A-98632, JUNE 22, 1939, 18 COMP. GEN. 958

A-98632, JUNE 22, 1939, 18 COMP. GEN. 958

OFFICERS AND EMPLOYEES - DETAILS TO FOREIGN GOVERNMENTS - EXPENSE ADVANCES AND REIMBURSEMENT ACCOUNTING, ETC. PROCEDURE WHILE THERE APPEARS NO LEGAL OBJECTION TO THE MAKING OF ARRANGEMENTS FOR THE PAYMENT OF FUNDS BY FOREIGN GOVERNMENTS UNDER THE ACT OF MAY 25, 1938, AS AMENDED BY THE ACT OF MAY 3, 1939, 53 STAT. 652, EITHER AS ADVANCES OR IN REIMBURSEMENT, IN WHOLE OR IN PART, FOR EXPENDITURES INCURRED BY THE VARIOUS UNITED STATES GOVERNMENT DEPARTMENTS AND AGENCIES IN CONNECTION WITH DETAILS OF ITS EMPLOYEES TO THE SAID FOREIGN GOVERNMENTS UNDER THE AUTHORITY OF SAID ACTS, DIRECTLY WITH THE DEPARTMENT OR AGENCY CONCERNED, SINCE THERE MAY BE INVOLVED IN SUCH DETAILS SEVERAL SUCH DEPARTMENTS OR AGENCIES, PAYMENT TO THE STATE DEPARTMENT IN ALL CASES WOULD APPEAR THE MORE ADVISABLE, THAT DEPARTMENT TO CREDIT, WHEN NECESSARY, THE APPROPRIATIONS OF THE DIFFERENT DEPARTMENTS AND AGENCIES INVOLVED. AS THE ACT OF MAY 25, 1938, AS AMENDED BY THE ACT OF MAY 3, 1939, 53 STAT. 652, PROVIDES IN SPECIFIC TERMS FOR THE MANNER OF DISPOSITION OF FUNDS RECEIVED FROM FOREIGN GOVERNMENTS IN REIMBURSEMENT FOR EXPENSES INCURRED IN CONNECTION WITH DETAILS OF EMPLOYEES OF THE UNITED STATES TO THE SAID GOVERNMENTS UNDER THE AUTHORITY OF THE SAID ACTS, SUCH REIMBURSEMENTS MAY BE CREDITED DIRECTLY TO THE APPROPRIATIONS OF THE DETAILING DEPARTMENT OR AGENCY CONCERNED, AND NO RECEIPT ACCOUNT NEED BE ESTABLISHED FOR SUCH PAYMENTS EXCEPT SUCH SPECIAL DEPOSIT ACCOUNTS AS MAY BE REQUIRED FOR CLEARING THE DEPOSITS, AND IT IS FOR THE DEPARTMENT OR AGENCY CONCERNED TO DETERMINE WHETHER CREDIT SHALL BE TO THE APPROPRIATION FROM WHICH THE EXPENDITURE WAS MADE OR THE CORRESPONDING APPROPRIATION WHICH IS CURRENT AT THE TIME REIMBURSEMENT IS RECEIVED. ADVANCES FROM FOREIGN GOVERNMENTS FOR USE IN DEFRAYING EXPENSES OF EMPLOYEES OF THE UNITED STATES DETAILED TO THE SAID GOVERNMENTS UNDER AUTHORITY OF THE ACT OF MAY 25, 1938, AS AMENDED BY THE ACT OF MAY 3, 1939, 53 STAT. 652 MAY BE PLACED IN A TRUST FUND ESTABLISHED PURSUANT TO AUTHORITY OF THE SAID ACTS, AND FUNDS THEREUNDER MAY BE EXPENDED UPON VOUCHERS PREPARED BY THE DETAILING GOVERNMENT DEPARTMENTS OR AGENCIES AND ACCOUNTED FOR IN ACCORDANCE WITH GENERAL ACCOUNTING OFFICE GENERAL REGULATIONS NO. 80, OF AUGUST 15, 1934, THERE THUS BEING NO OCCASION FOR ADJUSTMENTS BETWEEN THE TRUST FUND AND ANY APPROPRIATION, THE UNEXPENDED BALANCE OF ANY SUCH FUNDS BEING FOR RETURN TO THE FOREIGN GOVERNMENTS MAKING THE ADVANCES. AS THE ACT OF MAY 25, 1938, AS AMENDED BY THE ACT OF MAY 3, 1939, 53 STAT. 652, PROVIDES SPECIFICALLY THAT THE AMOUNTS RECEIVED FROM FOREIGN GOVERNMENTS IN REIMBURSEMENT FOR EXPENSES INCURRED IN CONNECTION WITH DETAILS OF EMPLOYEES OF THE UNITED STATES TO THE SAID GOVERNMENTS SHALL BE AVAILABLE FOR THE PURPOSES OF THE APPROPRIATION TO WHICH CREDITED, ANY LIMITATION IN SUCH APPROPRIATION MAY BE CONSIDERED AS APPLICABLE ONLY TO THE EXTENT OF THE GROSS EXPENDITURES CHARGEABLE TO SUCH LIMITATION LESS THE AMOUNTS RECEIVED IN REIMBURSEMENT FOR EXPENSES OF THAT CHARACTER, BUT WHEN CREDIT IS TO AN APPROPRIATION OTHER THAN ORIGINALLY USED FOR THE EXPENDITURE THE CREDIT SHOULD NOT BE CONSIDERED AS INCREASING ANY LIMITATION UNDER THE APPROPRIATION CREDITED.

COMPTROLLER GENERAL BROWN TO THE SECRETARY OF STATE, JUNE 22, 1939:

I HAVE YOUR LETTER OF MAY 25, 1939, AS FOLLOWS:

PURSUANT TO THE ACT APPROVED MAY 3, 1939, PUBLIC, NO. 63, 76TH CONGRESS, AMENDING THE ACT APPROVED MAY 25, 1938, PUBLIC, NO. 545, 75TH CONGRESS, AUTHORIZING THE TEMPORARY DETAIL OF UNITED STATES EMPLOYEES, POSSESSING SPECIAL QUALIFICATIONS, TO GOVERNMENTS OF AMERICAN REPUBLICS AND THE PHILIPPINES, AND FOR OTHER PURPOSES, CERTAIN FEATURES OF WHICH WERE THE SUBJECT OF YOUR DECISION A-98632, DATED OCTOBER 24, 1938, THE DEPARTMENT IS CONCLUDING ARRANGEMENTS FOR THE DETAIL OF ADDITIONAL PERSONNEL IN FURTHERANCE OF THE PROGRAM AND FOR THE REIMBURSEMENT BY THE INTERESTED GOVERNMENTS OF CERTAIN OF THE EXPENDITURES INCURRED INCLUDING THE RECEIPT OF AN ADVANCE OF FUNDS TO BE USED BY THIS GOVERNMENT AS AUTHORIZED BY THE AMENDED LEGISLATION.

IN THIS CONNECTION IT IS DESIRED TO HAVE YOUR DECISION AS TO THE PROCEDURE TO BE FOLLOWED INCIDENT TO THE RECEIPT, DEPOSIT, AND SUBSEQUENT DISBURSEMENT OF THESE FUNDS, WHETHER AS DIRECT CHARGES AGAINST THE RECEIPT ACCOUNT OR BY MEANS OF ADJUSTMENTS CREDITING APPROPRIATIONS FROM WHICH DISBURSEMENTS HAVE BEEN MADE.

IT APPEARS PROPER FOR THIS DEPARTMENT THROUGH DIPLOMATIC CHANNELS TO RECEIVE SUCH AMOUNTS AS MAY BE PROFFERED AND ACCEPTED EITHER AS AN ADVANCE OF FUNDS OR BY WAY OF REIMBURSEMENT IN WHOLE OR IN PART OF THE EXPENSES INCURRED. UPON RECEIPT FOLLOWING THE PROCEDURE OUTLINED IN GENERAL REGULATIONS NO. 80, DATED AUGUST 15, 1934, THESE MONIES WOULD BE REPORTED AS COLLECTIONS WHICH AT THE TIME RECEIVED CANNOT BE DEFINITELY ALLOCATED TO THE APPROPRIATION, FUND OR RECEIPT ACCOUNT TO WHICH THEY PERTAIN, AND WHICH ARE FOR SUBSEQUENT TRANSFER TO THE REVENUE AND REPAYMENT GROUP OF COLLECTIONS. HOWEVER, SUCH A PROCEDURE WOULD SEEMINGLY PRECLUDE DIRECT EXPENDITURE OF FUNDS RECEIVED IN TRUST FOR THE PURPOSES FOR WHICH RECEIVED AND BY REASON OF THE CIRCUMSTANCES SURROUNDING SUCH TRANSACTIONS IT MAY BE FOUND DESIRABLE TO ESTABLISH A SPECIFIC TRUST FUND RECEIPT ACCOUNT ALTHOUGH THE PROCEDURE SUGGESTED WOULD ENABLE ACCELERATION OF ADJUSTMENT OF APPROPRIATIONS EFFECTED. IT WILL BE READILY APPARENT THAT THE APPROPRIATIONS OF SEVERAL DEPARTMENTS OR AGENCIES WILL ON OCCASION BE INVOLVED AND THE MATTER OF EFFECTING ADJUSTMENT AND THE REIMBURSEMENT PERMISSIBLE PRESENT PROCEDURAL DIFFICULTIES WHICH IT IS DESIRED BE CLARIFIED.

IF THE COLLECTION AND DEPOSIT PROCEDURE CONTEMPLATED BE FOLLOWED INQUIRY IS MADE WHETHER TRANSFER VOUCHERS ARE (1) FOR PREPARATION BY THIS DEPARTMENT AFTER PRESENTATION OF A REPORT OF EXPENDITURES BY THE DEPARTMENT INTERESTED; (2) MAY BE PREPARED BY THE INTERESTED DEPARTMENT AND SUBMITTED DIRECT FOR ADJUSTMENT; OR (3) WILL BE EFFECTED BY TRANSFER AND COUNTER WARRANT PREPARED AND ISSUED BY THE GENERAL ACCOUNTING OFFICE AFTER AUDIT OF DISBURSEMENT ACCOUNTS AFFECTING THE APPROPRIATION FUNDS TO BE CREDITED. FURTHER, INQUIRY IS MADE WHERE REIMBURSEMENT IS CONTEMPLATED OR FUNDS ARE ADVANCED TO COVER BUT PART OF THE EXPENSE INVOLVED, WHETHER (1) THE DESIGNATION BY THE GOVERNMENT OF THE EXPENSES IT DESIRES TO DEFRAY WILL CONTROL, AND (2) IN THE ABSENCE OF SUCH DESIGNATION FUNDS RECEIVED MUST NECESSARILY BE PRORATED NOT ONLY BETWEEN THE DEPARTMENTS INTERESTED UPON THE BASIS OF TOTAL COMMITMENTS, BUT ALSO AS RESPECTS CREDITS TO APPROPRIATION ACCOUNTS INVOLVED WITHIN THE SEVERAL DEPARTMENTS CONCERNED.

TO ENABLE THE MEASURE OF FLEXIBILITY OF ADMINISTRATION ESSENTIAL TO FURTHERANCE OF THE PROGRAM AND TO ASSURE ACTIVE AND UNRESTRICTED COOPERATION BY INTERESTED DEPARTMENTS, IT WOULD APPEAR MOST LOGICAL AND REASONABLE FOR EACH DEPARTMENT TO DETERMINE WHICH OF ITS AFFECTED FUNDS IS FOR ADMINISTRATIVE AND FISCAL REASONS BEST ABLE TO MEET EXPENDITURES INCIDENT TO THE DETAIL OF ITS PERSONNEL AND IN THE EVENT OF BUT PARTIAL REIMBURSEMENT TO DESIGNATE THE APPROPRIATION OR APPROPRIATIONS, NOT TO EXCEED THE EXPENDITURES THEREFROM, WHICH ARE TO BE CREDITED BY TRANSFER OF THE MONIES RECEIVED FOR THIS PURPOSE, AND IT IS HOPED YOU MAY BE IN A POSITION TO ACCEDE TO THE DEPARTMENT'S VIEW.

THE DEPARTMENT IS OF THE OPINION THAT APPROPRIATION LIMITATION ACCOUNTS DEBITED WITH EXPENDITURES INCURRED AND SUBSEQUENTLY CREDITED WITH MONIES RECEIVED IN REIMBURSEMENT OF THE EXPENSES CHARGEABLE TO SUCH ACCOUNTS, WILL BE CONSIDERED AS RESTRICTED ONLY AS RESPECTS THE NET EXPENDITURES INCURRED, AND THE RESTRICTED ACTIVITY OF A DEPARTMENT OR AGENCY WILL NOT BE FURTHER RESTRICTED BY A REQUIREMENT THAT THE LIMITATION ACCOUNT REFLECT AND BE RESTRICTED BY GROSS EXPENDITURES WITHOUT BENEFIT OF AMOUNTS REFUNDED. THIS INTERPRETATION WOULD NOT IMPOSE ADDITIONAL RESTRICTION ON THE FUNCTIONS OF THE DEPARTMENT CONCERNED NOR HINDER COOPERATION IN FURTHERANCE OF THE PROGRAM THE LEGISLATION UNDER CONSIDERATION IS DESIGNED TO PROMOTE, WHILE ADHERENCE TO THE OPPOSITE VIEW COULD NOT BUT DETER OR PREVENT ONE OR THE OTHER OF THE ACTIVITIES.

IT WILL BE APPRECIATED IF I MAY HAVE YOUR EARLY DECISION AS TO (1) THE APPROPRIATENESS OF THE PROCEDURE OF RECEIPT AND DEPOSIT OF FUNDS AND SHOULD SUCH PROCEDURE BE DEEMED INADEQUATE, AN OUTLINE OF AN ALTERNATE METHOD ACCEPTABLE TO YOUR OFFICE; (2) THE MANNER OF EFFECTING CREDITS TO APPROPRIATIONS UNDER EITHER THE SUGGESTED OR AN ALTERNATE PROCEDURE; (3) THE RECOMMENDED DISCRETIONARY DETERMINATION OF APPROPRIATION REIMBURSEMENTS BY INTERESTED DEPARTMENTS; AND (4) CONFIRMATION OF THE DEPARTMENT'S INTERPRETATION RELATING TO APPROPRIATION LIMITATION ACCOUNTING, WHICH INQUIRIES ARE FOR CONSIDERATION INCIDENT TO PROMULGATION OF CONTEMPLATED REGULATIONS NOW IN PREPARATION TO GOVERN DETAILS OF PERSONNEL PURSUANT TO THE ENABLING LEGISLATION.

THE ACT OF MAY 3, 1939, PUBLIC 63, 53 STAT. 652, AMENDS THE ACT OF MAY 25, 1938, 52 STAT. 443, TO PROVIDE, WITH RESPECT TO THE FINANCIAL ARRANGEMENTS, AS FOLLOWS:

* * * THE ADDITIONAL COMPENSATION, TRAVEL EXPENSES, AND OTHER ALLOWANCES AUTHORIZED BY THIS ACT TO BE PAID TO ANY SUCH OFFICER OR EMPLOYEE SHALL BE PAID FROM ANY APPROPRIATIONS AVAILABLE FOR THE PAYMENT OF COMPENSATION AND TRAVEL EXPENSES OF THE OFFICERS AND EMPLOYEES OF THE DEPARTMENT OR AGENCY FROM WHICH HE IS DETAILED: PROVIDED, HOWEVER,THAT IF ANY GOVERNMENT TO WHICH A DETAIL IS AUTHORIZED BY THIS ACT SHALL EXPRESS THE DESIRE TO REIMBURSE THIS GOVERNMENT IN WHOLE OR IN PART FOR THE EXPENSES OF SUCH DETAIL, THE PRESIDENT IS AUTHORIZED, WHEN HE DEEMS IT IN THE PUBLIC INTEREST, TO ACCEPT SUCH REIMBURSEMENT AND THE AMOUNT SO RECEIVED MAY BE CREDITED TO (A) APPROPRIATIONS CURRENT AT THE TIME THE EXPENSES OF SUCH DETAIL ARE TO BE OR HAVE BEEN PAID, (B) APPROPRIATIONS CURRENT AT THE TIME SUCH AMOUNTS ARE RECEIVED, OR (C) IN PART AS PROVIDED UNDER (A) AND IN PART AS PROVIDED UNDER (B) HEREOF; AND SUCH AMOUNT SHALL BE AVAILABLE FOR THE PURPOSES OF THE APPROPRIATIONS TO WHICH CREDITED: AND PROVIDED FURTHER, THAT IF ANY SUCH GOVERNMENT SHALL EXPRESS THE DESIRE TO PROVIDE ADVANCES OF FUNDS TO BE USED BY THIS GOVERNMENT, IN WHOLE OR IN PART FOR THE EXPENSES OF SUCH DETAIL, THE PRESIDENT IS AUTHORIZED, WHEN HE DEEMS IT IN THE PUBLIC INTEREST, TO ACCEPT SUCH ADVANCES OF FUNDS, AND THE AMOUNTS SO RECEIVED MAY BE ESTABLISHED AS A TRUST FUND, TO BE AVAILABLE FOR THE PURPOSE AND UNDER THE PROVISIONS OF THIS ACT UNTIL THE TERMINATION OF THE DETAIL; ANY UNEXPENDED BALANCE OF THE TRUST FUND TO BE RETURNED TO THE FOREIGN GOVERNMENT MAKING THE ADVANCE.

IT IS UNDERSTOOD THAT PRELIMINARY AND GENERAL ARRANGEMENTS WITH RESPECT TO THE DETAIL OF OFFICIALS AND EMPLOYEES OF ANY AGENCY OR DEPARTMENT OF THE GOVERNMENT UNDER THE ACT ARE MADE THROUGH DIPLOMATIC CHANNELS AND, THEREFORE, THROUGH YOUR DEPARTMENT. WHILE THERE WOULD APPEAR TO BE NO LEGAL OBJECTION, UNDER THE ACT QUOTED ABOVE TO THE MAKING OF ARRANGEMENTS RELATING TO THE PAYMENT OF FUNDS--- EITHER AS ADVANCES OR IN REIMBURSEMENT, IN WHOLE OR IN PART, FOR EXPENDITURES INCURRED--- DIRECTLY WITH THE DEPARTMENT OR AGENCY CONCERNED, SINCE THERE MAY BE CASES IN WHICH THE PAYMENT MADE BY A FOREIGN GOVERNMENT WILL RELATE TO DETAILS FROM MORE THAN ONE DEPARTMENT OR AGENCY, IT WOULD APPEAR ADVISABLE TO PROVIDE FOR THE MAKING OF THE PAYMENTS TO THE DEPARTMENT OF STATE IN ALL CASES FOR CREDIT, WHEN NECESSARY, TO THE APPROPRIATIONS OF THE DEPARTMENTS OR AGENCIES INVOLVED.

IN CASES WHERE THE FUNDS RECEIVED FROM A FOREIGN GOVERNMENT ARE IN REIMBURSEMENT FOR EXPENSES INCURRED, NO DIFFICULTIES SHOULD BE ENCOUNTERED SINCE THE ACT PROVIDES IN SPECIFIC TERMS THAT THE FUNDS RECEIVED FOR THE PURPOSE OF REIMBURSING THIS GOVERNMENT EITHER IN WHOLE OR IN PART FOR THE EXPENSES OF SUCH DETAIL AS MAY BE INVOLVED MAY BE CREDITED DIRECT TO THE APPROPRIATIONS. THEREFORE, IN SUCH CASES THERE IS NO NEED TO ESTABLISH A RECEIPT ACCOUNT FOR THE HANDLING OF SUCH FUNDS EXCEPT SUCH SPECIAL DEPOSIT ACCOUNTS AS MAY BE REQUIRED FOR THE PURPOSE OF CLEARING THE DEPOSITS. MAY BE STATED, ALSO, THAT IT IS FOR THE DEPARTMENT OR AGENCY CONCERNED TO DETERMINE THE CREDIT SHALL BE TO APPROPRIATION FROM WHICH THE EXPENDITURE WAS MADE OR TO THE CORRESPONDING APPROPRIATION WHICH IS CURRENT AT THE TIME THE REIMBURSEMENT IS RECEIVED.

AS TO ADVANCES THE ACT PROVIDES THAT THE AMOUNTS RECEIVED MAY BE ESTABLISHED AS A TRUST FUND TO BE AVAILABLE FOR THE PURPOSES AND UNDER THE PROVISIONS OF THE ACT UNTIL THE TERMINATION OF THE DETAIL. A TRUST FUND ACCOUNT MAY BE ESTABLISHED UPON RECEIPT OF ADVANCES FROM FOREIGN GOVERNMENTS AND THE FUNDS THEREUNDER EXPENDED UPON VOUCHERS PREPARED BY THE GOVERNMENT AGENCY OR AGENCIES CONCERNED AND ACCOUNTED FOR IN ACCORDANCE WITH GENERAL ACCOUNTING OFFICE GENERAL REGULATIONS NO. 80 OF AUGUST 15, 1934. IN SUCH CASES THERE WILL BE NO OCCASION TO MAKE ADJUSTMENTS BETWEEN THE TRUST FUND AND ANY APPROPRIATION SINCE THE EXPENDITURES ARE TO BE MADE FROM THE TRUST FUND, AND ANY UNEXPENDED BALANCES ARE TO BE RETURNED TO THE FOREIGN GOVERNMENT OR GOVERNMENTS MAKING THE ADVANCES.

WITH RESPECT TO THE QUESTION IN YOUR LETTER RELATING TO APPROPRIATION LIMITATION ACCOUNTING IT MAY BE STATED THAT AS THE ACT PROVIDES SPECIFICALLY THAT THE REIMBURSED AMOUNTS SHALL BE AVAILABLE FOR THE PURPOSES OF THE APPROPRIATION TO WHICH CREDITED ANY LIMITATION IN SUCH APPROPRIATION MAY BE CONSIDERED AS APPLICABLE ONLY TO THE NET EXPENDITURES, THAT IS TO SAY, THE GROSS EXPENDITURES CHARGEABLE TO SUCH LIMITATION, LESS THE AMOUNTS RECEIVED IN REIMBURSEMENT FOR EXPENSES OF THAT CHARACTER, EXCEPT THAT, WHEN THE CREDIT IS TO AN APPROPRIATION OTHER THAN ORIGINALLY USED FOR THE EXPENDITURES THE CREDIT SHOULD NOT BE CONSIDERED AS INCREASING ANY LIMITATION UNDER THE APPROPRIATION CREDITED.