A-86278, JUNE 29, 1937, 16 COMP. GEN. 1124

A-86278: Jun 29, 1937

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YOU ARE ADVISED THAT SINCE THAT DATE THIS OFFICE IS IN RECEIPT OF THE FOLLOWING ADDITIONAL CHECKS FROM THE INTERNATIONAL BUSINESS MACHINES CORPORATION: TABLE CHECK NO. 3432 IN THE SUM OF . WE HAVE BEEN INFORMALLY ADVISED THAT THE COMPUTATION IS FIGURED ON THE BASIS OF THE NUMBER OF CARDS INVOICED BY THE CONTRACTOR DURING THAT PERIOD. NOT FILLED DURING THAT PERIOD AND CONSEQUENTLY WERE NOT INVOICED UNTIL A LATER DATE. IT IS THE UNDERSTANDING OF THIS OFFICE THAT THE ABOVE COMPANY DISCONTINUED THE REFUND ON THE BASIS OF QUANTITY. 000 CARDS WAS APPLICABLE. ALL REFUNDS WERE DISCONTINUED AND THE LISTED PRICES OF CARDS REDUCED. IT WOULD APPEAR THAT THE DISCOUNT WAS VOLUNTARILY GIVEN BY THE INTERNATIONAL BUSINESS MACHINES CORPORATION ON DELIVERIES MADE DURING THE CALENDAR YEAR 1935.

A-86278, JUNE 29, 1937, 16 COMP. GEN. 1124

CONTRACTS - DISCOUNTS - VOLUNTARY - ACCEPTANCE AND DISPOSITION DISCOUNTS OR REFUNDS VOLUNTARILY MADE BY A GOVERNMENT CONTRACTOR SHOULD BE ACCEPTED AND DEPOSITED IN THE TREASURY AS MISCELLANEOUS RECEIPTS.

ACTING COMPTROLLER GENERAL ELLIOTT TO THE SECRETARY OF LABOR, JUNE 29, 1937:

THERE HAS BEEN RECEIVED A LETTER DATED JUNE 16, 1937, FROM THE CHIEF OF DIVISION OF PUBLICATIONS AND SUPPLIES, DEPARTMENT OF LABOR, AS FOLLOWS:

REFERRING TO, AND SUPPLEMENTING LETTER OF MAY 13, 1937, YOU ARE ADVISED THAT SINCE THAT DATE THIS OFFICE IS IN RECEIPT OF THE FOLLOWING ADDITIONAL CHECKS FROM THE INTERNATIONAL BUSINESS MACHINES CORPORATION:

TABLE CHECK NO. 3432 IN THE SUM OF ------------------------------ $110.39 CHECK NO. 3545 IN THE SUM OF ------------------------------ 44.16 CHECK NO. 3536 IN THE SUM OF ------------------------------ 4,785.41 CHECK NO. 3546 IN THE SUM OF ------------------------------ 66.23 CHECK NO. 3547 IN THE SUM OF ------------------------------ 66.23

5,072.42 CHECK NO. 3439 (MENTIONED IN PREVIOUS LETTER) ------ ------ 402.92

$5,475.34

AS STATED IN LETTER OF MAY 13, 1937, THE RECORDS OF THIS OFFICE INDICATE THAT DURING THE FISCAL YEAR 1935 THIS DEPARTMENT PLACED ORDERS FOR TABULATING CARDS AGGREGATING 23,042,000. WE HAVE BEEN INFORMALLY ADVISED THAT THE COMPUTATION IS FIGURED ON THE BASIS OF THE NUMBER OF CARDS INVOICED BY THE CONTRACTOR DURING THAT PERIOD, RATHER THAN ON THE ORDERS PLACED. THIS WOULD APPEAR TO ACCOUNT FOR THE DIFFERENCE BETWEEN THE AMOUNT RECEIVED, $5,475.34 AND THE AMOUNT OF DISCOUNT ALLOWED ON THE BASIS OF 23,042,000 CARDS ORDERED AT THE REFUND RATE OF 25 CENTS PER 1,000, WHICH WOULD FIGURE $5,760.50. NOT FILLED DURING THAT PERIOD AND CONSEQUENTLY WERE NOT INVOICED UNTIL A LATER DATE.

IT IS THE UNDERSTANDING OF THIS OFFICE THAT THE ABOVE COMPANY DISCONTINUED THE REFUND ON THE BASIS OF QUANTITY, EFFECTIVE NOVEMBER 16, 1936, AND FROM THAT DATE TO JANUARY 4, 1937, A FLAT DISCOUNT OF 10 CENTS PER 1,000 CARDS WAS APPLICABLE. ON JANUARY 4, 1937, ALL REFUNDS WERE DISCONTINUED AND THE LISTED PRICES OF CARDS REDUCED.

IN VIEW OF THE ABOVE, YOUR OPINION WOULD BE APPRECIATED AS TO THE PROPER PROCEDURE TO BE ADOPTED RELATIVE TO DISPOSITION OF THE CHECKS REFERRED TO ABOVE, AND WHETHER THEY WOULD BE ACCEPTABLE AS A VOLUNTARY DISCOUNT.

FROM THE FACTS AS REPORTED, IT WOULD APPEAR THAT THE DISCOUNT WAS VOLUNTARILY GIVEN BY THE INTERNATIONAL BUSINESS MACHINES CORPORATION ON DELIVERIES MADE DURING THE CALENDAR YEAR 1935. THERE APPEARS NO LEGAL OBJECTION TO THE ACCEPTANCE OF SUCH VOLUNTARY DISCOUNTS OR REFUNDS. ACCORDINGLY, THE CHECKS SHOULD BE ACCEPTED AND THE AMOUNTS THEREOF DEPOSITED FOR COVERING INTO THE TREASURY OF THE UNITED STATES AS MISCELLANEOUS RECEIPTS. AS TO THE PROCEDURE TO BE FOLLOWED, SEE GENERAL REGULATIONS NO. 87 OF JUNE 25, 1936, 15 COMP. GEN. 1159.