B-109173, MAY 21, 1952, 31 COMP. GEN. 608

B-109173: May 21, 1952

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ARE LEGALLY OBLIGATED ON THE EFFECTIVE DATE OF A STATE'S ACCEPTANCE OF AN AGREEMENT SETTING FORTH THE CONDITIONS UNDER WHICH THE CONTRIBUTION IS MADE. FOR THE ACTUAL PROCUREMENT ARE NOT EXECUTED DURING THE SAID FISCAL YEAR OR YEARS. 1952: REFERENCE IS MADE TO LETTER OF APRIL 15. FROM THE ACTING ADMINISTRATOR REQUESTING A DECISION AS TO WHEN OBLIGATIONS ARE PROPERLY INCURRED AGAINST APPROPRIATIONS MADE TO YOUR ADMINISTRATION FOR FINANCIAL CONTRIBUTIONS TO THE STATES UNDER THE AUTHORITY CONTAINED IN SUBSECTION 201 (I) OF THE FEDERAL CIVIL DEFENSE ACT OF 1950. AS FOLLOWS: "THE ADMINISTRATOR IS AUTHORIZED. APPROPRIATIONS WERE MADE PURSUANT TO THAT AUTHORITY OF LAW TO REMAIN AVAILABLE THROUGH JUNE 30.

B-109173, MAY 21, 1952, 31 COMP. GEN. 608

APPROPRIATIONS - OBLIGATION - CIVIL DEFENSE CONTRIBUTIONS TO STATES APPROPRIATIONS MADE AVAILABLE TO THE FEDERAL CIVIL DEFENSE ADMINISTRATION FOR FINANCIAL CONTRIBUTIONS TO THE STATES FOR THE PROCUREMENT OF EQUIPMENT, FACILITIES, ETC., PURSUANT TO AUTHORITY CONTAINED IN SECTION 201 (I) OF THE FEDERAL CIVIL DEFENSE ACT OF 1950, ARE LEGALLY OBLIGATED ON THE EFFECTIVE DATE OF A STATE'S ACCEPTANCE OF AN AGREEMENT SETTING FORTH THE CONDITIONS UNDER WHICH THE CONTRIBUTION IS MADE, AND REMAIN AVAILABLE FOR EXPENDITURE FOR TWO YEARS FOLLOWING THE FISCAL YEAR OR YEARS FOR WHICH APPROPRIATED, EVEN THOUGH THE CONTRACTS WITH SUPPLIERS--- ENTERED INTO BY THE GOVERNMENT OR THE STATE -- FOR THE ACTUAL PROCUREMENT ARE NOT EXECUTED DURING THE SAID FISCAL YEAR OR YEARS.

COMPTROLLER GENERAL WARREN TO THE ADMINISTRATOR, FEDERAL CIVIL DEFENSE ADMINISTRATION, MAY 21, 1952:

REFERENCE IS MADE TO LETTER OF APRIL 15, 1952, FROM THE ACTING ADMINISTRATOR REQUESTING A DECISION AS TO WHEN OBLIGATIONS ARE PROPERLY INCURRED AGAINST APPROPRIATIONS MADE TO YOUR ADMINISTRATION FOR FINANCIAL CONTRIBUTIONS TO THE STATES UNDER THE AUTHORITY CONTAINED IN SUBSECTION 201 (I) OF THE FEDERAL CIVIL DEFENSE ACT OF 1950, PUBLIC LAW 920, 81ST CONGRESS, 64 STAT. 1249, WHICH PROVIDES, IN PERTINENT PART, AS FOLLOWS:

"THE ADMINISTRATOR IS AUTHORIZED, IN ORDER TO CARRY OUT THE ABOVE MENTIONED PURPOSES, TO---

"MAKE FINANCIAL CONTRIBUTIONS, ON THE BASIS OF PROGRAMS OR PROJECTS APPROVED BY THE ADMINISTRATOR, TO THE STATES FOR CIVIL DEFENSE PURPOSES, INCLUDING, BUT NOT LIMITED TO THE, PROCUREMENT, CONSTRUCTION, LEASING, OR RENOVATING OF MATERIALS AND FACILITIES. SUCH CONTRIBUTIONS SHALL BE MADE ON SUCH TERMS OR CONDITIONS AS THE ADMINISTRATOR SHALL PRESCRIBE, INCLUDING, BUT NOT LIMITED TO, THE METHOD OF PURCHASE, THE QUANTITY, QUALITY, OR SPECIFICATIONS OF THE MATERIALS OR FACILITIES, AND SUCH OTHER FACTORS OR CARE OR TREATMENT TO ASSURE THE UNIFORMITY, AVAILABILITY, AND GOOD CONDITION OF SUCH MATERIALS OR FACILITIES * * *.'

APPROPRIATIONS WERE MADE PURSUANT TO THAT AUTHORITY OF LAW TO REMAIN AVAILABLE THROUGH JUNE 30, 1952, IN THE THIRD SUPPLEMENTAL APPROPRIATION ACT, 1951, PUBLIC LAW 45, 82D CONGRESS, 65 STAT. 52, AND THE SUPPLEMENTAL APPROPRIATION ACT, 1952, PUBLIC LAW 253, 82D CONGRESS, 65 STAT. 736. INDICATED IN THE MEMORANDUM TO YOU FROM YOUR GENERAL COUNSEL WHICH WAS ENCLOSED WITH THE ACTING ADMINISTRATOR'S LETTER, THOSE APPROPRIATIONS CAN ONLY BE APPLIED TO THE PAYMENT OF EXPENSES PROPERLY INCURRED, OR TO THE FULFILLMENT OF CONTRACTS PROPERLY MADE, PRIOR TO JULY 1, 1952. THAT MEMORANDUM SETS OUT THE PROCEDURES USED IN MAKING THE CONTRIBUTIONS TO STATES FOR THE PROCUREMENT OF EQUIPMENT IN PERTINENT PART AS FOLLOWS:

"* * * A STATE REQUESTS A FEDERAL CONTRIBUTION ON FCDA FORM 103. THERE IS SPECIFIED ON THE FORM THE PURPOSE FOR WHICH THE CONTRIBUTION IS REQUESTED (AS, FOR EXAMPLE, THE PROCUREMENT OF A FIRE TRUCK), THE ESTIMATED COST, AND WHETHER OR NOT THE STATE DESIRES THE FEDERAL GOVERNMENT TO MAKE THE ARRANGEMENTS. IF THE REQUEST IS APPROVED, A LETTER OF AGREEMENT IS SENT TO THE STATE, SETTING FORTH THE CONDITIONS UNDER WHICH THE ADMINISTRATOR WILL MAKE THE CONTRIBUTION. THE STATE IS REQUESTED TO ACCEPT THE LETTER OF AGREEMENT, IF THE CONDITIONS ARE SATISFACTORY, BY SIGNING AND RETURNING A COPY OF THE LETTER OF AGREEMENT. USING AGAIN THE EXAMPLE OF THE FIRE TRUCK, IF THE FCDA IS TO PROCURE, IT THEN ENTERS INTO A PURCHASE AGREEMENT IN ITS OWN NAME WITH A VENDOR, HAS THE TRUCK DELIVERED TO THE STATE, MAKES PAYMENT IN FULL TO THE VENDOR, AND THEN REQUESTS REIMBURSEMENT FOR ONE-HALF THE COST FROM THE STATE. IF THE STATE IS TO PROCURE, IT WOULD FOLLOW THE SAME PROCEDURE, REIMBURSEMENT BEING REQUESTED FROM THE FCDA UPON DELIVERY OF THE TRUCK. THERE IS ATTACHED A SAMPLE OF THE FCDA FORM 103 AND LETTER OF AGREEMENT.'

IT LONG HAS BEEN THE ACCEPTED GENERAL RULE OF THE ACCOUNTING OFFICERS OF THE GOVERNMENT THAT A CLAIM AGAINST AN ANNUAL APPROPRIATION WHEN OTHERWISE PROPER IS CHARGEABLE TO THE APPROPRIATION FOR THE FISCAL YEAR IN WHICH THE LIABILITY WAS INCURRED. 18 COMP. GEN. 363, 365; 20 ID. 185; ID. 370; 21 ID. 574. UNDER THE CONTRIBUTION PROCEDURES AS QUOTED ABOVE, THE LETTER OF AGREEMENT, WHEN PROPERLY ACCEPTED FOR A STATE AND RETURNED TO YOUR ADMINISTRATION AS PROVIDED IN ITS TERMS, IF OTHERWISE PROPER, CONSTITUTES A BINDING OBLIGATION UPON THE UNITED STATES TO BEAR A PROPORTIONATE SHARE OF THE ACTUAL COST OF CERTAIN SPECIFIED EQUIPMENT WITHIN REASONABLE PRICE FLUCTUATION FROM THE ESTIMATED PRICES CONTAINED IN THE FCDA FORM 103, ORGANIZATION EQUIPMENT REQUEST, AS MODIFIED BY THE AGREEMENT. APPROPRIATIONS AVAILABLE FOR FINANCIAL CONTRIBUTIONS TO THE STATES PURSUANT TO SECTION 201 (I) OF THE FEDERAL CIVIL DEFENSE ACT OF 1950 ARE LEGALLY OBLIGATED ON THE EFFECTIVE DATE OF THE AGREEMENT AND REMAIN AVAILABLE FOR EXPENDITURE BY YOUR ADMINISTRATION FOR TWO FISCAL YEARS FOLLOWING THE FISCAL YEAR OR YEARS (1952) FOR WHICH APPROPRIATED, EVEN THOUGH THE CONTRACTS WITH SUPPLIERS FOR THE ACTUAL PROCUREMENT OF THE EQUIPMENT ARE NOT EXECUTED DURING THE FISCAL YEAR OR YEARS FOR WHICH THE FUNDS ARE APPROPRIATED.