National Security

B-271511 Mar 04, 1997 Jump To VIEW DECISION RELATED PAGES GAO CONTACTS Highlights We have no legal basis to object to the Office of Personnel Management's conclusion that agencies may use meals or food vouchers as informal recognition awards provided that the agency concludes that (1) the contribution being recognized will be properly rewarded by presenting an informal recognition award of nominal value. We have previously interpreted the Act to permit agencies to use operating appropriations to pay for refreshments and meals in connection with agency employee awards ceremonies. DECISION The Comptroller of the National Security Agency (NSA) asks whether appropriated funds are available to purchase food or food vouchers for use as a nonmonetary award under the Government Employees Incentive Awards Act (Act). View Decision Matter of: National Security Agency--Availability of Appropriations To Purchase Food as a Nonmonetary Award under the Government Employees Incentive Awards Act. File: B-271511 Date: March 4, 1997 DIGEST DECISION The Comptroller of the National Security Agency (NSA) asks whether appropriated funds are available to purchase food or food vouchers for use as a nonmonetary award under the Government Employees Incentive Awards Act (Act). NSA further asks that if food or food vouchers may be used as an award, can it also use appropriated funds to provide food at a reception honoring the awardee of the non-monetary award. Given the Office of Personnel Management's (OPM) advice concerning implementation of the Act, we have no basis to object to NSA's use of its appropriations for food or food vouchers of nominal value as informal recognition awards. Further, should NSA determine that a reception with food would enhance the recognition value of the nonmonetary award, the cost of that food may be considered a "necessary expense" for purposes of the Act. DISCUSSION NSA, as part of its proposed revision to its awards program, would like to use food as a nonmonetary award. The NSA submission indicates that it would use food as an award in two ways. The first would consist of meals, e.g., lunches, dinners, banquets, or picnics, and would be provided to the employee(s) at their official duty station or at a local restaurant. The other would be in the form of a voucher, e.g. a gift certificate to a restaurant. As a general rule, appropriated funds are not available for the costs associated with food because we have always considered meals and other such expenses as personal in nature. 65 Comp.Gen. 16 (1985); 47 Comp. Gen. 657 (1968). Accordingly, except in very limited emergency situations, the decisions of the accounting officers of the government have required congressional authorization before agency appropriations may be used for such expenses. B-223678, June 5, 1989. The Government Employees Incentive Awards Act, 5 U.S.C. Secs. 4501-4506, is an often cited example of such authority. The Act authorizes agency heads to "pay a cash award to, and incur necessary expenses for the honorary recognition of, an employee who by his suggestion, invention, superior accomplishment, or other personal effort contributes to the efficiency, economy, or other improvement of Government operations or achieves a significant reduction in paperwork or who performs a special act or service in the public interest in connection with or related to his official employment." 5 U.S.C. Sec. 4503. The Act specifically authorizes OPM to prescribe regulations and instructions under which agency awards programs will be carried out. 5 U.S.C. Sec. 4506. In interpreting OPM's prior regulations, this Office has held that agencies have the authority to procure items at nominal cost to be used as honorary nonmonetary awards under the Act. 46 Comp.Gen. 662 (1967) (engraved plastic holder containing employee's credentials); 55 Comp. 346 (1975) (plaques); B-184306, Aug. 27, 1980 (desk medallions); B-243025, May 2, 1991 ($50 jackets bearing agency insignia); B-257488, Nov. 6, 1995 (mugs and pens). Our decisions have also accepted informal nonmonetary awards as permissible under the Act and OPM's regulations. See 67 Comp. Gen. 349 (1988) (telephones of nominal value) and B-256399, June 27, 1994 (sporting or entertainment event tickets of nominal value). On December 31, 1993, OPM abolished its Federal Personnel Manual (FPM) to allow agencies greater flexibilities in managing their human resources. With regard to performance awards, OPM issued final regulations on August 23, 1995, to "deregulate performance management and incentive awards." 60 Fed. Reg. 43936. The current regulations define "award" as "something bestowed or action taken to recognize and reward individual or team achievement that contributes to meeting organizational goals or improving the efficiency, effectiveness, and economy of the government or is otherwise in the public interest." 5 C.F.R. Sec. 451.102 (1996).