A-81897, FEBRUARY 6, 1937, 16 COMP. GEN. 730

A-81897: Feb 6, 1937

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INTER-AGENCY EQUIPMENT LOANS - SUBSEQUENT PURCHASE BY BORROWING AGENCY - DISPOSITION OF PURCHASE PRICE WHERE EQUIPMENT IS LOANED BY ONE GOVERNMENT AGENCY TO ANOTHER IN ORDER MORE EXPEDITIOUSLY TO CARRY OUT EMERGENCY PHASES OF THE BORROWING AGENCY'S WORK. AS FOLLOWS: THIS CORPORATION IS IN RECEIPT OF A CHECK IN THE AMOUNT OF $1. IT IS NOTED THAT DISBURSING OFFICERS ARE REQUIRED BY LAW TO DEPOSIT ANY MONIES RECEIVED FROM THE SALES OF MATERIAL INTO THE TREASURY DEPARTMENT. THIS PARTICULAR TRANSFER OF EQUIPMENT WAS NOT MADE UNDER THE ORDINARY PROCEDURE GENERALLY REFERRED TO AS SALES OF GOVERNMENT PROPERTY. THE CORPORATION AND THE FEDERAL EMERGENCY RELIEF ADMINISTRATION WERE HOUSED IN THE SAME BUILDING AND WERE ALSO UNDER THE SAME TITULAR HEAD.

A-81897, FEBRUARY 6, 1937, 16 COMP. GEN. 730

INTER-AGENCY EQUIPMENT LOANS - SUBSEQUENT PURCHASE BY BORROWING AGENCY - DISPOSITION OF PURCHASE PRICE WHERE EQUIPMENT IS LOANED BY ONE GOVERNMENT AGENCY TO ANOTHER IN ORDER MORE EXPEDITIOUSLY TO CARRY OUT EMERGENCY PHASES OF THE BORROWING AGENCY'S WORK, AND IT BECOMES NECESSARY FOR THE LENDING AGENCY TO PURCHASE OTHER EQUIPMENT TO REPLACE THAT LOANED, THE AMOUNT LATER PAID BY THE BORROWING AGENCY AS IN PURCHASE OF SAID EQUIPMENT NEED NOT BE DEPOSITED AS MISCELLANEOUS RECEIPTS BUT MAY BE CREDITED UNDER THE TERMS OF SUBSECTION (B), SECTION 601 OF THE ACT OF JUNE 30, 1932, 47 STAT. 417, TO THE APPLICABLE FUND OF THE LENDING AGENCY.

ACTING COMPTROLLER GENERAL ELLIOTT TO THE FEDERAL SURPLUS COMMODITIES CORPORATION, FEBRUARY 6, 1937:

THERE HAS BEEN CONSIDERED YOUR LETTER OF NOVEMBER 19, 1936, AS FOLLOWS:

THIS CORPORATION IS IN RECEIPT OF A CHECK IN THE AMOUNT OF $1,672.76 FROM THE WORKS PROGRESS ADMINISTRATION, IN PAYMENT FOR OFFICE EQUIPMENT BORROWED AND RETAINED.

UPON REFERRING TO SECTION 487, PROCEEDS OF SALE OF MATERIAL, REVISED STATUTES 3618, IT IS NOTED THAT DISBURSING OFFICERS ARE REQUIRED BY LAW TO DEPOSIT ANY MONIES RECEIVED FROM THE SALES OF MATERIAL INTO THE TREASURY DEPARTMENT, MISCELLANEOUS RECEIPTS.

THIS PARTICULAR TRANSFER OF EQUIPMENT WAS NOT MADE UNDER THE ORDINARY PROCEDURE GENERALLY REFERRED TO AS SALES OF GOVERNMENT PROPERTY. THE CORPORATION AND THE FEDERAL EMERGENCY RELIEF ADMINISTRATION WERE HOUSED IN THE SAME BUILDING AND WERE ALSO UNDER THE SAME TITULAR HEAD. AS THE VARIOUS PHASES OF THE PROGRAMS OF THE TWO ORGANIZATIONS DEVELOPED, IT WAS NECESSARY THAT THE PERSONNEL OF BOTH BE INCREASED. THE FEDERAL SURPLUS RELIEF CORPORATION LOANED CERTAIN EQUIPMENT TO THE FEDERAL EMERGENCY RELIEF ADMINISTRATION AT VARIOUS TIMES WHEN IT WAS NEEDED TO CARRY ON THE EMERGENCY PROGRAM. THIS EQUIPMENT WAS NOT SURPLUS BUT WAS LOANED MAINLY TO ASSIST THE FEDERAL EMERGENCY RELIEF ADMINISTRATION IN SETTING UP CERTAIN EMERGENCY PHASES OF THE WORK WITHOUT LOSS OF TIME.

IN SEPTEMBER 1934, THE CORPORATION MOVED FROM THE WALKER-JOHNSON BUILDING, WHERE IT WAS HOUSED WITH THE FEDERAL EMERGENCY RELIEF ADMINISTRATION. THE EQUIPMENT WHICH WAS LOANED TO THE LATTER WAS NOT REMOVED FROM THE PREMISES, IN VIEW OF THE CONTINUED NEED OF THE FEDERAL EMERGENCY RELIEF ADMINISTRATION AND THE DISRUPTION OF ITS WORK WHICH WOULD HAVE OCCURRED HAD THE CORPORATION INSISTED UPON CUSTODY OF THE MATERIAL. BY COOPERATING WITH THE FEDERAL EMERGENCY RELIEF ADMINISTRATION IN THIS WAY, THE CORPORATION WAS FACED WITH THE NECESSITY OF PURCHASING NEW MATERIAL TO REPLACE THAT REMAINING IN THE HANDS OF THE FEDERAL EMERGENCY RELIEF ADMINISTRATION. THUS THE CORPORATION SUFFERED AN ADDITIONAL FINANCIAL BURDEN AND LOST CUSTODY OF THE LOANED EQUIPMENT WHICH IT HAD PROCURED.

THE MANAGEMENT OF THE CORPORATION WAS VERY ANXIOUS TO RENDER A PROPER ACCOUNT OF ITS RESPONSIBILITY WITH REGARD TO THIS EQUIPMENT AND THE USE OF ITS FUNDS. CONSEQUENTLY, STEPS WERE TAKEN TO SECURE AN ACKNOWLEDGMENT FROM THE FEDERAL EMERGENCY RELIEF ADMINISTRATION OF THE FURNITURE WHICH REMAINED IN ITS CUSTODY, A TRANSFER OF SAID EQUIPMENT, AND A REPLENISHMENT OF THE CORPORATION FUNDS FROM WHICH MONEY HAD BEEN TAKEN TO REPLACE THE EQUIPMENT WHICH WAS LOANED TO SAID ADMINISTRATION. VOUCHER WAS ACCORDINGLY SUBMITTED FOR REIMBURSEMENT. INASMUCH AS THE FEDERAL SURPLUS COMMODITIES CORPORATION, CORPORATE SUCCESSOR TO THE FEDERAL SURPLUS RELIEF CORPORATION, AND THE WORKS PROGRESS ADMINISTRATION, SUCCESSOR TO THE FEDERAL EMERGENCY RELIEF ADMINISTRATION, ARE BOTH GOVERNMENTAL AGENCIES, THE CHECK IN QUESTION REPRESENTS A REIMBURSEMENT FOR EQUIPMENT THAT WAS NECESSARY TO THE FEDERAL EMERGENCY RELIEF ADMINISTRATION AND HAD TO BE REPLACED BY THE CORPORATION.

IN VIEW OF THE UNUSUAL CIRCUMSTANCES INVOLVED IN THIS PARTICULAR CASE, A DECISION IS REQUESTED ADVISING WHETHER OR NOT THE CHECK NOW IN THE HANDS OF THE CORPORATION, ISSUED BY THE WORKS PROGRESS ADMINISTRATION, MAY BE DEPOSITED TO THE CREDIT OF THE CORPORATION, SINCE THE CORPORATION WAS REQUIRED TO EXPEND ITS FUNDS FOR REPLACEMENT.

SECTION 601 (A) OF THE ACT OF JUNE 30, 1932, 47 STAT. 417, PROVIDES, AS FOLLOWS:

ANY EXECUTIVE DEPARTMENT OR INDEPENDENT ESTABLISHMENT OF THE GOVERNMENT, OR ANY BUREAU OR OFFICE THEREOF, IF FUNDS ARE AVAILABLE THEREFOR AND IF IT IS DETERMINED BY THE HEAD OF SUCH EXECUTIVE DEPARTMENT, ESTABLISHMENT, BUREAU, OR OFFICE TO BE IN THE INTEREST OF THE GOVERNMENT SO TO DO, MAY PLACE ORDERS WITH ANY OTHER SUCH DEPARTMENT, ESTABLISHMENT, BUREAU, OR OFFICE FOR MATERIALS, SUPPLIES, EQUIPMENT, WORK, OR SERVICES, OF ANY KIND THAT SUCH REQUISITIONED FEDERAL AGENCY MAY BE IN A POSITION TO SUPPLY OR EQUIPPED TO RENDER, AND SHALL PAY PROMPTLY BY CHECK TO SUCH FEDERAL AGENCY AS MAY BE REQUISITIONED, UPON ITS WRITTEN REQUEST, EITHER IN ADVANCE OR UPON THE FURNISHING OR PERFORMANCE THEREOF, ALL OR PART OF THE ESTIMATED OR ACTUAL COST THEREOF AS DETERMINED BY SUCH DEPARTMENT, ESTABLISHMENT, BUREAU, OR OFFICE AS MAY BE REQUISITIONED; BUT PROPER ADJUSTMENTS ON THE BASIS OF THE ACTUAL COST OF THE MATERIALS, SUPPLIES, OR EQUIPMENT FURNISHED, OR WORK OR SERVICES PERFORMED, PAID FOR IN ADVANCE, SHALL BE MADE AS MAY BE AGREED UPON BY THE DEPARTMENTS, ESTABLISHMENTS, BUREAUS, OR OFFICES CONCERNED; * * *

SUBSECTION (B) OF SAID SECTION PROVIDES, IN PART, AS FOLLOWS:

* * * WHERE MATERIALS, SUPPLIES, OR EQUIPMENT ARE FURNISHED FROM STOCKS ON HAND, THE AMOUNTS RECEIVED IN PAYMENT THEREFOR SHALL BE CREDITED TO APPROPRIATIONS OR FUNDS, AS MAY BE AUTHORIZED BY OTHER LAW, OR, IF NOT SO AUTHORIZED, SO AS TO BE AVAILABLE TO REPLACE THE MATERIALS, SUPPLIES, OR EQUIPMENT, EXCEPT THAT WHERE THE HEAD OF ANY SUCH DEPARTMENT,ESTABLISHMENT, BUREAU, OR OFFICE DETERMINES THAT SUCH REPLACEMENT IS NOT NECESSARY THE AMOUNTS PAID SHALL BE COVERED INTO THE TREASURY AS MISCELLANEOUS RECEIPTS.

WHILE THE TRANSACTION AT ITS INCEPTION WAS NOT STRICTLY A SALE AND PURCHASE OF EQUIPMENT, AS THE MATTER NOW STANDS THE TRANSACTION APPEARS TO BE A TRANSFER OF EQUIPMENT FROM ONE DEPARTMENT TO ANOTHER AS CONTEMPLATED BY THE ABOVE-QUOTED PROVISIONS OF LAW WITH RESPECT TO THE HANDLING OF SUCH MATTERS. ACCORDINGLY, IN VIEW OF THE NECESSITY FOR THE REPLACEMENT BY YOUR CORPORATION OF THE FURNITURE LOANED TO THE FEDERAL EMERGENCY RELIEF ADMINISTRATION, THIS OFFICE IS NOT REQUIRED TO OBJECT TO THE DEPOSIT OF THE PROCEEDS OF THE CHECK TO THE CREDIT OF THE APPLICABLE FUND OF THE FEDERAL SURPLUS COMMODITIES CORPORATION.