B-114876, JULY 30, 1958, 38 COMP. GEN. 81

B-114876, JULY 30, 1958, 38 COMP. GEN. 81

APPROPRIATIONS - FISCAL YEAR - PURCHASE V. PAYMENT DATE - OBLIGATION - UNIFORMS THE APPROPRIATION CHARGEABLE WITH THE COST OF UNIFORMS PURCHASED PURSUANT TO THE FEDERAL EMPLOYEES UNIFORM ALLOWANCE ACT IS THE ONE CURRENTLY AVAILABLE WHEN THE EXPENDITURE IS MADE OR THE DEBT INCURRED BY THE EMPLOYEE AND, ALTHOUGH REIMBURSEMENT MAY NOT BE MADE UNTIL A SUBSEQUENT FISCAL YEAR BECAUSE OF ADMINISTRATIVE PROCEDURES, THE OBLIGATION FOR CERTIFICATION UNDER SECTION 1311, SUPPLEMENTAL APPROPRIATION ACT, 1955, 31 U.S.C. 200, ARISES SIMULTANEOUSLY WITH THE EXPENDITURE OR THE INCURRENCE OF THE DEBT BY THE EMPLOYEE.

TO THE POSTMASTER GENERAL, JULY 30, 1958:

LETTER OF MAY 20, 1958, FROM THE DEPUTY POSTMASTER GENERAL REQUESTS CLARIFICATION OF THE EXCEPTION CONTAINED IN THE FOLLOWING STATEMENT IN OUR REPORT, DATED FEBRUARY 11, 1958, TO THE CHAIRMEN OF THE COMMITTEES ON APPROPRIATIONS OF THE SENATE AND THE HOUSE OF REPRESENTATIVES ON OUR EXAMINATION OF YOUR STATEMENT OF FINANCIAL CONDITION SUBMITTED PURSUANT TO SECTION 1311 OF THE SUPPLEMENTAL APPROPRIATION ACT, 1955, 68 STAT. 830, 31 U.S.C. 200, RELATING TO THE APPROPRIATIONS AND FUNDS UNDER THE CONTROL OF THE POST OFFICE DEPARTMENT AS OF JUNE 30, 1957.

IN OUR OPINION THE STATEMENT OF FINANCIAL CONDITION PRESENTS FAIRLY THE UNLIQUIDATED OBLIGATIONS OF THE POST OFFICE DEPARTMENT IN CONFORMANCE WITH SECTION 1311 OF THE SUPPLEMENTAL APPROPRIATION ACT, 1955, EXCEPT FOR AN UNDETERMINED BUT RELATIVELY SMALL AMOUNT OF UNREPORTED OBLIGATIONS FOR UNIFORMS PURCHASED BY EMPLOYEES WHICH WAS DISCLOSED TO THE CONGRESS AND FOR WHICH FUNDS WERE INCLUDED IN A SUPPLEMENTAL APPROPRIATION TO THE DEPARTMENT FOR THE FISCAL YEAR 1958, PUBLIC LAW 85-64, APPROVED JUNE 28, 1957.

THE LETTER OF THE DEPUTY POSTMASTER GENERAL STATES THAT IT IS NOT CLEAR WHETHER THE EXCEPTION RELATES TO THE UNPAID CLAIMS FOR REIMBURSEMENT FOR UNIFORMS SUBMITTED BY EMPLOYEES BETWEEN APRIL 15 AND JUNE 30, 1957, CONTRARY TO INSTRUCTIONS, OR ALSO TO UNIFORM ITEMS PURCHASED BY EMPLOYEES PRIOR TO JULY 1, 1957, FOR WHICH CLAIMS FOR REIMBURSEMENT WERE NOT SUBMITTED UNTIL AFTER THE CLOSE OF THE FISCAL YEAR. YOUR DEPARTMENT CONCURS IN THE EXCEPTION TAKEN TO THE FIRST CATEGORY, BUT FEELS THAT CLAIMS FILED BY EMPLOYEES AFTER THE CLOSE OF THE FISCAL YEAR FOR REIMBURSEMENT FOR THE COSTS OF UNIFORMS PURCHASED DURING THE PRIOR FISCAL YEAR SHOULD NOT BE CONSIDERED OBLIGATIONS OF THE PRIOR FISCAL YEAR FOR PURPOSES OF CERTIFICATION UNDER SECTION 1311 OF THE SUPPLEMENTAL APPROPRIATION ACT, 1955.

SECTIONS 402 AND 404 OF THE FEDERAL EMPLOYEES UNIFORM ALLOWANCE ACT, TITLE IV OF PUBLIC LAW 763, APPROVED SEPTEMBER 1, 1954, 68 STAT. 1114 1115, 5 U.S.C. 2131, 2132, PROVIDES IN PART:

THE HEAD OF ANY AGENCY TO WHICH ANY SUCH APPROPRIATION IS MADE SHALL, OUT OF FUNDS MADE AVAILABLE BY SUCH APPROPRIATION * * * (2) PAY TO EACH SUCH EMPLOYEE AN ALLOWANCE FOR DEFRAYING THE EXPENSES OF ACQUISITION OF SUCH UNIFORM AT SUCH TIMES AND IN SUCH AMOUNTS, NOT TO EXCEED $100 PER ANNUM, AS MAY BE PRESCRIBED IN ACCORDANCE WITH RULES AND REGULATIONS PROMULGATED PURSUANT TO SECTION 404. ( ITALICS SUPPLIED.)

THE DIRECTOR OF THE BUREAU OF THE BUDGET IS AUTHORIZED AND DIRECTED TO PROMULGATE SUCH RULES AND REGULATIONS AS MAY BE NECESSARY TO PROVIDE FOR THE UNIFORM ADMINISTRATION OF THIS TITLE.

THE REGULATIONS OF THE DIRECTOR OF THE BUREAU OF THE BUDGET ARE CONTAINED IN BUREAU OF THE BUDGET CIRCULAR NO. A-30, REVISED APRIL 16, 1957. SECTION 6C THEREOF PROVIDES:

AT THE DISCRETION OF AN AGENCY HEAD, SUBSEQUENT ANNUAL ALLOWANCES MAY BE PAID AN EMPLOYEE IN ADVANCE OF SERVICE (1) ON A QUARTERLY BASIS; (2) AT MORE FREQUENT REGULAR INTERVALS; OR (3) IN THE AMOUNT OF THE ANNUAL ALLOWANCE, OR PORTIONS THEREOF, BUT NOT IN EXCESS OF THE COST OF ARTICLES OF UNIFORM PURCHASED ON A CASH OR CREDIT BASIS, AS EVIDENCE BY RECEIPTS OR INVOICES SUBMITTED BY THE EMPLOYEE. * * *

PART 722 ( UNIFORM ALLOWANCES) OF THE POSTAL MANUAL PROVIDES THAT PAYMENT SHALL BE MADE AS REIMBURSEMENTS AS PROVIDED IN (3) OF THE AFORE QUOTED CIRCULAR.

THERE CAN BE NO DOUBT BUT THAT WHEN AN ELIGIBLE POSTAL EMPLOYEE MAKES AN EXPENDITURE OR INCURS A DEBT FOR THE ACQUISITION OF PRESCRIBED ITEMS OF UNIFORM DRESS TO WHICH ALLOWANCES ARE APPLICABLE--- WITHIN THE SCOPE AND MONETARY LIMITATIONS OF THE FEDERAL EMPLOYEE UNIFORM ALLOWANCE ACT AND THE REGULATIONS AND INSTRUCTIONS ISSUED THEREUNDER--- THE GOVERNMENT IS OBLIGATED TO REIMBURSE HIM. THE OBLIGATION ARISES SIMULTANEOUSLY WITH THE MAKING OF THE EXPENDITURE OR THE INCURRENCE OF THE DEBT. THE FACT THAT THE RECORDING OF THE OBLIGATION OR THE PAYMENT THEREOF CANNOT BE MADE UNTIL CERTAIN DOCUMENTARY EVIDENCE IS RECEIVED IS IMMATERIAL INSOFAR AS DETERMINING WHEN THE OBLIGATION ARISES AND THE FISCAL YEAR APPROPRIATION CHARGEABLE THEREWITH. SEE 27 COMP. GEN 25; 28 ID. 337; AND 31 ID. 471.

THIS PRINCIPLE APPEARS TO HAVE BEEN RECOGNIZED BY YOUR DEPARTMENT AND THE CONGRESS AT THE HEARINGS ON THE SUPPLEMENTAL POST OFFICE DEPARTMENT APPROPRIATIONS FOR 1958. REPEATED REFERENCES ARE MADE TO THE PAYMENTS IN THE AMOUNT OF $4,000,000 TO EMPLOYEES FOR UNIFORMS WHICH HAD BEEN DEFERRED DURING THE LAST QUARTER OF FISCAL YEAR 1957 PURSUANT TO POSTMASTER GENERAL ORDER 56314 DATED APRIL 5, 1957. ALL CONCERNED SEEMED TO CONSIDER THIS ITEM AS A FISCAL YEAR 1957 COST EVEN THOUGH FUNDS THEREFOR WERE REQUESTED AND APPROPRIATED UNDER THE FISCAL YEAR 1958 APPROPRIATION. WHILE THE TIME OF PAYMENT MAY BE DEFERRED ADMINISTRATIVELY, SUCH DEFERRAL INCLUDING INSTRUCTIONS TO EMPLOYEES TO DEFER THE CLAIMS FOR REIMBURSEMENT DOES NOT AFFECT THE OBLIGATION OF THE GOVERNMENT UNDER THE LAW AND REGULATIONS TO REIMBURSE THE EMPLOYEES WHO QUALIFY THEREUNDER.

WE HAVE NO ALTERNATIVE BUT TO ADVISE YOU THAT THE APPROPRIATION CHARGEABLE WITH THE COST OF THE UNIFORMS IS THE ONE CURRENTLY AVAILABLE AT THE TIME THE OBLIGATION IS INCURRED, I.E., WHEN THE EXPENDITURE IS MADE OR THE DEBT IS INCURRED BY THE EMPLOYEE CONCERNED, EVEN THOUGH SOME ADDITIONAL ADMINISTRATIVE WORK AND EXPENSE WILL BE INVOLVED.