Is Free Trip a Theft of Public Funds?

Case Study # 231

Is Free Trip a Theft of Public Funds?

Situation

You are the assistant director of the Smithville Public Parks and Recreation Department. As part of your duties, you fly across the United States as a member of a team to promote Smithville. Because of your travels, you have accumulated the mileage necessary to qualify for a free “frequent flyer” airfare to Paris. Should you take the trip?

Dave Clark, city attorney, says no. He claims that the previous trips were made at taxpayer expense and therefore should not be for personal use. City funds were used to earn the mileage, and the benefit should belong to the city, he said.

However, Recreation Director Ron Myers says that such “perks” are considered normal practice, and that during the last legislative session many legislators – as well as city representatives at the Legislature – took advantage of airline programs that provided them with free rental cars and other fringe benefits. He claims that the parks department personnel are paid low salaries but receive many benefits, thereby keeping most of them content with their pay.

Problem

Should you accept the trip? If you do not accept the trip, what would you do with the trip? If you do accept it, would you make it public or try to keep it a secret? Although the trip is free, three will be expenses such as hotels, food and entertainment – who should pay for these? Would it make a difference if your boss was saying not to take the trip but the city attorney was encouraging you to take it? What are the legalities about accepting such a trip? What are the ethical issues?

Suggested Key Words and Phrases for Literature Search for Case Study 231

BonusesCommercial recreation

EthicsFringe benefits

JunketPerks

Public fundsRight to know

Vacation

Selected References for Case Study 231

Culkin, D. (1988, Feb.). The right way to discipline. Parks and Recreation, 44-45.

Dworak, R. (1980). Taxpayers, taxes, and government spending: Perspectives on the taxpayer revolt. New York: Praeger.

Grossman, A., (ed.). (1989). Personnel management in recreation and leisure services. (2nd ed.). South Plainfield, NJ: Groupwork Today.

Hansen, S. (1983). The politics of taxation: Revenue without representation. New York: Praeger.

Husband, T. (1976). Work analysis and pay structure. London: McGraw-Hill.

Kleinbeck, U., Quast, H., Thierry, H., & Hacker, H., (eds.). 1990). Work motivation. Hillsdale, NJ: Lawrence Erlbaum.

Milkovich, G., & Newman, J. (1984). Compensation. (3rd ed.). Homewood, IL: BPI/Irwin.

Morf, M. (1986). Optimizing work performance: A look beyond the bottom line. New York: Quorum.

Nash, M. (1985). Making people productive. San Francisco: Jossey-Bass.

Patten, T. (1977). Pay: Employee compensation and incentive plans. New York: Free.

Patten, T. (1988). Fair pay. San Francisco: Jossey-Bass.

Redeker, J. (1983). Discipline: Policies and procedures. Washington, D.C.: Bureau of National Affairs.