A-24146, SEPTEMBER 5, 1928, 8 COMP. GEN. 103

A-24146: Sep 5, 1928

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WHEREIN THERE WAS DIRECTION THAT THERE BE COVERED INTO THE TREASURY AS A MISCELLANEOUS RECEIPT MONEYS CONSISTING OF COLLECTIONS FROM CONTRACTORS FOR SUPPLIES PURCHASED. YOU STATE THAT: IF THIS REQUIREMENT THAT COLLECTIONS DESCRIBED SHALL BE DEPOSITED TO "MISCELLANEOUS RECEIPTS" IS ENFORCED. IT WILL MEAN THAT REFUNDS OBTAINED FROM CONTRACTORS WILL BE LOST TO THE VETERANS' BUREAU AND WILL ACTUALLY NECESSITATE DUPLICATE CHARGES AGAINST BUREAU APPROPRIATIONS AND AGAINST THE PARTICULAR BUDGET ALLOTMENTS INVOLVED. THE ESTIMATES FOR ALLOTMENTS TO COVER CENTRALLY PURCHASED SUBSISTENCE SUPPLIES WERE MADE WITH THE UNDERSTANDING THAT REFUNDS OBTAINED FROM CONTRACTORS WOULD REVERT TO THE APPROPRIATION FROM WHICH PAYMENT WAS MADE AND LIKEWISE TO THE ALLOTMENT.

A-24146, SEPTEMBER 5, 1928, 8 COMP. GEN. 103

APPROPRIATIONS - REFUNDS MONEYS CONSISTING OF COLLECTIONS FROM CONTRACTORS FOR SUPPLIES PURCHASED, WHICH, UPON INSPECTION, PROVED UNFIT FOR USE, SHOULD BE DEPOSITED AND COVERED INTO THE TREASURY TO THE CREDIT OF THE APPROPRIATION ERRONEOUSLY CHARGED THEREWITH.

COMPTROLLER GENERAL MCCARL TO THE DIRECTOR, UNITED STATES VETERANS' BUREAU, SEPTEMBER 5, 1928:

THERE HAS BEEN RECEIVED YOUR LETTER OF AUGUST 16, 1928, IN REFERENCE TO SETTLEMENT NO. K-2899-V, DATED JULY 3, 1928, OF THE ACCOUNTS OF WILLIAM H. HOLMES, DISBURSING CLERK, UNITED STATES VETERANS' BUREAU, WHEREIN THERE WAS DIRECTION THAT THERE BE COVERED INTO THE TREASURY AS A MISCELLANEOUS RECEIPT MONEYS CONSISTING OF COLLECTIONS FROM CONTRACTORS FOR SUPPLIES PURCHASED, WHICH, UPON INSPECTION, PROVED UNFIT FOR USE. YOU STATE THAT:

IF THIS REQUIREMENT THAT COLLECTIONS DESCRIBED SHALL BE DEPOSITED TO "MISCELLANEOUS RECEIPTS" IS ENFORCED, IT WILL MEAN THAT REFUNDS OBTAINED FROM CONTRACTORS WILL BE LOST TO THE VETERANS' BUREAU AND WILL ACTUALLY NECESSITATE DUPLICATE CHARGES AGAINST BUREAU APPROPRIATIONS AND AGAINST THE PARTICULAR BUDGET ALLOTMENTS INVOLVED. THE ESTIMATES FOR ALLOTMENTS TO COVER CENTRALLY PURCHASED SUBSISTENCE SUPPLIES WERE MADE WITH THE UNDERSTANDING THAT REFUNDS OBTAINED FROM CONTRACTORS WOULD REVERT TO THE APPROPRIATION FROM WHICH PAYMENT WAS MADE AND LIKEWISE TO THE ALLOTMENT; THE ALLOTMENTS WERE GRANTED ACCORDINGLY AND, WITH THIS PROCEDURE IN MIND, THE ENTIRE APPORTIONMENT OF THE APPROPRIATION WAS MADE.

THERE WAS BEFORE THIS OFFICE IN DECISION DATED SEPTEMBER 27, 1922, THE QUESTION AS TO THE DISPOSITION OF MONEYS COLLECTED FROM DEFAULTING CONTRACTORS FOR PURCHASES IN THE OPEN MARKET IN EXCESS OF THE CONTRACT PRICE, AND IT WAS THEREIN STATED:

SECTION 3617, REVISED STATUTES, PROVIDES THAT THE GROSS AMOUNT OF ALL MONEYS RECEIVED FROM WHATEVER SOURCE FOR THE USE OF THE UNITED STATES, EXCEPT AS OTHERWISE PROVIDED, SHALL BE PAID INTO THE TREASURY TO THE CREDIT OF "MISCELLANEOUS RECEIPTS.' THERE APPEARS TO HAVE BEEN SOME DOUBT IN THE PAST AS TO THE APPLICATION OF SECTION 3617 TO MONEYS OF THE CHARACTER IN QUESTION, SEE 21 COMP. DEC. 107, BUT THE PRESENT RULE HAS BEEN TO REQUIRE SUCH MONEY TO BE DEPOSITED INTO THE TREASURY TO THE CREDIT OF "MISCELLANEOUS RECEIPTS," AS REQUIRED BY LAW. SEE 23 COMP. DEC. 352; 26 ID. 877. I SEE NO REASON AT THIS TIME TO DISTURB THE RULE AND DEPOSIT SHOULD BE MADE ACCORDINGLY.

THE INSTANT MATTER IS TO BE DISTINGUISHED FROM THE SITUATION CONSIDERED IN THE DECISION OF SEPTEMBER 27, 1922, FOR THE REASON THAT THE MONEYS IN QUESTION REPRESENT, NOT EXCESS OVER CONTRACT PRICE FOR PURCHASE IN THE OPEN MARKET BUT REFUNDS OF PAYMENTS MADE FROM THE APPROPRIATION TO A CONTRACTOR FOR SUPPLIES WHICH WERE FOUND, UPON INSPECTION, TO BE UNSATISFACTORY FOR USE; THAT IS, NOT IN ACCORDANCE WITH THE TERMS OF THE CONTRACT. THE REFUND IS ON THE THEORY THAT THE PAYMENT WAS IMPROPERLY MADE FROM THE APPROPRIATION IN THE FIRST INSTANCE, AND THE AMOUNT IS PROPERLY TO BE CREDITED TO THE APPROPRIATION ERRONEOUSLY CHARGED THEREWITH.

ACCORDINGLY, YOU ARE ADVISED THAT MONEYS PAID TO, AND SUBSEQUENTLY COLLECTED FROM, CONTRACTORS FOR SUPPLIES DELIVERED WHICH WERE NOT IN ACCORDANCE WITH THE TERMS OF THE CONTRACT, SHOULD BE DEPOSITED AND COVERED INTO THE TREASURY TO THE CREDIT OF THE APPROPRIATION ERRONEOUSLY CHARGED THEREWITH.