A-27565, AUGUST 8, 1929, 9 COMP. GEN. 52

A-27565: Aug 8, 1929

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AUTHORIZING THE TRANSFER OF FUNDS FROM ONE DEPARTMENT OR BUREAU TO ANOTHER FOR DIRECT EXPENDITURE WHEN THERE IS INVOLVED A PROCUREMENT BY PURCHASE OR MANUFACTURE OF STORES OR MATERIALS. THERE IS NO AUTHORITY FOR THE TRANSFER OF FUNDS FROM APPROPRIATIONS OF THE WAR DEPARTMENT TO THE BUREAU OF AGRICULTURAL ECONOMICS. SUCH INSTRUCTING AND LICENSING NOT CONSTITUTING SUCH SERVICES AS ARE CONTEMPLATED AND COVERED BY THAT SECTION. 1929: THERE ARE RETURNED WITHOUT COUNTERSIGNATURE WAR DEPARTMENT TRANSFER APPROPRIATION WARRANTS NOS. 21 AND 22 IN WHICH. IT IS PROPOSED TO TRANSFER FUNDS FROM THE WAR DEPARTMENT APPROPRIATIONS "MEDICAL AND HOSPITAL DEPARTMENT. THE MATTER WAS THE SUBJECT OF TWO DECISIONS OF THIS OFFICE DATED JUNE 7 AND JULY 10.

A-27565, AUGUST 8, 1929, 9 COMP. GEN. 52

DEPARTMENTS AND ESTABLISHMENTS - SERVICES BETWEEN UNDER THE PROVISIONS OF SECTION 7 OF THE ACT OF MAY 21, 1920, 41 STAT. 613, AUTHORIZING THE TRANSFER OF FUNDS FROM ONE DEPARTMENT OR BUREAU TO ANOTHER FOR DIRECT EXPENDITURE WHEN THERE IS INVOLVED A PROCUREMENT BY PURCHASE OR MANUFACTURE OF STORES OR MATERIALS, OR THE PERFORMANCE OF SERVICES FOR ANOTHER DEPARTMENT, THERE IS NO AUTHORITY FOR THE TRANSFER OF FUNDS FROM APPROPRIATIONS OF THE WAR DEPARTMENT TO THE BUREAU OF AGRICULTURAL ECONOMICS, DEPARTMENT OF AGRICULTURE, FOR THE PURPOSE OF INSTRUCTING AND LICENSING BY THAT BUREAU OF MEMBERS OF THE ARMY VETERINARY CORPS AS FEDERAL HAY INSPECTORS, SUCH INSTRUCTING AND LICENSING NOT CONSTITUTING SUCH SERVICES AS ARE CONTEMPLATED AND COVERED BY THAT SECTION.

COMPTROLLER GENERAL MCCARL TO THE SECRETARY OF THE TREASURY, AUGUST 8, 1929:

THERE ARE RETURNED WITHOUT COUNTERSIGNATURE WAR DEPARTMENT TRANSFER APPROPRIATION WARRANTS NOS. 21 AND 22 IN WHICH, CITING AS AUTHORITY SECTION 7 OF THE ACT OF MAY 21, 1920, 41 STAT. 613, IT IS PROPOSED TO TRANSFER FUNDS FROM THE WAR DEPARTMENT APPROPRIATIONS "MEDICAL AND HOSPITAL DEPARTMENT, 1930," AND "INCIDENTAL EXPENSES OF THE ARMY, 1930," TO THE DEPARTMENT OF AGRICULTURE UNDER APPROPRIATIONS OF THE SAME TITLE TO COVER THE ALLEGED COST OF INSTRUCTING AND LICENSING MEMBERS OF THE VETERINARY CORPS OF THE ARMY AS FEDERAL HAY INSPECTORS.

THE MATTER WAS THE SUBJECT OF TWO DECISIONS OF THIS OFFICE DATED JUNE 7 AND JULY 10, 1929, IN WHICH IT WAS HELD THAT THE TRANSFER OF THE FUNDS IN QUESTION WAS NOT AUTHORIZED, AND THE TWO TRANSFERS HERE UNDER CONSIDERATION ARE SUBMITTED WITH REQUESTS OF THE WAR DEPARTMENT AND DEPARTMENT OF AGRICULTURE THAT SAID DECISION BE RECONSIDERED AND THE TRANSFERS APPROVED.

IN A LETTER DATED JULY 5, 1929, FROM THE BUREAU OF AGRICULTURAL ECONOMICS, DEPARTMENT OF AGRICULTURE, TO THE CHIEF OF FINANCE, WAR DEPARTMENT, IT IS STATED:

YOU WILL FIND INCLOSED COPY OF A LETTER FROM THE CHIEF OF THE DIVISION OF BOOKKEEPING AND WARRANTS OF THE TREASURY TO THE SECRETARY OF AGRICULTURE AND A LETTER FROM THE COMPTROLLER GENERAL TO THE SECRETARY OF THE TREASURY IN WHICH THE COMPTROLLER GENERAL REFUSES TO APPROVE A WARRANT TRANSFERRING $1,350 FROM YOUR APPROPRIATION "MEDICAL AND HOSPITAL DEPARTMENT, 1930," TO THIS DEPARTMENT. WE HAVE BEEN ADVISED INFORMALLY ALSO BY THE COMPTROLLER GENERAL'S OFFICE THAT A SIMILAR TRANSFER OF $2,250 FROM YOUR APPROPRIATION "INCIDENTAL EXPENSES OF THE ARMY, 1930," WILL LIKEWISE BE DISAPPROVED. IS BELIEVED THAT IF PROPER EXPLANATION IN REGARD TO THE USE OF THESE FUNDS IS MADE TO THE COMPTROLLER GENERAL, THAT HE WILL CHANGE HIS DECISION AND APPROVE THE TRANSFERS. IT IS BELIEVED, HOWEVER, THAT THE REQUEST SHOULD BE MADE BY YOU AS THE WORK IS TO BE DONE FOR THE BENEFIT OF THE ARMY. WILL, THEREFORE, BE APPRECIATED IF YOU WILL TAKE THIS MATTER UP WITH THE COMPTROLLER GENERAL, IF YOU DESIRE TO HAVE THIS DEPARTMENT CARRY ON THIS WORK.

IT IS BELIEVED THAT IF THIS IS DONE, ATTENTION SHOULD BE CALLED TO THE ITEMS IN THE 1930 BUDGET COVERING THESE SPECIFIC ITEMS. THAT ON PAGE 1083 OF THE BUDGET PROVIDING FOR THE APPROPRIATION ,GENERAL EXPENSES OF THE ARMY, 1930," CLEARLY STATES THAT THE $2,250 IS FOR "DEPARTMENT OF AGRICULTURE, FOR TRAINING AND SUPERVISION OF MEMBERS OF THE VETERINARY CORPS LICENSED AS HAY INSPECTORS.' THE $1,350 APPROPRIATION ON PAGE 1125 UNDER "MEDICAL AND HOSPITAL DEPARTMENT" IS NOT AS CLEARLY STATED BEING SHOWN MERELY AS AN ADDITIONAL AMOUNT TO BE TRANSFERRED TO THIS BUREAU. HOWEVER, IT IS COUPLED WITH AN OLD ITEM FOR THE BUREAU OF ANIMAL INDUSTRY, OF THIS DEPARTMENT, WHICH HAS BEEN HANDLED IN A SIMILAR MANNER WE UNDERSTAND, AND MIGHT BE USED AS A PRECEDENT FOR THIS CASE. COPIES MIGHT ALSO BE FURNISHED THE COMPTROLLER GENERAL OF THE CORRESPONDENCE BETWEEN THE SECRETARY OF AGRICULTURE AND THE SECRETARY OF WAR ARRANGING FOR THE OBTAINING OF THESE APPROPRIATIONS BY THE WAR DEPARTMENT. FOR FEAR YOU MAY NOT HAVE THESE CONVENIENT, COPIES ARE ATTACHED.

THE COMPTROLLER ALSO SETS UP CERTAIN SPECIFIC OBJECTIONS TO THE TRANSFER IN HIS LETTER ON WHICH YOU MAY DESIRE INFORMATION FROM THIS DEPARTMENT IN ORDER TO ANSWER INTELLIGENTLY. HE FIRST STATES THAT THE LAW AUTHORIZING THE TRANSFER OF MONEYS FROM ONE DEPARTMENT TO ANOTHER DOES NOT CONTEMPLATE THE TRANSFER OF MONEYS FOR USE IN SUCH A WAY AS TO AUGMENT OR SAVE THE APPROPRIATIONS OF THE RECIPIENT DEPARTMENT. IT IS NOT THE INTENTION TO AUGMENT THE APPROPRIATIONS TO THIS DEPARTMENT BUT PROVIDE FUNDS WHEREBY WE CAN DETAIL CERTAIN OF OUR MEN DURING CERTAIN PERIODS OF THE YEAR TO PERFORM SERVICES FOR THE WAR DEPARTMENT IN TRAINING AND SUPERVISING THE WORK OF THEIR HAY INSPECTORS. THE FUNDS SAVED FOR OUR APPROPRIATION WHILE THESE MEN ARE EMPLOYED ON WAR DEPARTMENT WORK WILL BE USED TO EMPLOY OTHER MEN TO HANDLE THE WORK OF THOSE MEN WHILE THEY ARE ABSENT, THIS, OF COURSE, BEING DONE BY A REARRANGEMENT OF OUR FORCE.

THE COMPTROLLER GENERAL NEXT STATES THAT NOTHING IS SHOWN AS TO THE NATURE OF LABOR IN WASHINGTON OR BY WHOM OR FOR WHAT PURPOSE THE TRAVEL IS TO BE PERFORMED ON ACCOUNT OF WHICH EXPENDITURES WOULD BE MADE FOR TRANSPORTATION AND SUBSISTENCE. THE LATTER ITEM IS AN ERROR IN PREPARING THE LETTER FROM THIS DEPARTMENT WHICH WAS CONSIDERED BY THE COMPTROLLER GENERAL. IT SHOULD READ "SUPPLIES AND FREIGHT ON SAME, $300.' THIS SUM IS TO BE USED FOR PURCHASING HAY IN VARIOUS PARTS OF THE COUNTRY TO BE USED IN THE SCHOOLS HERE FOR TRAINING INSPECTORS AND TO PAY FOR THE FREIGHT ON SAME TO WASHINGTON. THE NATURE OF THE ITEM FOR LABOR IS THE WORK OF THE MEN PREPARING FOR AND CONDUCTING THE SCHOOLS. AT THE TIME THIS APPROPRIATION WAS REQUESTED THIS LABOR WAS ESTIMATED AS FOLLOWS: ONE JUNIOR MARKETING SPECIALIST, PREPARING MATERIALS FOR THE OFFICER'S SCHOOL AND WORKING IN THE SCHOOL DURING ITS DURATION, A TOTAL OF 71 DAYS, AT $2,000. ONE SENIOR MARKETING SPECIALIST AT $4,600 AND ONE ASSISTANT MARKETING SPECIALIST AT $2,600, AS INSTRUCTORS IN THE SCHOOL FOR 16 1/2 DAYS EACH. ONE JUNIOR MARKETING SPECIALIST, PREPARING MATERIAL AND CONDUCTING THE ENLISTED MEN'S SCHOOL, 57 DAYS, AT $2,000. THIS MAKES THE TOTAL ESTIMATE FOR THIS LABOR $1,041.09.

THE COMPTROLLER GENERAL NEXT QUESTIONS THE AUTHORITY UNDER WHICH THIS BUREAU IS TO UNDERTAKE THE INSTRUCTION OF ARMY OFFICERS. THE ONLY DIRECT AUTHORITY WE HAVE FOR THIS IS THE LANGUAGE IN THE BUDGET ALREADY QUOTED. HOWEVER, THE ANNUAL APPROPRIATION ACT FOR THE DEPARTMENT OF AGRICULTURE DOES GIVE THIS DEPARTMENT AUTHORITY TO MAKE INSPECTIONS OF AGRICULTURAL PRODUCTS FOR OTHER DEPARTMENTS AND COLLECT OUR ACTUAL EXPENSES FOR SO DOING. THIS WE DO IN MANY CASES WHERE FACILITIES ARE AVAILABLE, AND THAT APPEARS TO BE THE BEST WAY TO HANDLE THE WORK. IN THE CASE OF INSPECTION OF HAY FOR THE ARMY, HOWEVER, IT WAS BELIEVED THAT THIS COULD BE DONE TO MUCH BETTER ADVANTAGE AND MORE ECONOMICALLY BY THIS BUREAU TRAINING THE ARMY'S REPRESENTATIVES AND LICENSING THEM TO MAKE THEIR OWN INSPECTIONS AS OUR REPRESENTATIVES RATHER THAN FOR THIS DEPARTMENT TO MAKE THE INSPECTIONS FOR THE ARMY.

RELATIVE TO THE LACK OF A STATEMENT OF WHY THE ADDITIONAL EXPENSE TO BE INCURRED MAY NOT BE PAID FROM THE APPROPRIATIONS TO THIS DEPARTMENT WITH SUBSEQUENT ADJUSTMENT, WILL SAY THAT THE APPROPRIATIONS FOR OUR HAY- INSPECTION WORK ARE ONLY SUFFICIENT TO CARRY ON THE REGULAR WORK AND TO AWAIT REIMBURSEMENT FROM YOUR DEPARTMENT AFTER THE WORK IS PERFORMED WOULD PROBABLY CAUSE TEMPORARY DEFICITS IN OUR ALLOTMENT.

IT IS STATED ALSO IN FOURTH INDORSEMENT, DATED JULY 19, 1929, FROM THE OFFICE OF THE QUARTERMASTER GENERAL TO THE CHIEF OF FINANCE, THAT THE ITEM OF $2,250 WAS INSERTED IN THE BUDGET UNDER THE APPROPRIATION "INCIDENTAL EXPENSES OF THE ARMY" FOR THE EXPRESS PURPOSE OF TRANSFERRING SAME TO THE DEPARTMENT OF AGRICULTURE FOR INSPECTION INSTRUCTION FURNISHED BY THE DEPARTMENT OF AGRICULTURE, AND THAT AS THE ITEM WAS NOT ELIMINATED OR REDUCED BY THE CONGRESS IT IS APPARENT THAT

IT WAS THE INTENTION OF THE CONGRESS THAT THE FUNDS BE APPROPRIATED FOR THE PURPOSE ASKED FOR.

THE BUDGET FOR 1930 HAS BEEN EXAMINED AND IT IS FOUND THAT UNDER THE WAR DEPARTMENT APPROPRIATION "INCIDENTAL EXPENSES OF THE ARMY" THERE IS INCLUDED AN ITEM OF $2,250 FOR ,DEPARTMENT OF AGRICULTURE FOR TRAINING AND SUPERVISION OF MEMBERS OF THE VETERINARY CORPS LICENSED AS HAY INSPECTORS," AND THAT UNDER THE APPROPRIATION "MEDICAL AND HOSPITAL DEPARTMENT" THERE IS AN ITEM OF $1,350 FOR TRANSFER TO THE BUREAU OF AGRICULTURAL ECONOMICS, DEPARTMENT OF AGRICULTURE. HOWEVER, IT MUST BE UNDERSTOOD THAT THE BUDGET IS NOT LAW; THAT IT DOES NOT HAVE THE FORCE AND EFFECT OF LAW; AND THAT LANGUAGE OR ITEMIZATION APPEARING IN THE BUDGET IS NOT TANTAMOUNT TO LANGUAGE OR ITEMIZATION APPEARING IN AN APPROPRIATION. THERE APPEARS NOTHING IN THE APPROPRIATIONS HERE INVOLVED TO INDICATE THAT ANY PART THEREOF WAS INTENDED TO BE TRANSFERRED TO ANOTHER DEPARTMENT OR USED FOR A PURPOSE OTHER THAN THAT STATED IN THE APPROPRIATIONS AS MADE.

SECTION 7 OF THE ACT OF MAY 21, 1920, UNDER WHICH THE TRANSFER HERE IN QUESTION IS PROPOSED TO BE MADE, PROVIDES:

THAT WHENEVER ANY GOVERNMENT BUREAU OR DEPARTMENT PROCURES, BY PURCHASE OR MANUFACTURE, STORES OR MATERIALS OF ANY KIND, OR PERFORMS ANY SERVICE FOR ANOTHER BUREAU OR DEPARTMENT, THE FUNDS OF THE BUREAU OR DEPARTMENT FOR WHICH THE STORES OR MATERIALS ARE TO BE PROCURED OR THE SERVICE PERFORMED MAY BE PLACED SUBJECT TO THE REQUISITIONS OF THE BUREAU OR DEPARTMENT MAKING THE PROCUREMENT OR PERFORMING THE SERVICE FOR DIRECT EXPENDITURE: PROVIDED, THAT FUNDS SO PLACED WITH THE PROCURING BUREAU SHALL REMAIN AVAILABLE FOR A PERIOD OF TWO YEARS FOR THE PURPOSES FOR WHICH THE ALLOCATION WAS MADE UNLESS SOONER EXPENDED.

IT WILL BE NOTED THAT THIS SECTION AUTHORIZES THE TRANSFER OF FUNDS FROM ONE DEPARTMENT OR BUREAU TO ANOTHER FOR DIRECT EXPENDITURE ONLY WHEN THERE IS INVOLVED A PROCUREMENT BY PURCHASE OR MANUFACTURE OF STORES OR MATERIALS OR THE PERFORMANCE OF SERVICES, AND, AS STATED IN THE PREVIOUS DECISIONS OF THIS OFFICE HEREIN CITED, THE INSTRUCTING AND LICENSING OF THE MEMBERS OF THE ARMY VETERINARY CORPS AS FEDERAL HAY INSPECTORS DOES NOT APPEAR TO CONSTITUTE SUCH SERVICES AS ARE CONTEMPLATED AND COVERED BY THE SECTION QUOTED. HENCE, THERE IS NO AUTHORITY UNDER THAT LAW TO TAKE THE ACTION PROPOSED BY THE TWO WARRANTS HERE IN QUESTION.

THERE ARE NOTED THE STATEMENTS OF THE BUREAU OF AGRICULTURAL ECONOMICS IN LETTER QUOTED HEREIN THAT THE PURPOSE OF THE TRANSFER IS NOT TO INCREASE OR SAVE ITS APPROPRIATION BUT TO PROVIDE FUNDS TO PAY IN DETAIL FOR SUCH INSTRUCTION; THAT THE ONLY AUTHORITY OF THE BUREAU TO INSTRUCT AND LICENSE OFFICERS OF THE ARMY AS HAY INSPECTORS IS CONTAINED IN THE BUDGET AS REFERRED TO THEREIN COUPLED WITH THE GENERAL AUTHORITY IN THE APPROPRIATION ACT AUTHORIZING INSPECTION OF AGRICULTURAL PRODUCTS FOR OTHER DEPARTMENTS AND THE COLLECTION OF ACTUAL EXPENSES FOR DOING SO; AND THAT REIMBURSEMENT FOR ACTUAL EXPENSES, IF ANY, IN THE INSTRUCTING AND LICENSING OF ARMY OFFICERS WOULD NOT BE ADEQUATE AS IT WOULD PROBABLY CAUSE DEFICIT IN ALLOTMENT OF FUNDS.

IN THE ANNUAL AGRICULTURAL APPROPRIATION ACT OF FEBRUARY 16, 1929, 45 STAT. 1212, THERE IS NOTED AN APPROPRIATION FOR MARKET INSPECTION OF FARM PRODUCTS, AND IN THE DISCUSSION OF THIS ITEM BEFORE THE SUBCOMMITTEE OF THE HOUSE COMMITTEE ON APPROPRIATIONS, AS SHOWN BY THE HEARINGS, IT WAS STATED THAT WHEN FEES FOR INSPECTION OF SUCH FARM PRODUCTS WERE COLLECTED THEY WERE FOR DEPOSITING AND COVERING INTO THE TREASURY AS MISCELLANEOUS RECEIPTS. THUS, IT WOULD APPEAR THAT, WHILE THERE IS AUTHORITY FOR THE CHARGING OF INSPECTION FEES, WHETHER PERFORMED FOR PRIVATE INDIVIDUALS OR PUBLIC OR PRIVATE ORGANIZATIONS OR FOR GOVERNMENT DEPARTMENTS, THE AMOUNTS SO RECEIVED ARE NOT FOR THE CREDIT OF THE APPROPRIATION INVOLVED BUT FOR COVERING INTO THE TREASURY AS MISCELLANEOUS RECEIPTS. BY THE PROCEDURE PROPOSED TO BE ADOPTED IN THE CASE OF THE WAR DEPARTMENT--- THE INSTRUCTING AND LICENSING OF ARMY OFFICERS AS HAY INSPECTORS INSTEAD OF THE PERFORMANCE OF INSPECTION SERVICE BY THE BUREAU OF AGRICULTURAL ECONOMICS--- THERE WOULD APPEAR TO BE NO AUTHORITY UNDER THE LAW FOR THE CHARGING OF INSPECTION FEES SINCE NO INSPECTION IS MADE, AND BY THE USING OF WAR DEPARTMENT FUNDS FOR THE COST OF SUCH INSTRUCTIONS THERE IS CERTAINLY A SAVING OF THE BUREAU'S APPROPRIATION. IN OTHER WORDS, IF THE DEPARTMENT OF AGRICULTURE SHOULD PERFORM INSPECTION SERVICE FOR THE WAR DEPARTMENT, THE FEES CHARGED FOR SUCH INSPECTION WOULD BE FOR COVERING INTO THE TREASURY AS MISCELLANEOUS RECEIPTS. HENCE, THE APPROPRIATION FOR THE DEPARTMENT OF AGRICULTURE WOULD BEAR THE COST OF THE INSPECTION AND NOT BE REIMBURSED. AND WHILE, IF IT SHOULD BE DETERMINED THAT IT IS MORE ECONOMICAL TO ACCOMPLISH THE INSPECTION BY INSTRUCTING AND LICENSING ARMY OFFICERS AS HAY INSPECTORS, THERE WOULD APPEAR TO BE NO LEGAL OBJECTION TO SUCH PROCEDURE, THERE IS NO AUTHORITY OF LAW FOR THE AUGMENTING OF THE APPROPRIATION OF THE BUREAU OF AGRICULTURAL ECONOMICS FROM FUNDS OF THE WAR DEPARTMENT AS A RESULT BECAUSE OF THE ADOPTION OF SUCH PROCEDURE WHEN NO SUCH AUGMENTING WOULD RESULT IF THE REGULAR INSPECTION SERVICE WERE MAINTAINED AND FEES COLLECTED THEREFOR.

IT IS NOTED, ALSO, THAT THE INSTRUCTING AND LICENSING OF ARMY OFFICERS AS FEDERAL HAY INSPECTORS DOES NOT APPEAR TO INVOLVE THE INCURRING OF ANY EXTRA EXPENSE OR THE INCREASING OF THE REGULAR FORCE AND EQUIPMENT OF THE BUREAU OF AGRICULTURAL ECONOMICS, AND UNDER THE GENERAL RULE IN SUCH CASES THERE IS NO BASIS FOR CHARGING THE APPROPRIATION OF THE ESTABLISHMENT RECEIVING THE BENEFITS OF THE SERVICE. 6 COMP. GEN. 81; 7 ID. 709. THE FACTS AS PRESENTED BY THE RECORD FAIL TO PRESENT ANY BASIS FOR THE TRANSFER OF FUNDS AS PROPOSED UNDER SECTION 7 OF THE ACT OF MAY 21, 1920, OR OTHERWISE. ACCORDINGLY IT MUST BE HELD, AS HERETOFORE STATED IN THE TWO DECISIONS HEREIN REFERRED TO, THAT THE PROPOSED ACTION IN THE TWO WARRANTS IN QUESTION IS NOT AUTHORIZED.