B-124454, AUG. 11, 1955

B-124454, AUG. 11, 1955

TO MR. THOMAS E. DAVIS, ASSISTANT DIRECTOR, THE OHIO STATE UNIVERSITY RESEARCH FOUNDATION:

REFERENCE IS MADE TO YOUR LETTER DATED JULY 25, 1955, RELATIVE TO FUNDS WITHHELD FROM THE OHIO STATE UNIVERSITY RESEARCH FOUNDATION BY REASON OF AN INDEBTEDNESS TO THE UNITED STATES OF THE STATE OF OHIO.

THE RECORD DISCLOSES THAT THIS OFFICE HAS WITHHELD THE SUM OF $29,187.58 CLAIMED TO BE DUE THE OHIO STATE UNIVERSITY RESEARCH FOUNDATION FOR SERVICES RENDERED THE DEPARTMENT OF DEFENSE UNDER CONTRACT NO. AF 28/099/- 90. THE AMOUNT OF $4,174.71 WAS APPLIED TO LIQUIDATE AN INDEBTEDNESS OF THE STATE OF OHIO ARISING FROM THE IMPROPER COLLECTION OF STATE GASOLINE TAXES AND THE AMOUNT OF $25,012.87 HAS BEEN WITHHELD PENDING SETTLEMENT OF AN INDEBTEDNESS TO THE UNITED STATES OF THE OHIO STATE DEPARTMENT OF PUBLIC WELFARE IN THE SUM OF $201,334.98, ARISING FROM THE IMPROPER DIVERSION OF FEDERALLY DONATED COMMODITIES TO PENAL INSTITUTIONS.

WHILE THE GENERAL ACCOUNTING OFFICE IS REQUIRED BY LAW TO SET OFF AMOUNTS DUE AGENCIES OF A STATE AGAINST AMOUNTS FOR WHICH THE STATE IS INDEBTED TO THE UNITED STATES, IT DOES NOT APPEAR THAT THE FOUNDATION, A CORPORATION, INCORPORATED UNDER THE GENERAL CORPORATION ACT OF OHIO, TITLE IX OF THROCKMORTON'S OHIO CODE, IS IN FACT AN AGENCY OF THE STATE OF OHIO. ACCORDINGLY APPROPRIATE INSTRUCTIONS HAVE BEEN ISSUED TO OUR CLAIMS DIVISION TO EFFECT PAYMENT TO THE RESEARCH FOUNDATION OF THE AMOUNTS WITHHELD IF OTHERWISE PROPER AND IT IS NOT NECESSARY THAT THE FOUNDATION COMPLETE ANY FORMS OR TAKE ANY ADDITIONAL STEPS TO EFFECT COLLECTION OF THE AMOUNTS ..END :