B-305919, Department of Defense Accountable Officials--Local Nationals Abroad, March 27, 2006

B-305919 Mar 27, 2006 Jump To VIEW DECISION DOWNLOADS RELATED PAGES GAO CONTACTS Highlights The Department of Defense may use appropriated funds to employ foreign local nationals as Departmental Accountable Officials under 10 U.S.C. 2773a even though foreign local nationals may not be subject to pecuniary liability under United States law. The Department of Defense should formulate a written policy addressing the consideration and circumstances under which local nationals may serve as Departmental Accountable Officials. View Decision B-305919, Department of Defense Accountable Officials--Local Nationals Abroad, March 27, 2006 Decision Matter of: Department of Defense Accountable Officials—Local Nationals Abroad File: B-305919 Date: March 27, 2006 DIGEST The Department of Defense may use appropriated funds to employ foreign local nationals as Departmental Accountable Officials under 10 U.S.C. sect. 2773a even though foreign local nationals may not be subject to pecuniary liability under United States law. The Department of Defense should formulate a written policy addressing the consideration and circumstances under which local nationals may serve as Departmental Accountable Officials. DECISION A certifying officer at the headquarters of U.S. Army Materiel Command Europe has requested an advance decision under 31 U.S.C. sect. 3529 regarding the propriety of using appropriated funds to employ foreign local nationals as Departmental Accountable Officials[1] under 10 U.S.C. sect. 2773a. E-mail from Jerome J. Markiewicz to U.S. Government Accountability Office Redbook Queries, June 6, 2005 (Markiewicz e-mail). The certifying officer's inquiry stems from the fact that under treaties and other agreements between the United States and foreign governments, foreign local nationals employed by the United States abroad may not be subject to United States law that might otherwise pertain to their employment. One such law is 10 U.S.C. sect. 2773a, which authorizes the Secretary of Defense to designate civilian employees of the Department of Defense (DOD) as Departmental Accountable Officials. Employees so designated are liable for fiscal irregularities in the same manner as certifying and disbursing officers. 10 U.S.C. sect. 2773a(c)(2). In light of the possibility that foreign local nationals' employment abroad might not be subject to section 2773a and the accountability it imposes, the certifying officer asks whether DOD may use appropriated funds to employ foreign local nationals as Departmental Accountable Officials. We conclude that even though foreign local nationals serving as Departmental Accountable Officials may not be subject to the accountability normally coupled with such positions, DOD may use appropriated funds to employ foreign local nationals as Departmental Accountable Officials abroad. We caution, however, that DOD should craft a written policy detailing the circumstances, if any, under which local nationals should be placed in positions of accountability. BACKGROUND An accountable officer is any government officer or employee who by reason of his or her employment is responsible for government funds. B-304233, Aug. 8, 2005. Accountable officers are strictly liable for fiscal irregularities associated with the funds for which they are responsible. 62 Comp. Gen. 476, 479-80 (1983). The ranks of accountable officers include certifying officers, disbursing officers, collecting officers, and other employees having custody of government funds.[2] In 2002, Congress authorized the Secretary of Defense to create another accountable position by adding section 2773a to title 10 of the United States Code.[3] Bob Stump National Defense Authorization Act for Fiscal Year 2003, Pub. L. No. 107-314, div. A, title X, sect. 1005(a), 116 Stat. 2458, 2631 (Dec. 2, 2002). Under section 2773a, the Secretary of Defense may designate those civilian employees of DOD as Departmental Accountable Officials who provide to DOD certifying officers –information, data, or services that are directly relied upon by the certifying official in the certification of vouchers for payment.— 10 U.S.C. sect. 2773a(b)(1). DOD's Financial Management Regulation (FMR) lists functions that are to be performed by Departmental Accountable Officials. Department of Defense Financial Management Regulation 7000.14-R, vol. 5, ch. 33, Departmental Accountable Officials, Certifying Officers and Review Officials (April 2005). These include execution of purchase card programs, authorization of travel orders, and preparation of contract modifications. Id. The FMR notes that the list of functions is not exhaustive. Id. The Secretary of Defense may not designate as Departmental Accountable Officials individuals who are otherwise accountable, such as certifying or disbursing officers. 10 U.S.C. sect. 2773a(b)(2).