B-131350, JULY 29, 1957, 37 COMP. GEN. 59

B-131350: Jul 29, 1957

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OR OTHER PUBLIC PROPERTY OF ANY KIND BEFORE BEING DEPOSITED INTO THE TREASURY EITHER AS MISCELLANEOUS RECEIPTS OR TO THE CREDIT OF THE APPROPRIATIONS TO WHICH SUCH PROCEEDS ARE BY LAW AUTHORIZED TO BE MADE. THERE IS NOTHING IN PUBLIC LAW 999 WHICH WOULD PREVENT THE APPLICATION OF THE 1896 ACT TO SALES MADE THEREUNDER. IS THAT THERE MAY BE PAID FROM THE PROCEEDS OF SALES OF GOVERNMENT PROPERTY ONLY SUCH AUTHORIZED EXPENSES AS PERTAIN DIRECTLY TO THE SALES. ADVERTISING COSTS ARE AUTHORIZED EXPENSES PERTAINING DIRECTLY TO THE SALES AND. ARE PAYABLE OUT OF THE PROCEEDS OF THE SALES. WHEN THE AUCTION METHOD IS DETERMINED UPON. SINCE THERE IS NOTHING THEREIN WHICH PREVENTS REACHING SUCH DETERMINATION THROUGH THE USE OF CONTRACT APPRAISERS ( CF. 7 COMP.

B-131350, JULY 29, 1957, 37 COMP. GEN. 59

PUBLIC LAND SALES - AVAILABILITY OF GROSS PROCEEDS FOR SALE EXPENSES - APPRAISERS' AND AUCTIONEERS' FEES, ETC., COSTS UNDER PUBLIC LAW NO. 999, 84TH CONGRESS, 16 U.S.C. 460E, WHICH AUTHORIZES THE SALE OF PUBLIC LANDS IN RESERVOIR AREAS BY PUBLIC AUCTION, SEALED BID AND NEGOTIATION AND WHICH DOES NOT CONTAIN ANY PROVISION PRECLUDING THE APPLICATION OF THE ACT OF JUNE 8, 1896, 31 U.S.C. 489, WHICH MAKES AVAILABLE THE GROSS PROCEEDS OF PUBLIC PROPERTY SALES FOR PAYMENT OF DIRECT EXPENSES PRIOR TO DEPOSIT OF THE NET PROCEEDS INTO THE TREASURY AS MISCELLANEOUS RECEIPTS, APPRAISERS' FEES, AUCTIONEERS' FEES AND ADVERTISING COSTS MAY BE REGARDED AS EXPENSES PERTAINING DIRECTLY TO THE SALES AND PAYABLE FROM THE GROSS PROCEEDS.

TO THE SECRETARY OF THE ARMY, JULY 29, 1957:

ON MAY 22, 1957, THE ASSISTANT SECRETARY OF THE ARMY ( FM) REQUESTED OUR DECISION AS TO WHETHER FEES FOR APPRAISALS OBTAINED BY CONTRACT, AS WELL AS AUCTIONEER'S FEES AND ADVERTISING COSTS, MAY BE DEDUCTED FROM THE GROSS RECEIPTS FROM SALES OF LANDS IN RESERVOIR AREAS FOR COTTAGE SITE DEVELOPMENT AND USE UNDER THE AUTHORITY OF PUBLIC LAW 999, 84TH CONGRESS, 70 STAT. 1065, 16 U.S.C. 460E, PRIOR TO DEPOSIT THEREOF INTO THE TREASURY OF THE UNITED STATES AS MISCELLANEOUS RECEIPTS.

PUBLIC LAW 999 PROVIDES, IN PERTINENT PART, AS FOLLOWS:

SEC. 2. (A) PUBLIC NOTICE OF THE AVAILABILITY OF THE LANDS FOR SALE FOR COTTAGE SITE DEVELOPMENT AND USE SHALL BE GIVEN IN SUCH MANNER AS THE SECRETARY OF THE ARMY MAY BY REGULATION PRESCRIBE, INCLUDING PUBLICATION WITHIN THE VICINITY OF THE LANDS AVAILABLE FOR SALE: * * *

(B) THE SALE OF LANDS FOR COTTAGE SITE DEVELOPMENT AND USE SHALL BE ACCOMPLISHED BY ANY METHOD WHICH THE SECRETARY OF THE ARMY DETERMINES TO BE IN THE PUBLIC INTEREST, INCLUDING PUBLIC AUCTION, SEAL BIDS, AND BY NEGOTIATION WITH LESSEES AND WITH OTHERS AFTER COMPETITIVE BIDDING.

(C) THE PRICE TO BE PAID FOR ANY LANDS SOLD FOR COTTAGE SITE DEVELOPMENT AND USE PURSUANT TO THE PROVISIONS OF THIS ACT SHALL BE NOT LESS THAN THE APPRAISED FAIR MARKET VALUE THEREOF AS DETERMINED BY THE SECRETARY OF THE ARMY.

SEC. 6. THE PROCEEDS FROM ANY SALE MADE UNDER THIS ACT SHALL BE COVERED INTO THE TREASURY OF THE UNITED STATES AS MISCELLANEOUS RECEIPTS.

THE ACT OF JUNE 8, 1896, 29 STAT. 268, AS AMENDED, 31 U.S.C. 489, PROVIDES THAT FROM THE PROCEEDS OF SALES OF OLD MATERIAL, CONDEMNED STORES, SUPPLIES, OR OTHER PUBLIC PROPERTY OF ANY KIND BEFORE BEING DEPOSITED INTO THE TREASURY EITHER AS MISCELLANEOUS RECEIPTS OR TO THE CREDIT OF THE APPROPRIATIONS TO WHICH SUCH PROCEEDS ARE BY LAW AUTHORIZED TO BE MADE, THERE MAY BE PAID THE EXPENSES OF SUCH SALES AS APPROVED BY THE GENERAL ACCOUNTING OFFICE, SO AS TO REQUIRE ONLY THE NET PROCEEDS OF SUCH SALES TO BE DEPOSITED INTO THE TREASURY. THERE IS NOTHING IN PUBLIC LAW 999 WHICH WOULD PREVENT THE APPLICATION OF THE 1896 ACT TO SALES MADE THEREUNDER. THE GENERAL RULE ESTABLISHED BY THE ACCOUNTING OFFICERS OF THE GOVERNMENT UNDER THE 1896 ACT, AS AMENDED, IS THAT THERE MAY BE PAID FROM THE PROCEEDS OF SALES OF GOVERNMENT PROPERTY ONLY SUCH AUTHORIZED EXPENSES AS PERTAIN DIRECTLY TO THE SALES. SEE 33 COMP. GEN. 31; 16 ID. 876; 15 ID. 743; 7 ID. 531; 6 ID. 348; 5 ID. 680. CF. 26 COMP. GEN. 857.

SINCE SECTION 2 (A) OF PUBLIC LAW 999, 16 U.S.C. 460F (A), REQUIRES PUBLIC NOTICE OF THE AVAILABILITY OF LANDS FOR SALE AND SPECIFICALLY PERMITS SUCH NOTICE TO BE GIVEN BY PUBLICATION, ADVERTISING COSTS ARE AUTHORIZED EXPENSES PERTAINING DIRECTLY TO THE SALES AND, UNDER THE ABOVE- STATED RULE, ARE PAYABLE OUT OF THE PROCEEDS OF THE SALES. ALSO, THE PROVISIONS OF SECTION 2 (B), 16 U.S.C. 460F (B), WHICH PERMIT THE SALES TO BE ACCOMPLISHED BY ANY METHOD DETERMINED BY THE SECRETARY TO BE IN THE PUBLIC INTEREST AND SPECIFICALLY INCLUDE PUBLIC AUCTION, RENDER AUCTIONEER'S FEES, WHEN THE AUCTION METHOD IS DETERMINED UPON, AUTHORIZED EXPENSES PERTAINING DIRECTLY TO THE SALES AND HENCE PAYABLE OUT OF THE PROCEEDS OF SUCH SALES. LIKEWISE, SINCE SECTION 2 (C), 16 U.S.C. 460F (C) OF THE ACT REQUIRES THE DETERMINATION BY THE SECRETARY OF THE APPRAISED FAIR MARKET VALUE OF THE LAND SOLD, AND SINCE THERE IS NOTHING THEREIN WHICH PREVENTS REACHING SUCH DETERMINATION THROUGH THE USE OF CONTRACT APPRAISERS ( CF. 7 COMP. GEN. 531 AND 16 ID. 876), THE FEES OF SUCH APPRAISERS ALSO ARE AUTHORIZED EXPENSES PERTAINING DIRECTLY TO THE SALES AND ARE PAYABLE OUT OF THE PROCEEDS THEREOF UNDER THE STATED RULE.