A-59268, JANUARY 9, 1935, 14 COMP. GEN. 528

A-59268: Jan 9, 1935

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NATIONAL RECOVERY FUNDS - COMPLETION OF WORK ON FORCE ACCOUNT BASIS UNLESS THE PERIOD OF AVAILABILITY OF NATIONAL RECOVERY FUNDS IS EXTENDED BY LEGISLATION BEYOND JUNE 30. SUCH FUNDS WILL NOT BE AVAILABLE AFTER THAT DATE FOR COMPLETION OF WORK ON A FORCE ACCOUNT BASIS INITIATED PRIOR THERETO. AS FOLLOWS: YOUR DECISION IS REQUESTED AS TO THE AVAILABILITY OF THE APPROPRIATION TITLE "2-03/5640.1. THE CRUISING CUTTERS WHICH ARE BEING CONSTRUCTED FOR THE COAST GUARD UNDER PROJECT F.P. 23A REQUIRES SMALL BOATS AS A PART OF THE EQUIPMENT TO BE FURNISHED BY THE GOVERNMENT. THE COAST GUARD WILL BUILD THESE SMALL BOATS AT THE COAST GUARD DEPOT. WILL REQUIRE BOATS TO BE STORED UNTIL THE CUTTERS ARE COMPLETED.

A-59268, JANUARY 9, 1935, 14 COMP. GEN. 528

NATIONAL RECOVERY FUNDS - COMPLETION OF WORK ON FORCE ACCOUNT BASIS UNLESS THE PERIOD OF AVAILABILITY OF NATIONAL RECOVERY FUNDS IS EXTENDED BY LEGISLATION BEYOND JUNE 30, 1935, SUCH FUNDS WILL NOT BE AVAILABLE AFTER THAT DATE FOR COMPLETION OF WORK ON A FORCE ACCOUNT BASIS INITIATED PRIOR THERETO.

COMPTROLLER GENERAL MCCARL TO THE SECRETARY OF THE TREASURY, JANUARY 9, 1935:

THERE HAS BEEN RECEIVED YOUR LETTER OF DECEMBER 12, 1934, AS FOLLOWS:

YOUR DECISION IS REQUESTED AS TO THE AVAILABILITY OF THE APPROPRIATION TITLE "2-03/5640.1, NATIONAL INDUSTRIAL RECOVERY, TREASURY, COAST GUARD, 1933-1935" AND MATERIAL FOR WORK UNDERTAKEN AT GOVERNMENT-OWNED ESTABLISHMENTS AND FOR SALARIES FOR PERSONNEL ATTACHED TO COAST GUARD HEADQUARTERS IN CONNECTION WITH SUCH WORK.

THE CRUISING CUTTERS WHICH ARE BEING CONSTRUCTED FOR THE COAST GUARD UNDER PROJECT F.P. 23A REQUIRES SMALL BOATS AS A PART OF THE EQUIPMENT TO BE FURNISHED BY THE GOVERNMENT. THE COAST GUARD WILL BUILD THESE SMALL BOATS AT THE COAST GUARD DEPOT, CURTIS BAY, MARYLAND. COMPLETION OF THIS PART OF THE PROJECT PRIOR TO JUNE 30, 1935, WILL REQUIRE BOATS TO BE STORED UNTIL THE CUTTERS ARE COMPLETED, WHICH WILL BE DURING THE PERIOD FROM MAY 1936 TO NOVEMBER 1936. TO KEEP THESE BOATS IN STORAGE FOR AN ENTIRE YEAR IS NOT ADVANTAGEOUS TO THE GOVERNMENT FOR THEY WILL BE SUBJECT TO DAMAGE AND GENERAL DETERIORATION FOR A PERIOD OF AT LEAST A YEAR. THE CONSTRUCTION OF THE SMALL BOATS COMPRISES ONLY A SMALL PART OF THE ENTIRE PROJECT AND IT IS NOT DESIRABLE FROM THE STANDPOINT OF ECONOMICAL PLANNING OF THE WORK TO UNDERTAKE THE CONSTRUCTION OF THESE BOATS UNTIL AFTER JUNE 30, 1935.

INASMUCH AS THE CONSTRUCTION PROGRAM FOR THE 328-FOOT CRUISING CUTTERS AT THE NAVY YARDS WILL CONTINUE WELL INTO THE FISCAL YEAR OF 1937, IT WILL BE PARTICULARLY DESIRABLE TO ARRANGE PURCHASES OF GOVERNMENT FURNISHED MATERIAL SUCH AS EQUIPMENT, SUPPLIES, ETC., AFTER JUNE 30, 1935; THE PURCHASES SO REQUIRED FORM BUT A SMALL PART OF THE TOTAL AMOUNT OF THE PROJECT AND WILL NOT BE REQUIRED UNTIL THE SHIPS HAVE BEEN CONSTRUCTED. THE CONSTRUCTION OF THE CRUISING CUTTERS IN FEDERAL PROJECT 23A WILL EXTEND UNTIL NOVEMBER 1936, AND IT WILL BE ESSENTIAL FOR THE COAST GUARD TO RETAIN THE PERSONAL SERVICES OF SOME CLERICAL AND TECHNICAL EMPLOYEES AFTER JUNE 30, 1935.

IN VIEW OF THE SITUATION ABOVE DISCLOSED THE FOLLOWING QUESTIONS HAVE ARISEN:

(A) CAN PAYMENTS LEGALLY BE MADE AFTER JUNE 30, 1935, OUT OF THE APPROPRIATION ABOVE REFERRED TO FOR LABOR AND MATERIAL FOR THE WORK OF CONSTRUCTING SMALL BOATS AT A GOVERNMENT-OWNED ESTABLISHMENT, NAMELY THE COAST GUARD DEPOT AT CURTIS BAY, MARYLAND, PROVIDED THE APPROPRIATION IS ENCUMBERED PRIOR TO THAT DATE, AND MONTHLY ALLOTMENTS MADE TO THE ESTABLISHMENT ABOVE REFERRED TO AS WORK PROGRESSES?

(B) CAN THE PERSONAL SERVICES OF CLERICAL AND TECHNICAL EMPLOYEES REQUIRED AT COAST GUARD HEADQUARTERS, PROBABLY UNTIL NOVEMBER 1936, IN CONNECTION WITH THE CONSTRUCTION OF CRUISING CUTTERS UNDER FEDERAL PROJECT 23A, BE PAID FOR OUT OF THE ABOVE-MENTIONED APPROPRIATIONS SUBSEQUENT TO JUNE 30, 1935, PROVIDED ENCUMBRANCES FOR THE PAYMENT OF SUCH PERSONAL SERVICES ARE SET UP PRIOR TO JUNE 30, 1935?

(C) CAN THE ABOVE-MENTIONED APPROPRIATIONS BE OBLIGATED FOR PURCHASES OF EQUIPMENT AND SUPPLIES INCIDENTAL TO AND FOR USE IN CARRYING OUT THE ABOVE -MENTIONED APPROVAL PROJECT SUBSEQUENT TO JUNE 30, 1935, AND CONTINUING WELL INTO THE FISCAL YEAR 1937?

IT IS THE VIEW OF THIS DEPARTMENT THAT THE DECISION OF YOUR OFFICE IN 1 COMP. GEN. 175, CONSTRUING THE PROVISIONS OF THE ACT OF JUNE 5, 1920, 41 STAT. 975 (U.S.C., TITLE 41, SEC. 23), CLEARLY ANSWERS IN THE AFFIRMATIVE QUESTIONS (A) AND (C) ABOVE, AND BY REASONABLE EXTENSION OF THE PRINCIPLE THEREIN LAID DOWN FURNISHES A SUFFICIENT ANSWER IN THE AFFIRMATIVE FOR QUESTION (B); BUT IT IS DESIRED TO HAVE THE VIEWS OF YOUR OFFICE BEFORE DEFINITE ACTION IS TAKEN.

IT IS UNDERSTOOD THAT THE WORK ON PROJECT F.P. 23A IS BEING FINANCED ENTIRELY FROM FUNDS ALLOTTED UNDER AUTHORITY OF THE NATIONAL INDUSTRIAL RECOVERY ACT ON FORCE-ACCOUNT BASIS, AS DISTINGUISHED FROM A CONTRACT BASIS.

IN DECISION OF OCTOBER 15, 1934, A-57604, AFTER QUOTING FROM SECTION 201 (D) OF THE NATIONAL INDUSTRIAL RECOVERY ACT OF JUNE 16, 1933, 48 STAT. 201, AND THE APPROPRIATION ACTS OF JUNE 16, 1933, 48 STAT. 275, AND JUNE 19, 1934, 48 STAT. 1055, PROVIDING FUNDS FOR CARRYING OUT THE PURPOSES OF THE NATIONAL INDUSTRIAL RECOVERY ACT, IT WAS HELD AS FOLLOWS:

THE APPROPRIATIONS IN QUESTION WERE MADE FOR THE PURPOSES OF EMERGENCY ACTIVITIES AUTHORIZED BY THE NATIONAL INDUSTRIAL RECOVERY ACT, WHICH ACTIVITIES, BY THE TERMS OF THE ACT, WERE LIMITED TO TWO YEARS FROM JUNE 16, 1933, UNLESS SOONER TERMINATED BY THE PRESIDENT OR THE CONGRESS. BOTH APPROPRIATIONS ARE MADE AVAILABLE BY THEIR TERMS TO JUNE 30, 1935. THE LANGUAGE USED IN EACH OF THE ACTS IS CLEAR AND CAN BE CONSTRUED ONLY AS IS THE GENERAL RULE IN CONNECTION WITH FISCAL YEAR APPROPRIATIONS, AS MAKING THE FUNDS AVAILABLE ONLY FOR PAYMENT OF OBLIGATIONS INCURRED ON OR PRIOR TO JUNE 30, 1935. IF PORTIONS OF THE WORK TO WHICH SUCH MONEYS HAVE BEEN ALLOCATED, AND WHICH WORK IS NOW BEING PROSECUTED BY FORCE ACCOUNT, CANNOT BE COMPLETED DURING THE AVAILABILITY OF THE MONEYS, THAT IS, PRIOR TO JUNE 30, 1935, WHETHER SUCH WORK SHALL BE CONTINUED TO COMPLETION IS A MATTER FOR THE CONSIDERATION OF THE CONGRESS, AND UNLESS THE PERIOD OF AVAILABILITY OF THE FUNDS IS EXTENDED BY LEGISLATION BEYOND JUNE 30, 1935, THE FUNDS UNDER THE TWO APPROPRIATIONS REFERRED TO WILL NOT BE AVAILABLE FOR THE PAYMENT OF OBLIGATIONS INCURRED SUBSEQUENT TO THAT DATE, WHETHER THE FUNDS ARE UNDER ALLOTMENTS OR ARE STILL IN THE ORIGINAL APPROPRIATIONS.

AND IN DECISION OF OCTOBER 19, 1934, A-58070, IT WAS STATED AS FOLLOWS:

IN BOTH THE ORIGINAL APPROPRIATION FOR CARRYING OUT THE PURPOSES OF THE NATIONAL INDUSTRIAL RECOVERY ACT, FOUND IN THE FOURTH DEFICIENCY ACT OF 1933, 48 STAT. 275, AND IN THE EMERGENCY APPROPRIATION ACT OF JUNE 19, 1934, 48 STAT. 1055, ARE PROVISIONS MAKING THE RESPECTIVE APPROPRIATIONS AVAILABLE UNTIL JUNE 30, 1935. ACCORDINGLY, ANY ALLOTMENTS FROM SUCH FUNDS REMAINING UNOBLIGATED ON JUNE 30, 1935, WILL NOT THEREAFTER BE AVAILABLE FOR OBLIGATION OR EXPENDITURE. MERE AUTHORIZATION FOR THE EXPENDITURE OF SUCH FUNDS ON FORCE-ACCOUNT WORK WILL NOT BE CONSIDERED SUCH AN OBLIGATION AS WILL PRESENT THE UNEXPENDED BALANCE FROM REVERTING TO THE SURPLUS FUND. A-50358, AUGUST 22, 1933. SEE IN CONNECTION WITH THE FOREGOING, SECTION 3690 AND 3691, REVISED STATUTES. SEE ALSO IN GENERAL MY DECISION OF OCTOBER 15, 1934, A-57604.