TITLE:  National Institutes of Health - Food at Government-Sponsored Conferences, B-300826, March 3, 2005
BNUMBER:  B-300826
DATE:  March 3, 2005
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   Decision

   Matter of:   National Institutes of Health - Food at Government-Sponsored
Conferences

   File:            B-300826

   Date:           March 3, 2005

   DIGEST 

   The National Institutes of Health (NIH) may pay for legitimate, reasonable
conference costs, including meals and light refreshments, of a formal
conference pertaining to Parkinson's disease subject to the conditions
outlined herein.  A formal conference typically involves topical matters
of interest to, and participation of, multiple agencies and/or
nongovernmental participants.  In addition, other indicators of a formal
conference include registration, a published substantive agenda, and
scheduled speakers or discussion panels.  An agency hosting a formal
conference may consider the cost of providing meals and refreshments to
conference attendees an allowable conference cost so long as (1) meals and
refreshments are incidental to the conference, (2) attendance at the meals
and when refreshments are provided is important for the host agency to
ensure full participation in essential discussions, lectures, or speeches
concerning the purpose of the conference, and (3) the meals and
refreshments are part of a formal conference that includes not just the
meals and refreshments and discussions, speeches, or other business that
may take place when the meals and refreshments are served, but also
includes substantial functions occurring separately from when the food is
served.  The NIH conference here satisfies these three criteria. Without
statutory authority to charge a fee and retain the proceeds, NIH may not
charge a registration or other fee to defray the costs of providing meals
or light refreshments.  An appropriation establishes a maximum authorized
program level, and an agency, without specific statutory authority, may
not augment its appropriations from sources outside the government. In
applying this decision, NIH should develop an agency policy specifying the
types of formal conferences at which NIH may consider providing food.  NIH
also should develop procedures to ensure that the provision of meals and
refreshments meet the criteria listed above.  We expect agency counsels,
as well as certifying officers, agency auditors, and Inspectors General,
to apply these criteria.  To the extent that agency officials are
uncertain as to the applicability of the criteria in particular
circumstances, they may request a decision from this office, pursuant to
31 U.S.C.     S 3529, before proceeding. 

   DECISION

   Pursuant to 31 U.S.C. S 3529(a), a certifying officer at the National
Institutes of Health (NIH) requested an advance decision regarding the use
of appropriated funds to provide meals and light refreshments to federal
government and nonfederal attendees and presenters at an NIH-sponsored
conference.  The certifying officer also asked whether NIH may charge a
registration or other fee to defray the costs of any food provided.

   NIH may pay for all legitimate, reasonable costs of hosting a formal
conference pertaining to Parkinson's disease.  A formal conference
typically involves topical matters of interest to, and the participation
of, multiple agencies and/or nongovernmental participants.  In addition,
other indicators of a formal conference include registration, a published
agenda, and scheduled speakers or discussion panels.  An agency may
consider the cost of providing meals and refreshments to conference
attendees an allowable conference cost so long as (1) meals and
refreshments are incidental to the conference, (2) attendance at the meals
and when refreshments are provided is important to ensure full
participation in essential discussions, lectures, or speeches concerning
the purpose of the conference, and (3)A the meals and refreshments are
part of a formal conference that includes not just the meals and
refreshments and discussions, speeches, or other business that may take
place when the meals and refreshments are served, but also includes
substantial functions occurring separately from when the food is served. 

   Agencies must have specific statutory authority to charge a fee for their
meetings or programs and to retain the proceeds.  NIH has no such specific
authority and therefore may not charge a registration or other fee to
defray the costs of the conference, including providing meals or light
refreshments. 

   BACKGROUND

   NIH plans to hold a formal conference on the latest scientific advances in
treating Parkinson's disease.  NIH has designed the event to be of broad
interest to a number of professional disciplines and to advance NIH's
research and information sharing efforts.  Attendees will include a mix of
federal employees and nonfederal individuals.  Nonfederal attendees will
include grantees, contractors, and research/science advisors.  Some of the
nonfederal individuals will be presenters who will receive honoraria, and
some will be on invitational travel.  NIH will engage a contractor to
assist in organizing the conference.  The conference will be held at a
hotel in Maryland close to NIH headquarters.  The cost of food will not be
included in the fee NIH is paying for the conference space.[1]  NIH would
like to charge a fee for meals and light refreshments that it plans to
provide at the conference. 

   NIH asked us if its appropriated funds are available to pay for food for
the various attendees and whether NIH has the authority to charge the
attendees a fee that could be used to recover the costs of the food. 

   ANALYSIS

  A 

   Questions concerning the cost of food at a conference are often raised
when an agency wants to know whether it may pay for food for an employee
attending a formal conference.  In this decision we address the question
from a different perspective*that of the agency hosting a conference*and
whether, as host, it may use its appropriation to provide food to
conference participants.  In our analysis we first discuss when an agency
may sponsor a formal conference.  Then, from the perspective of the agency
as host, we analyze whether the agency may provide food, as a conference
expense, to participants, and whether appropriated funds may be used to
provide food for other federal agency and nonfederal attendees.  We also
analyze whether agencies must have specific authority to both charge a fee
for conference-related expenses, including food, and retain the proceeds.

   NIH's authority to host a formal conference

   An agency, generally, does not need express statutory authority to host a
conference, so long as the agency determines that a formal conference is
reasonably and logically related to carrying out its statutory
responsibilities and serves its statutory mission.  It would not be
inappropriate, for example, for an agency that is charged with promoting
public health to organize a conference to bring together elected local
officials, physicians, public health leaders and practitioners to identify
precautions to avoid a possible influenza epidemic.  Similarly, it is not
inappropriate for NIH to organize a conference to coordinate and discuss
Parkinson's disease research efforts within the scientific community.[2]

   NIH, an agency of the Public Health Service, is composed of 27 institutes
and centers that were established "to conduct and support research,
training, health information, and other programs with respect to any
particular disease or groups of diseases or any other aspects of human
health."  42A U.S.C. S 281.  Several of its research institutes, as well
as a number of universities, medical centers, and pharmaceutical
companies, conduct research to understand and find a cure for Parkinson's
disease.  For the formal conference discussed in this decision, NIH has
invited experts from the private sector as well as from other federal
agencies, in addition to researchers from its own research institutes. 
Given NIH's statutory mission "to conduct and support" research, it is
well within NIH's discretion, we believe, to organize a formal conference
of interested researchers to discuss and coordinate research efforts to
encourage efficient and productive research aimed at a common goal*
understanding and curing Parkinson's disease.[3]

   Provision of food at an agency hosted formal conference

   In hosting a formal conference, an agency incurs a number of expenses,
many of which are discretionary but legitimate nonetheless so long as they
serve the purposes of the conference.  For example, a conference host
typically incurs such obvious expenses as the cost of program materials,
conference space, signage, the production of a video or other form of
presentation, and personnel costs to administer the conference and
conference registration.  While meals and refreshments have not been
obvious costs of government-sponsored conferences, meals or refreshments
are not significantly different from these other expenditures and in some
circumstances may be considered, like programs, videos, and signage, to be
reasonable, legitimate expenses of the conference.

   In determining when meals or refreshments are allowable expenses of an
agency hosting a formal conference, we turn to earlier decisions dealing
with the cost of food as an employee training expense.  As noted earlier,
the perspective of these decisions look at when an agency may pay for the
costs of meals and refreshments incurred by an agency in providing
training to its own employees or to an agency employee attending a
conference.  The Government Employees Training Act (Training Act), Pub. L.
No. 85-507, 72 Stat. 327 (1958), authorizes an agency to pay the necessary
expenses incident to an authorized training program.  5 U.S.C. S 4109.  We
have held that the government can provide meals and light refreshments
under this authority if the agency determines that providing the meals and
refreshments to federal employees is necessary to achieve the objective of
the training program.  48A Comp. Gen. 185 (1968); 39 Comp. Gen. 119
(1959); B-247966, June 16, 1993; Ba**193955, Sept. 14, 1979.  Similarly,
the Training Act authorizes agencies to pay "for expenses of attendance at
meetings which are concerned with the functions or activities for which
the appropriation is made."  5A U.S.C S 4110.  To be considered "expenses
of attendance at meetings" under section 4110, we have held that the costs
of meals and refreshments must be included as an incidental and
nonseparable portion of a registration or attendance fee*B-288266, Jan.
27, 2003; 64 Comp. Gen. 406 (1985); 38 Comp. Gen. 134 (1958); B-233807,
Aug. 27, 1990*or satisfy the following criteria:  (1)A the meals and
refreshments are incidental to the conference or meeting, (2)A attendance
at the meals and when refreshments are served is important for the
employees' full participation in the conference or meeting, and (3)A the
meals and refreshments are part of a formal conference or meeting that
includes not just the meals and refreshments and discussions, speeches,
lectures, or other business that may take place when the meals and
refreshments are served, but also includes substantial functions occurring
separately from when the food is served.  72 Comp. Gen. 178 (1993);
B-233807, Aug. 27, 1990; B-198471, May 1, 1980.

   We think similar criteria should apply to determining whether the costs of
meals or refreshments are allowable expenses of the agency hosting a
formal conference.  As the discussion above indicates, we have long
permitted agencies, under appropriate circumstances, to cover their
employees' costs of meals when attending formal conferences.  38 Comp.
Gen. 134 (1958); B-198471, May 1, 1980; B-154912, Aug.A 26,A 1964. 
Further, we have permitted agencies that hold formal in-house training
conferences for their employees to cover the cost of meals when necessary
to achieve the program or conference objective.  48 Comp. Gen. 185 (1968);
39A Comp. Gen. 119 (1959).[4]  We think the presence of private citizens
or federal employees from other agencies who are essential to achieve the
program or conference objectives should not change the character of the
expense from allowable to unallowable.  The fact that the meals and
refreshments also are available to private citizens and employees of other
agencies should not be an obstacle so long as an administrative
determination is made that their attendance is necessary to achieve the
conference objectives.

   The extension of the availability of appropriated funds to these
circumstances should satisfy the criteria discussed earlier.  In this
regard, to determine whether the costs of meals and refreshments at an
agency-hosted conference involving, in addition to its employees, other
interested federal employees and private citizens administratively
determined necessary to achieve the conference objectives, the criteria
are as follows:  (1)A the meals and refreshments are incidental to the
formal conference, (2)A attendance at the meals and when refreshments are
served is important for the host agency to ensure attendees' full
participation in essential discussions, lectures, or speeches concerning
the purpose of the formal conference, and (3)A the meals and refreshments
are part of a formal conference that includes not just the meals and
refreshments and discussions, speeches, lectures, or other business that
may take place when the meals and refreshments are served, but also
includes substantial functions occurring separately from when the food is
served.

   The level of formality required is the same as what one would expect of a
conference sponsored by a nongovernmental entity.  See 64 Comp. Gen. 604
(1980); B-249795, May 12, 1993.  Thus, a formal conference must involve
topical matters of interest to, and the participation of, multiple
agencies and/or nongovernmental participants.   See B-249795, May 12,
1993.  In addition, a formal conference would include, among other things,
registration, a published substantive agenda, and scheduled speakers or
discussion panels.  Meetings discussing business matters internal to an
agency or other topics that have little relevance outside of the agency do
not constitute formal conferences.  For example, day-long quarterly
supervisors meetings discussing general business/management topics,
suggestions, issues, and problems of the agency are not formal
conferences.  68 Comp. Gen. 606 (1989); B-249749, May 12, 1993.

   As NIH explained its conference to us, the conference has the indicia of a
formal conference and will meet the three criteria described above.  The
conference will include a registration process, a published substantive
agenda, and scheduled speakers or discussion panels.  It is designed to be
of broad interest to a number of professional disciplines, and attendees
will include a mix of federal employees and nonfederal individuals.  The
conference will be organized to take full advantage of the participants'
and presenters' time and availability and not to accommodate the provision
of food.  In order to make the best use of the participants' and
presenters' time, essential discussions, panels, and speeches will occur
at the time the meals and light refreshments are served.  Finally, NIH
also has scheduled substantive presentations and discussions separately
from the time when the food is served.  Accordingly, based on the
conference description NIH provided to us, we conclude that NIH may
provide food at this formal conference.[5] 

   The purpose of the criteria we set out is to balance the legitimate
benefits that accrue to an agency hosting a conference with the need to
ensure that the agency is not expending public funds on a personal
expense, food.  It is important to note that these criteria necessarily
apply on a case-by-case basis.  Before implementing this decision, an
agency should develop an agency policy specifying the types of formal
conferences at which the agency may consider providing food, consistent
with the criteria contained in this decision.  An agency also should
develop procedures to ensure that the provision of meals and refreshments
meet the criteria listed above. We expect agency counsels, as well as
certifying officers, agency auditors, and Inspectors General, to apply
these criteria.  To the extent that agency officials are uncertain as to
the applicability of the criteria in particular circumstances, they may
request a decision from this office, pursuant to 31 U.S.C. S 3529, before
proceeding. 

  Registration fees to cover expenses of formal conferences

   If an agency wishes to charge a fee for one of its programs or activities,
it must have statutory authority to do so.  B-300248, Jan. 15, 2004.  In
addition, even if an agency has authority to charge a fee, it may not
retain and use the amounts collected without statutory authority.  Id.  An
appropriation establishes a maximum authorized program level, meaning that
an agency, absent statutory authorization, cannot operate beyond the level
that can be paid for by its appropriations.  See 72 Comp. Gen. 164, 165
(1993).  An agency may not circumvent these limitations by augmenting its
appropriations from sources outside the government, unless Congress has so
authorized the agency.  Id. 

   In a recent decision we explained that the Independent Offices
Appropriation Act,  31 U.S.C. S 9701, known as the user fee statute,
provides general authority for an agency to impose a fee if certain
conditions are met.  Id.  The user fee statute authorizes an agency to
charge recipients of special benefits or services a user fee.  62 Comp.
Gen. 262 (1983).  Our decisions have not addressed specifically whether
the user fee statute authorizes an agency to charge a conference
registration or attendance fee, and we need not address that question
here.  Even if we were to conclude that the user fee statute would permit
NIH to charge a registration fee, we are aware of no specific authority
that would permit NIH to retain the proceeds.  Without such a specific
authorization, agencies may not retain or use fees collected under the
user fee statute or other laws but must deposit them in the general fund
of the Treasury as miscellaneous receipts.[6]  B-300248, Jan. 15, 2004. 
Nor could NIH authorize its contractor to charge a fee to offset costs
because, pursuant to 31 U.S.C. S 3302(b), a contractor receiving money for
the government may not retain funds received for the government to pay for
the conference costs.  B-300248, Jan. 15, 2004.[7]

   If a host agency concludes that it cannot use its appropriations to
provide food to participants because the conference does not satisfy the
criteria we discuss herein, or if the host agency otherwise decides not to
provide food (for example, because of budgetary constraints), the
participants may cover the costs of their food using their own personal
funds.

   CONCLUSION

   NIH may pay for meals and light refreshments, for all conference
participants including federal employees from other agencies and
nonfederal participants, at a formal conference pertaining to Parkinson's
disease, subject to the conditions outlined herein.  However, without
statutory authority to charge a fee and credit the proceeds to its
appropriation, NIH may not charge a registration or other fee that can
then be used to defray the costs of providing meals or light refreshments.

   In applying this decision, NIH should develop an agency policy specifying
the types of formal conferences at which NIH may provide food.  NIH also
should develop procedures to ensure that the meals and refreshments meet
the criteria above.  We expect agency counsels, as well as certifying
officers, agency auditors, and
Inspectors General, to apply these criteria.  To the extent that agency
officials are uncertain as to the applicability of the criteria in
particular circumstances, they may request a decision from this office,
pursuant to 31 U.S.C. S 3529, before proceeding.

   Anthony H. Gamboa
General Counsel

   ------------------------

   [1] In a 1999 decision, we concluded that the Nuclear Regulatory
Commission (NRC) could pay an all-inclusive facility rental fee for a
meeting of NRC employees to discuss internal NRC matters, even though the
fee also covered the cost of food.  Ba**281063, Dec. 1, 1999.  The
facility charged a fixed fee that included conference rooms, refreshments
at breaks, lunch, equipment, and other supplies.  We concluded that
renting the facilities was a reasonable expense of NRC's Environmental
Programs and Management appropriation.  Because the fee would have
remained the same to NRC whether or not it accepted, and its employees
ate, the food, the harm that the general rule is meant to prevent (i.e.,
expenditure of federal funds on personal items) was not present.  Id.

   [2] Because several of NIH's research institutes conduct Parkinson's
disease research, Congress has required NIH to coordinate their research
efforts.  42 U.S.C. SA 284f(b)(1).  "Coordination shall include the
convening of a research planning conference not less than once every 2
years."  42 U.S.C. SA 284f(b)(2). 

   [3] From the perspective of participating or sponsoring federal agencies
and their employees, many conferences similar to NIH's proposed conference
may qualify as "training" under the broad definition thereof in the
Government Employees Training Act, 5 U.S.C. S 4101.  Paragraph 4 of
section 4101, title 5, United States Code, defines "training" to include
"making available to an employee . . . a planned, prepared, and
coordinated program . . . of instruction or education, in scientific,
professional . . . fields which will improve individual and organizational
performance and assist in achieving the agency's mission and performance
goals."  Although not crucial to our holding, the NIH conference,
arguably, falls within this definition.  

   [4] Federal employees who are in travel status, however, are required to
reduce their allowances for meals by the amounts specified in the
regulations for each meal furnished as part of the event.  41 C.F.R. S
301-74.21.

   [5] Because hosting this conference is reasonably related to NIH's
statutory responsibilities and serves to advance its statutory mission,
NIH is not barred by the prohibition of 31 U.S.C. S 1345 from providing
food.  Section 1345 prohibits the use of appropriated funds for "travel,
transportation, and subsistence expenses for a meeting."  Section 1345,
however, has limited application, addressing only those conventions and
other forms of assemblages or gatherings that private organizations seek
to hold at government expense.  See 72 Comp. Gen. 229, 231 (1993)
(effectively overruling prior GAO decisions that applied section 1345 to
meetings and conferences other than assemblages and gatherings that
private organizations sought to hold at government expense).

   [6] The "miscellaneous receipts" statute requires an official or agent of
the government receiving money for the government from any source, absent
statutory authority to the contrary, to deposit the money into the general
fund of the Treasury.  31 U.S.C.   S 3302(b).

   [7] The only other statute that would have bearing in this situation --
the Economy Act, 31 U.S.C. S 1535, which authorizes an agency to provide
goods or services to another agency on a reimbursable basis -- is not
applicable in these factual circumstances.