Federal Manager's Daily Report

A recent GAO decision that has drawn attention for its impact on one specific issue actually reaches farther and clarifies policies in general regarding proper use of agency funds for items that could be considered for the personal use of employees.

GAO was asked to rule on a question involving disposable cups, plates and cutlery that the Commerce Department wanted to buy under terms of a memo of understanding with the National Weather Service Employees Organization. That memo was directed at preventing the spread of flu.

Commerce initially purchased some items for use in regional offices but then stopped out of concern that appropriated funds could not be spent on such items. The union objected and raised the issue to GAO, which said they are “primarily for the convenience of agency employees and thus constitute a personal expense”—and thus unallowable.

Said GAO, “Stewardship of public money, and accountability to Congress for the proper use of public money appropriated to agencies, demands an exceptionally high bar to overcome this overarching principle. An expense will not overcome this principle where it would serve no purpose other than accommodating employees’ personal tastes.”

GAO said there is “no empirical evidence” that allowing employees to use such items would reduce sickness and thus serve the management purpose of reducing absenteeism.

However, the spending at issue went broader than eating and drinking items; it also involved proposed spending for hand sanitizers at work stations and in offices in general, disinfectant sprays and wipes, and tissues and paper towels. These are common items found in many offices, especially during flu season, and typically are provided by management.

It is unclear what impact the decision may have on such items. However, it articulated this general principle: “Appropriations are not available for the personal expenses of an agency’s employees unless the agency articulates a reasonable and compelling justification, establishing a clear benefit to the agency, contributing to the fulfillment of express statutory duties, requirements, or functions.”

The decision is here: http://www.gao.gov/assets/670/667773.pdf