B-131547, MAY 27, 1957

B-131547: May 27, 1957

Additional Materials:

Contact:

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

 

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

YOUR LETTER STATES THAT THE ADVANCE OF FUNDS WAS MADE PURSUANT TO AUTHORITY CONTAINED IN SECTION 109/B) OF THE FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT OF 1949. THE ADVANCE WAS MADE TO COVER THE COSTS OF EXPORT PACKING AND TRANSPORTATION CHARGES BEYOND THE FIRST POINT OF STORAGE. WHEN INVOICES ARE PRESENTED BY GSA. WHEN COSTS ARE COLLECTED FROM ICA. THEY WILL BE DEPOSITED TO THE CREDIT OF THE FUND. WHICH WAS QUOTED IN PART IN YOUR LETTER. ALTHOUGH THE GENERAL SUPPLY FUND WAS ESTABLISHED PRIMARILY AS AN ACCOUNTING CONVENIENCE. THE ADVANTAGES OF THE PROPOSED PROCEDURE ARE RECOGNIZED.

B-131547, MAY 27, 1957

TO HONORABLE FRANKLIN G. FLOETE, ADMINISTRATOR, GENERAL SERVICES ADMINISTRATION:

YOUR LETTER OF APRIL 16, 1957, REQUESTS OUR DECISION CONCERNING THE PROPRIETY OF A PROPOSED PROCEDURE FOR THE ACCOUNTING FOR AN ADVANCE OF $200,000 FROM THE INTERNATIONAL COOPERATION ADMINISTRATION TO THE GENERAL SUPPLY FUND, SYMBOL 47X4730.

YOUR LETTER STATES THAT THE ADVANCE OF FUNDS WAS MADE PURSUANT TO AUTHORITY CONTAINED IN SECTION 109/B) OF THE FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT OF 1949, 63 STAT. 382, AS AMENDED, TO PROVIDE ADDITIONAL CAPITAL TO FINANCE THE PROCUREMENT OF SUPPLIES ORDERED BY ICA'S OVERSEAS MISSIONS. IN ADDITION TO THE PURCHASE PRICE OF THE SUPPLIES ORDERED AND ANY TRANSPORTATION CHARGES TO THE FIRST POINT OF STORAGE, THE ADVANCE WAS MADE TO COVER THE COSTS OF EXPORT PACKING AND TRANSPORTATION CHARGES BEYOND THE FIRST POINT OF STORAGE. IN THE INTEREST OF FACILITATING ACCOUNTING, YOUR ADMINISTRATION PROPOSES TO TREAT THE ADVANCE AS A NON-LIQUIDATING ADVANCE AND TO RETURN IT INTACT TO ICA WHEN IT HAS SERVED ITS PURPOSE. PAYMENT FOR THE SUPPLIES, INCLUDING EXPORT PACKING AND TRANSPORTATION CHARGES WOULD BE MADE BY THE OVERSEAS MISSION OF ICA, WHEN INVOICES ARE PRESENTED BY GSA. IN THE FURTHER INTEREST OF KEEPING ACCOUNTING COSTS TO THE MINIMUM, YOUR ADMINISTRATION PROPOSES TO FINANCE FROM THE GENERAL SUPPLY FUND ALL COSTS COVERED BY THE ADVANCE, AND WHEN COSTS ARE COLLECTED FROM ICA, THEY WILL BE DEPOSITED TO THE CREDIT OF THE FUND.

SECTION 109/A) OF THE CITED ACT, AS AMENDED BY THE ACT, SEPTEMBER 5, 1950, 64 STAT. 578, WHICH WAS QUOTED IN PART IN YOUR LETTER, PROVIDES SO FAR AS HERE MATERIAL THAT THE GENERAL SUPPLY FUND SHALL BE AVAILABLE "FOR PAYING THE PURCHASE PRICE, TRANSPORTATION TO FIRST STORAGE POINT OF SUPPLIES AND SERVICES, AND THE COST OF PERSONAL SERVICES EMPLOYED DIRECTLY IN THE REPAIR, REHABILITATION AND CONVERSION OF PERSONAL PROPERTY.' ALTHOUGH THE GENERAL SUPPLY FUND WAS ESTABLISHED PRIMARILY AS AN ACCOUNTING CONVENIENCE, AND THE ADVANTAGES OF THE PROPOSED PROCEDURE ARE RECOGNIZED, THE PROVISIONS OF SECTION 109/A) OF THE ACT, UNDER THE WELL- KNOWN MAXIM EXPRESSIO UNIUS EST EXCLUSIO ALTERIUS, PRECLUDE THE USE OF THE FUND FOR EXPORT PACKING AND TRANSPORTATION BEYOND THE FIRST POINT OF STORAGE. THE PROPOSED PROCEDURE THUS WOULD CONSTITUTE AN UNAUTHORIZED USE OF THE GENERAL SUPPLY FUND AND WOULD NOT BE LEGALLY PROPER.