B-131799, JUNE 18, 1957, 36 COMP. GEN. 822

B-131799, JUNE 18, 1957, 36 COMP. GEN. 822

AWARDS - SUGGESTIONS - SAVINGS REFLECTED IN GOVERNMENT FUNDS - FEDERAL LAND BANKS A FARM CREDIT ADMINISTRATION EMPLOYEE WHO SUGGESTED A PROCEDURAL IMPROVEMENT WHICH RESULTED IN MONETARY SAVINGS TO THE FEDERAL LAND BANKS-- - WHOLLY FARMER OWNED--- BUT WHICH DID NOT RESULT IN A SAVINGS IN THE FARM CREDIT ADMINISTRATION APPROPRIATIONS USED FOR ADMINISTRATIVE ACTIVITIES PERFORMED FOR THE BANKS IS NOT ENTITLED TO BE PAID A CASH AWARD BY THE ADMINISTRATION UNDER THE GOVERNMENT EMPLOYEES' INCENTIVE AWARDS ACT.

TO M. C. RAAKE, FARM CREDIT ADMINISTRATION, JUNE 18, 1957:

YOUR LETTER OF MAY 9, 1957, REQUESTS OUR DECISION AS TO WHETHER YOU MAY CERTIFY FOR PAYMENT THE PAYROLL VOUCHER ENCLOSED THEREWITH COVERING AN INCENTIVE AWARD TO ROBERT C. FERGUSON IN THE AMOUNT OF $325, SHOWN THEREON AS CHARGEABLE TO THE APPROPRIATION "78X5630 ADMINISTRATIVE EXPENSES, FARM CREDIT ADMINISTRATION.' THAT AMOUNT, AS INDICATED ON THE PAYROLL CHANGE SLIP IN SUPPORT OF THE VOUCHER, REPRESENTS AN AWARD OF $200 FOR SUSTAINED SUPERIOR WORK PERFORMANCE AND $125 FOR PARTICIPATION IN A GROUP ACHIEVEMENT (THREE PARTICIPANTS) SAVING $30,000 IN THE FIRST YEAR OF OPERATION.

THERE ACCOMPANIED YOUR LETTER A COPY OF THE RECOMMENDATION CONCERNING THE AWARD FOR THE GROUP ACHIEVEMENT SAVING FROM WHICH IT APPEARS THAT MR. FERGUSON AND HIS ASSOCIATES DEVELOPED A CHANGE OF PROCEDURE INVOLVING THE PRINTING OF BONDS FOR THE FEDERAL LAND BANKS BY THE BUREAU OF ENGRAVING, WHICH SUBSTANTIALLY REDUCED THE INSURANCE EXPENSE INCIDENT TO THEIR SHIPMENT TO THE BANKS. YOU SAY THAT THE ACTUAL SAVING OF $30,000 ACCRUES TO THE FEDERAL LAND BANKS AND WILL NOT APPEAR AS A SAVING IN FARM CREDIT ADMINISTRATION ADMINISTRATIVE EXPENSES. CONSEQUENTLY, YOU QUESTION THE AVAILABILITY OF THE ADMINISTRATIVE EXPENSES APPROPRIATION FOR THE PAYMENT OF THE $125 AWARD.

SECTION 304 OF THE GOVERNMENT EMPLOYEES' INCENTIVE AWARDS ACT, 68 STAT. 1113, 5 U.S.C. 2123, AS IMPLEMENTED BY REGULATIONS OF THE UNITED STATES CIVIL SERVICE COMMISSION (5 CFR 32.101 TO 32.403), PROVIDES FOR THE PAYMENT OF CASH AWARDS TO CIVILIAN OFFICERS AND EMPLOYEES OF THE GOVERNMENT FOR SUGGESTIONS, INVENTIONS, SUPERIOR ACCOMPLISHMENTS, OR OTHER IMPROVEMENTS OF GOVERNMENT OPERATIONS IN CONNECTION WITH OR RELATED TO THEIR OFFICIAL EMPLOYMENT. AND SECTION 304 (E), 5 U.S.C. 2123 (E), OF THE ACT, AS INDICATED IN YOUR LETTER, AUTHORIZES DEPARTMENTS TO PAY CASH AWARDS FROM THEIR FUNDS OR APPROPRIATIONS AVAILABLE TO THE ACTIVITY PRIMARILY BENEFITING FROM SUCH SUGGESTIONS, ETC.

THE APPROPRIATION "78X5630 ADMINISTRATIVE EXPENSES, FARM CREDIT ADMINISTRATION" CONTAINED IN THE DEPARTMENT OF AGRICULTURE AND FARM CREDIT ADMINISTRATION APPROPRIATION ACT, 1957, APPROVED JUNE 4, 1956, PUBLIC LAW 554, 70 STAT. 239, 12 U.S.C. 1020A-2, IS A SPECIAL FUND APPROPRIATION MADE IN ACCORDANCE WITH THE PROVISIONS OF SECTIONS 601 (A) AND (B) OF THE DEPARTMENT OF AGRICULTURE ORGANIC ACT OF 1944, 58 STAT. 740, AS AMENDED BY 12 U.S.C., SUPP. IV, 832. BY THE TERMS OF THE LATTER ACT, THE FARM CREDIT ADMINISTRATION IS AUTHORIZED TO ESTIMATE ON AN ANNUAL BASIS THE COST OF EXAMINATION AND ADMINISTRATIVE SUPERVISION OF THE FARM CREDIT AGENCIES, INCLUDING THE FEDERAL LAND BANKS, AND TO ASSESS AND COLLECT THEREFROM IN ADVANCE THE AMOUNT SO DETERMINED. SUCH COLLECTIONS ARE REQUIRED TO BE DEPOSITED INTO THE TREASURY AND AUTHORIZED TO BE APPROPRIATED TO THE ADMINISTRATION FOR EXPENDITURE DURING EACH FISCAL YEAR FOR SALARIES AND EXPENSES APPLICABLE TO ITS EXAMINATION AND ADMINISTRATIVE SUPERVISION RESPONSIBILITIES. HOWEVER, IT HAS BEEN INFORMALLY LEARNED FROM REPRESENTATIVES OF THE FARM CREDIT ADMINISTRATION THAT REIMBURSEMENT TO THE TREASURY DEPARTMENT FOR THE COST OF PRINTING AND SHIPPING FEDERAL LAND BANK BONDS IS MADE DIRECTLY TO THE TREASURY DEPARTMENT BY THE FISCAL AGENT OF THE FEDERAL LAND BANKS AND THAT FUNDS FOR SUCH PURPOSES ARE NOT INCLUDED IN THE ASSESSMENTS TO THE BANKS AND NEVER BECOME A PART OF THIS APPROPRIATION.

THE ACT OF SEPTEMBER 1, 1954, 5 U.S.C. 2123, AND CIVIL SERVICE REGULATIONS CLEARLY LIMIT THE PAYMENT OF CASH AWARDS TO BENEFICIAL SUGGESTIONS WHICH IMPROVE THE EFFICIENCY AND ECONOMY OF GOVERNMENT OPERATIONS. WHEN SUCH AWARDS ARE BASED UPON A SUGGESTION RESULTING IN MONETARY SAVINGS THERE CAN BE NO DOUBT THAT THE SAVINGS MUST BE TO GOVERNMENT FUNDS. SEE 5 CFR 32.302.

WHILE THE FEDERAL LAND BANKS HAVE BEEN HELD TO BE INSTRUMENTALITIES OF THE UNITED STATES--- SEE FEDERAL BANK OF ST. LOUIS V. PRIDDY, 295 U.S. 229, REHEARING DENIED, ID. 769--- NEVERTHELESS THEY ARE WHOLLY FARMER- OWNED AND CARRY OUT THEIR ACTIVITIES WITHOUT GOVERNMENT FUNDS. SINCE THE SAVING RESULTING FROM THE CHANGE OF PROCEDURE IN PRINTING AND SHIPPING FEDERAL LAND BANK BONDS ACCRUES TO THE BANKS RATHER THAN TO THE GOVERNMENT AND IS NOT REFLECTED IN THE ADMINISTRATIVE ACTIVITIES COVERED BY THE APPROPRIATION "78X5630," THE SUGGESTION IS NOT ONE FOR WHICH A CASH AWARD PROPERLY CAN BE PAID BY THE FARM CREDIT ADMINISTRATION AND THE APPROPRIATION "78X5630" IS UNAVAILABLE FOR SUCH A PAYMENT.

ACCORDINGLY, THE VOUCHER MAY BE CERTIFIED FOR PAYMENT ONLY IN THE AMOUNT OF $200 REPRESENTING THE AWARD FOR SUSTAINED SUPERIOR WORK PERFORMANCE, IF OTHERWISE CORRECT, AND MAY NOT INCLUDE THE AWARD FOR THE BENEFICIAL SUGGESTION. THE VOUCHER IS RETURNED.