B-104255, JULY 9, 1951, 31 COMP. GEN. 7

B-104255: Jul 9, 1951

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IS AN APPROPRIATION WITHIN THE MEANING OF THE TERM ANY APPROPRIATIONS AS USED IN SECTION 405 OF THE ACT ESTABLISHING THE WORKING CAPITAL FUNDS BY THE TRANSFER THERETO OF UNEXPENDED BALANCES OF ANY APPROPRIATIONS OF THE MILITARY DEPARTMENTS NOT CARRIED TO THE SURPLUS FUND OF THE TREASURY. PROVIDED NO DEFICIENCY IS INCURRED IN ANY OF THE APPROPRIATIONS AS A RESULT OF SUCH TRANSFER. 1951: REFERENCE IS MADE TO LETTER DATED JUNE 25. 63 STAT. 588 WHICH PROVIDES AS FOLLOWS: (D) THE SECRETARY OF DEFENSE IS AUTHORIZED TO PROVIDE CAPITAL FOR SUCH WORKING-CAPITAL FUNDS BY CAPITALIZING INVENTORIES ON HAND AND. THERE IS HEREBY AUTHORIZED TO BE APPROPRIATED. PROVIDED THAT NO DEFICIENCY IS INCURRED IN ANY SUCH APPROPRIATION AS A RESULT OF ANY SUCH TRANSFER.

B-104255, JULY 9, 1951, 31 COMP. GEN. 7

APPROPRIATIONS - WORKING CAPITAL FUNDS - ESTABLISHMENT THE NAVY MANAGEMENT FUND, 1951, ESTABLISHED BY SECTION 406 OF THE NATIONAL SECURITY ACT, AS AMENDED, IS AN APPROPRIATION WITHIN THE MEANING OF THE TERM ANY APPROPRIATIONS AS USED IN SECTION 405 OF THE ACT ESTABLISHING THE WORKING CAPITAL FUNDS BY THE TRANSFER THERETO OF UNEXPENDED BALANCES OF ANY APPROPRIATIONS OF THE MILITARY DEPARTMENTS NOT CARRIED TO THE SURPLUS FUND OF THE TREASURY, PROVIDED NO DEFICIENCY IS INCURRED IN ANY OF THE APPROPRIATIONS AS A RESULT OF SUCH TRANSFER.

ACTING COMPTROLLER GENERAL YATES TO THE SECRETARY OF DEFENSE, JULY 9, 1951:

REFERENCE IS MADE TO LETTER DATED JUNE 25, 1951, FROM THE ASSISTANT SECRETARY OF DEFENSE ( COMPTROLLER), REQUESTING A DECISION AS TO THE PROPRIETY OF THE PROPOSED TRANSFER OF THIRTY MILLION DOLLARS ($30,000,000) FROM THE NAVY MANAGEMENT FUND, 1951, TO THE NAVY INDUSTRIAL FUND PURSUANT TO SECTION 405 (D) OF THE NATIONAL SECURITY ACT OF 1947, AS ADDED BY SECTION 11 OF THE NATIONAL SECURITY ACT AMENDMENTS OF 1949, PUBLIC LAW 216, APPROVED AUGUST 10, 1949, 63 STAT. 588 WHICH PROVIDES AS FOLLOWS:

(D) THE SECRETARY OF DEFENSE IS AUTHORIZED TO PROVIDE CAPITAL FOR SUCH WORKING-CAPITAL FUNDS BY CAPITALIZING INVENTORIES ON HAND AND, WITH THE APPROVAL OF THE PRESIDENT, BY TRANSFER, UNTIL DECEMBER 31, 1954, FROM UNEXPENDED BALANCES OF ANY APPROPRIATIONS OF THE MILITARY DEPARTMENTS NOT CARRIED TO THE SURPLUS FUND OF THE TREASURY: PROVIDED, THAT NO DEFICIENCY SHALL BE INCURRED IN ANY SUCH APPROPRIATION AS A RESULT OF ANY SUCH TRANSFER. TO THE EXTENT THAT SUCH METHODS DO NOT, IN THE DETERMINATION OF THE SECRETARY OF DEFENSE, PROVIDE ADEQUATE AMOUNTS OF WORKING CAPITAL, THERE IS HEREBY AUTHORIZED TO BE APPROPRIATED, OUT OF ANY MONEYS IN THE TREASURY NOT APPROPRIATED FOR OTHER PURPOSES, SUCH SUMS AS MAY BE NECESSARY TO PROVIDE ADEQUATE WORKING CAPITAL.

THAT PROVISION OF LAW AUTHORIZES THE TRANSFER, UNTIL DECEMBER 31, 1954, WITH THE APPROVAL OF THE PRESIDENT, OF THE UNEXPENDED BALANCES OF ANY APPROPRIATIONS OF THE MILITARY DEPARTMENTS NOT CARRIED TO THE SURPLUS FUND OF THE TREASURY, PROVIDED THAT NO DEFICIENCY IS INCURRED IN ANY SUCH APPROPRIATION AS A RESULT OF ANY SUCH TRANSFER. HENCE, THE SPECIFIC QUESTION FOR DECISION AS SET OUT IN THE LETTER IS WHETHER THE NAVY MANAGEMENT FUND, 1951, IS AN "APPROPRIATION" WITHIN THE MEANING OF THE TERM "ANY APPROPRIATIONS" AS USED IN THE CITED SECTION 405 (D). THERE IS NOTHING IN THE LANGUAGE OF THE QUOTED PROVISION OF LAW NOR IN ITS LEGISLATIVE HISTORY TO INDICATE THAT THE WORD "APPROPRIATIONS" IS USED IN OTHER THAN ITS ORDINARY SENSE, AND THE FACT THAT IT IS PRECEDED BY THE WORD "ANY" SPECIFICALLY MAKES THE UNEXPENDED BALANCES OF ALL APPROPRIATIONS OF THE MILITARY DEPARTMENTS AVAILABLE FOR TRANSFER TO THE NAVY INDUSTRIAL FUND. THE WORD "APPROPRIATIONS," IN ITS USUAL SENSE, REFERS TO AN AUTHORIZATION BY AN ACT OF CONGRESS TO MAKE PAYMENTS OUT OF THE TREASURY FOR SPECIFIED PURPOSES. SEE SECTION 21 OF BUDGET-TREASURY REGULATION NO. 1.

THE NAVY MANAGEMENT FUND WAS ESTABLISHED BY THE PROVISIONS OF SECTION 406 OF THE CITED ACT, 63 STAT. 588, BY THE TRANSFER THERETO OF ALL BALANCES IN, AND OBLIGATIONS AGAINST, ANY ACCOUNTS IN THE NAVAL PROCUREMENT FUND WHICH CONSISTED OF APPROPRIATE FUNDS. ADDITIONAL APPROPRIATIONS TO THE NAVY MANAGEMENT FUND ARE ALSO AUTHORIZED THEREIN. THE SAID SECTION 406, IN EFFECT, REAPPROPRIATES THE MONEYS IN THE NAVAL PROCUREMENT FUND FOR THE PURPOSES OF THE NAVY MANAGEMENT FUND AS WELL AS FOR THE LIQUIDATION OF THE OBLIGATIONS INCURRED UNDER THE NAVAL PROCUREMENT FUND. NOT ONLY DOES SECTION 406 AUTHORIZE PAYMENTS TO BE MADE OUT OF THE TREASURY FOR SPECIFIED PURPOSES WHICH CONSTITUTES AN APPROPRIATION AS DEFINED IN BUDGET -TREASURY REGULATION NO. 1, BUT SUCH REAPPROPRIATION AND DIVERSION OF AN UNEXPENDED BALANCE IS REQUIRED TO BE CONSTRUED AND ACCOUNTED FOR AS A NEW APPROPRIATION BY THE PROVISIONS OF SECTION 4 OF THE ACT OF MARCH 4, 1915, 38 STAT. 1161, 31 U.S.C. 717, WHICH PROVIDES AS FOLLOWS:

THAT THE REAPPROPRIATION AND DIVERSION OF THE UNEXPENDED BALANCE OF ANY APPROPRIATION TO A PURPOSE OTHER THAN THAT FOR WHICH IT WAS ORIGINALLY MADE SHALL BE CONSTRUED AND ACCOUNTED HEREAFTER AS A NEW APPROPRIATION AND THE UNEXPENDED BALANCE SHALL BE REDUCED BY THE SUM PROPOSED TO BE SO DIVERTED.

IT THUS SEEMS CLEAR THAT THE NAVY MANAGEMENT FUND, 1951, IS AN APPROPRIATION WITHIN THE MEANING OF THE TERM "ANY APPROPRIATIONS" AS USED IN SECTION 405 (D) OF THE CITED ACT. YOUR QUESTION IS ANSWERED ACCORDINGLY.