B-14386, JANUARY 14, 1941, 20 COMP. GEN. 370

B-14386, JANUARY 14, 1941, 20 COMP. GEN. 370

APPROPRIATIONS - FISCAL YEAR - AVAILABILITY BEYOND - VOCATIONAL EDUCATION OF DEFENSE WORKERS FEDERAL FUNDS GRANTED AND PAID TO STATES OR OTHER AGENCIES PRIOR TO JUNE 30, 1941, UNDER THE 1941 FISCAL YEAR APPROPRIATION FOR THE EDUCATION AND TRAINING OF DEFENSE WORKERS PURSUANT TO PLANS APPROVED AS PROVIDED IN SAID APPROPRIATION ARE AVAILABLE FOR EXPENDITURES IN CONNECTION WITH COURSES BEGINNING IN THE FISCAL YEAR 1941 AND ADMINISTRATIVELY DETERMINED TO BE A PART OF THIS FISCAL YEAR'S PROGRAM EVEN THOUGH SUCH COURSES ARE NOT COMPLETED UNTIL SHORTLY AFTER THE END OF THE FISCAL YEAR. UNDER THE 1941 FISCAL YEAR APPROPRIATION FOR THE EDUCATION AND TRAINING OF DEFENSE WORKERS, THERE MAY BE CERTIFIED TO STATES OR OTHER AGENCIES SUBSEQUENT TO JUNE 30, 1941, SUCH FUNDS AS MAY BE REQUIRED TO COVER THE COST OF COURSES BEGUN, BUT NOT COMPLETED, PRIOR TO THAT DATE, PROVIDED SUCH COSTS ARE STRICTLY WITHIN CONTEMPLATION OF THE PLAN ORIGINALLY APPROVED BY THE COMMISSIONER OF EDUCATION AS PROVIDED IN SAID APPROPRIATION, SUCH APPROVAL AND THE MAKING OF COMMITMENTS IN ACCORDANCE THEREWITH BY THE STATE OR OTHER AGENCY CONSTITUTING AN OBLIGATION OF THE APPROPRIATION. WHERE PLANS FOR THE EXPENDITURE BY STATES, ETC., OF FUNDS PROVIDED BY THE FISCAL YEAR 1941 APPROPRIATION FOR THE EDUCATION AND TRAINING OF DEFENSE WORKERS HAVE BEEN APPROVED BY THE COMMISSIONER OF EDUCATION AND COMMITMENTS THEREUNDER MADE, FUNDS IN ADDITION TO THOSE ALREADY EXPENDED MAY BE CERTIFIED SUBSEQUENT TO JUNE 30, 1941, IN AMOUNTS SUFFICIENT TO COVER COSTS INCURRED IN CONNECTION WITH COURSES COMPLETED ON OR BEFORE THAT DATE IF SUCH COSTS ARE CLEARLY AUTHORIZED BY THE APPROVED PLANS.

COMPTROLLER GENERAL WARREN TO THE FEDERAL SECURITY ADMINISTRATOR, JANUARY 14, 1941:

I HAVE YOUR LETTER OF JANUARY 10, 1941, AS FOLLOWS:

WITH REFERENCE TO CERTIFICATION OF PAYMENTS TO STATES, SUBDIVISIONS THEREOF, OR OTHER PUBLIC AUTHORITIES OPERATING PUBLIC EDUCATIONAL FACILITIES, AND ENGINEERING SCHOOLS AND UNIVERSITIES, PURSUANT TO PROVISIONS OF FIRST SUPPLEMENTAL CIVIL FUNCTIONS APPROPRIATION ACT, 1941, PUBLIC NO. 812--- 76TH CONGRESS--- 3D SESSION, SUBHEADING " OFFICE OF EDUCATION," APPROVED OCTOBER 9, 1940, THE FOLLOWING QUESTIONS HAVE ARISEN:

1. ARE FEDERAL FUNDS CERTIFIED AND PAID PRIOR TO JUNE 30, 1941, TO STATES, SUBDIVISIONS THEREOF, OR PUBLIC AUTHORITIES OPERATING PUBLIC EDUCATIONAL FACILITIES, AND TO ENGINEERING SCHOOLS AND UNIVERSITIES, AVAILABLE FOR EXPENDITURE BY THEM FOR THE COST OF COURSES WHICH BEGIN DURING THE CURRENT FISCAL YEAR AND CONTINUE SUBSEQUENT TO JUNE 30, 1941?

2. IS THE U.S. COMMISSIONER OF EDUCATION, BY VIRTUE OF THE ACT, AUTHORIZED SUBSEQUENT TO JUNE 30, 1941, TO MAKE CERTIFICATION FOR PAYMENT TO STATES AND INSTITUTIONS FOR COST OF COURSES WHICH BEGIN DURING THE CURRENT FISCAL YEAR AND CONTINUE SUBSEQUENT TO JUNE 30, 1941?

3. IS THE COMMISSIONER AUTHORIZED, SUBSEQUENT TO JUNE 30, 1941, TO MAKE CERTIFICATION TO THE SECRETARY OF THE TREASURY FOR PAYMENT TO STATES AND INSTITUTIONS FOR THE COST OF COURSES COMPLETED PRIOR TO JUNE 30, 1941?

THESE QUESTIONS HAVE ARISEN FOR THE FOLLOWING REASONS:

QUESTION 1. AS A RESULT OF THE DIFFICULTIES INCIDENT TO ORGANIZATION OF COURSES BY STATES AND INSTITUTIONS, IT IS EXPECTED THAT SOME COURSES BEGUN PRIOR TO JUNE 30, 1941, WILL CONTINUE AFTER THE CLOSE OF THE CURRENT FISCAL YEAR. STATES AND INSTITUTIONS ADMINISTERING SUCH COURSES HAVE INQUIRED WHETHER FUNDS CERTIFIED AND PAID TO THEM PRIOR TO JUNE 30, 1941, MAY BE EXPENDED SUBSEQUENT TO THAT DATE TO MEET THE COST OF SUCH COURSES. SINCE THE FUNDS IN QUESTION BECOME MONIES OF THE STATES OR INSTITUTIONS TO WHICH THEY HAVE BEEN PAID, SUBJECT ONLY TO THE RESTRICTION THAT THEY BE USED FOR THE PURPOSE FOR WHICH THEY WERE CERTIFIED, NAMELY, FOR THE COST OF COURSES, IT WOULD SEEM THAT EXPENDITURE OF SUCH FUNDS FOR SUCH PURPOSE WOULD BE PROPER SUBSEQUENT TO JUNE 30, 1941.

QUESTION 2. WE CONSIDER IT ESSENTIAL, IN ORDER TO CARRY OUT THE INTENT OF THE CONGRESS TO PROMOTE AND EXPEDITE THE EDUCATION AND TRAINING OF DEFENSE WORKERS IN THE PRESENT EMERGENCY, THAT PLANS FOR SUCH EDUCATION AND TRAINING, PROPERLY PREPARED AND SUBMITTED BY STATES AND INSTITUTIONS, BE APPROVED, EVEN WHERE IT IS EVIDENT THAT SOME OF THE COURSES PROPOSED UNDER THE PLAN WOULD BEGIN PRIOR TO JUNE 30, 1941, BUT WOULD NOT BE COMPLETED UNTIL AFTER THE CLOSE OF THE CURRENT FISCAL YEAR. IF SUCH COURSES ARE NOT APPROVED BECAUSE CERTIFICATION AND PAYMENT FOR THEIR COST COULD NOT BE MADE SUBSEQUENT TO JUNE 30, 1941, THE PROGRAM OF EDUCATION AND TRAINING OF DEFENSE WORKERS CONTEMPLATED BY THE CONGRESS MAY BE SERIOUSLY HAMPERED. IT IS NOT ADMINISTRATIVELY ADVISABLE OR FEASIBLE, IN ALL CASES, TO MAKE CERTIFICATION FOR PAYMENT FOR THE TOTAL AMOUNT WHICH WOULD BE REQUIRED FOR EXPENDITURE FOR THE COST OF SUCH COURSES PRIOR TO THE CLOSE OF THE CURRENT FISCAL YEAR. IT IS OUR BELIEF THAT, UPON THE APPROVAL OF THE PLAN BY THE COMMISSIONER, AND THE ASSUMPTION BY A STATE OR INSTITUTION OF THE FINANCIAL OBLIGATIONS INCIDENT TO THE CONDUCT OF COURSES UNDER THE PLAN (SUCH AS EMPLOYMENT OF TEACHERS, RENTAL OF SPACE, ETC.), IT IS INCUMBENT UPON THE FEDERAL GOVERNMENT TO CONTINUE PAYMENTS FOR THE COSTS OF CARRYING OUT THE PLAN, EVEN THOUGH SOME OF THE COURSES TO BE GIVEN ARE NOT COMPLETED WITHIN THE CURRENT FISCAL YEAR.

QUESTION 3. IN SUBMITTING THEIR BUDGETS, THE STATES AND INSTITUTIONS CONCERNED WILL NOT ALWAYS FULLY COVER ALL OF THE COST OF COURSES NOW BEING CONDUCTED, OR THAT MAY BE GIVEN PURSUANT TO APPROVED PLANS, AND COMPLETED PRIOR TO JUNE 30, 1941. AFTER PLANS HAVE BEEN APPROVED AND STATES OR INSTITUTIONS HAVE ASSUMED FINANCIAL COMMITMENTS PURSUANT THERETO, IT WOULD APPEAR THAT THE FEDERAL GOVERNMENT IS OBLIGATED TO PAY THE TOTAL COST OF SUCH COURSES, AND THAT CERTIFICATIONS AND PAYMENTS SHOULD BE MADE AFTER JUNE 30, 1941, IF NECESSARY, TO LIQUIDATE ENCUMBRANCES PROPERLY INCURRED DURING THE CURRENT FISCAL YEAR BY STATES OR INSTITUTIONS IN CONDUCTING COURSES.

THE ADVISABILITY OF FOLLOWING THE PROCEDURE SUGGESTED ABOVE IS EVIDENT. WE DO NOT FEEL, HOWEVER, THAT A FORMAL COMMITMENT SHOULD BE MADE TO THE STATES AND INSTITUTIONS WITHOUT A SUBMISSION OF THESE QUESTIONS TO YOU.

IN VIEW OF THE URGENCY OF THIS MATTER, AN EARLY REPLY IS REQUESTED.

THE ACT APPROVED OCTOBER 9, 1940, PUBLIC, NO. 812, ENTITLED " AN ACT MAKING SUPPLEMENTAL APPROPRIATIONS FOR THE SUPPORT OF THE GOVERNMENT FOR THE FISCAL YEAR ENDING JUNE 30, 1941, AND FOR OTHER PURPOSES," UNDER THE HEADING " FEDERAL SECURITY AGENCY," SUBHEADING " OFFICE OF EDUCATION," APPROPRIATED FUNDS AS FOLLOWS:

EDUCATION AND TRAINING OF DEFENSE WORKERS: FOR PAYMENT TO STATES, SUBDIVISIONS THEREOF, OR OTHER PUBLIC AUTHORITIES OPERATING PUBLIC EDUCATION FACILITIES, AND WHERE HEREINAFTER AUTHORIZED TO ENGINEERING SCHOOLS AND UNIVERSITIES, THROUGH CERTIFICATION FROM TIME TO TIME MADE BY THE UNITED STATES COMMISSIONER OF EDUCATION (HEREINAFTER REFERRED TO AS THE " COMMISSIONER") TO THE SECRETARY OF THE TREASURY OF THE NAME OF SUCH AGENCY OR THE NAME OF SUCH ENGINEERING SCHOOL OR UNIVERSITY AND THE OFFICER THEREOF TO WHOM PAYMENT IS TO BE MADE, AND THE AMOUNT TO BE PAID, SUCH PAYMENT TO BE MADE PRIOR TO AUDIT AND SETTLEMENT BY THE GENERAL ACCOUNTING OFFICE, FOR THE FURTHERANCE OF THE EDUCATION AND TRAINING OF DEFENSE WORKERS, AS FOLLOWS:

(1) FOR THE COST OF VOCATIONAL COURSES OF LESS THAN COLLEGE GRADE, PROVIDED BY SUCH AGENCIES IN VOCATIONAL SCHOOLS PURSUANT TO PLANS SUBMITTED BY SUCH AGENCIES AND APPROVED BY THE COMMISSIONER, WHICH PLANS SHALL INCLUDE COURSES SUPPLEMENTARY TO EMPLOYMENT IN OCCUPATIONS ESSENTIAL TO THE NATIONAL DEFENSE AND PREEMPLOYMENT REFRESHER COURSES FOR WORKERS PREPARING FOR SUCH OCCUPATIONS SELECTED FROM THE PUBLIC EMPLOYMENT OFFICE REGISTERS, $26,000,000.

(2) FOR THE PURCHASE, RENTAL, OR OTHER ACQUISITION OF NEW OR USED EQUIPMENT WHEN NEEDED BY AGENCIES IN PROVIDING COURSES PURSUANT TO A PLAN APPROVED UNDER (1) OF THIS HEADING WHEN SUCH ACQUISITIONS ARE IN ACCORD WITH DETAILED PROPOSALS SUBMITTED BY SUCH AGENCIES AND APPROVED BY THE COMMISSIONER SHALL INCLUDE PROVISIONS GOVERNING THE HOLDING OF TITLE TO AND THE USE OF THE EQUIPMENT TO BE ACQUIRED.

(3) FOR THE COST OF SHORT ENGINEERING COURSES OF COLLEGE GRADE, PROVIDED BY ENGINEERING SCHOOLS OR BY UNIVERSITIES OF WHICH THE ENGINEERING SCHOOL IS A PART, PURSUANT TO PLANS SUBMITTED BY THEM AND APPROVED BY THE COMMISSIONER, WHICH PLANS SHALL BE FOR COURSES DESIGNED TO MEET THE SHORTAGE OF ENGINEERS WITH SPECIALIZED TRAINING IN FIELDS ESSENTIAL TO THE NATIONAL DEFENSE, $9,000,000: PROVIDED, THAT ONLY ENGINEERING SCHOOLS WHICH OPERATE UNDER CHARTERS WHICH EXEMPT THEIR EDUCATIONAL PROPERTY FROM TAXATION SHALL BE ELIGIBLE TO RECEIVE THESE FUNDS: PROVIDED FURTHER, THAT NOT TO EXCEED 20 PERCENTUM OF THE AMOUNT ALLOTTED TO ANY SCHOOL SHALL BE ALLOTTED TO IT FOR EXPENDITURE FOR PURCHASE OF RENTAL OF ADDITIONAL EQUIPMENT AND LEASING OF ADDITIONAL SPACE FOUND BY THE COMMISSIONER NECESSARY FOR CARRYING OUT ITS APPROVED PLAN.

(4) FOR THE COST, INCLUDING THE NECESSARY EQUIPMENT AND SUPPLIES, OF VOCATIONAL COURSES AND RELATED OR OTHER NECESSARY INSTRUCTION PROVIDED BY SUCH AGENCIES FOR OUT-OF-SCHOOL RURAL YOUTH WHO HAVE ATTAINED THE AGE OF SEVENTEEN AND WHO FILE A REGISTRATION CARD WITH A PUBLIC EMPLOYMENT OFFICE AND FOR NONRURAL YOUTH WHO OTHERWISE MEET THE ABOVE REQUIREMENTS WHOSE TRAINING IS NOT FEASIBLE UNDER SUBDIVISIONS (1) AND (3) HEREOF, SUCH COURSES AND INSTRUCTION TO BE PROVIDED PURSUANT TO PLANS SUBMITTED BY SUCH AGENCIES AND APPROVED BY THE COMMISSIONER, $10,000,000.

(5) FOR THE COST OF VOCATIONAL COURSES AND RELATED OR OTHER NECESSARY INSTRUCTION PROVIDED BY SUCH AGENCIES FOR YOUNG PEOPLE EMPLOYED ON WORK PROJECTS OF THE NATIONAL YOUTH ADMINISTRATION, SUCH COURSES AND INSTRUCTION TO BE PROVIDED PURSUANT TO PLANS SUBMITTED BY SUCH AGENCIES AND APPROVED BY THE COMMISSIONER, $7,500,000: PROVIDED, THAT THE AMOUNT ALLOTTED TO ANY AGENCY SHALL BE AVAILABLE FOR EXPENDITURE FOR PURCHASE OR RENTAL OF ADDITIONAL EQUIPMENT AND RENTAL OF ADDITIONAL SPACE FOUND BY THE COMMISSIONER TO BE NECESSARY FOR CARRYING OUT THE APPROVED PLAN.

IT IS UNDERSTOOD THAT THE THREE QUESTIONS SET FORTH IN YOUR SUBMISSION INVOLVED EXPENDITURES NECESSARY FOR THE PROPER CARRYING OUT OF DULY AUTHORIZED PLANS APPROVED IN ADVANCE BY THE COMMISSIONER OF EDUCATION, SUCH ADVANCE APPROVAL BEING SPECIFICALLY REQUIRED BY THE LAW, SUPRA, AND SINCE THE FUNDS IN QUESTION ARE APPROPRIATED AND MADE AVAILABLE ONLY FOR THE FISCAL YEAR 1941 IT IS ASSUMED DUE CONSIDERATION IS GIVEN THAT PHASE OF THE MATTER IN THE APPROVAL OF PLANS. IT IS NOT BELIEVED, HOWEVER, THAT THE TERMS OF THE APPROPRIATION ARE SUCH AS TO PRECLUDE THE APPROVAL OF PLANS COVERING COURSES WHICH WHILE NOT ACTUALLY COMPLETED BY THE END OF THE FISCAL YEAR 1941 ARE BEGUN DURING THAT FISCAL YEAR AND WILL BE COMPLETED SHORTLY AFTER THE END THEREOF, AND IT IS DETERMINED ADMINISTRATIVELY THAT SUCH COURSES ARE ESSENTIALLY AND REASONABLY A PART OF THE PROGRAM FOR THE FISCAL YEAR 1941, SUCH, FOR INSTANCE, AS SHORT 3 MONTHS' COURSES WHICH MAY BEGIN LATE IN MAY OR EARLY IN JUNE 1941. SUCH CASES THE APPROVED PLAN MAY BE CONSIDERED, IN SUBSTANCE, A CONTRACT OBLIGATING THE APPROPRIATION FOR THE EXPENSES CONTEMPLATED THEREUNDER, NOTWITHSTANDING THE COURSES COVERED BY SUCH PLANS MAY NOT BE COMPLETED BY JUNE 30, 1941.

CONSIDERED ON THE FOREGOING BASIS IT MAY BE SAID, IN ANSWER TO THE FIRST QUESTION, THAT THE FUNDS GRANTED AND PAID TO THE STATES OR OTHER AUTHORIZED AGENCIES PRIOR TO JUNE 30, 1941, UNDER APPROVED PLANS, MAY BE USED BY THEM TO CARRY OUT THE PURPOSES OF SUCH APPROVED PLANS EVEN IF THAT SHOULD INVOLVE EXPENDITURES FOR THE COST OF COURSES NOT COMPLETED UNTIL AFTER JUNE 30, 1941. IT SHOULD BE SAID, HOWEVER, THAT THE FUNDS SO PAID TO THE STATES OR OTHER AGENCIES ARE AVAILABLE TO THEM ONLY FOR THE PURPOSE OF THE APPROVED PLANS, AND THAT THERE WOULD BE NO AUTHORITY TO USE SUCH FUNDS EITHER BEFORE OR AFTER JUNE 30, 1941, FOR ANY OTHER PURPOSE.

WHAT IS SAID ABOVE WITH RESPECT TO THE FIRST QUESTION IS APPLICABLE TO THE SECOND QUESTION, ALSO. THAT IS TO SAY, ON THE BASIS THAT THE APPROVED PLAN AND THE MAKING BY THE STATE OR INSTITUTION OF COMMITMENTS IN ACCORDANCE THEREWITH OBLIGATES THE APPROPRIATION, THERE MAY BE CERTIFIED FOR PAYMENT SUBSEQUENT TO JUNE 30, 1941, SUCH AMOUNTS AS MAY BE REQUIRED TO COVER THE COST OF COURSES BEGUN PRIOR TO JUNE 30, 1941, BUT NOT COMPLETED UNTIL SUBSEQUENT TO THAT DATE PROVIDED THE COSTS TO BE COVERED BY SUCH PAYMENTS ARE STRICTLY WITHIN CONTEMPLATION OF THE APPROVED PLAN.

THE THIRD QUESTION IS UNDERSTOOD AS COVERING CASES IN WHICH, WHILE THE COURSES ARE COMPLETED ON OR BEFORE JUNE 30, 1941, ADJUSTMENTS OF THE AMOUNTS PAID THE STATES OR OTHER AGENCIES ARE REQUIRED TO COVER ACTUAL EXPENDITURES OR COMMITMENTS. IT IS ASSUMED THAT IN CASES WHERE THE AMOUNTS PAID IN THE FIRST INSTANCE ARE IN EXCESS OF THOSE NECESSARY TO CARRY OUT THE PLANS, REIMBURSEMENTS ARE REQUIRED, AND THAT YOUR QUESTION RELATES TO CASES IN WHICH THE AMOUNTS ORIGINALLY ADVANCED OR PAID ARE INSUFFICIENT FOR THE PURPOSE. UPON A PROPER SHOWING BY THE RECIPIENT AGENCY THAT THE ADDITIONAL FUNDS ARE REQUIRED TO COVER COSTS CLEARLY AUTHORIZED BY THE APPROVED PLANS, THERE WOULD APPEAR TO BE NO LEGAL OBJECTION TO MAKING SUCH ADJUSTMENTS BY CERTIFYING FOR PAYMENT SUBSEQUENT TO JUNE 30, 1941, SUCH AMOUNTS AS MAY BE REQUIRED UNDER SUCH CIRCUMSTANCES. THERE SHOULD NOT BE INCLUDED IN SUCH ADJUSTMENTS, HOWEVER, ANY EXPENDITURES WHICH WOULD NOT HAVE BEEN AUTHORIZED UNDER THE APPROVED PLAN IF THE CERTIFICATION AND PAYMENT HAD BEEN MADE PRIOR TO JUNE 30, 1941.