THEIR EQUIVALENT, TO SAFEGUARD THEIR FUNDS AND HAVE THEM READILY AVAILABLE. CONSEQUENTLY, IT IS CONCLUDED THAT USE OF TRAVELER'S CHECKS OR SIMILAR INSTRUMENTS BY MEMBERS OR DEPENDENTS, OR BY CIVILIAN TRAVELERS, NOW IS A NECESSARY EXPENSE OF OFFICIAL TRAVEL IN THE UNITED STATES. THE DECISION REPORTED AT 4 COMP. GEN. 883 WILL NO LONGER BE FOLLOWED.

THE BROAD GRANT OF AUTHORITY CONTAINED IN THE CITED PROVISIONS OF THE U.S. CODE, IN OUR OPINION, PROVIDES SUFFICIENT LEGAL BASIS FOR THE PROMULGATION OF REGULATIONS AUTHORIZING REIMBURSEMENT OF SUCH EXPENSES WHERE TRAVEL IS PERFORMED WITHIN OR OUTSIDE THE UNITED STATES, WITHOUT REGARD TO THE VALUE OF THE CHECKS PURCHASED. THEREFORE, WE HAVE NO OBJECTION TO THE CITED CHANGES IN THE JOINT TRAVEL REGULATIONS EFFECTIVE APRIL 1, 1972.

SIMILARLY, WE WOULD HAVE NO OBJECTION TO AN AMENDMENT OF THE STANDARDIZED GOVERNMENT TRAVEL REGULATIONS TO PERMIT REIMBURSEMENT TO CIVILIAN EMPLOYEES FOR SUCH COSTS IN CONNECTION WITH OFFICIAL TRAVEL PERFORMED INSIDE THE LIMITS OF THE CONTINENTAL UNITED STATES. SINCE ANY ACTION IN THAT REGARD IS A MATTER FOR CONSIDERATION BY THE ADMINISTRATOR OF THE GENERAL SERVICES ADMINISTRATION, WE ARE TODAY FURNISHING HIM A COPY OF THIS DECISION.