A-94466, MAY 28, 1938, 17 COMP. GEN. 1020

A-94466: May 28, 1938

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IS PROPERLY CHARGEABLE TO THE HOSPITAL APPROPRIATION AVAILABLE FOR THE WORK IN CONNECTION WITH WHICH THE EQUIPMENT IS BEING USED. IF THE MACHINE WAS PURCHASED FROM FEDERAL FUNDS APPROPRIATED FOR THE GENERAL EXPENSES OF THE UNIVERSITY. THERE WAS INVOLVED THE EXPENDITURE OF FUNDS CONTRARY TO THE OBJECTS FOR WHICH APPROPRIATED AND ADMINISTRATIVE ACTION SHOULD BE TAKEN TO AVOID A RECURRENCE OF SUCH UNAUTHORIZED USE OF APPROPRIATED FUNDS. THIS MACHINE IS USED STRICTLY FOR THE CARE OF THE PATIENTS IN THE HOSPITAL AND THE ONLY REASON IT WAS PLACED THERE BY HOWARD UNIVERSITY WAS BECAUSE SUFFICIENT FUNDS WERE NOT AVAILABLE TO BUY THIS NEEDED EQUIPMENT OUT OF THE HOSPITAL BUDGET. THE QUOTED LETTER DOES NOT INDICATE THE FUND FROM WHICH THE MACHINE IN QUESTION WAS PURCHASED BY HOWARD UNIVERSITY.

A-94466, MAY 28, 1938, 17 COMP. GEN. 1020

REPAIRS - INTRADEPARTMENTAL LOANED EQUIPMENT - AVAILABILITY OF APPROPRIATION OF BORROWING AGENCY, AND LEGALITY OF EQUIPMENT PURCHASES FOR LOAN PURPOSES THE COST OF REPAIRS TO AN ELECTRIC CUTTING AND COAGULATING MACHINE LOANED BY HOWARD UNIVERSITY SCHOOL OF MEDICINE TO FREEDMEN'S HOSPITAL FOR USE IN THE OPERATING ROOM OF THE HOSPITAL, IF NECESSARY FOR CONTINUED USE OF THE EQUIPMENT BY THE HOSPITAL, IS PROPERLY CHARGEABLE TO THE HOSPITAL APPROPRIATION AVAILABLE FOR THE WORK IN CONNECTION WITH WHICH THE EQUIPMENT IS BEING USED, BUT IF THE MACHINE WAS PURCHASED FROM FEDERAL FUNDS APPROPRIATED FOR THE GENERAL EXPENSES OF THE UNIVERSITY, THERE WAS INVOLVED THE EXPENDITURE OF FUNDS CONTRARY TO THE OBJECTS FOR WHICH APPROPRIATED AND ADMINISTRATIVE ACTION SHOULD BE TAKEN TO AVOID A RECURRENCE OF SUCH UNAUTHORIZED USE OF APPROPRIATED FUNDS.

ACTING COMPTROLLER GENERAL ELLIOTT TO THE SECRETARY OF THE INTERIOR, MAY 28, 1938.

THERE HAS BEEN RECEIVED A LETTER FROM EDWARD L. HOWES, MD., PROFESSOR OF SURGERY, HOWARD UNIVERSITY, AS FOLLOWS:

THE DEPARTMENT OF SURGERY OF THE HOWARD UNIVERSITY SCHOOL OF MEDICINE HAS PLACED AN ELECTRIC CUTTING AND COAGULATING MACHINE IN THE OPERATING ROOM OF FREEDMEN'S HOSPITAL FOR THE USE IN OPERATING ON PATIENTS. THIS MACHINE HAS RECENTLY BEEN DAMAGED TO THE EXTENT OF $89.95 BY ONE OF THE EMPLOYEES OF THE HOSPITAL. THE QUESTION HAS ARISEN BETWEEN DR. JONES AND MYSELF REGARDING THE POSSIBILITY OF THE HOSPITAL PAYING FOR THESE REPAIRS. COULD YOU GIVE ME THE RULING ON THIS MATTER;

THIS MACHINE IS USED STRICTLY FOR THE CARE OF THE PATIENTS IN THE HOSPITAL AND THE ONLY REASON IT WAS PLACED THERE BY HOWARD UNIVERSITY WAS BECAUSE SUFFICIENT FUNDS WERE NOT AVAILABLE TO BUY THIS NEEDED EQUIPMENT OUT OF THE HOSPITAL BUDGET.

THE QUOTED LETTER DOES NOT INDICATE THE FUND FROM WHICH THE MACHINE IN QUESTION WAS PURCHASED BY HOWARD UNIVERSITY. IF THE PURCHASE WAS MADE FROM FEDERAL FUNDS APPROPRIATED FOR THE GENERAL EXPENSES OF SAID UNIVERSITY, IT WAS MADE IN DIRECT CONTRAVENTION OF SECTION 3678, REVISED STATUTES, WHICH PROVIDES:

ALL SUMS APPROPRIATED FOR THE VARIOUS BRANCHES OF EXPENDITURE IN THE PUBLIC SERVICE SHALL BE APPLIED SOLELY TO THE OBJECTS FOR WHICH THEY ARE RESPECTIVELY MADE, AND FOR NO OTHERS.

ACCORDINGLY, THIS PHASE OF THE MATTER IS BROUGHT TO YOUR ATTENTION WITH THE REQUEST THAT, IF THE PURCHASE IS FOUND TO HAVE BEEN MADE WITH APPROPRIATED FUNDS, THE NECESSARY ADMINISTRATIVE ACTION BE TAKEN TO AVOID A RECURRENCE OF SUCH UNAUTHORIZED USE OF APPROPRIATED FUNDS. SEE MY LETTER (A-69978) ADDRESSED TO YOU APRIL 11, 1936, RELATIVE TO A SIMILAR MATTER.

SPECIFICALLY ANSWERING THE QUESTION PRESENTED IN THE QUOTED LETTER, YOU ARE ADVISED THAT THE LOAN OF THE MACHINE TO THE HOSPITAL WOULD APPEAR TO BRING THE TRANSACTION SUBSTANTIALLY WITHIN THE RULE ANNOUNCED IN 5 COMP. GEN. 162, TO THE EFFECT THAT WHERE REPAIRS ARE NECESSARY FOR CONTINUED USE OF BORROWED EQUIPMENT BY THE BORROWING AGENCY, THE COST THEREOF CONSTITUTES A PROPER CHARGE AGAINST THE APPROPRIATION OF THE BORROWING AGENCY--- IN THIS INSTANCE THE HOSPITAL--- AVAILABLE FOR THE WORK IN CONNECTION WITH WHICH THE EQUIPMENT IS BEING USED BY SAID BORROWING AGENCY.