Reimbursing Employees' Government Use of Private Cellular Phones, B-287524, October 22, 2001

B-287524 Oct 22, 2001 Jump To VIEW DECISION RELATED PAGES GAO CONTACTS Highlights We have no objection to WAPA reimbursing employees for government use of personal cell phones. We have no objection to WAPA reimbursing employees for government use of personal cell phones. Due to the extensive travel that is required to reach all of its customers. If the pilot is successful. DSW officials will determine which job positions require mobile communications equipment and then provide the employees holding these positions the choice of using a government-owned cell phone/pager or a privately-owned cell phone. The participant must agree to maintain a wireless phone program that will allow for complete regional coverage. That will allow participants to pay a flat rate for a specified number of minutes. View Decision Reimbursing Employees' Government Use of Private Cellular Phones, B-287524, October 22, 2001 DIGEST DECISION The Western Area Power Administration (WAPA) has requested an advance decision on whether WAPA can reimburse employees for government use of personal mobile telephones at a tiered flat rate based on historical usage. We have no objection to WAPA reimbursing employees for government use of personal cell phones; however, without specific statutory authority, WAPA may not reimburse employees at a flat rate instead of reimbursing for actual expenses. BACKGROUND WAPA markets and transmits hydroelectric power and related services to consumers in a service area that covers 15 states and approximately 1.3 million square miles. Due to the extensive travel that is required to reach all of its customers, WAPA considers cellular phones and/or pagers an essential but expensive part of its operations. WAPA, hoping to increase communication and reduce costs, plans to implement a one-year pilot program in which employees who meet WAPA's criteria for using a government-issued communication device may elect to use personally-owned cell phones to complete government-related calls, instead of a government-issued telephone or pager, and receive a tiered flat rate reimbursement. WAPA plans to implement the pilot program in its Desert Southwest Customer Service Office (DSW), which provides service to Arizona, California, Nevada, and New Mexico. If the pilot is successful, WAPA hopes to expand the program to its other offices. As part of the pilot, DSW officials will determine which job positions require mobile communications equipment and then provide the employees holding these positions the choice of using a government-owned cell phone/pager or a privately-owned cell phone. If the participant elects to use a privately-owned phone, the participant must agree to maintain a wireless phone program that will allow for complete regional coverage, as determined by the participant's supervisor, and that will allow participants to pay a flat rate for a specified number of minutes. Participants will receive payments at the end of each month intended to defray their wireless service costs attributable to government-related use of their cell phones. WAPA will have no ownership of, nor responsibility for maintaining, the telephone equipment itself. WAPA will pay participants either $20, $30, or $60 per month, based on the employee's historical usage of government phone and/or pager service. DSW maintains records of employee use of government cell phones and pagers, and managers will be responsible for determining an employee's payment tier based on both the individual's historical usage as well as the individual's job category. WAPA believes that a flat rate plan, in comparison to a reimbursement plan based on actual expenses, will result in fewer administrative costs and greater employee participation, and thus increased program savings. According to the record, DSW spends approximately $55,000 per year on service contracts for mobile communications wireless devices, pagers and cellular telephones. Based on the historical costs of all eligible DSW employees, WAPA estimates that as a result of implementing the pilot, DSW will realize annual savings equal to 45 percent of the annual cost of its current service contracts for mobile communications. WAPA stated that this would be in addition to savings realized from not purchasing the communication devices themselves. WAPA estimates that if DSW does not implement the program, it will spend $11,300 over the next 5 to 10 year period to acquire and maintain communications equipment. DISCUSSION WAPA's request for an advance decision raises two issues. First, may WAPA reimburse employees for government use of personal cell phones, and second, may WAPA reimburse employees for government use of personal cell phones at a flat rate. It is well known that 31 U.S.C. Sec. 1348(a)(1) prohibits the use of appropriated funds to install telephones in private residences or for tolls or other charges for residential telephone service.