Awards Information FAQs
Award regulations are very general in nature and allow for a great deal
of agency innovation. Here are some frequently asked questions regarding
what might be permitted under the awards authority:
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What options are available beside electronic funds transfers (EFT) to deliver a cash award? |
The Office of Personnel Management has concluded that cash surrogates are an appropriate option for delivering cash awards, subject to all the limitations and requirements that apply to cash awards. A current example of a cash surrogate is "gift cheque" purchased through a vendor and easily and widely redeemable for cash, not merchandise. Recipients of cash surrogates must have the same freedom and control over how that award may be used as they would have over currency or a U.S. Treasury check, including the option of saving the money or turning it over to any third party (e.g., a charity or other individual). Consequently, cash surrogates must meet the following criteria:
They are subject to all the limitations and requirements that apply to cash awards.
They must be easily and immediately convertible to cash.
They must not be limited to be redeemed only where purchased, at a few selected sites outside the agency, or through specific vendors.
If purchased from a vendor or financial institution, they are subject to all relevant procurement regulations.
Cash surrogates should not be confused with merchant gift certificates. |
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Can an agency provide
training or purchase equipment as a form of award? |
Technically, yes, although it is important
to recognize the intersection of several administrative authorities
in such a situation. The decision to reward an employee or group of
employees with training or equipment may be very reasonable within
a recognition program that contemplates such forms of recognition.
In that instance, under the definition of "award" at section
451.102 of title 5, Code of Federal Regulations, the "award"
would be considered an "action taken." The action itself
would be the procurement of the training or equipment. As such, it
would be subject to all relevant training and procurement regulations,
limitations, and requirements. It would not be unreasonable to deduct
the costs of such training or equipment from the relevant awards budget,
although technically that is not required. Some agencies partition
their funding very specifically across object classes such as awards,
training, equipment, etc., and special funding arrangements and transfers
may be required. |
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What is meant by the
regulation at section 451.106(c) of title 5, Code of Federal Regulations,
that agencies shall "provide for communicating with employees
and supervisors about the relevant parts of their award program(s)"? |
The regulations recognize that many means
of communication are available to agencies to help employees understand
their award program(s), including formal training. The Office of Personnel
Management anticipates that in some agencies more than one program
may be in place for different employees working within the agency,
and, therefore, the employees' greatest need is to understand the
program(s) that pertains to them. |
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What is meant by "forced
distribution" and how can it be applied to awards? |
The term has no precise definition in policy
or practice, but "forced distribution" generally is associated
with the idea of limiting awards to a certain number or percentage
of employees. Relative comparisons among individuals or groups, such
as rank ordering or categorizing employees, can be used for making
decisions about distributing awards. For example, agencies may limit
awards to the top three producers or teams, or limit awards to those
individuals or groups that exceeded certain goals. Agencies can also
establish criteria for categories of awards that are given only to
a selected number of recipients who best fit the criteria, although
the criteria might have been met by more than one person or team. |
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What is meant by the
regulatory language, "an agency shall assure that a program does not
conflict with or violate any other law or Government-wide regulation?"
(5 CFR 451.106(a)) |
In designing their award programs, agencies
have a responsibility to look beyond the award regulations themselves
and make sure that the specific reward and incentive programs that
are being proposed do not conflict with other laws or regulations.
Examples of other rules that can be directly related to incentive/reward
schemes are procurement, travel, Fair Labor Standards Act, and tax
withholding. These compliance issues surface most often when we are
asked to review an agency's proposal for an innovative award scheme.
Often, the issue has less to do with the proposal's forms of recognition,
than with the nature of the contribution that would be recognized.
(An extreme example is an instance where the Office of Personnel Management
(OPM) was asked to review an incentive proposal that would have violated
the criminal code since the award would have constituted an illegal
"kickback"!) OPM does not wish to stifle creativity, but the integrity
of the Government-wide award program must be protected. |
Frequently Asked Questions