B-116651, DECEMBER 13, 1960, 40 COMP. GEN. 356

B-116651: Dec 13, 1960

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BE USED FOR EXPENDITURES WHICH ARE REASONABLY CONNECTED WITH AND INCIDENT TO THE ACCOMPLISHMENT OF THE PURPOSES FOR WHICH SPECIFIC APPROPRIATIONS ARE MADE TO THE ADMINISTRATION. A SILVER RECLAMATION PROGRAM WHICH WOULD BE AN INDUSTRIAL TYPE OPERATION NOT SERVING ANY USEFUL PURPOSE IN THE CARE AND TREATMENT OF BENEFICIARIES OR IN THE PERFORMANCE OF ACTIVITIES FOR WHICH APPROPRIATIONS ARE MADE MAY NOT BE FINANCED BY THE REVOLVING SUPPLY FUND. ALTHOUGH PROPERTY FINANCED FROM A REVOLVING SUPPLY FUND WHICH NO LONGER SERVES THE PURPOSE OF THE APPROPRIATION WHICH WAS ORIGINALLY CHARGED MAY BE REASSIGNED WITHIN THE AGENCY FOR EFFECTIVE UTILIZATION. 1960: REFERENCE IS MADE TO YOUR LETTER OF FEBRUARY 19.

B-116651, DECEMBER 13, 1960, 40 COMP. GEN. 356

VETERANS ADMINISTRATION - SUPPLY FUND ACTIVITIES - LEGALITY IN VIEW OF THE QUALIFICATION THAT THE REVOLVING SUPPLY FUND ESTABLISHED FOR THE VETERANS ADMINISTRATION, 38 U.S.C. 5011, BE USED FOR EXPENDITURES WHICH ARE REASONABLY CONNECTED WITH AND INCIDENT TO THE ACCOMPLISHMENT OF THE PURPOSES FOR WHICH SPECIFIC APPROPRIATIONS ARE MADE TO THE ADMINISTRATION, A SILVER RECLAMATION PROGRAM WHICH WOULD BE AN INDUSTRIAL TYPE OPERATION NOT SERVING ANY USEFUL PURPOSE IN THE CARE AND TREATMENT OF BENEFICIARIES OR IN THE PERFORMANCE OF ACTIVITIES FOR WHICH APPROPRIATIONS ARE MADE MAY NOT BE FINANCED BY THE REVOLVING SUPPLY FUND. ALTHOUGH PROPERTY FINANCED FROM A REVOLVING SUPPLY FUND WHICH NO LONGER SERVES THE PURPOSE OF THE APPROPRIATION WHICH WAS ORIGINALLY CHARGED MAY BE REASSIGNED WITHIN THE AGENCY FOR EFFECTIVE UTILIZATION, IT DOES NOT FOLLOW THAT THE PROPERTY ACQUIRED BY AN APPROPRIATION FOR THE SUPPLY FUND AND SUBSEQUENTLY CONVERTED INTO CASH MAY BE RETAINED AND USED BY THE FUND, SUCH ACTION WOULD AMOUNT TO AN UNAUTHORIZED AUGMENTATION OF THE REVOLVING FUND.

TO THE ADMINISTRATOR, VETERANS ADMINISTRATION, DECEMBER 13, 1960:

REFERENCE IS MADE TO YOUR LETTER OF FEBRUARY 19, 1960, WITH ENCLOSURES, REQUESTING APPROVAL OF THE USE OF THE " SUPPLY FUND, VETERANS ADMINISTRATION" TO FINANCE AND OPERATE A CENTRALIZED SILVER RECLAMATION PROGRAM, AND TO RETAIN AND USE THE PROCEEDS DERIVED FROM SALE OF THE SILVER.

IT IS STATED IN THE LETTER AND ENCLOSURES THAT X-RAY FILM CONTAINS A SMALL QUANTITY OF PURE SILVER, AND THAT WHEN THE FILM IS EXPOSED AND DEVELOPED IN A CHEMICAL FIXING SOLUTION AT LEAST 50 PERCENT OF THE SILVER IS WASHED FROM THE FILM INTO THE SOLUTION. IT IS FURTHER STATED THAT WHILE A LARGE PERCENTAGE OF THE SILVER IN THE DEVELOPING SOLUTION IS RECOVERABLE, SURVEYS OF THE VETERANS ADMINISTRATION FIELD STATIONS INDICATE THAT OVER ONE-THIRD OF THE STATIONS HAVE NO PROVISION FOR SILVER RECOVERY; THE REMAINDER UTILIZE FOUR DIFFERENT METHODS TO ACCOMPLISH IT, MANY OF WHICH ARE SO INEFFICIENT THAT LESS THAN 7 PERCENT OF THE SILVER AVAILABLE IS RECLAIMED FOR THE GOVERNMENT.

A CONTROLLED SILVER RECOVERY PROGRAM, IT IS STATED, INSTALLED AND SUPERVISED BY TRAINED SERVICE AND RECLAMATION SHOP PERSONNEL, WILL (1) RECOVER A SUBSTANTIAL AMOUNT OF THE NOW LOST SILVER ESTIMATED TO BE VALUED WELL IN EXCESS OF $100,000 ANNUALLY; (2) EXTEND THE LIFE OF THE FIXING SOLUTION; (3) RELIEVE THE HOSPITALS OF THE PRESENT COST AND INCONVENIENCE OF QUESTIONABLE SILVER RECOVERY; AND (4) ESTABLISH STANDARD PROCEDURES ACCEPTABLE TO ALL STATIONS. IT IS PROPOSED TO RECONSTITUTE THIS PROGRAM AS A SUPPLY FUND OPERATION, WITH EXPENSES INCLUDING OPERATING EQUIPMENT FINANCED BY THE FUND, AND THE PROCEEDS DERIVED FROM SALE OF THE SILVER CREDITED TO THE FUND.

THE " SUPPLY FUND, VETERANS ADMINISTRATION" ESTABLISHED BY THE SECOND INDEPENDENT OFFICES APPROPRIATION ACT, 1954, 57 STAT. 193, AND REENACTED AS SECTION 1711 OF THE VETERANS' BENEFITS ACT OF 1957, 71 STAT. 142, 38 U.S.C. 5011, IS MADE AVAILABLE "FOR ALL EXPENSES FOR THE OPERATION AND MAINTENANCE OF A SUPPLY SYSTEM FOR THE VETERANS ADMINISTRATION INCLUDING PROCUREMENT OF SUPPLIES AND EQUIPMENT, AND PERSONAL SERVICES, * * * PROVIDED, THAT THE FUND SHALL BE (1) REIMBURSED FOR THE COST OF ALL SERVICES, EQUIPMENT AND SUPPLIES FURNISHED APPROPRIATIONS * * *; (2) CREDITED WITH ADVANCES FROM APPROPRIATIONS TO WHICH SERVICES, OR SUPPLIES ARE TO BE FURNISHED, AND ALL OTHER RECEIPTS RESULTING FROM THE OPERATION OF THE FUND INCLUDING THE PROCEEDS OF DISPOSAL OF SCRAP, EXCESS OR SURPLUS PERSONAL PROPERTY OF THE FUND * * *.'

IN EXPLANATION OF THE ESTABLISHMENT AND USE OF THE REVOLVING SUPPLY FUND, IT IS STATED AT PAGES 12 AND 13 OF H. REPT. NO. 550, 83D CONGRESS, ON THE BILL ENACTED AS THE SECOND INDEPENDENT OFFICES APPROPRIATION ACT, 1954, IN PERTINENT PART, AS FOLLOWS:

IT IS ESSENTIAL THAT THIS SUPPLY FUND BE MADE AVAILABLE TO THE AGENCY BECAUSE OF OTHER ACTION BY THE COMMITTEE CREATING SEVERAL APPROPRIATIONS FOR ADMINISTRATION AND MEDICAL CARE EXPENSES. THE FUND WILL BE USED TO FINANCE THE PURCHASE OF SUPPLIES AND MATERIALS FOR BOTH DEPOT AND STATION STOCKS PENDING ACTUAL USE BY THE HOSPITALS, DOMICILIARIES, OUT-PATIENT CLINICS, REGIONAL OFFICES, AND OTHER STATIONS, AND PENDING DETERMINATION AS TO WHICH APPROPRIATION IS TO BE CHARGED WITH THE SUPPLIES CONSUMED. THE CREATION AND USE OF SUCH SUPPLY FUND WILL RESULT IN CHARGING THE SEVERAL APPROPRIATIONS WITH GOODS CONSUMED, RATHER THAN MERELY CHARGING THEM WITH ORDERS PLACED. THIS FINANCING PLAN FOR SUPPLIES WILL RESULT IN IMPROVED CONGRESSIONAL CONTROL OVER FEDERAL EXPENDITURES, AND WILL PREVENT STOCKPILING OF SUPPLIES AT A LEVEL HIGHER THAN WILL EXIST ON JUNE 30, 1953. * * * THE USE OF A SUPPLY FUND WILL REFLECT MORE ACCURATELY THE COST OF OPERATIONS, AND WILL PROVIDE BOTH THE EXECUTIVE AND LEGISLATIVE BRANCHES OF THE GOVERNMENT WITH MORE MEANINGFUL AND DEPENDABLE INFORMATION REGARDING EXPENDITURES FOR OPERATIONS OF THE VETERANS ADMINISTRATION. ITALICS SUPPLIED.)

IN THE SENATE HEARINGS OF THIS APPROPRIATION BILL IT IS STATED AT PAGE 242, AS FOLLOWS:

NOW, THE THIRD AMENDMENT IS THE ONE ON PAGE 17 WHICH SETS UP THE SUPPLY FUND. AM I RIGHT IN UNDERSTANDING MR. STIRLING, THAT THAT SUPPLY FUND IS SET UP SEPARATELY FOR THE FIRST TIME THIS YEAR?

MR. STIRLING. YES, THAT IS CORRECT.

SENATOR SALTONSTALL. WILL YOU DESCRIBE THAT LANGUAGE A LITTLE BIT, PLEASE?

MR. BAKER. MR. CHAIRMAN, THE PURPOSE AND INTENT OF THIS IS TO ENABLE US TO PROCURE THROUGH ONE SUPPLY SYSTEM ALL THE SUPPLIES, MATERIALS, AND EQUIPMENT THAT ARE NEEDED FOR THE OPERATION OF OUR VARIOUS FIELD STATIONS, INCLUDING HOSPITALS AND DOMICILIARIES. BECAUSE OF THE FACT THAT THIS BILL ALSO PROVIDES 7 DIFFERENT APPROPRIATIONS WHERE WE HAVE HAD ONLY 1 BEFORE, IT BECOMES MORE IMPORTANT THAN EVER THAT WE HAVE SUCH A SUPPLY SYSTEM WHICH CAN SELL, IN EFFECT, TO THESE VARIOUS OTHER PROGRAMS, FINANCED UNDER DIFFERENT APPROPRIATIONS, AND SECURE REIMBURSEMENT FOR THE SUPPLIES AND MATERIALS THAT THEY SO SELL.

IT IS CLEAR FROM THE LEGISLATION ESTABLISHING THE REVOLVING SUPPLY FUND, AND IN LIGHT OF ITS LEGISLATIVE HISTORY QUOTED ABOVE, THAT THE SUPPLY FUND WAS ESTABLISHED FOR AND DESIGNED GENERALLY TO SIMPLIFY AND IMPROVE OPERATIONS OF THE VETERANS ADMINISTRATION WITH REFERENCE TO THE PROCUREMENT, WAREHOUSING, AND UTILIZATION OF ITS SUPPLIES, MATERIALS, AND EQUIPMENT. THE LAW CONTEMPLATES THAT THE FUND OPERATE AS A WORKING CAPITAL TYPE OF ACCOUNT FROM WHICH EXPENDITURES NECESSARY FOR SUPPLIES, MATERIALS, AND SERVICES WOULD BE MADE WITH PAYMENT, EITHER IN ADVANCE OR BY WAY OF REIMBURSEMENT, FROM VETERANS ADMINISTRATION APPROPRIATIONS PROPERLY CHARGEABLE FOR THE DIRECT COST OF THE ITEMS AND FOR THE INDIRECT COST OF MAINTAINING THE FUND. FURTHER, THAT THE ACTIVITIES FINANCED BY THE SUPPLY FUND INCLUDE THE PERFORMANCE OF OTHERWISE PROPER SERVICE FUNCTIONS REASONABLY CONNECTED WITH AND INCIDENT TO THE ACCOMPLISHMENT OF THE REGULAR ACTIVITIES OF THE VETERANS ADMINISTRATION, SUBJECT TO THE AVAILABILITY OF APPROPRIATIONS.

THERE CAN BE NO DOUBT THAT PERSONAL PROPERTY CHARGED TO VETERANS ADMINISTRATION FIELD STATION APPROPRIATIONS MUST BE IDENTIFIED WITH THE USING APPROPRIATION AT THE TIME OF PURCHASE FROM THE SUPPLY FUND. ALSO, THAT PROCEEDS FROM THE SALE OF SUCH PROPERTY DETERMINED TO BE EXCESS OR SURPLUS UNDER REGULATIONS OF THE GENERAL SERVICES ADMINISTRATION ARE FOR DEPOSIT INTO THE TREASURY AS MISCELLANEOUS RECEIPTS LESS, OF COURSE, THE ITEMS OF EXPENSE WHICH PERTAIN DIRECTLY TO THE SALE OF THE PROPERTY. SEE SECTIONS 3617 AND 3618, REVISED STATUTES, 31 U.S.C. 484 AND 487, RESPECTIVELY, AND 40 U.S.C. 485. ALSO, SEE 33 COMP. GEN. 31; 37 ID. 59. CF. 26 COMP. GEN. 721.

APPARENTLY, A MAJOR REASON FOR RECONSTITUTING SILVER RECLAMATION AS A SUPPLY FUND OPERATION IS TO DEFRAY THE COST OF THE PROGRAM AND EQUIPMENT NECESSARY TO RECOVER THE SILVER FROM THE SUPPLY FUND AND TO RETAIN AND USE THE PROCEEDS DERIVED FROM SALE OF THE SILVER FOR PURPOSES OF THE FUND. SUCH A PROPOSITION APPEARS PREDICATED ON THE ASSUMPTION THAT (1) THE AUTHORITY FOR THE ESTABLISHMENT AND CAPITALIZATION OF THE SUPPLY FUND, AND OPERATION AND MAINTENANCE OF A SUPPLY SYSTEM IS SUFFICIENTLY BROAD TO AUTHORIZE ACTIVITIES IN THE NATURE OF SILVER RECLAMATION, AND (2) THAT PERSONAL PROPERTY PURCHASED WITH FUNDS APPROPRIATED FOR PAYMENT OF SALARIES AND EXPENSES, AND DETERMINED TO BE NO LONGER REQUIRED FOR THE PURPOSES FOR WHICH IT WAS PURCHASED OR THE USE TO WHICH IT WAS APPLIED MAY BE REVERTED AS SUPPLY FUND PROPERTY SIMPLY BECAUSE IT WAS INITIALLY PURCHASED OR ACQUIRED BY THE FUND.

THE CONGRESS IN PROVIDING REVOLVING FUND TYPE OF FINANCING FOR THE OPERATION AND MAINTENANCE OF A SUPPLY SYSTEM FOR THE VETERANS ADMINISTRATION QUALIFIED THE USE THEREOF ON THE BASIS OF ADJUSTMENT BETWEEN THE SUPPLY FUND AND THE CONSUMING APPROPRIATIONS FOR THE COST OF SERVICES, EQUIPMENT AND SUPPLIES FURNISHED THE APPROPRIATIONS OTHERWISE AVAILABLE FOR PAYMENT OF SUCH EXPENSES. IT IS APPARENT, THEREFORE, THAT APPLICATION OF THE SUPPLY FUND MUST BE LIMITED TO THE EXTENT THAT EXPENDITURES THEREFROM ARE REASONABLY CONNECTED WITH AND INCIDENT TO THE ACCOMPLISHMENT OF THE PURPOSES FOR WHICH SPECIFIC APPROPRIATIONS ARE MADE TO THE VETERANS ADMINISTRATION.

IT IS UNDERSTOOD THAT THE APPROPRIATIONS MADE TO THE VETERANS ADMINISTRATION FOR THE PURCHASE OF X-RAY FILM AND THE CHEMICAL SOLUTION FOR DEVELOPING THE FILM ARE PROVIDED UNDER THE TITLES " INPATIENT CARE" AND " OUTPATIENT CARE.' BOTH OF THESE APPROPRIATIONS, AS CONTAINED IN THE INDEPENDENT OFFICES APPROPRIATION ACT, 1960, PUBLIC LAW 86-255, APPROVED SEPTEMBER 14, 1959, 73 STAT. 511, ARE MADE AVAILABLE IN GENERAL TERMS FOR EXPENSES NECESSARY TO ACCOMPLISH SPECIFIC PURPOSES. THE FIRST MENTIONED APPROPRIATION PROVIDES FOR, AMONG OTHER THINGS, THE COST OF CARE AND TREATMENT OF BENEFICIARIES AT VETERANS ADMINISTRATION HOSPITALS AND DOMICILIARIES, CONTRACT HOSPITALS, AND STATE HOMES; THE LATTER APPROPRIATION PROVIDES CERTAIN VETERANS WITH MEDICAL AND DENTAL CARE BY THE STAFFS OF VETERANS ADMINISTRATION OUTPATIENT CLINICS AND BY PHYSICIANS AND DENTISTS PARTICIPATING IN THE HOMETOWN MEDICAL CARE PROGRAM.

WE AGREE THAT A CENTRALIZED PROGRAM FOR THE RECOVERY OF SILVER IS DESIRABLE AND IN THE INTEREST OF THE GOVERNMENT, IN VIEW OF THE MATERIAL SAVINGS WHICH, IT IS SAID, CAN RESULT THEREFROM. ALSO, IT IS CLEAR THAT THE PROCUREMENT OF ELECTRODES FOR USE IN EXTENDING THE USEFUL LIFE OF THE X-RAY FIXING SOLUTION FALLS WITHIN THE SCOPE OF AUTHORIZED SUPPLY FUND ACTIVITIES. HOWEVER, WE SEE NO LEGAL BASIS FOR THE VIEW THAT THE EXPENSE DIRECTLY CONNECTED WITH THE RECOVERY OF SILVER INCLUDING OPERATING EQUIPMENT PROPERLY MAY BE CONSIDERED A NECESSARY EXPENSE OR AN EXPENSE REASONABLY CONNECTED WITH AND INCIDENT TO THE ACCOMPLISHMENT OF THE SPECIFIC PURPOSES FOR WHICH THE CITED APPROPRIATIONS WERE MADE AVAILABLE. APPARENTLY, RECLAIMED SILVER SERVES NO NEED OR USEFUL PURPOSE TO THE VETERANS ADMINISTRATION IN PERFORMING THE ACTIVITIES COVERED BY THESE APPROPRIATIONS. NEITHER DOES IT APPEAR THAT IN THE RECOVERY OF SILVER BY THE SUPPLY FUND THERE WOULD BE INVOLVED THE FURNISHING OF SUPPLIES OR THE PERFORMANCE OF SERVICES FOR THE BENEFIT OF THE PERTINENT APPROPRIATIONS.

FOR THESE REASONS WE FIND IT DIFFICULT TO CONSIDER THE PROGRAM FOR SILVER RECOVERY AS THE TYPE OF SUPPLY OPERATION AUTHORIZED TO BE FINANCED BY THE SUPPLY FUND. AS WE SEE IT, THE PROGRAM INVOLVES AN INDUSTRIAL OPERATION NOT WITHIN THE SCOPE OF THE DUTIES AND RESPONSIBILITIES OF THE VETERANS ADMINISTRATION. AND, SINCE THE CONGRESS HAS SEEN FIT TO LIMIT APPLICATION OF THE SUPPLY FUND, AS STATED ABOVE, NO LEGAL BASIS EXISTS FOR EXTENDING ITS USE TO ACTIVITIES WHICH ARE UNRELATED TO THE SUPPLY AND SERVICE ACTIVITIES WHICH THE SUPPLY FUND WAS DESIGNED TO SERVE.

MOREOVER, WHILE WE RECOGNIZE THAT UNDER THE LAW PROPERTY NO LONGER REQUIRED FOR THE PURPOSES OF THE APPROPRIATION FROM WHICH IT WAS PURCHASED MAY BE REASSIGNED WITHIN THE AGENCY FOR PURPOSES OF EFFECTIVE UTILIZATION, IT DOES NOT FOLLOW THAT PROPERTY SO ACQUIRED BY AN APPROPRIATION THROUGH THE SUPPLY FUND AND SUBSEQUENTLY CONVERTED INTO CASH MAY BE RETAINED AND USED BY THE FUND. THE EFFECT OF SUCH ACTION IS TO SUPPLEMENT THE WORKING CAPITAL OF THE FUND IN A MANNER NOT AUTHORIZED BY THE CONGRESS. SEE 20 COMP. GEN. 280; 23 ID. 986.

ACCORDINGLY, WE CONCLUDE THAT THE PROPOSAL TO FINANCE AND OPERATE A CENTRALIZED SILVER RECLAMATION PROGRAM AS A REVOLVING SUPPLY FUND ACTIVITY, AND TO RETAIN AND USE THE PROCEEDS DERIVED FROM SALE OF THE SILVER IS UNAUTHORIZED UNDER EXISTING LAW AND, THEREFORE, MAY NOT BE APPROVED.

WE WISH TO POINT OUT THAT WE HAVE NO DESIRE TO APPEAR AS INTERFERING WITH THE FURTHERANCE OF THE PURPOSE TO CENTRALIZE THE RECOVERY OF SILVER. BUT THE NEED OR DESIRABILITY FOR FINANCING THE ACTIVITY UNDER THE SUPPLY FUND WITH RETENTION OF THE PROCEEDS DERIVED FROM SILVER RECLAMATION DOES NOT AUTHORIZE THE USE OF THE SUPPLY FUND FOR PURPOSES NOT FAIRLY WITHIN ITS TERMS AS PROVIDED BY THE CONGRESS, NOR OVERCOME THE SPECIFIC REQUIREMENTS OF THE CITED SECTIONS 3617 AND 3618, REVISED STATUTES, AND 40 U.S.C. 485. CONSEQUENTLY, WE BELIEVE THAT THE PLAN FOR A CENTRALIZED SILVER RECLAMATION PROGRAM AS A SUPPLY FUND ACTIVITY SHOULD BE BROUGHT TO THE ATTENTION OF THE CONGRESS, AND WE WOULD RECOMMEND FAVORABLE CONSIDERATION BY THE CONGRESS.

IN THIS CONNECTION, YOUR LETTER CITES AS A PRECEDENT, FOR FINANCING THE CENTRALIZED SILVER RECOVERY PROGRAM AS A SUPPLY FUND OPERATION, THE PRACTICE FOLLOWED BY THE VETERANS ADMINISTRATION WITH REFERENCE TO THE DISPOSITION OF SCRAP GOLD. IT IS STATED THAT THE SUPPLY FUND PROCURES AND ISSUES GOLD AND CERTAIN OTHER METALS FOR USE IN THE PRACTICE OF DENTISTRY AND THAT IN THE NORMAL PRACTICE SUCH MATERIAL IS NOT ENTIRELY USED. THE FABRICATION OF DENTAL DEVICES, OR THE FILLING OR CROWNING OF TEETH, IS SAID TO GIVE RISE TO SCRAP IN THE FORM OF FILINGS AND CLIPPINGS. THE SCRAP GOLD IS ACCUMULATED AND COLLECTED AT THE SOMERVILLE DEPOT, DISPOSED OF THROUGH THE TREASURY DEPARTMENT, AND PROCEEDS FROM THE SALE THEREOF ARE CREDITED TO THE SUPPLY FUND. OUR RECORDS DO NOT DISCLOSE THAT THE LEGAL PROPRIETY OF THE PROCEDURE FOLLOWED BY THE VETERANS ADMINISTRATION WITH RESPECT TO THE DISPOSITION OF SCRAP GOLD AND CREDIT OF THE SALE PROCEEDS TO THE SUPPLY FUND WAS EVER PRESENTED HERE FOR FORMAL CONSIDERATION. HENCE, REFERENCE TO SUCH PRACTICE AS A PRECEDENT, IN CONNECTION WITH THE PROPOSAL FOR THE CENTRALIZED RECOVERY OF SILVER AS A SUPPLY FUND ACTIVITY, MAY NOT BE CONSIDERED AS SUPPORT FOR THAT PROPOSITION. FURTHERMORE, WE HAVE CONSIDERABLE DOUBT AS TO THE PROPRIETY OF ADOPTING THIS PRACTICE IN THE FIRST INSTANCE. IT IS CLEAR THAT THE GOLD USED IN THE PRACTICE OF DENTISTRY IS PURCHASED WITH APPROPRIATED FUNDS OF THE VETERANS ADMINISTRATION THROUGH THE SUPPLY FUND FOR USE INCIDENT TO AUTHORIZED DENTAL SERVICE ACTIVITIES OF THE ADMINISTRATION. EVEN IF THE SERVICE FUNCTION OF ACCUMULATING THE SCRAP GOLD ARISING IN CONNECTION WITH THE DENTAL SERVICES AND THE DISPOSITION THEREOF AS EXCESS OR SURPLUS PROPERTY BE REGARDED AS A PROPER SUPPLY FUND ACTIVITY, THE PERFORMANCE OF SUCH SERVICE DOES NOT OPERATE TO CONVERT THE SCRAP GOLD INTO SUPPLY FUND PROPERTY SO AS TO JUSTIFY CREDITING PROCEEDS FROM THE SALE THEREOF TO THE SUPPLY FUND. AS STATED ABOVE, THE EFFECT OF SUCH ACTION IS TO SUPPLEMENT THE WORKING CAPITAL OF THE FUND IN A MANNER NOT AUTHORIZED BY THE CONGRESS.

UNDER THE TERMS OF 40 U.S.C. 485, ALL PROCEEDS FROM THE DISPOSITION OF EXCESS OR SURPLUS PROPERTY ARE REQUIRED TO BE DEPOSITED INTO THE TREASURY AS MISCELLANEOUS RECEIPTS WITH CERTAIN EXCEPTIONS NOT HERE MATERIAL. CONSEQUENTLY, IN THE ABSENCE OF EXPRESS STATUTORY AUTHORITY FOR CREDITING THE SUPPLY FUND WITH PROCEEDS FROM SALE OF THE SCRAP GOLD, SUCH COLLECTIONS FROM THE SALE OF SUCH SCRAP SHOULD BE DEPOSITED IN THE TREASURY AS MISCELLANEOUS RECEIPTS.