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[Decision Concerning IRS Use of Imprest Funds To Purchase Materials for Savings Bond Campaign]

B-225006 Jun 01, 1987
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Highlights

The Internal Revenue Service (IRS) questioned the propriety of the expenditure of imprest funds by a service center for crepe paper it used to promote the sale of U.S. savings bonds. IRS contended that, since the Treasury Department was responsible for administering the savings bond program, as well as promoting and selling the bonds, it should have provided the crepe paper. Treasury contended that IRS properly used its own funds, since: (1) Treasury did not conduct campaigns at individual federal agencies; and (2) its appropriation did not cover the costs of agencies' promotional activities. GAO held that: (1) IRS could use its appropriations to support U.S savings bond campaigns in amounts it administratively determined to be appropriate; and (2) it could not conclude from the record whether the expenditure for crepe paper was reasonable. Accordingly, IRS may certify payment for the crepe paper, consistent with administrative discretion.

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