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[Query Concerning Availability of Funds To Reimburse Permanent Judgment Appropriation Account]

B-211229 Apr 24, 1984
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Highlights

The Bureau of Land Management (BLM) requested an opinion concerning the availability of appropriated funds to reimburse the permanent judgment appropriation established by law for contract claims charged against the permanent judgment appropriation in accordance with the Contract Disputes Act of 1978. The claims in question arose from construction contracts negotiated prior to fiscal year 1981. BLM proposes to charge payments to an expired appropriation M account, but it is not clear whether BLM intends to restore any expired surplus obligation authority to the M account to record the obligation. In previous situations involving the administrative settlement of claims against the United States, GAO has held that payment is chargeable to appropriations current at the time of final action on the award; a court or administrative final award is recognized as creating a new Government liability and, therefore, any reimbursement should be treated as a new obligation. Therefore, BLM must charge current appropriations, rather than an expired appropriation M account, for reimbursement to the permanent judgment appropriation for awards and judgments paid pursuant to the Contract Disputes Act. BLM also asked whether a violation of the Antideficiency Act occurs when an agency is required to seek an appropriation from Congress to reimburse the permanent judgment account and does not receive the appropriation, resulting in a situation in which current funds are insufficient to cover a court or administrative judgment. It has been the position of GAO that a judicial or quasi-official judgment or award does not involve a deficiency created by an administrative officer. Accordingly, such an award would not be viewed as violating the Antideficiency Act.

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