A-60806, APRIL 11, 1935, 14 COMP. GEN. 760

A-60806: Apr 11, 1935

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PURCHASES WERE NECESSARILY MADE IN LOCALITIES WHERE SUITABLE SEEDS WERE AVAILABLE AND DISTRIBUTION WILL BE MADE IN THOSE LOCALITIES WHERE THE NEED IS GREATEST. THIS WILL ENTAIL MOVEMENT BY FREIGHT OR OTHERWISE WITH RESULTANT CHARGES. CHARGES HAVE ALSO BEEN INCURRED FOR STORAGE AND FOR CLEANING NECESSARY TO PLACE THE SEEDS IN SUITABLE CONDITION FOR PLANTING. PURCHASES WERE MADE AT VARYING PRICES AND AT DIFFERENT PERIODS. IT IS CONTEMPLATED THAT SALES WILL ALSO BE MADE AT DIFFERENT PERIODS. IT IS PROPOSED THAT DISPOSITION BE MADE OF THE SEEDS BY SALE AT PRICES WHICH WILL COVER THEIR COST PLUS AN AMOUNT ESTIMATED SUFFICIENT TO COVER ALL COSTS. IN THIS CONNECTION YOUR OPINION IS REQUESTED IN THE MATTER OF DISPOSITION OF THE PROCEEDS OF SUCH SALES.

A-60806, APRIL 11, 1935, 14 COMP. GEN. 760

MISCELLANEOUS RECEIPTS - PROCEEDS FROM SALE OF SEEDS IN DROUGHT-STRICKEN AREAS THE ACT OF JUNE 19, 1934, 48 STAT. 1056, AUTHORIZING THE PURCHASE, SALE, OR GIFT OF SEEDS IN DROUGHT-STRICKEN AREAS, CONTEMPLATES THAT ALL EXPENSES OF THE PROCUREMENT AND DISTRIBUTION OF THE SEEDS, WHETHER BY SALE OR GIFT, SHOULD BE BORNE BY THE APPROPRIATION. ANY PROCEEDS FROM THE SALE OF SUCH SEEDS SHOULD BE COVERED INTO THE GENERAL FUND OF THE TREASURY AS MISCELLANEOUS RECEIPTS IN ACCORDANCE WITH SECTION 3618, REVISED STATUTES, WITHOUT ANY DEDUCTION FOR EXPENSES.

COMPTROLLER GENERAL MCCARL TO THE SECRETARY OF AGRICULTURE, APRIL 11, 1935:

THERE HAS BEEN RECEIVED YOUR LETTER OF MARCH 12, 1935, AS FOLLOWS:

PURSUANT TO ALLOTMENT MADE BY THE PRESIDENT AND THE TERMS OF THE "EMERGENCY APPROPRIATION ACT, FISCAL YEAR 1935," APPROVED JUNE 19, 1934 (48 STATUTE 1056), THIS DEPARTMENT HAS PURCHASED LARGE QUANTITIES OF SEEDS FOR DISTRIBUTION IN DROUGHT-STRICKEN AREAS. PURCHASES WERE NECESSARILY MADE IN LOCALITIES WHERE SUITABLE SEEDS WERE AVAILABLE AND DISTRIBUTION WILL BE MADE IN THOSE LOCALITIES WHERE THE NEED IS GREATEST. THIS WILL ENTAIL MOVEMENT BY FREIGHT OR OTHERWISE WITH RESULTANT CHARGES. CHARGES HAVE ALSO BEEN INCURRED FOR STORAGE AND FOR CLEANING NECESSARY TO PLACE THE SEEDS IN SUITABLE CONDITION FOR PLANTING. PURCHASES WERE MADE AT VARYING PRICES AND AT DIFFERENT PERIODS. IT IS CONTEMPLATED THAT SALES WILL ALSO BE MADE AT DIFFERENT PERIODS, THEREFORE STORAGE CHARGES CANNOT BE DEFINITELY DETERMINED. IT IS PROPOSED THAT DISPOSITION BE MADE OF THE SEEDS BY SALE AT PRICES WHICH WILL COVER THEIR COST PLUS AN AMOUNT ESTIMATED SUFFICIENT TO COVER ALL COSTS, INCLUDING SHRINKAGE, HANDLING, FREIGHT, STORAGE, CLEANING AND SELLING COSTS. IN THIS CONNECTION YOUR OPINION IS REQUESTED IN THE MATTER OF DISPOSITION OF THE PROCEEDS OF SUCH SALES.

THE ACT PROVIDES FOR "THE PURCHASE, SALE, GIFT, OR OTHER DISPOSITION OF SEED, FEED, FREIGHT, SUMMER FALLOWING, AND OTHER SIMILAR PURPOSES.' IT IS APPARENT THAT IF THE SEEDS WERE TO BE DISTRIBUTED AS GIFTS THAT ALL EXPENSES IN CONNECTION WITH SALE, STORAGE, FREIGHT, CLEANING, ETC., WOULD NECESSARILY BE PAID FROM THE APPROPRIATION FROM WHICH PURCHASES WERE MADE. DOES IT FOLLOW THAT SUCH EXPENSES MUST BE PAID FROM THE APPROPRIATION OR MAY THEY BE PAID FROM THE PROCEEDS OF SALE UNDER AUTHORITY CONTAINED IN SECTION 489, TITLE 31, U.S. CODE, AS FOLLOWS:

"FROM THE PROCEEDS OF SALE OF OLD MATERIAL, CONDEMNED STORES, SUPPLIES, OR OTHER PUBLIC PROPERTY OF ANY KIND, BEFORE BEING DEPOSITED INTO THE TREASURY, EITHER AS MISCELLANEOUS RECEIPTS ON ACCOUNT OF "PROCEEDS OF GOVERNMENT PROPERTY" OR TO THE CREDIT OF THE APPROPRIATIONS TO WHICH SUCH PROCEEDS ARE BY LAW AUTHORIZED TO BE MADE, THERE MAY BE PAID THE EXPENSES OF SUCH SALES, AS APPROVED BY THE GENERAL ACCOUNTING OFFICE, SO AS TO REQUIRE ONLY THE NET PROCEEDS OF SUCH SALES TO BE DEPOSITED INTO THE TREASURY, EITHER AS MISCELLANEOUS RECEIPTS OR TO THE CREDIT OF SUCH APPROPRIATIONS, AS THE CASE MAY BE.'

IF THE EXPENSES MAY BE PAID FROM THE PROCEEDS OF SALE, MAY THE APPROPRIATION BE REIMBURSED FROM THE PROCEEDS TO THE EXTENT THAT SUCH EXPENDITURES HAVE HERETOFORE BEEN PAID FROM THE APPROPRIATION AND SUCH AS MAY BE PAID UP TO THE TIME THAT RECEIPTS WILL BECOME AVAILABLE?

IS IT PERMISSIBLE TO DEPOSIT THE PROCEEDS OF SALE TO THE APPROPRIATION, OR TO A SPECIAL FUND, FROM WHICH SELLING COSTS WILL BE PAID PENDING FINAL DETERMINATION OF THE NET AMOUNT TO BE EVENTUALLY DEPOSITED AS MISCELLANEOUS RECEIPTS OR TURNED BACK TO THE TREASURY AS SURPLUS?

IN ORDER THAT ADMINISTRATIVE INSTRUCTIONS MAY BE ISSUED AT THE EARLIEST PRACTICABLE DATE IT IS REQUESTED THAT YOUR REPLY BE MADE AS EXPEDITIOUSLY AS POSSIBLE.

THE APPROPRIATION REFERRED TO IN YOUR SUBMISSION IS SPECIFICALLY AVAILABLE FOR EXPENSES INCIDENT TO THE SALE OR GIFT OF THE SEEDS TO BE DISTRIBUTED, AND IT WOULD APPEAR TO HAVE BEEN THE INTENTION OF THE CONGRESS THAT ALL EXPENSES OF THE PROCUREMENT AND DISTRIBUTION OF THE SEEDS, WHETHER BY SALE OR GIFT, SHOULD BE BORNE BY THE APPROPRIATION. ACCORDINGLY, THE ENTIRE PROCEEDS REALIZED FROM THE SALE OF THE SEEDS SHOULD BE COVERED INTO THE TREASURY AS MISCELLANEOUS RECEIPTS IN ACCORDANCE WITH SECTIONS 3617 AND 3618, REVISED STATUTES, WITHOUT ANY DEDUCTION FOR EXPENSES.