Expenditures by the Department of Veterans Affairs

B-247563.4 Dec 11, 1996 Jump To VIEW DECISION RELATED PAGES GAO CONTACTS Highlights The Department of Veterans Affairs was not authorized to use its medical care appropriation for an employee breakfast since the event was not an awards ceremony under the Government Employees Incentive Awards Act. The Department of Veterans Affairs was not authorized to use its medical care appropriation to pay for refreshments at employee meetings. The Department of Veterans Affairs was not authorized to use its appropriation for medical care to purchase Christmas cards and stamps since the cost of holiday greeting cards is a personal expense of the officer who authorizes their use. The Department of Veterans Affairs was not authorized to use its medical care appropriation to pay traveling employees per diem in excess of the amount authorized by governing regulations since the record contains no evidence that the accommodations for which the excess payments were made were necessary for the accomplishment of the agency's mission. View Decision Matter of: Expenditures by the Department of Veterans Affairs Medical Center, Oklahoma City, Oklahoma (II) File: B-247563.4 Date: December 11, 1996 The Department of Veterans Affairs was not authorized to use its medical care appropriation for an employee breakfast since the event was not an awards ceremony under the Government Employees Incentive Awards Act, 5 U.S.C. Sec. 4501 et seq. The Department of Veterans Affairs was not authorized to use its medical care appropriation to pay for refreshments at employee meetings. Agencies generally may not furnish meals or refreshments to employees within their official duty stations and the record contains no evidence that the expenses at issue fell within the exceptions contained in 5 U.S.C. Sec. 4109 and 4110. The Department of Veterans Affairs was not authorized to use its appropriation for medical care to purchase Christmas cards and stamps since the cost of holiday greeting cards is a personal expense of the officer who authorizes their use. The Department of Veterans Affairs was not authorized to use its medical care appropriation to pay traveling employees per diem in excess of the amount authorized by governing regulations since the record contains no evidence that the accommodations for which the excess payments were made were necessary for the accomplishment of the agency's mission. The Department of Veterans Affairs was authorized to use its medical care appropriation to purchase items for a Combined Federal Campaign (CFC) reception. The CFC is a government sanctioned charity for which a limited amount of appropriated funds may be used and regulations governing the CFC specifically contemplate the type of event for which the purchases at issue were made. DECISION In the aftermath of an investigation by its Office of Inspector General (IG), the Department of Veterans Affairs requested an opinion on the legality of 72 expenditures made between March 1990 and September 1991 by the VA Medical Center in Oklahoma City, Oklahoma from VA's medical care appropriation. VA also requested relief from liability for seven Medical Center officials believed to be liable for the payments. Finally, VA requested guidance on the liability of various procurement and financial management officials for improper payments. To facilitate our analysis and discussion, we divided the 72 expenditures at issue into four broad categories: recruitment, contests, refreshments, and miscellaneous. [1] In B-247563.3, April 5, 1996, we addressed the Medical Center's use of appropriated funds for 15 recruitment- and contest-related expenditures and associated requests for relief. We also provided VA with guidance on financial liability generally. This decision addresses the remaining 57 expenditures and associated relief requests. In its request, VA identified 11 expenditures for refreshments for "awards ceremonies," as well as one for a floral centerpiece, totalling $2,004.90. VA identified 41 additional expenditures for refreshments in connection with various employee meetings totalling $2,105.54. As discussed below, we conclude that one of the expenditures for refreshments in connection with "awards ceremonies," totalling $287.75, was not authorized. We also conclude that none of the expenditures for employee meetings were authorized. With respect to the four "miscellaneous" expenditures, we conclude that VA was not authorized to purchase Christmas cards and stamps or to pay excess per diem to employees on travel. However, VA was authorized to purchase the items used in connection with a Combined Federal Campaign (CFC) reception. BACKGROUND During the period covered by the IG's investigation, the Medical Center purchased refreshments for a variety of events during which employees were recognized for their contributions to the Medical Center's operations.