BNUMBER: B-271511
DATE: March 4, 1997
TITLE: National Security
Agency--Availability of Appropriations To Purchase Food as a
Nonmonetary Award under the Government Employees Incentive
Awards Act.
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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
1. The National Security Agency may use appropriated funds to
purchase food or food vouchers for use as a nonmonetary award under
the Government Employees Incentive Awards Act (Act), 5 U.S.C. sec.
4501-4506. 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,
rather than a cash award, time off award, or an honorary award; and
(2) meals or vouchers therefor represent a form of informal
recognition award that would not jeopardize the credibility and
integrity of the government's incentive awards program.
2. The Act authorizes agencies to "incur necessary expenses for the
honorary recognition of employees." 5 U.S.C. sec. 4503. 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, if the agency determines that a
reception with food would enhance the recognition value of the awards.
65 Comp. Gen. 738, 740 (1986); B-235163.11, February 13, 1996.
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. sec. 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). In addition to the "cash" awards explicitly
authorized by the Act, OPM regulations permit an agency to grant, in
addition to cash, an honorary, or informal recognition award, 5 C.F.R. sec.
451.104 (1996), but do not specify the form such noncash awards may
take. In view of the limited guidance currently available and OPM's
statutory authority to prescribe regulations and instructions for
agency awards programs, we requested OPM's views on the issue
presented by NSA.
In its January 13, 1997, response to us, OPM advised that meals or
food vouchers could be used as informal recognition awards.[1] OPM
qualified their advice by requiring two agency findings: "(1) the
contribution being recognized will be properly rewarded by presenting
an informal recognition award, which must be of nominal value, rather
than a cash award, time off award, or an honorary award; and (2)
'meals or vouchers therefor' represent a form of informal recognition
award that would not jeopardize the credibility and integrity of the
Federal Government's incentive awards program." In support of its
conclusion, OPM pointed out that, "[o]n its face, purchasing food does
not seem inappropriate, especially since food can be provided at
recognition events . . . . Using a generic definition of
['merchandise' as] 'things bought and sold,' meals could be
considered a form of merchandise."
OPM is the agency responsible for establishing the policies and
instructions for carrying out the Act. As such, its views are
entitled to deference. Nothing in the Act prohibits OPM, or agencies
generally with OPM's concurrence, from authorizing award programs
under which merchandise is used as a form of award. Nor does anything
compel treating food differently from other merchandise for purposes
of the Act. Accordingly, given the views expressed by OPM, 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 pursuant to
the Act.
NSA additionally asked whether appropriated funds are available for
food provided to attendees at a reception honoring the awardee of the
food or food voucher. The Act authorizes agencies to "incur necessary
expenses for the honorary recognition of employees." 5 U.S.C. sec. 4503.
We have interpreted this language to permit agencies to use operating
appropriations to pay for refreshments and meals in connection with
agency employee awards ceremonies. 65 Comp. Gen. 738, 740 (1986);
B-235163.11, February 13, 1996. 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 5 U.S.C. sec. 4503. Id. Although "a meal" is a
nonmonetary award and considered a form of merchandise, it does have
unique implications. As OPM points out: "any meal provided as an
informal recognition award would have to be separated from any other
meals served to guests and colleagues of the award winner to preserve
its being considered the award itself." Consistent with OPM's
requirement that agencies determine that using food or food vouchers
as awards will not run the risk of discrediting the awards program,
agencies should exercise good judgment when using food both as an
award and to enhance an "award ceremony."
/s/Robert P. Murphy
for Comptroller General
of the United States
1. Pursuant to its current regulations, OPM has distinguished between
honorary nonmonetary awards and informal nonmonetary awards. OPM
states that informal awards "are clearly intended to recognize
contributions of lesser scope that might otherwise go unrecognized"
and "typically have more informal approval procedures and presentation
settings." In contrast, OPM states that honorary nonmonetary awards
"must meet all of the following criteria: (1) [t]he item must be
something that the recipient could reasonably be expected to value,
but not something that conveys a sense of monetary value; (2) [t]he
item must have a lasting trophy value; (3) [t]he item must clearly
symbolize the employer-employee relationship in some fashion; and (4)
[t]he item must take an appropriate form to be used in the public
sector and to be purchased with public funds."