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DOCUMENT BESUME
04317 - [ B3494755]
Methods of Setting Pay for Nonappropriated Fund Employees Shoull
Be Improved. FPCD-77-51; B-164515. December 14, 1977. 38 pp. + 9
appendices (34 pp.).
Report to the Congress; by Elmer B. Staats, Comptroller General..
Issue Area: Personnel Management and Compensation (300);
Personnel Management and Compensation: Compensation (305).
Contact: Federal Personnel and Compensation Div.
Budget Function: National Defense: Department of Defense -
Military (except procurement & contracts) (051); Veterans
Benefits and Services: Other Veterans Benefits and Services
(705) ; General Government: Central Personnel Management
(805)
Organization Concerned: Department of Defense; Department of the
Army; Depaltment of the Navy; Department of the Air Force;
Veterans Administration; Civil Service Commission;
Department of Transportation.
congressional Relevance: House Committee on Post 3ffice and
Civil Service; Senate Committee on Armed Services; Congress.
Authority: P.L. 92-392. 5 U.S.C. 5341 et seq.
About 200,00C employees of the Veterans ..ticinistration
and Departments of Defense and Transportation ara paid frum
nonappropriated funds. They conduct programs to improve the
morale, welfare, and recreation opFortunities cf present and
former military personnel. Nonapprcpriated fund employees ar.
not paid by funds which have gone through the congressional
appropriation process but are paid directly from the receipts of
activities such as military post exchinges and recreation clubs.
Findings/Conclusions: Legally, these employees are treated
inconsistently. While some are Federal employees in all
respects, most are not covered by civil service laws. Some have
civil service tenure, protection, and fringe benefits while
others do not. Each agency has proiulgated policies and
procedures for its nonappropriated fund employees resulting in
different pay and benefits among its ictivities and between such
employees and other Federal workers. It has been argued tnat
noa ppropriated fund employees should be accorded the same pay
and bFn~fits as their civil service counterparts. The Coast
Guar:d and DefeLse opposc civil service methods because they
believe higher costs would threaten the financial stability of
nonappropriated fund activities which support themselves through
revenues they produce. Pay differences between nonappropriated
fund employees and other employees are due to certain
constraints upon the several pay systems involved which preclude
comparability with counterpart private industry pay.
Recommendatiuns: For the civil service pay systems, Congress
should consider previous GAO recommenations on improving the
me-_hods for setting blup-collar and white-collar pay. The
Sezretary of Defense should revise the Administrative Support](ViewImageLocal?handle=hein.gao/gaobaawiu0001&div=1&collection=&method=preview&ext=.png&size=3)