A-83464, MARCH 19, 1937, 16 COMP. GEN. 876

A-83464: Mar 19, 1937

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ARE LIMITED TO THOSE PERTAINING DIRECTLY THERETO. AS APPRAISALS UNDER THE ACT OF AUGUST 26 ARE REQUIRED TO BE MADE BY THE TREASURY DEPARTMENT. SALES UNDER THE ACT OF AUGUST 27 ARE BY AUCTION WITHOUT PROVISION OR AUTHORIZATION FOR APPOINTMENT OF APPRAISERS. THE EXPENSES OF APPRAISALS ARE NOT PAYABLE FROM SUCH PROCEEDS. IS. IS AUTHORIZED * * * (C) TO SELL THE SAME AT PUBLIC SALE TO THE HIGHEST RESPONSIBLE BIDDER UPON SUCH TERMS AND AFTER SUCH PUBLIC ADVERTISEMENT AS HE MAY DEEM IN THE PUBLIC INTEREST.'. SALES ARE BEING HELD REGULARLY. SURVEYS AND STUDIES ARE BEING MADE IN PREPARATION FOR THE SALE OF AN INCREASING VOLUME OF SURPLUS PROPERTY. IT IS NECESSARY TO PAY THE EXPENSES OF TRAVEL OF INSPECTORS.

A-83464, MARCH 19, 1937, 16 COMP. GEN. 876

SALES - SURPLUS AND OBSOLETE REAL PROPERTY - EXPENSES PAYABLE FROM PROCEEDS THE EXPENSES OF SALES PAYABLE FROM THE PROCEEDS OF SURPLUS AND OBSOLETE REAL PROPERTY SOLD PURSUANT TO THE ACTS OF AUGUST 26, 1935, AND AUGUST 27, 1935, 49 STAT. 800 AND 885, RESPECTIVELY, ARE LIMITED TO THOSE PERTAINING DIRECTLY THERETO, SUCH AS AUCTIONEER'S FEES, ADVERTISING, PHOTOGRAPHS NECESSARY TO ADVERTISING, TELEGRAMS AND TELEPHONE CALLS NECESSARILY INCIDENT TO THE SALES, AND LIKE EXPENSES, BUT, AS APPRAISALS UNDER THE ACT OF AUGUST 26 ARE REQUIRED TO BE MADE BY THE TREASURY DEPARTMENT, AND SALES UNDER THE ACT OF AUGUST 27 ARE BY AUCTION WITHOUT PROVISION OR AUTHORIZATION FOR APPOINTMENT OF APPRAISERS, THE EXPENSES OF APPRAISALS ARE NOT PAYABLE FROM SUCH PROCEEDS, NOR MAY TRAVELING EXPENSES OF GOVERNMENT EMPLOYEES INCIDENT TO THE SALES BE SO PAID.

ACTING COMPTROLLER GENERAL ELLIOTT TO THE SECRETARY OF THE TREASURY, MARCH 19, 1937:

THERE HAS BEEN CONSIDERED YOUR LETTER OF JANUARY 28, 1937, AS FOLLOWS:

PUBLIC ACT NO. 351, 74TH CONGRESS, APPROVED AUGUST 27, 1935 (49 STAT. 885), PROVIDES IN PART AS FOLLOWS:

"THAT NOTWITHSTANDING ANY OTHER PROVISIONS OF LAW, WHENEVER ANY REAL PROPERTY LOCATED OUTSIDE OF THE DISTRICT OF COLUMBIA, EXCLUSIVE OF MILITARY OR NAVAL RESERVATIONS, HERETOFORE OR HEREAFTER ACQUIRED BY ANY FEDERAL AGENCY, BY JUDICIAL PROCESS OR OTHERWISE IN THE COLLECTION OF DEBTS, PURCHASE, DONATION, CONDEMNATION, DEVISE, FORFEITURE, LEASE, OR IN ANY OTHER MANNER, IS, IN WHOLE OR IN PART, DECLARED TO BE IN EXCESS OF ITS NEEDS BY THE FEDERAL AGENCY HAVING CONTROL THEREOF, OR BY THE PRESIDENT ON RECOMMENDATION OF THE SECRETARY OF THE TREASURY, THE DIRECTOR OF PROCUREMENT, WITH THE APPROVAL OF THE SECRETARY OF THE TREASURY, IS AUTHORIZED * * * (C) TO SELL THE SAME AT PUBLIC SALE TO THE HIGHEST RESPONSIBLE BIDDER UPON SUCH TERMS AND AFTER SUCH PUBLIC ADVERTISEMENT AS HE MAY DEEM IN THE PUBLIC INTEREST.'

PUBLIC ACT NO. 330, 74TH CONGRESS, APPROVED AUGUST 26, 1935 (49 STAT. 800), AUTHORIZES THE SALE OF OBSOLETE BUILDINGS AND SITES TO STATES, COUNTIES, OR MUNICIPALITIES AT FIFTY PERCENT OF THEIR APPRAISED VALUE,THE APPRAISALS TO BE MADE BY THE TREASURY DEPARTMENT.

MUCH SURPLUS PROPERTY HAS BEEN ASSEMBLED BY THE PROCUREMENT DIVISION, AND SALES ARE BEING HELD REGULARLY. SURVEYS AND STUDIES ARE BEING MADE IN PREPARATION FOR THE SALE OF AN INCREASING VOLUME OF SURPLUS PROPERTY. CONNECTION WITH THE SURVEYS AND STUDIES, IT IS NECESSARY TO PAY THE EXPENSES OF TRAVEL OF INSPECTORS, THE COST OF APPRAISALS, PHOTOGRAPHS AND SURVEYS, COMMUNICATION COSTS, AND SIMILAR INCIDENTAL EXPENSES. CONNECTION WITH THE SALES, IT IS SIMILARLY NECESSARY TO PAY THE COST OF ADVERTISING, AS WELL AS COSTS OF TELEGRAMS, LONG-DISTANCE TELEPHONE CALLS, AND INCIDENTALS CONNECTED WHOLLY WITH THE DISPOSITION OF THE PROPERTY.

PUBLIC ACT NO. 351 DOES NOT PROVIDE FOR THE DEFRAYMENT OF COSTS OF DISPOSITION OF SURPLUS REAL PROPERTY, AND IT HAS BEEN NECESSARY TO CHARGE THE COSTS, ACCORDING TO THEIR CHARACTER, TO THE APPROPRIATE ANNUAL APPROPRIATIONS OF THE PUBLIC BUILDINGS BRANCH, PROCUREMENT DIVISION, SUCH AS ,OUTSIDE PROFESSIONAL SERVICES" AND "GENERAL ADMINISTRATIVE EXPENSES.'

HOWEVER, SECTION 489, TITLE 31, U.S.C., PROVIDES THAT---

"FROM THE PROCEEDS OF SALES 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.'

IT IS DESIRED TO INVOKE THE AUTHORITY OF SECTION 489, TITLE 31, IN CONNECTION WITH A REIMBURSEMENT OF ANNUAL APPROPRIATIONS FROM THE PROCEEDS OF SALES OF RECENTLY SOLD PROPERTIES. ALSO, INFORMATION IS DESIRED AS TO WHAT ITEMS OF EXPENSES OF SALES ARE APPROVED BY THE GENERAL ACCOUNTING OFFICE AS DEDUCTIBLE FROM GROSS PROCEEDS BEFORE THE DEPOSIT OF THE NET PROCEEDS OF SALES.

THERE ARE ITEMIZED BELOW THE EXPENSES OF TWO RECENT SALES OF REAL PROPERTY, ONE TO THE CITY OF PETERSBURG, VIRGINIA, PUBLIC ACT NO. 330, 74TH CONGRESS, APPROVED AUGUST 26, 1935 (49 STAT. 800), AND THE OTHER THE SALE OF THE OLD CUSTOM HOUSE AT EL PASO, TEXAS, TO PRIVATE INTERESTS UNDER THE PROVISIONS OF PUBLIC ACT NO. 351:

PETERSBURG, VA., P.O. (OLD).--- SITE AND BUILDING SOLD TO THE CITY OF PETERSBURG, VIRGINIA, PURSUANT TO THE PROVISIONS OF THE ACT APPROVED AUGUST 26, 1935--- PUBLIC NO. 330, 74TH CONGRESS (49 STAT. 800), U.S.C. NO. 40, SEC. 345B.

TABLE

VOUCHER SYMBOL

CONTRACTOR ITEM AMOUNT DATE NO. NO. RICHMOND REAL APPRAISAL -- $87.00 AUG. 19, 1936 283574 101 100

ESTATE

EXCHANGE.

THE ABOVE EXPENSES WERE PAID FROM THE 2 X 721,"OUTSIDE PROFESSIONAL SERVICES," PUBLIC BUILDINGS BRANCH, PROCUREMENT DIVISION.

THE AMOUNT, $1,750.00, WAS RECEIVED ON THE ABOVE ACCOUNT AND DEPOSITED INTO THE SPECIAL DEPOSIT ACCOUNT OF THE CHIEF DISBURSING OFFICER, TREASURY DEPARTMENT, SYMBOL NUMBER 891-804, UNDER DATE OF SEPTEMBER 4, 1936, SCHEDULE OF COLLECTIONS NUMBER 209.

EL PASO, TEXAS, CU.H. (OLD).--- SITE AND BUILDING SOLD TO S. H. KRESS COMPANY OF NEW YORK PURSUANT TO THE PROVISIONS OF THE ACT APPROVED AUGUST 27, 1935, PUBLIC NO. 351, 74TH CONGRESS (49 STAT. 885), U.S.C. NO. 40, SEC. 304A.

TABLE

VOUCHER SYMBOL

CONTRACTOR ITEM AMOUNT DATE NO. NO. S. A. COLLWELL APPRAISAL -- $60.00 SEPT. 18, 1936 453789 101-100 AULTMAN PHOTO PHOTOGRAPHS -- 6.00 SEPT. 18, 1936 453799 101 100

CO. HERALD-POST ADVERTISING -- 11.55 SEPT. 18, 1936 1026178 101-100

77.55

THE ABOVE EXPENSES OF PHOTOGRAPHS AND APPRAISAL FEES WERE PAID FROM THE APPROPRIATION 2 X 1,"OUTSIDE PROFESSIONAL SERVICES," PUBLIC BUILDINGS BRANCH, PROCUREMENT DIVISION. THE ADVERTISING COSTS WERE PAID FROM THE APPROPRIATION 27727,"GENERAL ADMINISTRATIVE EXPENSES," PUBLIC BUILDINGS BRANCH, PROCUREMENT DIVISION, 1937.

THE AMOUNTS, $11,800, DATED 11/20/36, SCHEDULE OF COLLECTIONS NUMBER 426, AND $223,750, DATED 12/7/36, SCHEDULE OF COLLECTIONS NUMBER 481, WERE RECEIVED ON THE ABOVE ACCOUNT AND DEPOSITED INTO THE "SPECIAL DEPOSIT ACCOUNT" OF THE CHIEF DISBURSING OFFICER, TREASURY DEPARTMENT, SYMBOL NUMBER 891,804.

YOUR INSTRUCTIONS WILL BE APPRECIATED AS TO WHETHER YOU FIND ANY OBJECTION TO THE REIMBURSEMENT OF THE ANNUAL APPROPRIATIONS NAMED FOR THE SEVERAL ITEMS OF EXPENSE NOTED ABOVE FROM THE PROCEEDS OF SALES. ALSO, WILL YOU PLEASE INDICATE GENERALLY WHETHER ALL OF THE FOLLOWING ITEMS OF EXPENSES OF SALES ARE DEDUCTIBLE FROM THE GROSS PROCEEDS PRIOR TO DEPOSIT OF THE NET BALANCE IN MISCELLANEOUS RECEIPTS: COSTS OF SURVEYS AND INVESTIGATIONS WHEN OUTSIDE PROFESSIONAL SERVICES ARE REQUIRED, COSTS OF PUBLIC ADVERTISING, COSTS OF PHOTOGRAPHS WHEN OBTAINED THROUGH OUTSIDE SERVICES, COSTS OF TELEGRAMS AND LONG DISTANCE TELEPHONE CALLS INCIDENT TO SALES OR NEGOTIATIONS, AND COSTS OF TRAVEL OF GOVERNMENT EMPLOYEES REQUIRED TO TRAVEL IN CONNECTION WITH THE DISPOSITION OF SURPLUS REAL ESTATE.

THE ACT OF AUGUST 26, 1935, 49 STAT. 800, AUTHORIZES THE SALE OF OBSOLETE BUILDINGS AND SITES TO STATES, COUNTIES, MUNICIPALITIES, OR OTHER DULY CONSTITUTED POLITICAL SUBDIVISIONS OF STATES FOR PUBLIC USE AND SPECIFICALLY PROVIDES WITH RESPECT TO APPRAISAL OF LANDS TO BE SOLD THEREUNDER AND DISPOSITION OF THE PROCEEDS OF SUCH SALES, AS FOLLOWS:

* * * THAT THE TOTAL PURCHASE PRICE SHALL IN NO CASE BE LESS THAN 50 PERCENTUM OF THE APPRAISED VALUE OF THE LAND, THE APPRAISAL TO BE MADE BY THE TREASURY DEPARTMENT: PROVIDED FURTHER, THAT THE PROCEEDS OF THE SALES SHALL BE DEPOSITED IN THE TREASURY AS MISCELLANEOUS RECEIPTS: * * *

REGARDING THE SALE UNDER THIS ACT OF THE OLD PETERSBURG, VA., POST OFFICE SITE AND BUILDING, DESCRIBED IN YOUR LETTER, THE ONLY EXPENSE SHOWN IN CONNECTION THEREWITH IS AN APPRAISAL FEE OF $87 PAID TO THE RICHMOND REAL ESTATE EXCHANGE FOR APPRAISAL OF THE PROPERTY, AND UNDER THE ACT ABOVE QUOTED THE APPRAISAL OF THE LAND IS REQUIRED TO BE MADE BY THE TREASURY DEPARTMENT. CONSEQUENTLY, SUCH APPRAISALS AS ARE NECESSARY IN RESPECT OF SALES MADE UNDER THAT ACT ARE TO BE MADE BY REGULAR EMPLOYEES OF THE TREASURY DEPARTMENT, AND ANY EXPENSES INCURRED IN CONNECTION THEREWITH ARE TO BE BORNE BY SAID DEPARTMENT AS ADMINISTRATIVE EXPENSES AND, THEREFORE, ARE NOT FOR CHARGING AGAINST THE PROCEEDS OF SALE.

WITH RESPECT TO THE SALE OF THE OLD CUSTOMHOUSE AT EL PASO, TEX., CONSUMMATED UNDER THE ACT OF AUGUST 27, 1935, 49 STAT. 885, THERE ARE SHOWN EXPENSES OF APPRAISAL, PHOTOGRAPHS, AND ADVERTISING. THE SAID ACT MAKES NO PROVISION FOR AN APPRAISAL NOR DOES IT AUTHORIZE THE APPOINTMENT OF APPRAISERS TO MAKE AN APPRAISAL OF THE PROPERTY AUTHORIZED TO BE DISPOSED OF UNDER THE ACT. IT IS NOTED IN THIS CONNECTION THAT THE PROPERTY IS REQUIRED TO BE SOLD ONLY AT PUBLIC SALE TO THE HIGHEST RESPONSIBLE BIDDER, THUS INDICATING LACK OF NECESSITY FOR AN APPRAISAL. OTHER THAN THE DIRECTION THAT THE DIRECTOR OF PROCUREMENT, WITH THE APPROVAL OF THE SECRETARY OF THE TREASURY SHALL SELL THE PROPERTY AT PUBLIC SALE TO THE HIGHEST RESPONSIBLE BIDDER UPON SUCH TERMS AND AFTER SUCH PUBLIC ADVERTISEMENT AS HE MAY DEEM IN THE PUBLIC INTEREST, THE LAWS IN EFFECT PRIOR TO THE DATE OF THE ACT RESPECTING THE ITEMS OF EXPENSE THAT WOULD BE ALLOWABLE IN CONNECTION WITH SALES THEREUNDER WERE IN FULL FORCE AND EFFECT AND APPLICABLE TO THE PROCEEDS OF SALE OF SAID PROPERTY. 7 COMP. GEN. 531.

THE ACT OF JUNE 8, 1896, 29 STAT. 268 (SEC. 489, TITLE 31, U.S.C.) QUOTED IN YOUR LETTER PROVIDES THAT FROM THE PROCEEDS OF SALES OF OLD MATERIAL, CONDEMNED STORES, SUPPLIES, OR OTHER PUBLIC PROPERTY OF ANY KIND BEFORE BEING DEPOSITED INTO THE TREASURY AS MISCELLANEOUS RECEIPTS OR TO THE CREDIT OF THE APPROPRIATIONS TO WHICH SUCH PROCEEDS ARE AUTHORIZED BY LAW TO BE MADE, THERE MAY BE PAID THE EXPENSES OF SUCH SALES AS APPROVED BY THE ACCOUNTING OFFICERS SO AS TO REQUIRE ONLY THE NET PROCEEDS OF THE SALES TO BE DEPOSITED INTO THE TREASURY. THE GENERAL RULE ADOPTED BY THE ACCOUNTING OFFICERS OF THE GOVERNMENT UNDER THIS ACT IS THAT THERE THERE MAY BE PAID FROM THE PROCEEDS OF SALES OF GOVERNMENT PROPERTY ONLY SUCH EXPENSES AS PERTAIN DIRECTLY TO THE SALES. 3 COMP. DEC. 744; 5 COMP. GEN. 680; 6 COMP. GEN. 348; 7 COMP. GEN. 531; 15 COMP. GEN. 743.

THE PAYMENT OF EXPENSES FOR APPRAISALS FROM THE PROCEEDS OF SALES IS NOT AUTHORIZED UNDER EITHER ACT--- THE ACT OF AUGUST 26, 1935, HAVING PROVIDED FOR APPRAISALS BY THE TREASURY DEPARTMENT AND THE ACT OF AUGUST 27, 1935, CONTAINING NO PROVISION WHATEVER FOR APPRAISAL OF THE PROPERTY TO BE SOLD THEREUNDER. THE EXPENSE OF SALES PAYABLE FROM THE GROSS PROCEEDS OF SUCH SALES ARE LIMITED TO THOSE PERTAINING DIRECTLY TO THE SALES, SUCH AS AUCTIONEER'S FEES, ADVERTISING, PHOTOGRAPHS WHEN NECESSARY IN CONNECTION WITH ADVERTISING, TELEGRAMS, AND TELEPHONE CALLS WHEN NECESSARILY INCIDENT TO THE SALE, AND SUCH LIKE EXPENSES. TRAVELING EXPENSES INCURRED BY GOVERNMENT EMPLOYEES INCIDENT TO SALES OF PROPERTY ARE NOT FOR PAYMENT FROM THE PROCEEDS OF SALES, AS SUCH EXPENSES REPRESENT MERELY ADMINISTRATIVE EXPENSES NECESSARY IN CONNECTION WITH THE DUTIES IMPOSED ON THE PROCUREMENT DIVISION, TREASURY DEPARTMENT, BY THE ACTS. 15 COMP. GEN. 886.