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ETC. - OFFICIAL BUSINESS REQUIREMENT THE USE OF THE REDUCED CATEGORY Z FARES OFFERED BY COMMERCIAL AIRLINES TO THE UNITED STATES UNDER GOVERNMENT TRANSPORTATION REQUESTS (GTRS) PURSUANT TO TARIFFS FILED WITH THE CIVIL AERONAUTICS BOARD IS LIMITED BY AGREEMENT TO TRANSPORTATION PAYABLE FROM PUBLIC FUNDS FOR OFFICIAL TRAVEL ONLY. WHETHER PAYMENT IS MADE FROM NONAPPROPRIATED FUNDS. THE GTRS SERVE TO IDENTIFY THAT THE TRAVEL PERFORMED WAS ON OFFICIAL BUSINESS IN ACCORD WITH THE SPECIAL ARRANGEMENTS FOR REDUCED FARES AND. IT IS INDICATED THAT NONAPPROPRIATED FUND AGENCIES SUPPORTED BY USAREUR ARE TREATED BY NATO HOST COUNTRIES THE SAME AS U.S. FORCES PROPER SO FAR AS TRANSPORTATION IS CONCERNED.

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B-168541, APR 23, 1971, 50 COMP GEN 748

TRANSPORTATION - REQUESTS - ISSUANCE, USE, ETC. - OFFICIAL BUSINESS REQUIREMENT THE USE OF THE REDUCED CATEGORY Z FARES OFFERED BY COMMERCIAL AIRLINES TO THE UNITED STATES UNDER GOVERNMENT TRANSPORTATION REQUESTS (GTRS) PURSUANT TO TARIFFS FILED WITH THE CIVIL AERONAUTICS BOARD IS LIMITED BY AGREEMENT TO TRANSPORTATION PAYABLE FROM PUBLIC FUNDS FOR OFFICIAL TRAVEL ONLY, AND THE SPECIAL FARES MAY NOT BE MADE AVAILABLE TO CONTRACTOR EMPLOYEES OR NONAPPROPRIATED FUND AGENCIES IN EUROPE OR ELSEWHERE, WHETHER PAYMENT IS MADE FROM NONAPPROPRIATED FUNDS, OR APPROPRIATED FUNDS ON A REIMBURSABLE BASIS. THE RESTRICTIONS ON THE USE OF GTRS PRESCRIBED IN THE GENERAL ACCOUNTING OFFICE POLICY AND PROCEDURES MANUAL FOR THE GUIDANCE OF FEDERAL AGENCIES, TITLE 5, SECTIONS 2020.10 AND 2020.80 MAINTAIN THE INTEGRITY OF TRAVEL APPROPRIATION OBLIGATIONS, AND THE GTRS SERVE TO IDENTIFY THAT THE TRAVEL PERFORMED WAS ON OFFICIAL BUSINESS IN ACCORD WITH THE SPECIAL ARRANGEMENTS FOR REDUCED FARES AND, THEREFORE, ARMY REGULATIONS IN CONFLICT WITH THE PURPOSE OF THE CATEGORY Z FARES SHOULD BE AMENDED.

TO THE SECRETARY OF THE ARMY, APRIL 23, 1971:

BY LETTER DATED FEBRUARY 4, 1971, FILE LOG/TM-PMB-T-I, ADDRESSED TO THE DIRECTOR OF OUR TRANSPORTATION DIVISION, THE OFFICE OF THE DEPUTY CHIEF OF STAFF FOR LOGISTICS REQUESTS OUR DETERMINATION ON A REQUEST MADE BY THE COMMANDER IN CHIEF, UNITED STATES ARMY, EUROPE (USAREUR) THAT OUR DECISION 49 COMP. GEN. 578, MARCH 11, 1970, NOT BE APPLIED TO NONAPPROPRIATED FUND AGENCIES IN EUROPE.

IT IS INDICATED THAT NONAPPROPRIATED FUND AGENCIES SUPPORTED BY USAREUR ARE TREATED BY NATO HOST COUNTRIES THE SAME AS U.S. FORCES PROPER SO FAR AS TRANSPORTATION IS CONCERNED, INCLUDING RECOGNITION OF GOVERNMENT TRANSPORTATION REQUESTS (GTRS), AMONG OTHER DOCUMENTS USED BY THE ARMY, ISSUED TO U.S. AND FOREIGN FLAG CARRIERS FOR SERVICE WITHIN OR FROM THE USAREUR AREA. CONTINUANCE OF THE PRIVILEGES REGARDING THE USE OF THESE FORMS IS SAID TO BE DESIRABLE FOR USAREUR SUPPORTED NONAPPROPRIATED FUND AGENCIES "SINCE IT PERMITS BETTER USAREUR CONTROL OVER PROCUREMENT, ACCOUNTING AND AUDIT OF SUCH TRAVEL AND AT LESS COST TO THE GOVERNMENT."

IN 49 COMP. GEN. 578 WE SAID THAT THE USE OF GOVERNMENT TRANSPORTATION REQUESTS (GTR) BY CIVILIAN EMPLOYEES OF THE ARMY AND AIR FORCE EXCHANGE SERVICE (AAFES) WOULD BE IN CONFLICT WITH OUR DECISIONS AND APPLICABLE LAWS AND REGULATIONS. ALTHOUGH THE COMMANDER IN CHIEF, USAREUR, WOULD HAVE NONAPPROPRIATED FUNDS CITED ON ALL GTRS ISSUED FOR CATEGORY Z TRAVEL OF USAREUR SUPPORTED NONAPPROPRIATED FUND AGENCIES, OUR DECISION APPLIES WHETHER PAYMENT FOR SERVICES FURNISHED IS FROM NONAPPROPRIATED FUNDS OR FROM APPROPRIATED FUNDS FOLLOWED BY REIMBURSEMENT. ON THE BASIS OF THAT DECISION, GTRS SHOULD NOT BE ISSUED FOR THE PROCUREMENT OF CATEGORY Z AIR TRANSPORTATION OF ANY USAREUR SUPPORTED NONAPPROPRIATED FUND AGENCY PERSONNEL EVEN THOUGH CHARGEABLE DIRECTLY AGAINST NONAPPROPRIATED FUNDS.

THE POLICY EXPRESSED IN SECTIONS 2020.10 AND 2020.80 OF TITLE 5 OF THE GAO POLICY AND PROCEDURES MANUAL (4 CFR 51.15 AND 51.22), RESTRICTING THE USE OF GTRS TO TRAVEL AUTHORIZED AT GOVERNMENT EXPENSE (SEE 33 COMP. GEN. 434 (1954)), MAINTAINS THE INTEGRITY OF TRAVEL APPROPRIATION OBLIGATIONS; AND THE GTR SERVES TO IDENTIFY THE TRAVEL INSOFAR AS IT MAY BE REQUIRED BY ANY SPECIAL AGREEMENTS MADE BETWEEN THE GOVERNMENT AND THE CARRIERS ON TRANSPORTATION PROVIDED FOR THE ACCOUNT OF THE GOVERNMENT.

CATEGORY Z FARES ARE OFFERED BY SCHEDULED COMMERCIAL AIRLINES TO PROCURE TRANSPORTATION FOR THE UNITED STATES ON REGULARLY SCHEDULED FLIGHTS UPON THE PRESENTATION OF GTRS. THE CONDITIONS UNDER WHICH SUCH TRAVEL IS ALLOWED ARE SET FORTH IN TARIFFS FILED WITH THE CIVIL AERONAUTICS BOARD (CAB). WE ARE AWARE THAT SUCH FARES MAY BE ABOUT 50 PERCENT OF ECONOMY FARES; HOWEVER, SAVINGS FROM SUCH USE OF GTRS WOULD NOT ACCRUE TO THE UNITED STATES GOVERNMENT BECAUSE THE COST OF COMMERCIAL AIR TRANSPORTATION INCIDENT TO NONOFFICIAL BUSINESS CANNOT BE CHARGED TO APPROPRIATIONS OF THE UNITED STATES GOVERNMENT.

WE UNDERSTAND THAT CAB CONCURRENCE IN CATEGORY Z FARES WAS BASED ON REPRESENTATIONS THAT THEY WOULD BE LIMITED TO TRANSPORTATION PAYABLE FROM PUBLIC FUNDS, AND UNLESS THE CAB AGREES TO ENLARGE THE AUTHORITY NOW COVERING CATEGORY Z FARES, THEIR APPLICATION TO TRANSPORTATION PAID FROM NONAPPROPRIATED FUNDS WOULD BE ILLEGAL. THE FACT THAT GTRS MAY BE USED WOULD NOT SANCTION THE APPLICATION OF CATEGORY Z FARES, IF IN FACT THE TRANSPORTATION IS NOT FOR THE ACCOUNT OF THE UNITED STATES AND THE COST IS NOT ABSORBED BY THE UNITED STATES TREASURY.

OUR DECISION IN 49 COMP. GEN. 578 WAS RENDERED IN RESPONSE TO A REQUEST FOR DETERMINATION OF THE PROPRIETY OF A PROPOSAL TO CHANGE APPROPRIATE REGULATIONS FOR THE PURPOSE OF AUTHORIZING WHAT APPEARED TO BE THE FUTURE USE OF GTRS IN THE PROCUREMENT OF TRANSPORTATION BY AIR FOR CIVILIAN EMPLOYEES OF THE AAFES. THE STATED PURPOSE OF THE PROPOSED USE WAS TO AVOID PAYMENT OF A 5 PERCENT TAX ON TRANSPORTATION OF PERSONS BY AIR AS IMPOSED BY SECTION 4261 OF THE INTERNAL REVENUE CODE, 26 U.S.C. 4261.

THE LETTER OF FEBRUARY 4, 1971, INDICATES THAT MEMBERS OF NONAPPROPRIATED FUND AGENCIES IN USAREUR HAVE BEEN USING GTRS FOR THE PROCUREMENT OF CATEGORY Z AIR TRANSPORTATION, AND INFORMATION AVAILABLE IN THIS OFFICE SHOWS THAT GTRS HAVE BEEN USED UNDER SIMILAR CIRCUMSTANCES BY THE DEPARTMENT OF THE ARMY IN AREAS OTHER THAN EUROPE. A MESSAGE, DATED DECEMBER 9, 1970, LOG/TM-PMB-T-2-37B, FROM DA TO AJG 7401, SUGGESTS THAT AIR CARRIERS MAY HAVE COMPLAINED THAT GTRS WERE BEING ISSUED TO PROCURE TRANSPORTATION, PRIMARILY CATEGORY Z, FOR NONAPPROPRIATED FUND AGENCIES (AND CONTRACTOR PERSONNEL). THIS MESSAGE, BASED ON 49 COMP. GEN. 578, HOWEVER, INDICATES RENEWED ENFORCEMENT OF THE PROHIBITION AGAINST UNAUTHORIZED USE OF GTRS. WE APPRECIATE THE DIFFICULTIES THAT MIGHT BE CAUSED BY DISCONTINUING THE UNAUTHORIZED USE OF GTRS TO OBTAIN CATEGORY TRANSPORTATION IN THE CASE OF NONAPPROPRIATED FUND AGENCIES SUPPORTED BY USAREUR, AND WE REGRET THAT THE SITUATION REQUIRES SUCH ACTION.

WE TRUST THAT APPROPRIATE AMENDMENTS WILL BE MADE TO VARIOUS PROVISIONS OF ARMY REGULATIONS WHICH APPEAR TO ENCOURAGE PROCUREMENT OF CATEGORY Z AIR TRANSPORTATION BY NONAPPROPRIATED FUND AGENCIES AND ESTABLISH "COST CHARGE" PROCEDURES INCIDENT TO THE USE OF GTRS IN APPARENT CONFLICT WITH THE UNDERSTANDING OF THE CARRIERS WHICH HAVE AGREED TO THE APPLICATION OF SUCH FARES IN CASES OF GOVERNMENT TRAVELERS ON OFFICIAL BUSINESS COVERED BY GTRS AND IN APPARENT VIOLATION OF 31 U.S.C. 628. SEE 48 COMP. GEN. 773 (1969). WE REFER TO SUCH PROVISIONS AS PARAGRAPH 1-46 OF AR 230-1 AND

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