B-209585 L/M, JAN 26, 1983

B-209585 L/M, JAN 26, 1983

PRECIS-UNAVAILABLE

CHARLES MCC. MATHIAS, JR., CONGRESS OF THE UNITED STATES:

THIS IS IN RESPONSE TO A LETTER DATED OCTOBER 6, 1982, FROM RICHARD OLESZEWSKI, DEPUTY STAFF DIRECTOR AND ASSOCIATE GENERAL COUNSEL OF THE JOINT COMMITTEE. MR. OLESZEWSKI ASKED US TO DETERMINE THE EXTENT TO WHICH OUR OFFICE ASSERTS JURISDICTION OVER THE AFFAIRS OF THE TENNESSEE VALLEY AUTHORITY (TVA). ALSO, MR. OLESZEWSKI REQUESTED OUR OPINION AS TO WHETHER 44 U.S.C. SEC. 501 (1976), WHICH REQUIRES THE PRINTING OF EVERY EXECUTIVE DEPARTMENT, INDEPENDENT OFFICE AND ESTABLISHMENT OF THE GOVERNMENT TO BE DONE AT THE GOVERNMENT PRINTING OFFICE, IS APPLICABLE TO THE TVA.

AS EXPLAINED MORE FULLY BELOW, THIS OFFICE SETTLES NEITHER THE CLAIMS NOR THE ACCOUNTS OF THE TVA. FOR THE REASONS ALSO DISCUSSED BELOW, WE CONCLUDE THAT THE TVA IS NOT SUBJECT TO THE REQUIREMENTS OF 44 U.S.C. SEC. 501.

GAO CLAIM AND ACCOUNT SETTLEMENT

THE RELATIONSHIP BETWEEN THE TVA AND THE GENERAL ACCOUNTING OFFICE (GAO) IS ESTABLISHED PRINCIPALLY BY THE TENNESSEE VALLEY AUTHORITY ACT (TVA ACT), AS AMENDED, 16 U.S.C. SECS. 831 ET SEQ. (1976), AND THE GOVERNMENT CORPORATION CONTROL ACT OF 1945 (GCCA), AS AMENDED, 31 U.S.C. SECS. 9100 ET SEQ. (FORMERLY SECS. 841 ET SEQ.), PUB.L. NO. 97-258, 96 STAT. 877, 1041 (1982). THE TVA IS LISTED UNDER THE GCCA AS A WHOLLY OWNED GOVERNMENT CORPORATION AND IS THEREFORE SUBJECT TO THE RESTRICTIONS IMPOSED BY THE ACT. 31 U.S.C. SEC. 9101(3)(M). UNDER THE ACT, GAO IS REQUIRED TO AUDIT THE FINANCIAL TRANSACTIONS OF ALL GOVERNMENT CORPORATIONS AT LEAST ONCE EVERY THREE YEARS. 31 U.S.C. SEC. 9105.

ON THE OTHER HAND, THE TVA ACT GRANTS THE TVA BROAD FREEDOMS FROM ORDINARY CONTROLS IN CERTAIN AREAS. IN PRIOR CASES, WE HAVE HELD THAT GAO'S CLAIM SETTLEMENT AUTHORITY DOES NOT EXTEND TO A GOVERNMENT CORPORATION WHERE THE CORPORATION HAS THE AUTHORITY TO SUE AND BE SUED AND TO SETTLE CLAIMS BY OR AGAINST IT. 53 COMP.GEN. 377 (1973); 27 COMP.GEN. 429 (1948). THE TVA HAS THE AUTHORITY TO SUE OR BE SUED AND TO FINALLY SETTLE ALL CLAIMS AND LITIGATION BY OR AGAINST IT. 16 U.S.C. SEC. 831CB), 16 U.S.C. SEC. 831HB). AS A CONSEQUENCE, TVA IS NOT SUBJECT TO GAO'S CONTROL IN THIS AREA.

IN THE AREAS OF ACCOUNT SETTLEMENT AND CONTRACTING, TVA IS REQUIRED TO COMPLY WITH THE PROVISIONS OF 31 U.S.C. SEC. 3526 (FORMERLY SEC. 71), WHICH REQUIRES THE SETTLEMENT OF PUBLIC ACCOUNTS BY GAO. 16 U.S.C. SEC. 831HB). HOWEVER, GAO IS PRECLUDED FROM DISALLOWING CREDIT FOR ANY EXPENDITURE WHICH THE TVA BOARD DETERMINES IS NECESSARY. ID. FURTHER, EVEN THOUGH MOST CONTRACTS ARE NOT AWARDED OR APPROVED BY THE TVA BOARD AND THEREFORE GAO COULD INITIALLY TAKE EXCEPTION, THE BOARD COULD OVERTURN GAO'S ACTION BY SUBSEQUENTLY APPROVING THE CONTRACT. AS A RESULT, GAO DOES NOT REVIEW TVA MATTERS SUCH AS CONTRACTING SINCE NO REMEDIAL ACTION COULD BE TAKEN WITH REGARD TO ANY EXPENDITURE FOUND TO BE IMPROPER. B-186800, AUGUST 9, 1976.

TVA PRINTING

THE APPLICABILITY OF 44 U.S.C. SEC. 501 (1976), MUST ALSO BE VIEWED IN LIGHT OF THE BROAD POWERS GRANTED THE TVA BY CONGRESS. ALTHOUGH WE HAVE NOT SPECIFICALLY CONSIDERED THIS QUESTION WITH RESPECT TO TVA, WE HAVE ADDRESSED THE APPLICABILITY OF THE PRINTING STATUTES TO OTHER GOVERNMENT CORPORATIONS. IN 14 COMP.GEN. 695 (1935), WE HELD THAT THE FEDERAL SAVINGS AND LOAN INSURANCE CORPORATION WAS AN "ESTABLISHMENT OF THE GOVERNMENT" WITHIN THE MEANING OF SECTION 11 OF THE PRINTING ACT OF 1919, 40 STAT. 270 (1919), THE PREDECESSOR TO 44 U.S.C. SEC. 501, AND WAS THEREFORE REQUIRED TO HAVE ITS PRINTING DONE BY THE GOVERNMENT PRINTING OFFICE. HOWEVER, IN A PRIOR DECISION WE HAD STATED THAT THE FEDERAL HOME LOAN BANK BOARD WAS NOT REQUIRED TO SECURE ITS PRINTING AT THE GOVERNMENT PRINTING OFFICE. A-49652, JUNE 28, 1933. THIS APPARENT INCONSISTENCY IS HARMONIZED BY EXAMINING THE ENABLING LEGISLATION OF EACH CORPORATION. ITS INCEPTION, THE BANK BOARD WAS AUTHORIZED TO DETERMINE ITS NECESSARY EXPENDITURES WITHOUT REGARD TO ANY OTHER PROVISION OF LAW GOVERNING THE EXPENDITURE OF PUBLIC FUNDS. HOME OWNERS LOAN ACT OF 1933, PUB.L. NO. 43 SEC. 4(J), 48 STAT. 128 (1933). HOWEVER, AT THE TIME WE DECIDED 14 COMP.GEN. 695 THE INSURANCE CORPORATION DID NOT HAVE SUCH A BROAD GRANT OF AUTHORITY.

SUBSEQUENT TO OUR DECISION, THE LEGISLATION CREATING THE INSURANCE CORPORATION WAS AMENDED TO PROVIDE THE CORPORATION WITH GREATER AUTHORITY. SEE AN ACT TO PROVIDE HOME MORTGAGE RELIEF, PUB.L. NO. 76, SEC. 22, 49 STAT. 293 (1935). IN A-60495, OCTOBER 4, 1938, WE RECONSIDERED THE QUESTION OF WHETHER THE CORPORATION WAS REQUIRED TO HAVE ITS PRINTING DONE AT THE GOVERNMENT PRINTING OFFICE. WE CONCLUDED THAT THE BROAD POWERS POSSESSED BY THE CORPORATION UNDER THE NEW STATUTE PERMITTED IT TO OBTAIN ITS PRINTING FROM OTHER SOURCES.

THE BROAD AUTHORITY GRANTED THE TVA INCLUDES THE AUTHORITY TO "MAKE SUCH EXPENDITURES AND TO ENTER INTO SUCH CONTRACTS, AGREEMENTS, AND ARRANGEMENTS, UPON SUCH TERMS AND CONDITIONS AND IN SUCH MANNER AS IT MAY DEEM NECESSARY ***." SEE 16 U.S.C. SEC. 831HB). THIS AUTHORITY IS CERTAINLY AS BROAD AS THAT GRANTED TO BOTH THE BANK BOARD AND THE INSURANCE CORPORATION. AS A RESULT, WE ARE OF THE OPINION THAT 44 U.S.C. SEC. 501 IS NOT APPLICABLE TO THE TVA AND THAT THE TVA HAS THE AUTHORITY TO HAVE ITS PRINTING DONE AT SOURCES OTHER THAN THE GOVERNMENT PRINTING OFFICE.

WE HOPE THAT THIS REPLY IS OF ASSISTANCE TO YOU.