A-11802, MARCH 3, 1926, 5 COMP. GEN. 680

A-11802: Mar 3, 1926

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AUTHORIZING THE PAYING OF EXPENSES OF SALES OF OLD AND CONDEMNED MATERIALS FROM THE PROCEEDS OF SUCH SALES BEFORE THE PROCEEDS THEREOF ARE TURNED INTO THE TREASURY AS MISCELLANEOUS RECEIPTS. THERE IS NO AUTHORITY OF LAW FOR THE MAINTAINING OF A FORCE OF REGULAR EMPLOYEES AT THE GOVERNMENT PRINTING OFFICE FOR THE PREPARATION OF OLD AND CONDEMNED MATERIALS FOR SALE. THE EMPLOYEES OF WHICH ARE PAID COMPENSATION FROM THE PROCEEDS OF SUCH SALES. UNLESS ESTIMATES FOR THEIR SALARIES AND COMPENSATION ARE SUBMITTED TO THE CONGRESS AND APPROPRIATION MADE THEREFOR. IT IS STATED IN YOUR COMMUNICATION. PRACTICALLY ALL OF WHICH IS LARGE IN BULK BUT SMALL IN MONEY RETURN. IT IS NECESSARY TO MAINTAIN A DEFINITE FORCE OF EMPLOYEES TO SORT PAPER INTO CLASSES UNDER OUR CONTRACT AND BALE IT.

A-11802, MARCH 3, 1926, 5 COMP. GEN. 680

ACCOUNTING - PROCEEDS OF SALES OF OLD AND CONDEMNED MATERIAL - SPECIAL DEPOSIT ACCOUNTS UNDER THE PROVISIONS OF THE ACT OF JUNE 8, 1896, 29 STAT. 268, AUTHORIZING THE PAYING OF EXPENSES OF SALES OF OLD AND CONDEMNED MATERIALS FROM THE PROCEEDS OF SUCH SALES BEFORE THE PROCEEDS THEREOF ARE TURNED INTO THE TREASURY AS MISCELLANEOUS RECEIPTS, THERE MAY BE PAID FROM SUCH PROCEEDS ONLY SUCH EXPENSES AS PERTAIN DIRECTLY TO THE SALES OF THE MATERIALS. THERE IS NO AUTHORITY OF LAW FOR THE MAINTAINING OF A FORCE OF REGULAR EMPLOYEES AT THE GOVERNMENT PRINTING OFFICE FOR THE PREPARATION OF OLD AND CONDEMNED MATERIALS FOR SALE, ETC., THE EMPLOYEES OF WHICH ARE PAID COMPENSATION FROM THE PROCEEDS OF SUCH SALES, UNLESS ESTIMATES FOR THEIR SALARIES AND COMPENSATION ARE SUBMITTED TO THE CONGRESS AND APPROPRIATION MADE THEREFOR. A PROPER ACCOUNTING OF SPECIAL DEPOSIT ACCOUNTS INVOLVING MONEYS RECEIVED BY AN OFFICER OF THE GOVERNMENT IN HIS OFFICIAL CAPACITY REQUIRES THAT SUCH ACCOUNTS BE SUBMITTED TO THE GENERAL ACCOUNTING OFFICE FOR AUDIT SUPPORTED BY ADEQUATE RECORDS OF THE RECEIPTS AND VOUCHERS, OR BY OTHER EVIDENCE SHOWING DISBURSEMENTS MADE THEREFROM.

COMPTROLLER GENERAL MCCARL TO THE PUBLIC PRINTER, MARCH 3, 1926:

CONSIDERATION HAS BEEN GIVEN YOUR LETTER OF DECEMBER 31, 1925, RELATIVE TO THE ACCOUNTING PRACTICES IN CONNECTION WITH (1) THE DISPOSAL OF GOVERNMENT PRINTING OFFICE WASTE PAPER, WASTE METAL, WOOD, CONDEMNED MATERIAL, ETC., AND (2) THE SPECIAL DEPOSIT ACCOUNT WITH THE TREASURER OF THE UNITED STATES MAINTAINED BY THE DISBURSING CLERK OF THE GOVERNMENT PRINTING OFFICE, UNDER SYMBOL NO. 92819.

IN REPLY TO MY LETTER TO YOU OF DECEMBER 22, 1925, IT IS STATED IN YOUR COMMUNICATION, WITH RESPECT TO THE DISPOSITION OF PROCEEDS OF SALES OF WASTE AND CONDEMNED MATERIAL, THAT---

IN ORDER TO HANDLE THE SALE OF WASTE PAPER AND OTHER MATERIAL, PRACTICALLY ALL OF WHICH IS LARGE IN BULK BUT SMALL IN MONEY RETURN, IT IS NECESSARY TO MAINTAIN A DEFINITE FORCE OF EMPLOYEES TO SORT PAPER INTO CLASSES UNDER OUR CONTRACT AND BALE IT, AND TO SORT, PACK, AND CRATE OTHER MATERIAL; NONE OF THIS WORK IS DONE BY OUTSIDE PERSONS, THEREFORE NO VOUCHERS CAN BE SUPPLIED. THE SIGNATURES OF THE EMPLOYEES ON PAY ROLL, THE ONLY PAPER APPROACHING A VOUCHER, IS IN POSSESSION OF THE GENERAL ACCOUNTING OFFICE.

AFTER KEEPING AN EXACT RECORD FOR QUITE A PERIOD, IT WAS FOUND THAT THE EXPENSE OF THIS FORCE OF EMPLOYEES REPRESENTED A RATHER CONSTANT PERCENTAGE OF THE TOTAL RECEIPTS; FURTHER, THE PAYMENTS MADE BY THE CONTRACTORS WHO BUY THIS OLD MATERIAL ARE SOMETIMES AT PERIODS WHICH PREVENT DEPOSIT IN THE QUARTER IN WHICH THE OLD MATERIAL IS ACTUALLY SOLD; AGAIN, THERE IS A WIDE VARIATION IN THE AMOUNTS DEPOSITED, WHILE THE EXPENSE OF HANDLING THIS WORK IS FIXED AND CURRENT, AS FOLLOWS:

TABLE 5 EMPLOYEES, AT $1,252 EACH PER YEAR ---------------------- $6,260.00 1 EMPLOYEE, AT $1,627.60 PER YEAR ------------------------- 1,627.60 2 EMPLOYEES, AT $1,452.32 EACH PER YEAR ------------------- 2,904.64 1 EMPLOYEE, AT $1,878.00 PER YEAR ------------------------- 1,878.00 HALF TIME OF ONE EMPLOYEE, $2,303.68 PER YEAR ------------- 1,151.84 HALF TIME OF ONE EMPLOYEE, $2,750.00 PER YEAR ------------- 1,375.00 ONE-FOURTH TIME OF ONE EMPLOYEE, $1,752.80 PER YEAR ------- 438.20

TOTAL ------------------------------------------------- 15,635.28

IN EMERGENCIES, THIS FORCE MUST BE TEMPORARILY INCREASED, OR BE REQUIRED TO WORK OVERTIME; FLOOR SPACE AND FACILITIES WILL NOT PERMIT ACCUMULATION.

IT COSTS THIS OFFICE ABOUT $4,000 EACH QUARTER TO HANDLE SALES, WHILE THE TOTAL DEPOSITS FOR QUARTER MAY VARY FROM $4,000 TO $20,000. TO STATE COST OF SALES AT $4,000 EACH QUARTER, WHILE THE ACTUAL DEPOSITS FOR THE QUARTERS MIGHT BE LESS, OR POSSIBLY FIVE TIMES OVER THAT AMOUNT, WOULD BE IMPRACTICAL. THESE ARE THE REASONS WHY THIS OFFICE WAS COMPELLED TO ADOPT A PERCENTAGE DEDUCTION FROM THE TOTAL RECEIPTS TO COVER THE COST OF SALES. IT IS BELIEVED THAT PRESENT PLAN IS THE ONLY PRACTICAL WAY TO DETERMINE AND STATE THE COST INCURRED IN SALE OF WASTE MATERIAL.

THE ACT OF JUNE 8, 1896, 29 STAT. 268, PROVIDES THAT FROM THE PROCEEDS OF SALES OF OLD MATERIALS, ETC., BEFORE BEING DEPOSITED IN THE TREASURY AS MISCELLANEOUS RECEIPTS,"THERE MAY BE PAID THE EXPENSES OF SUCH SALES, AS APPROVED BY THE ACCOUNTING OFFICERS OF THE TREASURY.' PURSUANT TO THIS PROVISION OF LAW, THE THEN COMPTROLLER OF THE TREASURY, UNDER DATE OF JANUARY 9, 1897, ISSUED REGULATIONS AND INSTRUCTIONS PRESCRIBING A FORM FOR THE RENDERING OF ACCOUNTS FOR SALES OF OLD MATERIALS, ETC., AND IT WAS STATED THEREIN THAT THE EXPENSES OF SALE PAYABLE FROM THE GROSS PROCEEDS ARE SUCH AS PERTAIN DIRECTLY TO THE SALE IN QUESTION, SUCH AS AUCTIONEERS' FEES, ADVERTISING, CARTAGE TO PLACE OF SALE, COST OF INSPECTION IF AN INSPECTOR BE HIRED FOR THAT PURPOSE, AND OTHER SIMILAR EXPENSES INCIDENT AND RELATING TO THE SALE PROPER. 3 COMP. DEC. 746.

THE ITEMS OF EXPENSES WHICH ARE PROPERLY PAYABLE FROM THE PROCEEDS OF SUCH SALES AS EXPENSES CONNECTED THEREWITH HAVE BEEN THE SUBJECT OF NUMEROUS DECISIONS. IT WAS HELD IN 27 COMP. DEC. 484, THAT THE COST OF FURNISHING SAMPLES OF SURPLUS WAR SUPPLIES PRIOR TO THE DATE OF THE CONTRACT FOR THEIR SALE COULD BE CONSIDERED AS A PART OF THE EXPENSE OF THE SALE AND PROPERLY PAYABLE OUT OF THE PROCEEDS OF SUCH SALE. ALSO, IN 12 COMP. DEC. 736, IT WAS HELD THAT THE EXPENSES OF THE APPRAISEMENT OF THE PROPERTY OF A UNITED STATES LIGHTHOUSE FOR THE PURPOSE OF SELLING THE SAME UNDER AUTHORITY OF THE ACT OF MARCH 1, 1905, WERE PAYABLE FROM THE PROCEEDS OF THE SALE OF SUCH PROPERTY, UNDER THE PROVISIONS OF THE ACT OF JUNE 8, 1896.

ON THE OTHER HAND, IN A DECISION TO THE SECRETARY OF THE NAVY, DATED NOVEMBER 12, 1912, ANSWERING A QUESTION SUBMITTED AS TO WHETHER THE PROCEEDS FROM SALES OF CONDEMNED MATERIAL COULD BE USED FOR THE PURCHASE AND INSTALLATION OF CERTAIN MACHINERY AND EQUIPMENT FOR A SCRAP PLANT AT THE UNITED STATES NAVY YARD, NORFOLK, VA., SUCH AS SCRAP IRON BINS, MOTOR AND TUMBLING BARREL, PAPER-BALING MACHINES, DROP HAMMER, ETC., IT WAS HELD THAT WHILE SUCH PURCHASE AND INSTALLATION MIGHT HAVE ECONOMIC ADVANTAGES IN FACILITATING THE PRESERVATION AND HANDLING OF THE CONDEMNED MATERIAL, AS WELL AS ENHANCING ITS MARKET VALUE AND INCREASING THE PROCEEDS FROM ITS SALE, SUCH EXPENSES COULD NOT BE REGARDED AS "EXPENSES OF SALES" WITHIN THE MEANING OF THE ACT OF JUNE 8, 1896, AUTHORIZING THE EXPENSES OF SALES TO BE PAID FROM THE PROCEEDS OF SALES OF OLD AND CONDEMNED MATERIAL BEFORE SUCH PROCEEDS ARE TURNED INTO THE TREASURY AS MISCELLANEOUS RECEIPTS. SEE, ALSO, 18 COMP. DEC. 5, IN WHICH THE PURCHASE OF A PAPER-BALING MACHINE TO BE USED BY THE DEPARTMENT OF THE INTERIOR IN PREPARING WASTE PAPER FOR BALING WAS HELD NOT TO BE A DIRECT EXPENSE OF SAID SALE WITHIN THE PURVIEW OF THE ACT OF JUNE 8, 1896, AND THE COST OF SUCH MACHINE COULD NOT THEREFORE BE PAID FROM THE PROCEEDS OF SUCH SALE.

IN 20 COMP. DEC. 20, THE HOLDING WAS TO THE EFFECT THAT THE PROCEEDS OF SALES OF WASTE PAPER COULD NOT BE USED TO PURCHASE MACHINERY OR APPLIANCES FOR THE HANDLING AND PREPARATION THEREOF FOR SALE; AND IN DISCUSSING THE EXPENDITURES PROPERLY PAYABLE FROM SUCH PROCEEDS THE FORMER COMPTROLLER OF THE TREASURY ADVISED THE PUBLIC PRINTER, WHO HAD SUBMITTED THE MATTER FOR CONSIDERATION, AS FOLLOWS:

OF THE PROPOSED EXPENDITURES THE PROPRIETY OF WHICH FROM THE PROCEEDS OF THE SALES OF WASTE PAPER YOU DESIRE ME TO INDICATE, THE (2) BALING PRESS, (3) ADDITION TO OVERHEAD TROLLEY, (4) AUTOMOBILE TRUCK, AND (5)SCALE ARE NOT SUCH EXPENSES AS CAN BE IDENTIFIED WITH ANY PARTICULAR SALE. THEY CONSTITUTE EQUIPMENT FOR USE NOT ONLY IN CONNECTION WITH THE LOT OF PAPER SOLD AND WHICH PRODUCED THE PROCEEDS OUT OF WHICH THE EQUIPMENT WOULD BE PURCHASED, BUT WOULD BE FOR USE ALSO IN CONNECTION WITH THE HANDLING OF SUBSEQUENT LOTS OF PAPER AND THEIR SALE. THEY ARE NOT EXPENSES OF ANY ONE SALE AND CAN NOT BE PAID FROM THE PROCEEDS OF THE SALE, BUT IF AUTHORIZED AT ALL SUCH EQUIPMENT WOULD HAVE TO BE PURCHASED UNDER AN APPROPRIATION SPECIFICALLY AVAILABLE THEREFOR. THE DEPARTMENTS WOULD NOT BE AUTHORIZED TO USE THE PROCEEDS OF SALES FOR THESE EXPENSES, AND THE PUBLIC PRINTER IS NOT AUTHORIZED SO TO USE THE PROCEEDS.

THE REMAINING EXPENSES, THE (1) CANVAS BAGS, (6) LABOR, (7) OVERHEAD EXPENSES, ARE SUCH EXPENSES AS WOULD BE BORNE BY THE DEPARTMENTS AS A PART OF THE ROUTINE WORK OF THE DEPARTMENTS AND WOULD BE PERFORMED UNDER THE APPROPRIATIONS MADE TO THEM FOR LABOR OR SUPPLIES. LABOR TO A MORE OR LESS EXTENT MAY BE CONNECTED WITH A PARTICULAR SALE, BUT WHERE IT IS SUCH LABOR AS THE DEPARTMENTS WOULD ORDINARILY PERFORM IN CONNECTION WITH THE DISPOSITION OF THE WASTE PAPER THERE WOULD BE NO AUTHORITY TO ENGAGE IT AND PAY FOR IT FROM THE PROCEEDS OF SALE. THE LABOR IN ITEMS 6 AND 7 IS IN THIS STATUS AND THE PROCEEDS OF THE SALES CAN NOT BE EXPENDED THEREFOR. THE CANVAS BAGS ARE FOR GENERAL USE IN DISPOSING OF THE PAPER AND ARE NOT AN EXPENSE OF ANY ONE SALE FOR WHICH THE PROCEEDS WOULD BE AVAILABLE.

SEE ALSO 1 COMP. GEN. 185, DEALING WITH ACCOUNTING FOR PROCEEDS OF SURPLUS WAR SUPPLIES; 2 COMP. GEN. 760, PRESCRIBING WHAT DISPOSITION SHOULD BE MADE OF PROCEEDS DERIVED FROM THE SALE OF PUBLIC DOCUMENTS; AND 5 COMP. GEN. 389, HOLDING THAT PROCEEDS DERIVED FROM THE SALE OF ELECTRIC POWER AT MUSCLE SHOALS SHOULD BE TURNED INTO THE TREASURY AS MISCELLANEOUS RECEIPTS.

IT APPEARS FROM YOUR LETTER THAT THE FORCE ENGAGED IN THE WORK FOR WHICH EXPENSES ARE CHARGED AGAINST THE PROCEEDS OF THE SALES ARE REGULAR EMPLOYEES OF THE GOVERNMENT PRINTING OFFICE AND THAT FUNDS FOR THE PAYMENT OF THEIR SALARIES ARE PROVIDED FOR IN THE APPROPRIATION OR AT LEAST THAT THE APPROPRIATION IS USED TO PAY SAID SALARIES. FURTHERMORE, THE WORK IN WHICH THESE EMPLOYEES ARE ENGAGED--- SORTING, PACKING, BALING, AND CRATING MATERIAL--- CONSTITUTES WORK WHICH IS GENERALLY PERFORMED BY EMPLOYEES OF THE ADMINISTRATIVE DEPARTMENT IN SUCH CASES AND NOT SUCH WORK AS MAY BE CONSIDERED AS AN EXPENSE OF THE SALE ITSELF.

IN THE MATTER OF MAINTAINING A FORCE IN THE GOVERNMENT PRINTING OFFICE FOR THE PREPARATION OF THE MATERIALS FOR SALES, ETC., THE EMPLOYEES OF WHICH ARE PAID COMPENSATION FROM THE PROCEEDS OF SUCH SALES, THERE IS FOR CONSIDERATION SECTION 4, ACT OF AUGUST 5, 1882, 22 STAT. 255, WHICH PROHIBITS THE EMPLOYMENT OF CIVIL OFFICERS AND OTHER EMPLOYEES IN THE EXECUTIVE DEPARTMENTS AT THE SEAT OF GOVERNMENT, EXCEPT AT SUCH RATES AND IN SUCH NUMBERS AS APPROPRIATED FOR BY CONGRESS FOR EACH FISCAL YEAR, NOR UNDER ANY APPROPRIATION FOR CONTINGENT EXPENSES OR FOR ANY SPECIFIC OR GENERAL PURPOSE UNLESS SPECIFICALLY AUTHORIZED THEREIN.

IN 25 COMP. DEC. 706, DEALING WITH THE EMPLOYMENT OF A SALES FORCE FOR THE DISPOSAL OF SURPLUS WAR SUPPLIES UNDER THE PROVISIONS OF THE ACTS OF MAY 10, 1918, 40 STAT. 58, AND JULY 9, 1918, 40 STAT. 850, IT WAS SAID, PAGE 708:

THE SALES AUTHORIZED BY THESE ENACTMENTS HAD REFERENCE TO ABNORMAL CONDITIONS. THE SALES WHICH IT IS TO BE THE EFFORT NOW TO PRODUCE LIKEWISE ARE NECESSITATED BY ABNORMALITY, BUT NECESSITATING CONDITIONS ARE DIFFERENT.

THE ACT OF 1896, WHICH PERMITS THE PAYMENT OF EXPENSES FROM PROCEEDS OF SALES, HAD REFERENCE PRIMARILY TO THAT NORMAL CONDITION WHERE THE SALE OF PUBLIC PROPERTY IS AN ADMINISTRATIVE MATTER INCIDENTALLY EXERCISED, BUT IT IS NO LESS AN AUTHORITY UNDER ABNORMAL CONDITIONS AND SUCH EXPENSES AS IT WOULD PERMIT ARE PERMISSIBLE UNDER ABNORMAL CONDITIONS.

IT IS NOT CONTEMPLATED, NOR IS THE POWER GIVEN BY THE ACT IN THE INCIDENTAL ADMINISTRATIVE SALE OF PUBLIC PROPERTY, THAT DEPARTMENTS SHALL MAINTAIN AN ORGANIZATION TO STIMULATE AND MAKE SALES, BUT WHAT OF ADMINISTRATIVE SERVICE IS NECESSARY IS FOR PERFORMANCE BY THE GENERAL PERSONNEL PROVIDED FOR UNDER APPROPRIATIONS AND IS NOT PAYABLE FROM THE PROCEEDS OF SALES.

THIS MAY BE TAKEN AS APPEARING ALSO FROM THE RECENT EXECUTIVE ORDER PLACING THE DISPOSITION OF DEPARTMENTAL SUPPLIES UNDER THE GENERAL SUPPLY COMMITTEE, AND THE TACIT APPROVAL OF THAT ORDER BY SECTION 8 OF THE ACT OF MARCH 1, 1919 (40 STAT. 1268).

THE ESTABLISHMENT OF A SALES FORCE MUST BE UNDERSTOOD AS SOLELY A NEED OF THE PRESENT ABNORMAL CONDITIONS. IT WOULD BE AN ADMINISTRATIVE ORGANIZATION ESTABLISHED FOR AN INDEFINITE PERIOD AND NECESSARILY HAVE A DIRECT CONNECTION WITH AND BE IN THE DEPARTMENT ITSELF. SUCH A SALES FORCE WOULD BE WITHIN THE PROHIBITION OF SECTION 4, ACT OF AUGUST 5, 1882 (22 STAT. 255), THAT CIVIL OFFICERS AND OTHER EMPLOYEES SHALL NOT BE EMPLOYED IN THE EXECUTIVE DEPARTMENTS AT THE SEAT OF GOVERNMENT EXCEPT AT SUCH RATES AND IN SUCH NUMBERS AS APPROPRIATED FOR BY CONGRESS FOR EACH FISCAL YEAR, NOR UNDER ANY APPROPRIATION FOR CONTINGENT EXPENSES OR FOR ANY SPECIFIC OR GENERAL PURPOSE UNLESS SPECIFICALLY AUTHORIZED THEREIN. AND A PENALTY FOR VIOLATION THEREOF WAS PRESCRIBED BY SECTION 5 OF THE ACT OF AUGUST 23, 1912 (37 STAT. 414).

BY LETTER OF AUGUST 28, 1923, THE SECRETARY OF THE NAVY WAS ADVISED THAT THE PAYING OF SALARIES TO CIVILIAN EMPLOYEES ENGAGED IN CLERICAL WORK CONNECTED WITH SURVEY, APPRAISAL, AND SALE OF SURPLUS AND CONDEMNED NAVY PROPERTY FROM THE PROCEEDS OF SUCH SALES WAS NOT AUTHORIZED AND THAT IF IT WAS NECESSARY TO HAVE AN ORGANIZATION OF CIVILIAN EMPLOYEES TO HANDLE THE ADMINISTRATIVE AND ACCOUNTING WORK IN CONNECTION WITH THE SURVEYING, APPRAISAL, AND SALE OF SURPLUS AND CONDEMNED PROPERTY GENERALLY, AND THERE WAS NO APPROPRIATION AVAILABLE FOR THE EMPLOYMENT OF SUCH A FORCE, THE MATTER WAS FOR PRESENTATION TO THE CONGRESS FOR APPROPRIATE ACTION.

AS HEREINBEFORE INDICATED, THERE APPEARS TO BE NO AUTHORITY OF LAW FOR THE MAINTAINING OF A FORCE OF REGULAR EMPLOYEES FOR THE PURPOSES HEREIN MENTIONED UNLESS ESTIMATES FOR THEIR SALARIES AND COMPENSATION ARE SUBMITTED TO THE CONGRESS AND APPROPRIATION MADE THEREFOR. EXPENSES OF SUCH A FORCE CAN NOT BE CONSIDERED AS DEDUCTIBLE FROM THE PROCEEDS OF SUCH SALES UNDER THE PROVISIONS OF THE ACT OF JUNE 8, 1896. THE ACCOUNTS OF THE DISBURSING CLERK OF YOUR OFFICE SHOULD BE ADJUSTED ACCORDINGLY--- THAT IS TO SAY, SO AS TO INCLUDE AS DEDUCTIONS FROM THE GROSS PROCEEDS OF SALES UNDER THE ACT OF JUNE 8, 1896, ONLY SUCH EXPENSES AS PERTAIN DIRECTLY TO THE SALES OF THE MATERIALS AND SUCH DEDUCTIONS SHOULD BE SUPPORTED BY PROPER VOUCHERS THEREFOR SHOWING WHAT ITEMS ARE INCLUDED. THE BALANCE OF THE GROSS PROCEEDS OF THE SALE SHOULD BE COVERED INTO THE TREASURY AS MISCELLANEOUS RECEIPTS. IN CONNECTION WITH THE SPECIAL DEPOSIT ACCOUNT, SYMBOL 92819, MAINTAINED BY THE DISBURSING CLERK OF YOUR OFFICE IT IS STATED IN YOUR LETTER: THE SPECIAL DEPOSIT ACCOUNT, SYMBOL NO. 92819, MAINTAINED BY THE DISBURSING CLERK OF THE GOVERNMENT PRINTING OFFICE WITH THE SECRETARY OF THE TREASURY, IS USED PRINCIPALLY FOR THE PRELIMINARY DEPOSIT OF CHECKS RECEIVED FROM THE SALES OF WASTE PAPER, WASTE METAL, WASTE WOOD, CONDEMNED MATERIAL, PRINTING OF SPEECHES AND DOCUMENTS, THE MAKING OF ELECTROTYPES, AND THE SALES OF DOCUMENTS TO THE PUBLIC BY THE SUPERINTENDENT OF DOCUMENTS. THERE ARE MANY INSTANCES OF OVERPAYMENTS ON SOME OF THESE ACCOUNTS, AND ADJUSTMENTS BECOME NECESSARY BECAUSE OF ADVANCE PAYMENTS AS REQUIRED BY THE PRINTING ACT OF 1895. THE ONLY DISBURSEMENTS MADE FROM THIS SPECIAL DEPOSIT ACCOUNT ARE FOR THE PURPOSE OF MAKING SUCH ADJUSTMENTS. AT THE CLOSE OF EACH QUARTER A CHECK IS DRAWN TO THE ORDER OF THE TREASURER OF THE UNITED STATES, TRANSFERRING THE AMOUNT IN THE SPECIAL DEPOSIT ACCOUNT TO THE PROPER APPROPRIATION, OR TO MISCELLANEOUS RECEIPTS. A STATEMENT ACCOMPANIES THE ACCOUNT CURRENT SHOWING FROM WHAT SOURCE THESE FUNDS HAVE BEEN RECEIVED.

THE SPECIAL DEPOSIT ACCOUNT REFERRED TO WAS ESTABLISHED WITH THE KNOWLEDGE AND CONSENT OF OFFICIALS IN THE TREASURY DEPARTMENT, AS IS SHOWN BY THE FIVE PHOTOSTAT LETTERS INCLOSED HEREWITH.

THE PHOTOSTAT COPIES OF LETTERS FORWARDED SHOW THAT THE SPECIAL DEPOSIT ACCOUNT THERE IN QUESTION BEARS NO. 92811, AND WAS ASSIGNED TO THE PUBLIC PRINTER AND NOT TO THE DISBURSING CLERK. IN ANY EVENT, THE NATURE OF THE FUNDS IS SUCH THAT AN ACCOUNTING THEREFOR TO THIS OFFICE FOR AUDIT SHOULD BE MADE WHETHER SUCH FUNDS BE KEPT IN ONE OR MORE SPECIAL DEPOSIT ACCOUNTS AND THE ACCOUNTING SHOULD BE SUBMITTED PROPERLY SUPPORTED BY ADEQUATE RECORDS OF RECEIPTS AND VOUCHERS OR OTHER PROPER EVIDENCE SHOWING THE DISBURSEMENTS MADE THEREFROM. SEE 5 COMP. GEN. 428.