EPA-350-R-93-901
ii? ' ' jF
' \ £*\
A Brief Guide
For EPA
Executives
March 1993
in NTIS.
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#.1 Environmental Pwttdfoft Aftsfiff
Region 5, library (PL. 1 £J)
77 West Jackson BmifwaM,
Chkago, It 60604.3390
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INTRODUCTION
I This booklet has been designed for
executives at the Environmental Protection
(Agency (EPA) by the EPA Committee on
Integrity and Management Improvement
(CIMI). All managers and supervisors should
find this information useful.
As a Federal employee, you represent the
Government to many people and your
actions must always be above reproach. To
guide you in this effort, a significant number
of rules have been developed. We must all
comply with the rules to ensure that
government business is conducted properly,
and that the high ethical standards of public
service are met.
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Some of the main areas on which you will I
need to focus your attention are covered!
briefly in this booklet. If you need additional
information on any of the topics listed,
please consult your Administrative Officer or |
the Agency contact referenced at the end of
each section. The numbers listed here are
for Headquarters only. Therefore, regional
and field employees should consult their
local directory for assistance.
in C. Martin
lairman, Committee on Integrity and
Management Improvement
Environmental Protection Agency
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TABLE OF CONTENTS
(Ethics and Integrity Issues
Standards of Conduct 6
Gifts, Entertainment and Travel
Expenses 8
Financial Disclosure Requirements 11
Political Activity 12
Controlled Substance Abuse 14
Human Resource Issues
Employment Principles 18
Prohibited Use of Personnel 20
Civil Rights Concerns 21
Performance Appraisal and Pay
Adjustments 23
Management Issues
Internal Controls 26
Audit Management 28
Contract Management 31
Procurement of Products
and Services 34
Classified Information Safeguards 35
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Other Matters
Motor Pool Vehicle Usage 38|
Printing and Publication Services 401
Telephone Usage 41
Travel Policies and Regulations 431
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ETHICS AND
INTEGRITY
ISSUES
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STANDARDS OF CONDUCT
The Code of Federal Regulations states that I
persons employed by the Federal
government should avoid actions that might f
result in or create the appearance of:
using public office for personal gain
giving preferential treatment to anyone
impeding government efficiency or
economy
losing complete independence or
impartiality
making a government decision outside
official channels
damaging public confidence in the
integrity of the government.
These regulations prohibit the acceptance of
gifts from persons or organizations whose
interests may be affected by your activities.
They govern outside activities, financial
interests, the use of non-public information,
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land the use of government property for other
(than official purposes.
In addition to government regulations, there
are criminal statutes that govern ethical
conduct. These prohibit official actions that
' affect your financial interests or those of your
| family or business associates. The statutes
also prohibit supplementing your Federal
salary, representing others before Federal
agencies and certain post-employment
activities.
For detailed guidance, call the Designated
Agency Ethics Official, Office of General
Counsel, on 260-8064.
Reference: 40 CFR Part 3.
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GIFTS, ENTERTAINMENT AND TRAVEL
EXPENSES
You may occasionally be offered meals, I
entertainment or other gifts in connection
with your EPA duties. The general rule is
that EPA employees may not accept any
such gift from anyone who is attempting to
influence the employee's official action, who
has or is seeking to obtain an EPA contract
or assistance agreement, or who conducts
activities that EPA regulates. Employees
also generally may not accept gifts which are
given because of their official positions. You
should consult 5 CFR Part 2635, Subpart B
regarding exceptions to the rule. The
Designated Agency Ethics official is
available to assist you.
Gifts of official travel expenses are generally
acceptable in the following circumstances:
(1) travel expenses for attendance at
conferences, meetings, or seminars when
approved in advance by the Designated
Agency Ethics Official or his designee
(employees may accept tickets, rooms and
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1 meals-in-kind—cash must be in the form of a
I check made out to EPA); (2) assignments
under the Intergovernmental Personnel Act;
(3) details to foreign governments and
international organizations; (4) travel entirely
outside the United States paid by foreign
governments or public international
organizations; (5) official EPA witness travel;
and (6) travel under Federal Technology
Transfer Act agreements.
Employees may accept and retain
unsolicited gifts from foreign governments
which are worth less than $200 U.S. retail.
Larger gifts must be turned over to the
Assistant Administrator for International
Activities for disposal under General
Services Administration regulations.
Employees may not accept any honorarium
for an appearance, speech or article. Certain
payments in lieu of honoraria may be made
to qualifying charitable organizations as long
as the appearance, speech, or article is not
related to EPA matters.
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For additional information, contact the
Designated Agency Ethics Official on
260-8064.
References: 5 CFR Part 2635, Subpart B;
5 U.S.C. 7342(c);
5 CFR Part 2636;
31 U.S.C. 1353;
41 CFR Part 304-10.
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FINANCIAL DISCLOSURE
REQUIREMENTS
I The Ethics in Government Act of 1978
requires that most top Government officials
file financial disclosure reports. An initial
I report must be filed within 30 days of
appointment date. An annual filing is
required by May 15 of each year. A final
report must be filed within 30 days of leaving
Government. These reports are available to
the public.
Financial forms can be obtained from your
Administrative Officer or Human Resources
Officer. For additional information on
reporting requirements, call the Designated
Agency Ethics Official on 260-8064.
References: Ethics in Government Act of 1978, as
amended by P.L. 96-19 and 96-28;
5 USC Appendix;
5 CFR Part 2634.
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POLITICAL ACTIVITY
The Hatch Act generally bars Federal!
employees from any active participation in |
political management or political campaigns.
This includes Schedule C employees. In
EPA, only confirmed Presidential appointees
are exempt from this restriction. However,
Presidential appointees are prohibited from
using Federal employees or equipment to
assist them in their political activities.
Intermittent employees, such as consultants,
are covered by the Hatch Act only on the
days they actually work for EPA.
There are also criminal statutes which bar
soliciting or receiving money for political
purposes from other Federal employees or
making political contributions to or through
other Federal employees; granting or
withholding Federal benefits in exchange for
political activity; and soliciting or receiving
political contributions on Federal premises.
These restrictions apply to all officers and
employees, including confirmed Presidential
appointees.
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I Thus, most Federal employees cannot be
involved in partisan political campaign
activities, including fund raising and running
I for office.
For additional guidance on or interpretation
of the Hatch Act, call the Principal Deputy
General Counsel, Office of the General
Counsel, on 260-8064.
References: 5 USC Chapter 73, Subchapter III,
5 CFR Part 733.
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CONTROLLED SUBSTANCE ABUSE
On September 15, 1986, President Reagan I
signed Executive Order 12564, establishing I
the goal of a Drug-Free Federal Workplace.
The Order made it a condition of
employment for all Federal employees to
refrain from using illegal drugs on or off-duty.
In a letter to all executive branch employees
dated October 4, 1986, the President
reiterated his goal of ensuring a safe and
drug-free workplace for all Federal workers.
The Executive Order recognized that illegal
drug use is seriously impairing a portion of
the national work force, resulting in the loss
of billions of dollars each year. As the largest
employer in the nation, the Federal
government has a compelling proprietary
interest in establishing reasonable conditions
of employment. Prohibiting employee drug
use is one such condition. The EPA is
concerned with the well-being of its
employees, the successful accomplishment
of Agency missions, and the need to
maintain employee productivity. The intent of
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the policy is to offer a helping hand to those
who need it, while sending a clear message
I that any illegal drug use is, quite simply,
incompatible with Federal service.
The purpose of the Drug-Free Workplace
Plan is to set forth objectives, policies,
procedures, and implementation guidelines,
and to achieve a drug-free Federal
workplace, consistent with the Executive
Order and Section 503 of the Supplemental
Appropriations Act of 1987.
For additional information,
Human Resources Officer.
contact your
References: Executive Order 12564;
Executive Order 10450;
Section 503 of the Supplemental
Appropriations Act of 1987, P. L. 100-71,
101 Stat. 391, 468-471, codified at 5
U.S.C. Section 7301 note (1987),
Scientific and Technical Guidelines for
Drug Testing Programs, Alcohol, Drug
Abuse and Mental Health Administration
(ADAMHA) Department of Health and
Human Services (HHS). as amended;
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References Continued:
Standards for Certification of
Laboratories Engaging in Urine Drug
Testing for Federal Agencies, ADAMHA,
HHS, as amended;
Civil Service Reform Act of 1978, P.L.
95-454;
42 CFR Part 2, establishing
requirements for assuring the
confidentiality of alcohol and drug abuse
patient treatment records;
The Privacy Act of 1974 (5 U.S.C.
Section 552a), prescribing requirements
governing the maintenance of records
by agencies pertaining to the individuals
and access to these records by the
individual(s) to whom they pertain;
40 CFR Part 16, implementing the
Privacy Act of 1974 within the EPA;
Federal Employees Substance Abuse
Education and Treatment Act of 1986,
P.L. 99-570.
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HUMAN
RESOURCE
ISSUES
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EMPLOYMENT PRINCIPLES
Most positions in the EPA are in the
competitive service. Employees are selected
for these positions and advance in their
careers according to various laws,
regulations and policies that constitute the
"merit system."
Merit principles require that all personnel
decisions must be made exclusive of
friendship, favoritism, political affiliation, or
personal relationships and that
discrimination based on race, color, sex,
religion, national origin, marital status or
handicapping condition is unlawful.
As an executive, it is critical that your
decisions on hiring, making job
commitments, recommending promotions or
determining grades and salaries are in
compliance with laws and regulations. If
there is any uncertainty regarding these
matters, you should contact your Human
Resources Officer.
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Employment of relatives is especially
sensitive. Government officials may not
employ or advocate the employment of a
relative in an organization under their control
or influence. Relatives include the immediate
family, in-laws, uncles, aunts, nephews,
nieces and first cousins.
For additional information and guidance,
contact your Administrative Officer or Human
Resources Officer.
References: EPA Directive 3110.1, Employment of
Relatives;
EPA Directive 3115, Merit Promotion
Manual.
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PROHIBITED USE OF PERSONNEL
Employees of the Federal government may
only be required to perform official
government business. Using government
employees in duty status for other than
official purposes is subject to disciplinary
action ranging from a written reprimand to
removal. Personnel activities for which
employees may not be used include (but are
not limited to):
Taking a private automobile for repair,
maintenance, or gas;
Managing personal finances (such as
paying bills or reconciling a checkbook);
and,
Purchasing personal items (such as
groceries, liquor, presents for family or
friends).
References: EPA Order 3120.1, Conduct and
Discipline Manual.
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CIVIL RIGHTS CONCERNS
The Agency is committed to the concept and
practice of equal opportunity in recruiting and
hiring new employees, creating career
development opportunities for current EPA
staff, and ensuring a workplace free of
discrimination on the bases of race, color,
religion, age, sex, national origin, and
handicap.
The Office of Civil Rights (OCR) is
responsible for the enforcement of
nondiscrimination laws and provisions, as
they affect EPA employees, applicants for
employment, recipients of EPA-financed
assistance, and programs and activities
conducted by EPA. * OCR operates an
affirmative employment program to increase
the representation of women and minorities
at all levels of the EPA workforce; the
Minority Institutions Program to support the
objectives of Executive Order 12320, which
obligates executive departments and
agencies to help strengthen these
institutions; a special emphasis program to
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publicly recognize the contributions of
minorities and women; and the
Discrimination Complaints Program which
processes complaints filed by EPA
employees and applicants for employment.
EPA also has a very clear policy on sexual
harassment. Any employee guilty of sexual
harassment will receive disciplinary action in
accordance with the Agency's Conduct and
Discipline Manual, EPA Order 3120.1. The
penalties range from written reprimand to
removal.
References: Title VII of the Civil Rights Act of 1964,
as amended;
Equal Employment Opportunity Act of
1972;
Civil Service Reform Act of 1978;
Age Discrimination Act of 1967;
Rehabilitation Act of 1973;
29 CFR Part 1613; and other statutes,
executive orders and guidance.
'The Office of Human Resources Management
manages the handicapped program.
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PERFORMANCE APPRAISAL AND PAY
ADJUSTMENTS
Annual salary adjustments for supervisors
and managers are based on the principle of
"pay for performance." The annual
adjustment consists of the comparability
increase voted by Congress and a merit
increase, which depends on two factors —
the manager's performance rating and
his/her position in the pay range.
Performance rating decisions for managers
are generally made by Assistant
Administrators, the Inspector General, the
General Counsel, Associate Administrators,
Regional Administrators, or Headquarters
Office Directors. Performance appraisals for
General Schedule or non-supervisory
employees may be made at lower
management levels; and there is less of a
direct effect between ratings and base pay
among these employees.
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EPA rates performance each October on the
commitments made in each employee's
annual performance agreement. Rating
officials judge performance on a 5-level
scale, from Outstanding to Unsatisfactory.
Managers may receive bonuses once a year
based on their annual rating. Federal and
Agency guidelines regulate the amount and
basis for these awards and specify what
level of management may approve them.
Cash awards for non-supervisory employees
may also be based on performance ratings
and can be granted to employees at any
time during the year.
For additional information contact your
Human Resources Office.
References: Civil Service Reform Act of 1978 as
amended;
5U.S.C 4302 etseq. and 5401-5410;
5 CFR Parts 430 and 540;
EPA Guidance on Performance
Management, 1986 Edition.
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MANAGEMENT
ISSUES
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INTERNAL CONTROLS
In 1950, the Accounting and Auditing Act
was passed requiring that agency heads
establish and maintain effective systems of
internal control. The Federal Managers'
Financial Integrity Act of 1982 requires
renewed focus on the need to strengthen
internal controls to ensure that:
Obligations and costs are in compliance
with legislation, Agency directives and
regulations;
Funds, property and other assets are
safeguarded; and
Revenues and expenditures applicable
to Agency operations are properly
documented and recorded.
The Act was passed with the expectation
that strengthened control systems would
improve the quality of Federal services by
reducing mismanagement, errors, waste,
fraud, and abuse in the administration of
Federal programs. The Act requires all
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Federal managers to maintain effective and
efficient control systems, periodically
evaluate their control systems, and correct
control weaknesses. In addition, an annual
report must be submitted by the
Administrator to the President and the
Congress providing assurance on the
adequacy of EPA's internal control systems,
identifying all material internal control
weaknesses, and stating the actions planned
or taken to correct the weaknesses.
For additional information and guidance,
contact your Internal Control Coordinator.
References: Federal Managers' Financial Integrity
Act of 1982;
General Accounting Office, Standards
for Internal Controls in the Federal
Government;
OMB Circular A-123, Internal Control
Systems;
Resources Management Directive 2560,
Internal Control.
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AUDIT MANAGEMENT
The Inspector General Act of 1978 created
the EPA Office of Inspector General. The
OIG's role is to review EPA's financial
transactions, program and administrative
activities, investigate allegations of possible
criminal and civil violations, and promote
economic, efficient, and effective operations
within the Agency. The OIG is specifically
authorized access to all records, reports,
audits, reviews, documents, papers, or other
materials.
Internal audits are reviews of selected
Agency programs and operations which
provide management with an independent
appraisal of whether desired results and
objectives are achieved efficiently,
economically, and in accordance with
prescribed laws, regulations, policies, and
procedures. These audits are aimed at
providing constructive recommendations for
improved administration of EPA programs.
The key differences between management's
own evaluations and internal audits are the
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independence of the OIG from the
management of such programs and the
responsibility placed on the OIG by the IG
Act to report to top management and the
Congress on the results of such audits.
Financial audits can be reviews of financial
statements to determine whether (1) the
financial statements of an audited entity
present fairly the financial position, results of
operations, and cash flows or changes in
financial position, and (2) whether the entity
has complied with laws and regulations for
those transactions and events that may have
a material effect on the financial statements.
Financial audits also include financial related
audits such as audits of contracts, grants,
financial systems, computer-based systems,
and reports and schedules on financial
matters. All audits are conducted in
accordance with the Government Auditing
Standards established by the Comptroller
General.
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As an executive, you may be named in
audits as the "action official" responsible for
responding to the audit and for implementing
corrective actions.
For additional information and guidance,
contact your Audit Follow-up Coordinator.
References: Inspector General Act of 1978;
Inspector General Act Amendments of
1988;
OMB Circular A-5O, Audit Follow-up;
EPA Order 2750, Audit Follow-up.
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CONTRACT MANAGEMENT
EPA is making a major effort to reduce its
risk exposure from contract activities to
preclude fraud, waste, and illegal/improper
contract administration, and assure
cost-effective operation of technical support
services utilized by Agency program offices.
Risk reduction and cost-effectiveness can be
accomplished through effective contract
management and control over contractor
activities, use of EPA staff to control and
perform critical Agency functions, decreased
contractor involvement in EPA's critical
financial/information systems, award of
multiple support service contracts, and
retention of Agency expertise in the technical
service functions of the Agency. For
example, the award of separate contracts for
each major ADP system development,
enhancement, operation and maintenance
increases competition, reduces over-reliance
on one contractor, increases the Agency's
control over its major ADP functions, and
insures that the Agency incurs the lowest
possible cost for technical support.
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Each Assistant Administrator, Regional
Administrator, Associate Administrator, the
General Counsel, and the Inspector General
are required to have an SES-level manager
serve as a Senior Procurement Officer with
full responsibility for the effectiveness and
integrity of all procurement activities in their
office. Separate on-site Senior Procurement
Officers are required for each EPA
laboratory or major EPA field site. Every
member of the Senior Executive Service
must complete a special seminar on their
role and responsibilities in contract
management.
A clear distinction between EPA employees
and contractors must be made by ensuring
that all contract employees wear
identification which is visibly distinct from
EPA employees, and that contract
employees' workspace is physically
segregated from EPA employees'
workspace. In addition, contractors may not
be trained at EPA expense beyond what is
required by their contract, or for skills
reportedly available at the time of contract
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laward. They may not participate in EPA
•events such as award ceremonies, they may
I not attend EPA staff meetings and
I conferences except in a specific defined role,
land they may not be assigned positions in
I which they can be mistaken for government
employees by the public or EPA staff.
I References: EPA Contracts Management Manual;
EPA Project Officer's Handbook.
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PROCUREMENT OF PRODUCTS AND
SERVICES
Only individuals specifically authorized to do I
so can obligate public funds for the'
acquisition of goods and services for the
government. The purchase of office
furnishings is a particularly sensitive and
potentially embarrassing area. No purchase
should be made without the appropriate prior
approvals.
If you need to make a purchase for
government use or you wish to hire a
contractor to perform specific tasks, always
consult your Administrative Officer or the
Office of Acquisition Management on
260-5020 prior to the purchase or
commitment.
References: GSA Bulletin FPMR D215;
EPA Directive 1900, Contracts
Management Manual;
EPA Directive 4830, Personal;
Property Management Volume/Facilities
& Support Services Manual (PMR 2-01,
2-07)
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CLASSIFIED INFORMATION
SAFEGUARDS
I Only those employees who have been
| granted the appropriate security clearances
are allowed access to classified information.
It is important that you discuss classified
information with these persons only. You can
verify the names of these persons by calling
the Personnel Security Staff on 260-4115.
All documents are classified at the highest
level of the source information contained in
the document. The classification is on each
page (top and bottom) of the document; the
classification authority is on the first page.
Classified documents are always stored in
safes or files with combination locks.
For additional information on the handling,
storage and copying of classified materials,
call the Security and Property Management
Branch on 260-2110.
Reference: EPA Directive 4850-2, Security
Volume/Facilities & Support Services
Manual
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OTHER MATTERS
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MOTOR POOL VEHICLE USAGE
A motor pool of cars and vans is available for I
use under limited circumstances for!
designated Agency officials. These vehicles!
are to be used for the conduct of official
Government business only. Use for other
purposes is strictly forbidden. Improper use
or even the appearance of improper use of
Government vehicles can be embarrassing)
to the Agency.
Trips to hotels, clubs and restaurants using I
Government vehicles are not appropriate
unless those trips are unquestionably
business-related. Government vehicles may
not be used for transportation to or from your
place of residence except under a very
narrow range of circumstances.
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ror additional information about the propriety
Government vehicle usage, contact the
(Facilities Management and Services Division
>n 260-2030. Contact your Administrative
(Officer to determine whether or not your
(position has been designated as one
I authorizing you to use the Agency motor
(pool.
I Reference: EPA Directive 4830.3, Personal
Property Management Support Services
Manual.
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PRINTING AND PUBLICATION SERVICES
The Environmental Protection Agency has!
printing and publications services for official!
government documents. All Agency
publications require clearance before they)
can be printed.
The Agency does not provide business
cards, but the EPA Recreation Association
Store (260-2530) has information on area
contractors who have the Agency seal and
will prepare cards at your request and
expense.
Call the Printing Management Section on
260-2125 or contact your Administrative
Officer for guidance and assistance in
printing needs.
Reference: EPA Directive 4810, User's Guide &
Administrative Handbook/Facilities &
Support Services Manual (COM 2-01
through 2-10).
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TELEPHONE USAGE
Itong-Dlstance Telephone Calls — When
lyou need to make a work-related,
I long-distance telephone call, the Federal
(Telecommunications System (FTS), a
(government network of leased long-distance
I lines, should be used. Recent changes to the
Federal Information Resources Management
Regulations enable Federal agencies to
permit employees to make reasonable use of
government telephone systems, including
placing certain calls which previously were
prohibited. Ask your Administrative Officer
for details. The Agency also provides a
teleconferencing capability to most
telephones connected to the FTS.
Telephone Calling Cards — If you
frequently make official long-distance
telephone calls while on official travel, you
probably need a telephone calling card.
Contact your Administrative Officer to obtain
one.
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Secure Telephone Calls — Always use
secure telephone when discussing sensitive
Agency or classified information. If you dol
not have a secure telephone in your office,!
contact your Administrative Officer, or thel
EPA Telecommunications Manager on|
260-2082.
References: 41 CFR 201-38;
EPA Directive 4810, Users Guide &
Administrative Handbook/Facilities &
Support Services Manual (COM 1-01
through 1-07).
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TRAVEL POLICIES AND REGULATIONS
[Travel must be for official business only and
(cannot be for personal purposes. Except
(under very limited circumstances, coach
(class airline accommodations must be used
I for official travel. Premium class (those
I accommodations above coach) may be used
only when approved by the Assistant
Administrator for Administration and
Resources Management. Please refer to the
[Agency Travel Manual, Resources
Management Directives System, 2550 B, for
additional information. All official travel must
be approved in advance and a travel
authorization signed by the approving
official. Travel vouchers must be filed within
ten days of completion of your trip. Frequent
travelers (more than 1 trip annually) must
apply for an Agency Diners Club credit card
to facilitate their travel arrangements and to
minimize the amount of cash travel
advances.
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Airline discount coupons or otherl
promotional benefits accrued from official I
travel are the property of the government [
and must be turned in to your servicing
finance office. If bumped from an
overbooked flight, the refund check must be I
made out to the Environmental Protection
Agency and returned to the appropriate
servicing finance office. Frequent flier
mileage may only be used for future travel
on official business.
Receipts are required for lodging,
long-distance telephone calls, car rentals,
gasoline, and registration fees. Receipts are
also required for other expenses which
exceed $25 a day.
Employees are reimbursed under the
General Services Administration's
Lodgings-plus system which sets specific
rates for lodging and for meals and incidental
expenses for cities in the continental United
States.
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For additional information on travel
[egulations, contact your Administrative
ficer, or call the Customer Assistance
fice of the Financial Management Division
>n260-5116.
Deference: EPA Directive 2500, Resources
Management Directives System.
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NOTES
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NOTES
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U.S. Environmental Protection Agency
Region 5, Library (PL-12J)
77 West Jackson Boulevard, 12ttl Roar
II 60604-3590
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