A-43696, AUGUST 4, 1932, 12 COMP. GEN. 178

A-43696: Aug 4, 1932

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ECONOMY ACT - FURLOUGHS - INDEFINITE APPROPRIATIONS THE GROSS AMOUNT OF AN EMPLOYEE'S COMPENSATION (INCLUDING FURLOUGH DEDUCTIONS) IS CHARGEABLE AGAINST INDEFINITE APPROPRIATIONS AND THE PRESCRIBED BY INSTRUCTIONS OF JULY 12. INSTRUCTIONS ARE. SINCE FUNDS UNDER INDEFINITE APPROPRIATIONS ARE DRAWN FROM THE TREASURY ONLY AS NEEDS DEMAND. UNDER AN INDEFINITE APPROPRIATION THERE IS NO APPROPRIATED AMOUNT EXCEPT THE AMOUNT CHARGED THROUGH EXPENDITURES. IT IS ESSENTIAL THAT ALL IMPOUNDED FUNDS BE HANDLED IN THE SAME MANNER. YOU ARE INFORMED THAT THE SAVINGS UNDER THE ECONOMY ACT IN CONNECTION WITH CHARGES AGAINST INDEFINITE APPROPRIATIONS ARE TO BE ACCOUNTED FOR IN THE SAME MANNER AS PRESCRIBED IN INSTRUCTIONS OF JULY 12.

A-43696, AUGUST 4, 1932, 12 COMP. GEN. 178

ECONOMY ACT - FURLOUGHS - INDEFINITE APPROPRIATIONS THE GROSS AMOUNT OF AN EMPLOYEE'S COMPENSATION (INCLUDING FURLOUGH DEDUCTIONS) IS CHARGEABLE AGAINST INDEFINITE APPROPRIATIONS AND THE PRESCRIBED BY INSTRUCTIONS OF JULY 12, 1932, A-42691, A-43276, FOR HANDLING SUCH DEDUCTIONS CHARGEABLE TO DEFINITE APPROPRIATIONS.

COMPTROLLER GENERAL MCCARL TO THE SECRETARY OF WAR, AUGUST 4, 1932:

THERE HAS BEEN RECEIVED YOUR LETTER OF JULY 26, 1932, AS FOLLOWS:

IN CONNECTION WITH THE ISSUE OF INSTRUCTIONS TO FIELD OFFICES BASED ON YOUR LETTER DATED JULY 12, 1932, SUBJECT "FURLOUGH AND COMPENSATION DEDUCTIONS, IMPOUNDING OF SAME, AND OF VACANCY SAVINGS," INTERPRETING HAS ARISEN AS TO WHETHER THE SAVINGS UNDER INDEFINITE APPROPRIATIONS SHOULD BE IMPOUNDED AND COVERED INTO THE TREASURY, AS IN THE CASE OF SPECIFIC APPROPRIATIONS, OR WHETHER THE SAVINGS SHOULD BE HELD IN THE APPROPRIATIONS.

THE OFFICE OF THE CHIEF OF ENGINEERS HAS TWO APPROPRIATIONS OF THIS CLASS, NAMELY:

"OPERATING AND CARE OF CANALS AND OTHER WORKS OF NAVIGATION, INDEFINITE.' (ACTS JULY 5, 1884, AND MARCH 3, 1909, UNITED STATES CODE, TITLE 33, SECTION 5.)

"REMOVING SUNKEN VESSELS OR CRAFT OBSTRUCTING OR ENDANGERING NAVIGATION, INDEFINITE.' (ACT MARCH 3, 1899, U.S.C. TITLE 33, SECTIONS 414-416.)

IT WOULD APPEAR TO BE DESIRABLE THAT THE PROCEDURE WITH RESPECT TO THE DISPOSITION OF SAVINGS UNDER INDEFINITE APPROPRIATIONS BE UNIFORM IN ALL DEPARTMENTS, AND INSTRUCTIONS ARE, THEREFORE, REQUESTED AS TO THE PROCEDURE THAT SHOULD BE FOLLOWED. SINCE FUNDS UNDER INDEFINITE APPROPRIATIONS ARE DRAWN FROM THE TREASURY ONLY AS NEEDS DEMAND, ANY SAVINGS IMPOUNDED UNDER THESE APPROPRIATIONS UNDER THE PROCEDURE PROVIDED FOR SPECIFIC APPROPRIATIONS WOULD NECESSITATE A WITHDRAWAL OF UNAPPROPRIATED FUNDS FROM THE TREASURY AND A RETURN THERETO, NO ACTUAL SAVINGS OF FUNDS APPROPRIATED BEING EFFECTED.

HOWEVER, IN ORDER THAT ALL SAVINGS UNDER THE PROVISIONS OF THE ACT OF JUNE 30, 1932, MAY BE INCLUDED IN REPORTS THEREOF, IT WOULD APPEAR ADVISABLE TO FOLLOW THE SAME PROCEDURE AS IN THE CASE OF SPECIFIC APPROPRIATIONS.

UNDER AN INDEFINITE APPROPRIATION THERE IS NO APPROPRIATED AMOUNT EXCEPT THE AMOUNT CHARGED THROUGH EXPENDITURES.

BUT FOR THE PROVISIONS OF THE ECONOMY ACT OF JUNE 30, 1932, THE CHARGE AGAINST THE INDEFINITE APPROPRIATION WOULD BE THE EXPENDITURE FOR EMPLOYEES' COMPENSATION IN THE GROSS AMOUNT. THE ECONOMY ACT DOES NOT AUTHORIZE ANY LESSER CHARGE THAN THE GROSS AMOUNT AGAINST APPROPRIATED FUNDS, BUT REQUIRES THAT THE DIFFERENCE BETWEEN THE OTHERWISE GROSS CHARGE AND THE NET CHARGE RESULTING FROM THE ECONOMY ACT BE CHARGED AGAINST THE APPROPRIATION AND IMPOUNDED. IN THE INTEREST OF UNIFORMITY IN ACCOUNTING, THEREFORE, IT IS ESSENTIAL THAT ALL IMPOUNDED FUNDS BE HANDLED IN THE SAME MANNER. ACCORDINGLY, YOU ARE INFORMED THAT THE SAVINGS UNDER THE ECONOMY ACT IN CONNECTION WITH CHARGES AGAINST INDEFINITE APPROPRIATIONS ARE TO BE ACCOUNTED FOR IN THE SAME MANNER AS PRESCRIBED IN INSTRUCTIONS OF JULY 12, 1932, FOR THE HANDLING OF SUCH ITEMS CHARGED TO DEFINITE APPROPRIATIONS.