Request for Decision Concerning the Legality of an Outstanding Obligation of the Federal Power Commission

GAO commented on whether a Federal Power Commission (FPC) obligation recorded against a fiscal year (FY) 1971 appropriation constituted a valid obligation, since it appeared that the services contracted for were not necessary and were not executed in FY 1971. GAO held that the obligation was not valid, since FPC failed to: (1) provide instructions, specifications, or documentation to substantiate a bona fide need for the contract; and (2) execute the contract within the allotted timeframe. Accordingly, the funds should be refunded to the Treasury.