[NTIS Use of Advanced Funds for Operating Expenses]

The Department of Commerce requested a decision regarding whether the National Technical Information Service (NTIS) could continue to charge obligations for its operating expenses against funds advanced by its customers for publications and services. GAO held that NTIS: (1) could not use advanced funds for operating expenses, unless they were directly related to a firm order; and (2) should report to the President and Congress the extent to which it charged its operating expenses to monies that were not available to cover the obligation. Accordingly, NTIS could not use advanced funds for operating expenses not directly related to a firm order.