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B-325526 1 (2014-07-16)

handle is hein.gao/gaobadqkt0001 and id is 1 raw text is: Comptroller General U.S. GOVERNMENT ACCOUNTABILITY OFFICE of the United States United States Government Accountability Office Washington, DC 20548 B-325526 July 16, 2014 The Honorable Hal Rogers Chairman The Honorable Nita Lowey Ranking Member Committee on Appropriations House of Representatives Subject: Department of Defense-Obligation of Bonuses under Military Service Agreements This responds to your request for our opinion regarding the Department of Defense's (DOD) obligational practice for certain recruiting and retention bonuses.1 DOD components offer these bonuses in various agreements with individuals in exchange for terms of military service. DOD generally pays the bonuses in installments over a number of years. As we explain in further detail below, we conclude that DOD incurs an obligation for the entire bonus amount when it enters into these agreements. DOD should charge the obligation to an appropriation current at the time of agreement. In accordance with our regular practice, we contacted DOD to obtain relevant facts and its legal views on this matter. GAO, Procedures and Practices for Legal Decisions and Opinions, GAO-06-1064SP (Washington, D.C.: Sept. 2006), available atwww.gaogov/Ilegal/lawresources/resources.html. DOD provided us with a letter containing that information. Letter from Deputy General Counsel (Fiscal), DOD, to Assistant General Counsel for Appropriations Law, GAO, Subject. Department of 1 H.R. Rep. No. 113-113, at 17-18 (2013) (The Committee directs the Comptroller General to issue a legal opinion not later than 180 days after the enactment of this Act assessing the obligation of military personnel multi-year bonuses to determine if the Department of Defense obligation practices comply with fiscal law.). The committee report was later incorporated by reference into the joint explanatory statement accompanying the Consolidated Appropriations Act, 2014. 160 Cong. Rec. H533 (daily ed. Jan. 15, 2014); Pub. L. No. 113-76, § 4, 128 Stat. 5, 7 (Jan. 17, 2014).