B-307892, Navy--Reenlistment Gifts, October 11, 2006

B-307892 Oct 11, 2006 Jump To VIEW DECISION DOWNLOADS RELATED PAGES GAO CONTACTS Highlights Navy has authority under 10 U.S.C. sect. 2261 to use its appropriated funds to purchase and present sailors with small gifts (valued at no more than $50) in order to recognize and commemorate enlistment and reenlistment, but must first promulgate regulations and assure that any recruiting gift programs that it implements are consistent with those regulations. The authority provided by section 2261 terminates on December 31, 2007. View Decision B-307892, Navy--Reenlistment Gifts, October 11, 2006 Decision Matter of: Navy—Reenlistment Gifts File: B-307892 Date: October 11, 2006 DIGEST Navy has authority under 10 U.S.C. sect. 2261 to use its appropriated funds to purchase and present sailors with small gifts (valued at no more than $50) in order to recognize and commemorate enlistment and reenlistment, but must first promulgate regulations and assure that any recruiting gift programs that it implements are consistent with those regulations. The authority provided by section 2261 terminates on December 31, 2007. DECISION A certifying officer of the Navy Information Operations Command (Command), Fort Meade, Maryland, requested an advance decision under 31 U.S.C. sect. 3529 on whether Navy may use appropriated funds to purchase and present small gifts embroidered with command insignias in order to recognize sailors who reenlist in the Navy. We conclude that Navy has authority under 10 U.S.C. sect. 2261 to use its appropriated funds for this purpose, but must first promulgate regulations and assure that any recruiting gift programs that it implements are consistent with those regulations. In the absence of regulations, the Command may not make awards under this authority. BACKGROUND The Command plans to purchase and present to sailors small gifts to recognize and commemorate their reenlistment. The specified gifts—pens, mugs, ball caps, shirts, and duffle bags—would include the insignia of the command in which the sailor is reenlisting. The gifts a sailor receives would depend on the length of the reenlistment period. For example, a sailor who agrees to a 2-year reenlistment would receive a pen bearing the Command's insignia. Letter from Lt. P.R. Lindley, Certifying Officer, Navy Information Operations Command, Maryland, to Thomas H. Armstrong, Assistant General Counsel, GAO, received Aug. 3, 2006. For a 3-year reenlistment, the sailor would receive a pen and a mug, and for 6 years, a pen, mug, hat, shirt, and a duffle bag. Id. The Command believes that these gifts would help Navy –retain highly skilled sailors on active duty,— and that the –cost of the gift is minimal, especially in comparison to the cost of training a replacement sailor.— Id. The Command states, –No price can be placed on the experience lost or the time a new sailor will take to acquire the same skills.— Id. Navy would use its Operation and Maintenance appropriation to pay for these gifts. Id. DISCUSSION Appropriated funds may be used only for authorized purposes. 31 U.S.C. sect. 1301(a). The general rule is well established that appropriated funds may not be used for personal gifts, except as authorized by law. See, e.g., 68 Comp. Gen. 226, 227 (1989) (the Department of Housing and Urban Development could not use appropriated funds to pay for gifts to Russian exhibit organizers and participants in connection with its support of an international trade show because of –the well recognized rule of appropriations law that prohibits the use of appropriated funds for entertainment and gifts, unless specifically authorized—). See also 70 Comp. Gen. 248, 251 (1991). In this case, Congress has statutorily authorized Navy and other military departments to use appropriated funds to procure and award small gifts for the purposes of recognizing and commemorating recruitment and reenlistment in the armed forces. 10 U.S.C. sect. 2261.[1] In pertinent part, section 2261 of title 10 of the United States Code provides: –(a) Expenditures for recognition items—Under regulations prescribed by the Secretary of Defense, appropriated funds may be expended— –(1) to procure recognition items of nominal or modest value for recruitment or retention purposes; and –(2) to present such items— (A) to members of the armed forces.— Id. (emphasis added). Section 2261 defines a –recognition item of nominal or modest value— as –a commemorative coin, medal, trophy, badge, flag, poster, painting, or other similar item that is valued at less than $50 per item and is designed to recognize or commemorate service in the armed forces.— Id. The meaning and purpose of section 2261 seem plain on its face. Congress has authorized the Department of Defense (including Navy) to use appropriated funds to make small gifts to military members in order to recognize or commemorate their decisions to enlist and reenlist.