FLITE HELP LINE DSN 493-3008, 334-953-3008
B-220542.12, Aug 2, 1990, 69 Comp. Gen. 643 [cited at]
Headnotes
CIVILIAN PERSONNEL - Travel - Bonuses - Acceptance – Propriety The Department of Health and Human Services, Region VI, maintains airline frequent flyer accounts for its employees who travel on official government business.
Since GSA regulations do not provide for a system in which the agency may return
these materials to employees and employees have no property rights in the
materials, the accounts may not be returned to employees upon separation or
retirement even if the agency determines it has no use for the benefits.
Text of the decision
Mr. J. R. Burkett
Director, Division of Finance
Department of Health & Human Services
Region VI:
This letter is in response to your request for an opinion regarding the proper
disposition of airline frequent flyer program accounts, set up by HHS Region VI
for employees who travel on official government business, upon separation of the
employees from the government.
For the reasons discussed below, the accounts may not be returned to employees
upon separation or retirement.
You state that in an effort to utilize the frequent flyer programs offered by
two major airlines, your Region established approximately 400 frequent flyer
accounts for individuals traveling on official government business.
Although some employees will receive flight awards from these accounts to be
used for government travel, other employees will be separated from the
government before sufficient points can be accumulated for an award.
Mileage points which are of an insufficient number for an award are
nontransferable.
It also appears that the points carry expiration dates.
Since the accounts of separated employees will never have any value to the
government, you request an opinion regarding the proper disposition of these
accounts.
The use and disposition of promotional materials received by employees in
conjunction with government travel, such as mileage points accumulated in
frequent flyer programs, are governed by General Services Administration (GSA)
regulations contained in 41 C.F.R. Secs. 101-25.103-1 through 101- 25.103-4
(1988) and 41 C.F.R. Sec. 301-1.6(b) and (f) (1989).
As is provided in these regulations, points accumulated in frequent flyer
programs are the property of the United States and not the employee.
See 41 C.F.R. Secs. 101-25.103-2(a) and 301-1.6(f)(1), and John D. McLaurin,
63 Comp. Gen. 233 [cited at] (1984). See also Michael Farbman, et al., 67
Comp. Gen. 79 [cited at]
(1987), and decisions cited therein.
The regulations also provide that promotional materials should be integrated
into agency travel plans to maximize the benefits to the government and should
be applied to the maximum extent possible.
See 41 C.F.R. Secs. 101-25.103-2(b) and 301-1.6(f)(3).
We have held that an agency may not set up procedures to return airline frequent
flyer benefits to an employee for personal use even if the agency determines
that it is unable to use the benefits.
Se B-210717.2 [cited at] , Feb. 24, 1984.
See also 63 Comp.Gen. 229, 232 (1984).
These decisions are based on the fact that the GSA regulations, cited above, do
not provide for a system in which the agency may return these materials to the
employee who received them on behalf of the government.
Accordingly, absent any provision therefor in the GSA regulations, we see no
basis on which the frequent flyer accounts in question may be returned to the
employees upon separation from the government.
However, after an employee separates or retires, we believe it would be
appropriate for your office to determine whether the frequent flyer account in
that employee's name has any value to the government and, if you determine that
the account has no future value, close out the account at that time.
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Origin
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