A-54807, JULY 2, 1934, 14 COMP. GEN. 1

A-54807, JULY 2, 1934, 14 COMP. GEN. 1

COMPENSATION - ADMINISTRATIVE PROMOTION - PAY-ROLL NOTATIONS THE FIRST PAY ROLL OR VOUCHER ON WHICH APPEAR ADMINISTRATIVE PROMOTIONS MADE DURING THE FISCAL YEAR 1935 SHOULD BE DESIGNATED IN THE REMARKS COLUMN AS A.P. --------------------- , AND, IF THE FACTS WARRANT, THE AMOUNT ON ANNUAL BASIS FOLLOWING ADMINISTRATIVE CERTIFICATE SHOULD BE MADE THEREON: IT IS HEREBY CERTIFIED THAT SUFFICIENT SAVINGS ARE NOW AVAILABLE ON AN ANNUAL BASIS UNDER THE APPROPRIATION ---------------------------- TO TITLE AND SYMBOL NUMBER COVER THE AGGREGATE AMOUNT OF ADMINISTRATIVE PROMOTIONS SHOWN HEREIN, AND THAT THE AGGREGATE AMOUNT OF ALL EXISTING COMMITMENTS UNDER SAID APPROPRIATION, INCLUDING THESE PROMOTIONS, WHEN COMPUTED ON AN ANNUAL BASIS, DOES NOT EXCEED THE TOTAL AMOUNT OF SAID APPROPRIATION FOR THE FISCAL YEAR. IN ADDITION TO THE ADMINISTRATIVE CERTIFICATE TO BE PLACED ON THE PAY ROLLS AND VOUCHERS, THERE SHOULD BE KEPT SO AS TO BE MADE READILY AVAILABLE TO THE GENERAL ACCOUNTING OFFICE, RECORDS AND DATA SHOWING AT ALL TIMES THE CONDITION OF THE PERSONNEL APPROPRIATIONS WITH RESPECT TO SAVINGS, COMMITMENTS, ETC.

COMPTROLLER GENERAL MCCARL TO THE SECRETARY OF THE NAVY, JULY 2, 1934:

THERE HAS BEEN RECEIVED YOUR LETTER OF JUNE 26, 1934, AS FOLLOWS:

REFERRING FURTHER TO THE QUESTION OF ADMINISTRATIVE PROMOTIONS UNDER THE PROVISIONS OF THE INDEPENDENT OFFICES APPROPRIATION ACT, PASSED MARCH 28, 1934, AS RAISED BY MY LETTER OF APRIL 6, AND YOUR DECISION A-54807 OF JUNE 9, 1934, IN RESPONSE THERETO, WHICH DETERMINES THAT AS A PREREQUISITE TO ANY ADMINISTRATIVE PROMOTIONS WHICH MAY BE PERMITTED DURING THE FISCAL YEAR 1935,

"THERE MUST BE A SHOWING OF THE AMOUNT SPECIFICALLY APPROPRIATED OR APPORTIONED FOR PERSONAL SERVICES FOR THE PARTICULAR OFFICE OR ACTIVITY INVOLVED, AND A SHOWING AS TO THE AMOUNT THEREOF WHETHER FILLED OR VACANT, EXISTING ON JULY 1, 1934. THE DIFFERENCE, AVAILABLE FOR PROMOTIONS WITHIN THE MEANING OF THE PROVISIONS IN QUESTION.'

UNDER THE NAVAL ACT APPROVED MARCH 15, 1934, SPECIFIC AMOUNTS ARE APPROPRIATED FOR COMPENSATION FOR PERSONAL SERVICES IN THE DISTRICT OF COLUMBIA FOR THE VARIOUS OFFICES AND BUREAUS OF THE NAVY DEPARTMENT. THESE SUMS BEING EXCLUSIVELY AVAILABLE FOR SALARY PAYMENTS, APPEAR TO INVOLVE NO QUESTION AS TO THE METHOD UNDER WHICH SHOWINGS OF ANY SAVINGS ON AN ANNUAL BASIS, AVAILABLE FOR PROMOTIONS WITHIN THE MEANING OF THE PROVISION IN QUESTION MAY BE DETERMINED. (ALL OF THESE EMPLOYEES HOLD NAVY DEPARTMENT APPOINTMENTS AND ARE COMPENSATED ON A PER ANNUM BASIS.)

SIMILARLY IN THE FIELD SERVICE, THE NAVAL ACT CARRYING SPECIFIC LIMITATIONS FOR PERSONAL SERVICES OF GROUP IV (B/--- PER ANNUM--- EMPLOYEES, ANY SAVINGS WHICH MAY BE AVAILABLE FOR PROMOTIONS ARE SUSCEPTIBLE OF SHOWINGS TO BE COMPUTED IN THE SAME MANNER.

HOWEVER, THE GREAT MAJORITY OF THE NAVY'S FIELD SERVICE ARE PER DIEM OR PER HOUR EMPLOYEES (GROUPS I TO IV (A), INCLUSIVE). AS INDIVIDUALS, MOST OF THEM ARE NOT PAID DIRECTLY FROM A SPECIFIC APPROPRIATION; THE DISTRIBUTION OF THE PAYMENTS TO THE APPROPRIATIONS CHARGEABLE IS DETERMINED THROUGH THE COST ACCOUNTING SYSTEM ACCORDING TO THE WORK PERFORMED. THE VARIOUS APPROPRIATIONS OF THE NAVAL ACT ARE, IN THE MAIN, MADE UP ON THE BASIS OF THE WORK TO BE ACCOMPLISHED. FOR EXAMPLE, THE APPROPRIATION "ENGINEERING--- 1935," UNDER WHICH THE SUM OF $15,542,000 IS AVAILABLE FOR THE FISCAL YEAR ENDING JUNE 30, 1935, IS SPECIFICALLY DRAWN FOR CERTAIN PURPOSES:

"FOR REPAIRS, PRESERVATION, AND RENEWAL OF MACHINERY, AUXILIARY MACHINERY, AND BOILERS OF NAVAL VESSELS, YARD CRAFT, AND SHIPS' BOATS, DISTILLING AND REFRIGERATING APPARATUS; REPAIRS, PRESERVATION, AND RENEWALS OF ELECTRIC INTERIOR AND EXTERIOR SIGNAL COMMUNICATIONS AND ALL ELECTRICAL APPLIANCES OF WHATSOEVER NATURE ON BOARD NAVAL VESSELS, EXCEPT

OUT OF THE $15,542,000 MENTIONED, THE LAW PROVIDES THAT THE SUM TO BE PAID FOR EMPLOYEES ASSIGNED TO GROUP IV (B) AND THOSE PERFORMING SIMILAR SERVICES CARRIED UNDER NATIVE AND ALIEN SCHEDULES IN THE SCHEDULE OF WAGES FOR CIVIL EMPLOYEES IN THE FIELD SERVICE OF THE NAVY DEPARTMENT SHALL NOT EXCEED $1,575,000. OTHER THAN THIS LIMITATION, THERE IS NO RESTRICTION OR DIVISION AS TO THE AVAILABILITY OF THIS APPROPRIATION FOR LABOR AND FOR MATERIAL. THE APPROPRIATION IS ADMINISTERED BY THE BUREAU OF ENGINEERING, NAVY DEPARTMENT, AND THAT BUREAU MAKES UP ITS DETAILED ALLOCATIONS FOR WORK UNDER ITS COGNIZANCE THROUGHOUT THE NAVY, BOTH ASHORE AND AFLOAT. ADMINISTRATIVELY, THIS BUREAU ESTIMATES AT THE BEGINNING OF EACH FISCAL YEAR THE AMOUNTS FROM THE APPROPRIATION WHICH WILL BE REQUIRED FOR THE PAYMENT OF LABOR (GROUPS I TO IV (A), INCLUSIVE) TO ACCOMPLISH THE VARIOUS PROJECTS, AND FROM TIME TO TIME DURING THE YEAR THESE ESTIMATES ARE REVISED. THE AMOUNT AVAILABLE TO ANY PARTICULAR NAVY YARD OR NAVAL STATION FOR LABOR AND MATERIAL UNDER THIS APPROPRIATION VARIES FROM MONTH TO MONTH ACCORDING TO THE ASSIGNMENT OF WORK, BUT FOR THE APPROPRIATION AS A WHOLE, REGARDLESS OF THE PARTICULAR YARDS OR STATIONS PERFORMING THE WORK, THE AMOUNT OF LABOR REQUIRED FOR THE ACCOMPLISHMENT OF ITS PURPOSE CAN BE FAIRLY ACCURATELY ESTIMATED. THIS APPLIES EQUALLY TO THE OTHER APPROPRIATIONS FOR THE NAVAL ESTABLISHMENT EMPLOYING THIS CLASS OF LABOR. THERE CAN BE NO FIXED NUMBER OF GROUPS I TO IV (A) POSITIONS AT ANY ONE ACTIVITY, AS EMPLOYMENT UNDER THESE GROUPS IS INTERMITTENT THEREAT ACCORDING TO THE FLUCTUATIONS OF THE WORK LOAD AND THE AMOUNT OF FUNDS ALLOTTED BY THE BUREAUS. IT IS, THEREFORE, APPARENT THAT ANY SHOWINGS OF SAVINGS FOR THE PURPOSE OF ADMINISTRATIVE PROMOTIONS MUST BE MADE BY THE NAVY DEPARTMENT ON THE BASIS OF THE STATUS OF THE APPROPRIATIONS FOR THE NAVAL ESTABLISHMENT AS A WHOLE AND NOT BY THE SEVERAL FIELD ACTIVITIES.

THE PER DIEM AND PER HOUR EMPLOYEES (GROUPS I TO IV (A), INCLUSIVE) ARE COMPENSATED AT RATES BASICALLY ESTABLISHED BY THE CURRENT SCHEDULE OF WAGES, EACH RATING (EXCEPT APPRENTICES) CARRYING A MAXIMUM, INTERMEDIATE, AND MINIMUM RATE, THE BASIC DIFFERENTIAL BEING 5 CENTS PER HOUR. ADVANCEMENTS OF AN EMPLOYEE FROM THE MINIMUM RATE TO THE INTERMEDIATE OR INTERMEDIATE TO THE MAXIMUM, AND AN APPRENTICE THROUGH HIS FOUR CLASSES, ARE REGARDED AS ADMINISTRATIVE PROMOTIONS. THEREFORE, IN ORDER TO PROMOTE ANY EMPLOYEE OF THESE GROUPS THE AVAILABILITY OF FUNDS FOR THE PURPOSE MUST BE SHOWN, AND ON AN ANNUAL BASIS. MANIFESTLY, UNDER THE ADMINISTRATIVE PROCEDURE NECESSARY TO COMPLY WITH THE TERMS OF THE NAVAL ACT THE SHOWINGS AS TO SAVINGS ON AN ANNUAL BASIS CANNOT BE MADE FOR PER DIEM AND PER HOUR EMPLOYEES BY THE SAME METHOD AS FOR THE DEPARTMENTAL AND GROUP IV (B) FIELD EMPLOYEES, AS LAID DOWN IN YOUR DECISION OF JUNE 9, 1934.

GROUPS I, II, III, AND IV (A) AT PRESENT NUMBER OVER 47,000 EMPLOYEES; GROUP IV (B) LESS THAN 10,000. IT IS NOT PRESUMED THAT EMPLOYEES OF GROUPS I TO IV (A), INCLUSIVE, ARE TO BE EXCLUDED FROM THE BENEFITS OF PROMOTIONS. FOR THOSE PER DIEM AND PER HOUR EMPLOYEES WHOSE SERVICES ARE COMMON TO ALL APPROPRIATIONS FOR WORK OF THE NAVAL ESTABLISHMENT, IT IS PROPOSED TO MAKE THE ,SHOWINGS OF SAVINGS" FROM THE APPORTIONMENTS FOR LABOR, OTHER THAN GROUP IV (B), UNDER EACH APPROPRIATION, TO BE SET UP AND RECORDED IN ADVANCE BY THE VARIOUS BUREAUS CONCERNED FROM THE FUNDS AVAILABLE FOR THE YEAR FOR WORK UNDER THEIR COGNIZANCE. WHILE IT IS UNDERSTOOD THAT THE AVAILABILITY OF FUNDS FOR ADMINISTRATIVE PROMOTIONS MUST BE CONSIDERED ON AN ANNUAL BASIS, THE AMOUNTS THEREOF WILL BE SUBJECT TO THE CHANGES IN THE APPORTIONMENTS MADE FROM TIME TO TIME DURING THE YEAR NECESSITATED TO MEET THE CONSTANTLY VARYING WORK LOADS. IT IS THE INTENTION THAT THE ,SHOWINGS OF SAVINGS" WILL BE MADE IN THE NAVY DEPARTMENT, SINCE, AS PREVIOUSLY POINTED OUT, THE FIELD ACTIVITIES WILL NOT HAVE THE INFORMATION AS TO THE TOTAL AMOUNTS OF THE ADMINISTRATIVE ALLOCATIONS UNDER THE SEVERAL APPROPRIATIONS.

INFORMATION IS REQUESTED AS TO WHETHER THE PROCEDURE ABOVE OUTLINED MAY BE ADOPTED, AND ALSO WHETHER, IN ANY CASE IN WHICH THE NAVY DEPARTMENT SHOULD DESIRE TO GRANT ADMINISTRATIVE PROMOTIONS ON THE ANNUAL SAVINGS BASIS, A CERTIFICATE FROM THIS DEPARTMENT TO THE EFFECT THAT THE FUNDS ARE AVAILABLE TO COVER THE PROMOTIONS GRANTED IN ANY GIVEN MONTH WILL BE ACCEPTABLE TO YOUR OFFICE.

I SEE NO LEGAL OBJECTION AT THIS TIME TO THE PROCEDURE PROPOSED IN YOUR LETTER.

ADMINISTRATIVE PROMOTIONS SHOULD BE DESIGNATED ON THE FIRST PAY ROLL IN THE REMARKS COLUMN AS A.P. ----------------------------- , AND

AMOUNT ON ANNUAL BASIS THE CERTIFIED STATEMENT OF FACT TO APPEAR ON THE PAY ROLL OR VOUCHER ON WHICH ADMINISTRATIVE PROMOTIONS ARE FIRST MADE SHOULD, IF THE FACTS WARRANT, READ SUBSTANTIALLY AS FOLLOWS:

IT IS HEREBY CERTIFIED THAT SUFFICIENT SAVINGS ARE NOW AVAILABLE ON AN ANNUAL BASIS UNDER THE APPROPRIATION -------------------------------

TITLE AND SYMBOL NUMBER TO COVER THE AGGREGATE AMOUNT OF ADMINISTRATIVE PROMOTIONS SHOWN HEREIN AND THAT THE AGGREGATE AMOUNT OF ALL EXISTING COMMITMENTS UNDER SAID APPROPRIATION, INCLUDING THESE PROMOTIONS, WHEN COMPUTED ON AN ANNUAL BASIS, DOES NOT EXCEED THE TOTAL AMOUNT OF SAID APPROPRIATION FOR THE FISCAL YEAR.

IN ADDITION TO THE ADMINISTRATIVE CERTIFICATE TO BE PLACED ON THE PAY ROLLS AND VOUCHERS, THERE SHOULD BE KEPT SO AS TO BE MADE READILY AVAILABLE TO THIS OFFICE, RECORDS AND DATA SHOWING AT ALL TIMES THE CONDITION OF THE PERSONNEL APPROPRIATIONS WITH RESPECT TO SAVINGS, COMMITMENTS, ETC. ..END :