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."