Legal Services Corporation--Lease with Friends of Legal Services Corporation
B-308037: Sep 14, 2006
- Full Report:
Congress established the Legal Services Corporation (LSC) as a private, nonprofit corporation with broad investment authority and discretion conferred by the Legal Services Corporation Act and the District of Columbia Nonprofit Corporation Act. As such, LSC was authorized to create a second private, nonprofit corporation, and to lease property from that corporation. Both transactions were consistent with the statutory purpose of LSC under the Legal Services Corporation Act.
By law, LSC is not a federal agency and its officers and employees are not officers or employees of the United States for the purposes of the Antideficiency Act. 42 U.S.C. 2996d(e)(1). As violations of the Antideficiency Act are predicated upon an obligation of federal funds by an officer or employee of the United States government, LSC's transaction are not subject to the Antideficiency Act.