GAO: Patent office can reimburse teleworkers for home Internet

Decision provides a legal basis for the office to cover employees’ home access, up to $100 per month.

The Government Accountability Office ruled Wednesday that the Patent and Trademark Office is permitted by law to use its appropriations to reimburse teleworkers for high-speed home Internet access.

The decision comes in response to a June 15, 2006, letter in which Barry Hudson, acting Patent and Trademark Office chief financial officer, asked GAO to examine the propriety of reimbursing employees working away from the office for their Internet expenses. PTO expects to have 3,300 employees participating in its telework program -- one of the most extensive in the federal government -- by 2011, according to the decision.

The document, signed by GAO General Counsel Gary Kepplinger, recommended that the agency "periodically review reimbursements to ensure that it has adequate safeguards against private misuse" and is only providing reimbursement for official work-related use.

GAO based its decision on a federal law (Public Law 104-52) that allows agencies to use appropriated funds to pay monthly charges incurred in employees' residences, as long as the employees are authorized to work from home. The law also covers payment for installing telephone lines and other "necessary equipment." Agencies have to certify that the service supports their mission.

GAO agreed with PTO that an Internet connection is an essential workplace tool, comparing it to the telephone.

Periodic reviews would support PTO's claim that adequate safeguards against misuse are in place as required under the law, the decision stated. These could include analyses of payment trends.

According to GAO, copies of invoices from employees' Internet service providers must be submitted and employees must indicate that the Internet connection will be used for work purposes.

Employees are eligible for reimbursement of the full costs if the connection is used solely for official purposes, the decision stated. Agencies are allowed to cover half the costs if personal use amounts to less than 50 percent of total usage.

If the Internet service provider bundles other services not used for employees' official duties, such as cable television or a personal telephone service, into the overall bill, the cost for the Internet connection needs to be subtracted for reimbursement purposes.

Reimbursements would be limited to the amount PTO would have had to pay to procure these services directly. The maximum amount allowable for reimbursement is $100 per month, according to the decision.

PTO is pleased with the decision because it supports the agency's aggressive telework initiative, said spokeswoman Brigid Quinn in a statement.

"It will help us reduce [the] administrative burden," she said, "and confirms that our approach to providing ISP reimbursement to employees is appropriate."