B-109909, AUGUST 25, 1952, 32 COMP. GEN. 99

B-109909: Aug 25, 1952

Additional Materials:

Contact:

Edda Emmanuelli Perez
(202) 512-2853
EmmanuelliPerezE@gao.gov

 

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

1952: REFERENCE IS MADE TO LETTER OF THE ACTING SECRETARY OF COMMERCE. REQUESTING A DECISION AS TO WHETHER THERE IS ANY OBJECTION TO ADVANCING AVAILABLE WORKING FUND CASH TO THE WORKING CAPITAL FUND OF THE BUREAU OF STANDARDS IN ORDER TO PROVIDE SUFFICIENT CASH THEREIN TO MEET CURRENT WITHDRAWALS. IT IS URGED THAT THE PROPOSAL WOULD REDUCE EXISTING FISCAL OPERATIONS AND RESULT IN A SAVINGS TO THE GOVERNMENT. THE EVIDENT PURPOSE AND INTENT OF THE ACT IS THAT THE NORMAL NECESSARY WORKING CAPITAL WILL BE PROVIDED BY DIRECT APPROPRIATIONS TO THE FUND. 000 WAS APPROPRIATED THEREFOR BY THE 1950 ACT. 000 WAS APPROPRIATED TO THE FUND BY THE ACT OF OCTOBER 22. THERE IS FOR CONSIDERATION IN THIS CONNECTION THE PROVISIONS OF SECTION 1210 OF THE ACT OF SEPTEMBER 6.

B-109909, AUGUST 25, 1952, 32 COMP. GEN. 99

APPROPRIATIONS - WORKING CAPITAL FUNDS - BUREAU OF STANDARDS - ADVANCES FROM OTHER APPROPRIATIONS THE ACT OF JUNE 29, 1950, WHICH ESTABLISHED A WORKING CAPITAL FUND TO INITIALLY FINANCE ALL OF THE AUTHORIZED ACTIVITIES OF THE BUREAU OF STANDARDS AND APPROPRIATED THE INITIAL WORKING CAPITAL THERETO PROVIDED THAT THE FUND "SHALL BE REIMBURSED" FROM APPLICABLE APPROPRIATIONS AND FUNDS, AND THEREFORE, ADVANCES FROM OTHER APPROPRIATIONS OR WORKING FUNDS AVAILABLE TO SAID BUREAU MAY NOT BE MADE TO THE WORKING CAPITAL FUND IN ORDER TO PROVIDE ADDITIONAL WORKING CAPITAL.

COMPTROLLER GENERAL WARREN TO THE SECRETARY OF COMMERCE, AUGUST 25, 1952:

REFERENCE IS MADE TO LETTER OF THE ACTING SECRETARY OF COMMERCE, DATED MAY 22, 1952, REQUESTING A DECISION AS TO WHETHER THERE IS ANY OBJECTION TO ADVANCING AVAILABLE WORKING FUND CASH TO THE WORKING CAPITAL FUND OF THE BUREAU OF STANDARDS IN ORDER TO PROVIDE SUFFICIENT CASH THEREIN TO MEET CURRENT WITHDRAWALS.

THE LETTER OF MAY 22 STATES, IN EFFECT, THAT THE STATUTORY WORKING CAPITAL OF THIS REVOLVING FUND MAY BE DEPLETED DUE TO THE INCREASING VOLUME OF BUSINESS AND THE RECOGNIZED LAG IN EFFECTING REIMBURSEMENTS RESULTING FROM NECESSARY COST ACCOUNTING OPERATIONS SUBSEQUENT TO COMPLETION OF WORK ORDERS. ALSO, THE LETTER STATES THAT THE PROPOSED ADVANCES WOULD BE RECORDED AS LIABILITIES OF THE WORKING CAPITAL FUND BY SYMBOL AND TITLE AND THAT DOCUMENTATION WOULD BE COMPLETE AND PROPER FOR SITE AUDIT. IT IS URGED THAT THE PROPOSAL WOULD REDUCE EXISTING FISCAL OPERATIONS AND RESULT IN A SAVINGS TO THE GOVERNMENT.

THE ACT OF JUNE 29, 1950, 64 STAT. 279, QUOTED IN PERTINENT PART IN THE LETTER OF MAY 22, ESTABLISHED A WORKING CAPITAL FUND TO INITIALLY FINANCE ALL OF THE AUTHORIZED ACTIVITIES OF THE BUREAU OF STANDARDS AND PROVIDES THAT THE FUND "SHALL BE REIMBURSED" FROM APPLICABLE APPROPRIATIONS AND FUNDS. THE EVIDENT PURPOSE AND INTENT OF THE ACT IS THAT THE NORMAL NECESSARY WORKING CAPITAL WILL BE PROVIDED BY DIRECT APPROPRIATIONS TO THE FUND, AND AN AMOUNT NOT TO EXCEED $3,000,000 WAS APPROPRIATED THEREFOR BY THE 1950 ACT, SUPRA. IT APPEARING THAT SUCH AMOUNT PROVED TO BE INADEQUATE, AN ADDITIONAL SUM OF $2,000,000 WAS APPROPRIATED TO THE FUND BY THE ACT OF OCTOBER 22, 1951, PUBLIC LAW 188, 65 STAT. 575.

ALSO, THERE IS FOR CONSIDERATION IN THIS CONNECTION THE PROVISIONS OF SECTION 1210 OF THE ACT OF SEPTEMBER 6, 1950, 64 STAT. 765, THAT " NO FUNDS MADE AVAILABLE BY THIS OR ANY OTHER ACT SHALL BE WITHDRAWN FROM ONE APPROPRIATION ACCOUNT FOR CREDIT TO ANOTHER, OR TO A WORKING FUND, EXCEPT AS AUTHORIZED BY LAW.' (ITALICS SUPPLIED.)

NO PROVISION IS MADE IN THE BASIC LEGISLATION OR OTHERWISE FOR THE ADVANCEMENT OF FUNDS GENERALLY TO THE WORKING CAPITAL FUND OF THE GENERAL SERVICES ADMINISTRATION, SECTION 109 OF THE FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT OF 1949, 63 STAT. 382. ALSO, SEE SECTION 406 OF THE NATIONAL SECURITY ACT AMENDMENTS OF 1949, 63 STAT. 588, WHICH AUTHORIZES ADVANCES OF FUNDS TO THE MANAGEMENT FUNDS PROVIDED FOR THEREIN.

BY THE TERMS OF THE ACT ESTABLISHING THE WORKING CAPITAL FUND AND IN THE LIGHT OF THE LEGISLATIVE HISTORY THEREOF, IT APPEARS ABUNDANTLY CLEAR THAT TRANSACTIONS INVOLVING THE FUND WOULD BE UPON A REIMBURSABLE BASIS.

ACCORDINGLY, AND IN THE ABSENCE OF SPECIFIC AUTHORITY THEREFOR, YOU ARE ADVISED THAT ADVANCES FROM OTHER APPROPRIATIONS OR WORKING FUNDS AVAILABLE TO THE BUREAU OF STANDARDS TO THE WORKING CAPITAL FUND IN QUESTION IN ORDER TO PROVIDE ADDITIONAL WORKING CAPITAL, ARE NOT AUTHORIZED AUTHORIZED UNDER EXISTING LAW.