Principles of Federal Appropriations Law - US Government ...

Chapter 4
Availability of Appropriations: Purpose
motor vehicles, and these are discussed later in this section. Conceptually
related is 65 Comp. Gen. 790 (1986), holding that an agency may not use its
appropriations to insure against loss or damage to employee-owned hand
tools. If the agency wishes to afford a measure of protection to employees
who use their own tools, it may consider loss or damage claims under the
Military Personnel and Civilian Employees’ Claims Act of 1964, 31 U.S.C.
§ 3721. (This provision was amended in 1994 to permit agencies to pay for
losses sustained by government personnel forced to evacuate a foreign
country. Pub. L. No. 103-236, § 172, 108 Stat. 382 (Apr. 30, 1994).)
Another type of insurance which may not be paid for from appropriated
funds is flight insurance. If a federal employee traveling by air on official
business wishes to buy flight insurance, it is considered a personal expense
and not reimbursable. 47 Comp. Gen. 319 (1967); 40 Comp. Gen. 11 (1960).
Similarly nonreimbursable is trip cancellation insurance. 58 Comp.
Gen. 710 (1979).
Insurance on household goods placed in storage incident to a permanent
change of duty station may not be reimbursed to the employee unless the
insurance is required by the storage company as a condition of accepting
the goods for storage or is otherwise required by law. 28 Comp. Gen. 679
(1949).
Many of the decisions in this area include a statement to the effect that the
government’s practice of self-insurance “is one of policy and not of positive
law.” E.g., 21 Comp. Gen. 928, 931 (1942). While the statement is true, as it
has been carried from decision to decision the word “positive” has
occasionally been omitted and this has caused some confusion. All the
statement means is that the rule is not mandated by statute, but has
evolved administratively from the policy considerations summarized
above. See also 71 Comp. Gen. 4 (1991) (policy against using appropriated
funds to make permanent improvements to private property).
b. Exceptions to the Rule (1) Departments and agencies generally
Exceptions to the self-insurance rule may of course be authorized by
statute. The absence of an express prohibition on insurance is not enough
to authorize it; rather, specific statutory authority is required. 19 Comp.
Gen. 798, 800 (1940); 14 Comp. Dec. 836, 839 (1908). Although legislation in
this area has been minimal, Congress has occasionally authorized the
procurement of insurance in some instances and prohibited it in others. By
this pattern, congressional recognition of the rule may be inferred.
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