B-130507, FEBRUARY 21, 1957, 36 COMP. GEN. 607

B-130507: Feb 21, 1957

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APPROPRIATIONS - ADMINISTRATIVE EXPENSE LIMITATIONS - CIVIL DEFENSE FUNDS TRANSFERRED TO PUBLIC HOUSING ADMINISTRATION THE ADMINISTRATIVE EXPENSE LIMITATIONS WHICH ARE PLACED ON THE PUBLIC HOUSING ADMINISTRATION IN TITLE II OF THE INDEPENDENT OFFICES APPROPRIATION ACT. ARE INAPPLICABLE TO FUNDS TRANSFERRED TO PUBLIC HOUSING ADMINISTRATION TO CARRY OUT CIVIL DEFENSE ACTIVITIES. THE FUNDS INVOLVED WERE APPROPRIATED UNDER TITLE I OF THE INDEPENDENT OFFICES APPROPRIATION ACT. " A PORTION OF WHICH WAS TRANSFERRED TO THE HOUSING AND HOME FINANCE AGENCY ADMINISTRATOR WHO. * * YOUR QUESTION IS WHETHER THE $12. 000 LIMITATIONS ARE INCLUSIVE OR EXCLUSIVE OF THE FUNDS ( $45. YOUR DOUBT ARISES ESPECIALLY BECAUSE OF THE LEGISLATIVE HISTORY OF THE ABOVE-QUOTED LANGUAGE AT THE TIME IT WAS CHANGED.

B-130507, FEBRUARY 21, 1957, 36 COMP. GEN. 607

APPROPRIATIONS - ADMINISTRATIVE EXPENSE LIMITATIONS - CIVIL DEFENSE FUNDS TRANSFERRED TO PUBLIC HOUSING ADMINISTRATION THE ADMINISTRATIVE EXPENSE LIMITATIONS WHICH ARE PLACED ON THE PUBLIC HOUSING ADMINISTRATION IN TITLE II OF THE INDEPENDENT OFFICES APPROPRIATION ACT, 1957, AFTER PRESENTATION TO THE CONGRESS OF A BUDGET JUSTIFICATION WHICH SPECIFICALLY DESIGNATES THE SOURCE OF FUNDS (CORPORATE AND APPROPRIATED) AVAILABLE FOR FINANCING ADMINISTRATIVE EXPENSES AND WHICH DOES NOT INCLUDE ADMINISTRATIVE EXPENSES FOR UNSPECIFIED PROGRAMS, ARE INAPPLICABLE TO FUNDS TRANSFERRED TO PUBLIC HOUSING ADMINISTRATION TO CARRY OUT CIVIL DEFENSE ACTIVITIES.

TO THE ADMINISTRATOR, HOUSING AND HOME FINANCE AGENCY, FEBRUARY 21, 1957:

YOUR LETTER OF JANUARY 28, 1957, REQUESTS OUR DECISION CONCERNING THE EFFECT OF THE ADMINISTRATIVE EXPENSE LIMITATION OF THE PUBLIC HOUSING ADMINISTRATION ( PHA) ON A TRANSFER OF FUNDS TO THE PHA FROM THE FEDERAL CIVIL DEFENSE ADMINISTRATION. THE FUNDS INVOLVED WERE APPROPRIATED UNDER TITLE I OF THE INDEPENDENT OFFICES APPROPRIATION ACT, 1957, 70 STAT. 340, 341, UNDER THE HEADING " FEDERAL CIVIL DEFENSE ADMINISTRATION," FOR " SALARIES AND EXPENSES, CIVIL DEFENSE FUNCTIONS OF FEDERAL AGENCIES," A PORTION OF WHICH WAS TRANSFERRED TO THE HOUSING AND HOME FINANCE AGENCY ADMINISTRATOR WHO, IN TURN, TRANSFERRED A PORTION OF THE ALLOCATION UNDER A FORM 1080 TO THE PHA.

TITLE II OF THE INDEPENDENT OFFICES APPROPRIATION ACT, 1957, 70 STAT. 352, 355, 42 U.S.C. 1431, WHICH AUTHORIZES EXPENDITURES FOR CORPORATIONS AND AGENCIES WITHIN THE LIMITS OF FUNDS AND BORROWING AUTHORITY AVAILABLE TO EACH SUCH CORPORATION OR AGENCY, PROVIDES IN PART AS FOLLOWS CONCERNING ADMINISTRATIVE EXPENSES OF THE PHA:

PUBLIC HOUSING ADMINISTRATION: OF THE AMOUNTS AVAILABLE BY OR PURSUANT TO LAW FOR THE ADMINISTRATIVE EXPENSES OF THE PUBLIC HOUSING ADMINISTRATION IN CARRYING OUT DUTIES IMPOSED BY OR PURSUANT TO LAW, INCLUDING FUNDS APPROPRIATED BY TITLE I OF THIS ACT, NOT TO EXCEED $12,475,000 SHALL BE AVAILABLE FOR SUCH EXPENSES, INCLUDING NOT TO EXCEED $950,000 FOR EXPENSES OF TRAVEL; * *

YOUR QUESTION IS WHETHER THE $12,475,000 AND $950,000 LIMITATIONS ARE INCLUSIVE OR EXCLUSIVE OF THE FUNDS ( $45,800) TRANSFERRED FROM THE FEDERAL CIVIL DEFENSE APPROPRIATION, AND YOUR DOUBT ARISES ESPECIALLY BECAUSE OF THE LEGISLATIVE HISTORY OF THE ABOVE-QUOTED LANGUAGE AT THE TIME IT WAS CHANGED. PREVIOUS TO THAT CHANGE, WHICH TOOK PLACE IN THE GOVERNMENT CORPORATIONS APPROPRIATIONS ACT, 1947, 60 STAT. 586, 592, 42 U.S.C. 1431. THE LANGUAGE APPLICABLE TO THE FEDERAL PUBLIC HOUSING AUTHORITY (PREDECESSOR TO PHA), PROVIDED AS FOLLOWS ( INDEPENDENT OFFICE APPROPRIATION ACT, 1946, 59 STAT. 124, 42 U.S.C. 1431):

SALARIES AND EXPENSES: IN ADDITION TO THE AMOUNTS AVAILABLE BY OR PURSUANT TO LAW FOR THE ADMINISTRATIVE EXPENSES OF THE FEDERAL PUBLIC HOUSING AUTHORITY IN CARRYING OUT DUTIES IMPOSED BY OR PURSUANT TO LAW, AND NOT TO EXCEED $96,200 OF THE FUNDS OF THE DEFENSE HOMES CORPORATION AVAILABLE FOR ITS ADMINISTRATIVE EXPENSES (ALL OF WHICH ARE HEREBY MERGED WITH THIS AUTHORIZATION), NOT TO EXCEED $2,200,000 OF THE FUNDS OF SAID AUTHORITY DERIVED FROM ITS OPERATIONS UNDER THE ACT OF SEPTEMBER 1, 1937, AS AMENDED (42 U.S.C. 1401), SHALL BE AVAILABLE FOR ALL NECESSARY ADMINISTRATIVE EXPENSES OF SAID AUTHORITY, * * *

THE CHANGE IN LANGUAGE IS EXPLAINED IN THE BUDGET FOR THE FISCAL YEAR ENDING JUNE 30, 1947, CORPORATION SUPPLEMENT, PAGE 264, AND IN THE HEARINGS BEFORE THE SUBCOMMITTEE OF THE HOUSE COMMITTEE ON APPROPRIATIONS ON THE GOVERNMENT CORPORATIONS APPROPRIATION BILL FOR 1947, PAGE 1259, BY THE FOLLOWING STATEMENT:

IN PREVIOUS YEARS, A LIMITATION HAS BEEN IMPOSED ONLY ON EXPENDITURES OF THE CORPORATE PROGRAM IN CONNECTION WITH WORK INITIATED UNDER THE UNITED STATES HOUSING ACT OF 1937. FOR 1947, IT IS PROPOSED THAT AN OVER-ALL LIMITATION OF $19,845,400 BE ESTABLISHED COVERING ALL FEDERAL PUBLIC HOUSING AUTHORITY ADMINISTRATIVE EXPENSES, WITHIN WHICH A SUBSIDIARY LIMITATION OF $3,882,400 WOULD BE PLACED ON ADMINISTRATIVE EXPENSES OF THE ENTIRE CORPORATE PROGRAM.

THE VIEW OF YOUR AGENCY IS THAT ALTHOUGH THE INTENTION IS CLEAR THAT CONGRESS ADOPTED THE CURRENT LANGUAGE TO IMPOSE AN OVER-ALL LIMITATION ON ALL ADMINISTRATIVE EXPENSES, INCLUDING EXPENSES FOR FUNCTIONS PERFORMED BY THE FEDERAL PUBLIC HOUSING AUTHORITY UNDER DELEGATED AUTHORITY FROM THE NATIONAL HOUSING ADMINISTRATOR (NOW THE HOUSING AND HOME FINANCE ADMINISTRATOR), IT IS EQUALLY CLEAR THAT THE LIMITATION WAS INTENDED TO APPLY TO ACTIVITIES COVERED BY THE BUDGET SUBMITTED AND CONSIDERED BY CONGRESS IN ESTABLISHING THE LIMITATION. YOUR OFFICE BELIEVES THAT IT COULD NOT HAVE BEEN INTENDED TO APPLY TO FUNCTIONS WHICH THE AGENCY WOULD BE ASKED OR REQUESTED TO PERFORM "BY OR PURSUANT TO LAW" SUBSEQUENT TO CONGRESSIONAL CONSIDERATION AND ESTABLISHMENT OF THE ADMINISTRATIVE EXPENSE LIMITATION. YOU URGE THAT TO TAKE ANY OTHER POSITION WOULD MEAN THAT THE PHA WOULD BE INCAPABLE OF CARRYING OUT DELEGATED CIVIL DEFENSE FUNCTIONS PURSUANT TO THE FEDERAL CIVIL DEFENSE ACT OF 1950, 64 STAT. 1245, 50 U.S.C. 2251 NOTE.

IT SHOULD BE POINTED OUT THAT THE PLACING OF ADDITIONAL DUTIES UPON AN AGENCY AND THE PROVIDING OF FUNDS THEREFOR SUBSEQUENT TO CONGRESSIONAL CONSIDERATION AND ESTABLISHMENT OF A LIMITATION DO NOT AUTHORIZE THE EXCEEDING OF SUCH LIMITATION. 19 COMP. GEN. 324, 4 ID. 642. THERE IS HERE INVOLVED, HOWEVER, AN ADMINISTRATIVE EXPENSE PROVISION SUCH AS CONTEMPLATED BY SECTION 104 OF THE GOVERNMENT CORPORATION CONTROL ACT, AS AMENDED, 31 U.S.C. 849, WHICH PROVIDES IN PART:

THE BUDGET PROGRAMS TRANSMITTED BY THE PRESIDENT TO THE CONGRESS SHALL BE CONSIDERED AND LEGISLATION SHALL BE ENACTED MAKING NECESSARY APPROPRIATIONS, AS MAY BE AUTHORIZED BY LAW, MAKING AVAILABLE FOR EXPENDITURE FOR OPERATING AND ADMINISTRATIVE EXPENSES SUCH CORPORATE FUNDS OR OTHER FINANCIAL RESOURCES OR LIMITING THE USE THEREOF AS CONGRESS MAY DETERMINE * * *

JUSTIFICATIONS FOR THE PHA ADMINISTRATIVE EXPENSES, AS SHOWN ON PAGES 1206 AND 1207 OF THE HEARINGS ON THE INDEPENDENT OFFICES APPROPRIATIONS FOR THE FISCAL YEAR 1957 BEFORE THE SUBCOMMITTEE OF THE COMMITTEE ON APPROPRIATIONS, HOUSE OF REPRESENTATIVES, GIVE THE ADMINISTRATIVE EXPENSES BY ACTIVITY, PROGRAM AND SOURCE OF FUNDS. THE FUNDS ARE SHOWN TO BE DERIVED FROM (1) THE APPROPRIATION IN TITLE I OF THE APPROPRIATION ACT FOR " ADMINISTRATIVE EXPENSES, PUBLIC HOUSING ADMINISTRATION" AND (2) PROGRAM RECEIPTS " REVOLVING FUND (LIQUIDATING PROGRAM).' WHEN CONSIDERING THE PROVISIONS OF SECTION 104 OF THE GOVERNMENT CORPORATION CONTROL ACT TOGETHER WITH THE SPECIFIC DESIGNATION IN THE JUSTIFICATION OF THE SOURCE OF FUNDS FROM WHICH THE ADMINISTRATIVE EXPENSES WERE TO BE FINANCED, IT SEEMS CLEAR THAT THE ADMINISTRATIVE EXPENSE LIMITATIONS WERE NOT INTENDED BY CONGRESS TO APPLY TO TRANSFERS FROM A FEDERAL CIVIL DEFENSE APPROPRIATION WHICH WAS TO BE PROVIDED FOR IN THE SAME ACT.

HAVING REGARD FOR THE FACT THAT THE PURPOSE OF THE FEDERAL CIVIL DEFENSE APPROPRIATION " SALARIES AND EXPENSES, CIVIL DEFENSE FUNCTIONS OF FEDERAL AGENCIES," IS "TO ENABLE DEPARTMENTS AND ESTABLISHMENTS TO DISCHARGE CIVIL DEFENSE RESPONSIBILITIES," AND SINCE YOU STATE THAT PHA WOULD BE UNABLE TO CARRY OUT SUCH RESPONSIBILITIES IF THE ADMINISTRATIVE EXPENSE LIMITATIONS WERE DEEMED APPLICABLE, OUR VIEW IS THAT THE LIMITATIONS OF $12,475,000 AND $950,000 ARE EXCLUSIVE OF FUNDS TRANSFERRED FROM THE CIVIL DEFENSE APPROPRIATION.