Legality of Crediting Reimbursements to the Appropriation Year Collected and Other Matters

The House Appropriations Committee requested clarification on the legality of the Department of Defense's (DOD) application of collected reimbursements to the current appropriation. GAO ruled that (a) DOD abused the flexibility given by 31 U.S.C. 701 et seq. in reporting obligated balances by de-emphasizing precise accounting in favor of general reliance upon restorations for adjustments; (b) insufficient basis exists for GAO to prescribe specific accounting procedures that adequately relate reimbursement credits to replacement equipment or supplies and that the timing of or need for identical replacements are immaterial to the necessity for replacement; (c) 10 U.S.C. 2208 does not restrict the application of stock credits to appropriations current at the time supplies are returned; and (d) obligational authority comprised of anticipated reimbursements apportioned by OMB is limited to the amounts so apportioned during the fiscal year and thereafter.