B-5853, SEPTEMBER 25, 1939, 19 COMP. GEN. 395

B-5853: Sep 25, 1939

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THAT PUBLIC EXPENDITURES BE CHARGED DIRECTLY TO THE FUNDS WHICH ARE PROVIDED FOR THEM. WHO ARE ENGAGED DURING THE FISCAL YEAR 1940 IN THE PERFORMANCE OF FUNCTIONS OF THE FORMER LIGHTHOUSE SERVICE TRANSFERRED TO THE COAST GUARD BY THE PRESIDENT'S REORGANIZATION PLAN NO. 2. - THE BUREAU OF LIGHTHOUSES IN THE DEPARTMENT OF COMMERCE AND ITS FUNCTIONS ARE HEREBY TRANSFERRED TO AND SHALL BE CONSOLIDATED WITH AND ADMINISTERED AS A PART OF THE COAST GUARD IN THE DEPARTMENT OF THE TREASURY.'. OR FOR THE USE OF THE AGENCY TO WHICH THE TRANSFER IS MADE. SUCH UNEXPENDED BALANCES SO TRANSFERRED SHALL BE USED ONLY FOR THE PURPOSES FOR WHICH SUCH APPROPRIATION IS ORIGINALLY MADE: * * *" IN ORDER TO PERFECT THE CONSOLIDATION OF THE COAST GUARD AND THE FORMER LIGHTHOUSE SERVICE AND MERGE THE TWO SERVICES.

B-5853, SEPTEMBER 25, 1939, 19 COMP. GEN. 395

APPROPRIATIONS - REORGANIZED AGENCIES - USE OF REGULAR FUNDS OF ONE AGENCY TO PAY PERSONNEL TRANSFERRED FROM ANOTHER NEITHER THE ACT OF AUGUST 5, 1939, 53 STAT. 1216, PERFECTING THE CONSOLIDATION OF THE LIGHTHOUSE SERVICE WITH THE COAST GUARD, NOR ITS LEGISLATIVE HISTORY, REQUIRES OR WARRANTS ANY DEPARTURE, IN THE EXPENDITURE OF FUNDS OF THE INVOLVED AGENCIES, FROM THE SOUND ACCOUNTING PRACTICE, REQUIRED UNDER SECTION 3678, REVISED STATUTES, THAT PUBLIC EXPENDITURES BE CHARGED DIRECTLY TO THE FUNDS WHICH ARE PROVIDED FOR THEM, AND NOT TO SOME OTHER FUNDS WITH THE HOPE OR EXPECTANCY OF A SUBSEQUENT ADJUSTMENT. LIGHTHOUSE SERVICE PERSONNEL, NOW OF THE COAST GUARD, WHO ARE ENGAGED DURING THE FISCAL YEAR 1940 IN THE PERFORMANCE OF FUNCTIONS OF THE FORMER LIGHTHOUSE SERVICE TRANSFERRED TO THE COAST GUARD BY THE PRESIDENT'S REORGANIZATION PLAN NO. 2, MUST BE PAID FROM FUNDS PROVIDED FOR SUCH FUNCTIONS BY THE APPROPRIATIONS OF THE FORMER LIGHTHOUSE SERVICE AS MADE AVAILABLE TO THE COAST GUARD PURSUANT TO THE SAID PLAN AND THE REORGANIZATION ACT OF 1939, 53 STAT. 561, AND MAY NOT BE PAID FROM THE APPROPRIATION " PAY AND ALLOWANCES, COAST GUARD," WITH SUBSEQUENT ADJUSTMENT CHARGING THE FUNDS ORIGINALLY APPROPRIATED FOR THE LIGHTHOUSE SERVICE.

COMPTROLLER GENERAL BROWN TO THE SECRETARY OF THE TREASURY, SEPTEMBER 25, 1939:

CONSIDERATION HAS BEEN GIVEN YOUR LETTER OF AUGUST 29, 1939, AS FOLLOWS:

SECTION 2 (A) OF REORGANIZATION PLAN NO. 2 WHICH, UNDER THE PROVISIONS OF PUBLIC RESOLUTION NO. 20, APPROVED JUNE 7, 1939, BECAME EFFECTIVE JULY 1, 1939, PROVIDES AS FOLLOWS:

"/A) BUREAU OF LIGHTHOUSES.--- THE BUREAU OF LIGHTHOUSES IN THE DEPARTMENT OF COMMERCE AND ITS FUNCTIONS ARE HEREBY TRANSFERRED TO AND SHALL BE CONSOLIDATED WITH AND ADMINISTERED AS A PART OF THE COAST GUARD IN THE DEPARTMENT OF THE TREASURY.'

SECTION 403 OF REORGANIZATION PLAN NO. 2 PROVIDES AS FOLLOWS:

"TRANSFER OF FUNDS.--- SO MUCH OF THE UNEXPENDED BALANCES OF APPROPRIATIONS, ALLOCATIONS, OR OTHER FUNDS AVAILABLE FOR THE USE OF ANY AGENCY IN THE EXERCISE OF ANY FUNCTION TRANSFERRED BY THIS PLAN, OR FOR THE USE OF THE HEAD OF ANY DEPARTMENT OR AGENCY IN THE EXERCISE OF ANY FUNCTION SO TRANSFERRED, AS THE DIRECTOR OF THE BUREAU OF THE BUDGET WITH THE APPROVAL OF THE PRESIDENT SHALL DETERMINE, SHALL BE TRANSFERRED TO THE DEPARTMENT OR AGENCY CONCERNED FOR USE IN CONNECTION WITH THE EXERCISE OF THE FUNCTION SO TRANSFERRED. IN DETERMINING THE AMOUNT TO BE TRANSFERRED THE DIRECTOR OF THE BUREAU OF THE BUDGET MAY INCLUDE AN AMOUNT TO PROVIDE FOR THE LIQUIDATION OF OBLIGATIONS INCURRED AGAINST SUCH APPROPRIATIONS, ALLOCATIONS, OR OTHER FUNDS PRIOR TO THE TRANSFER: PROVIDED, THAT THE USE OF THE UNEXPENDED BALANCES OF APPROPRIATIONS, ALLOCATIONS, OR OTHER FUNDS TRANSFERRED BY THIS SECTION SHALL BE SUBJECT TO THE PROVISIONS OF SECTION 4 (D) (3) AND SECTION 9 OF THE REORGANIZATION ACT OF 1939.'

SECTION 4 (D) (3) OF THE REORGANIZATION ACT OF 1939 PROVIDES THAT IN ANY REORGANIZATION PLAN THE PRESIDENT SHALL:

"* * * (3) MAKE PROVISION FOR THE TRANSFER OF SUCH UNEXPENDED BALANCES OF APPROPRIATIONS AVAILABLE FOR USE IN CONNECTION WITH THE FUNCTION OR AGENCY TRANSFERRED OR CONSOLIDATED, AS HE DEEMS NECESSARY BY REASON OF THE TRANSFER OR CONSOLIDATION FOR USE IN CONNECTION WITH THE TRANSFERRED OR CONSOLIDATED FUNCTIONS, OR FOR THE USE OF THE AGENCY TO WHICH THE TRANSFER IS MADE, BUT SUCH UNEXPENDED BALANCES SO TRANSFERRED SHALL BE USED ONLY FOR THE PURPOSES FOR WHICH SUCH APPROPRIATION IS ORIGINALLY MADE: * * *"

IN ORDER TO PERFECT THE CONSOLIDATION OF THE COAST GUARD AND THE FORMER LIGHTHOUSE SERVICE AND MERGE THE TWO SERVICES, BOTH IN ADMINISTRATION AND OPERATION INTO ONE INTEGRATED SERVICE SO AS TO EXECUTE THE FUNCTIONS TRANSFERRED FROM THE LIGHTHOUSE SERVICE CONCURRENTLY WITH OTHER COAST GUARD FUNCTIONS USING PERSONNEL OF BOTH SERVICES TO BEST ADVANTAGE, CONGRESS ENACTED THE ACT OF AUGUST 5, 1939 ( PUBLIC NO. 291, 76TH CONGRESS, ST SESSION). SECTIONS 1 AND 4 OF THIS ACT PROVIDE FOR THE INDUCTION INTO THE MILITARY ESTABLISHMENT OF THE COAST GUARD OF CERTAIN CIVILIAN PERSONNEL OF THE FORMER LIGHTHOUSE SERVICE WHO ARE ELIGIBLE FOR RETIREMENT (EXCEPT AS TO AGE AND LENGTH OF SERVICE) UNDER THE PROVISIONS OF SECTION 6 OF THE ACT OF JUNE 20, 1918, 40 STAT. 608, AS AMENDED AND SUPPLEMENTED. SECTIONS 3 AND 5 OF SAID ACT OF AUGUST 5, 1939, PROVIDE THAT ALL VACANCIES IN CIVIL SERVICE POSITIONS IN THE FORMER LIGHTHOUSE SERVICE COMING WITHIN THE PURVIEW OF SECTION 6 OF THE ACT OF JUNE 20, 1918, SHALL HEREAFTER BE FILLED BY MILITARY PERSONNEL.

IN ACCORDANCE WITH SECTION 4 (D) (3) OF THE REORGANIZATION ACT OF 1939 MILITARY PERSONNEL ASSIGNED TO FILL VACANCIES ON LIGHTHOUSE VESSELS AND TENDERS ARE PAID FROM THE APPROPRIATION " SALARIES, LIGHTHOUSE VESSELS, COAST GUARD," MILITARY PERSONNEL ASSIGNED TO FILL VACANCIES AT LIGHTHOUSES ARE PAID FROM THE APPROPRIATION " SALARIES, KEEPERS OF LIGHTHOUSES, COAST GUARD," AND MILITARY PERSONNEL ASSIGNED TO FILL VACANCIES IN THE OFFICES OF FORMER SUPERINTENDENTS OF LIGHTHOUSES ARE PAID FROM THE APPROPRIATION " SALARIES, LIGHTHOUSE SERVICE, COAST GUARD.'

AS ALL OTHER MILITARY PERSONNEL OF THE COAST GUARD ARE PAID FROM THE APPROPRIATION " PAY AND ALLOWANCES, COAST GUARD," IT WOULD GREATLY FACILITATE AND SIMPLIFY THE ACCOUNTING, AUDITING, AND DISBURSING PROCEDURE, IF PERSONNEL OF THE FORMER LIGHTHOUSE SERVICE WHO ARE INDUCTED INTO THE MILITARY ESTABLISHMENT OF THE COAST GUARD, AND MILITARY PERSONNEL WHO ARE APPOINTED OR ENLISTED TO FILL VACANCIES ON VESSELS AND AT SHORE STATIONS OF THE FORMER LIGHTHOUSE SERVICE, WOULD LIKEWISE BE PAID FROM THE APPROPRIATION " PAY AND ALLOWANCES, COAST GUARD.'

YOUR DECISION IS THEREFORE REQUESTED WHETHER MILITARY PERSONNEL ASSIGNED TO DUTY ON VESSELS AND AT SHORE STATIONS OF THE FORMER LIGHTHOUSE SERVICE MUST BE PAID FROM THE APPROPRIATION TRANSFERRED FROM THE FORMER LIGHTHOUSE SERVICE TO THE COAST GUARD WHICH EMBRACES THE LIGHTHOUSE ACTIVITY IN WHICH THEY ARE ENGAGED, OR WHETHER IT WILL BE PERMISSIBLE TO PAY SUCH PERSONNEL FROM THE APPROPRIATION " PAY AND ALLOWANCES, COAST GUARD" AND MAKE SUITABLE ADJUSTMENT THROUGH THE MEDIUM OF A TRANSFER AND ADJUSTMENT VOUCHER, FORM 1080, BETWEEN THAT APPROPRIATION AND THE APPLICABLE APPROPRIATIONS WHICH HAVE BEEN TRANSFERRED FROM THE FORMER LIGHTHOUSE SERVICE TO THE COAST GUARD.

THE APPROPRIATIONS REFERRED TO WERE PROVIDED FOR THE FORMER LIGHTHOUSE SERVICE BY THE ACT OF JUNE 29, 1939, 53 STAT. 914, AS FOLLOWS: SALARIES, KEEPERS OF LIGHTHOUSES * * * ------------------- $1,890,000 SALARIES, LIGHTHOUSE VESSELS * * * ------------------------ 2,432,000

THE MATTER OF MAKING THE APPROPRIATIONS FOR THE ACTIVITIES TRANSFERRED UNDER THE REORGANIZATION PLANS AVAILABLE FOR EXPENDITURE UNDER THE DEPARTMENTS OR AGENCIES TO WHICH THE ACTIVITIES WERE TRANSFERRED WAS CONSIDERED IN A CONFERENCE OF REPRESENTATIVES OF YOUR OFFICE, THE BUREAU OF THE BUDGET, AND OF THIS OFFICE--- REPORT OF WHICH WAS SENT YOU UNDER DATE OF JUNE 20, 1939, B-4165--- AND IT WAS AGREED AND APPROVED THAT THE FISCAL YEAR 1940 APPROPRIATIONS WERE TO BE WARRANTED DIRECTLY TO THE AGENCIES CHARGED WITH CARRYING OUT THEIR PURPOSES. ALSO, IT WAS AGREED, IN EFFECTUATION OF SECTION 9 OF THE REORGANIZATION ACT OF 1939, 53 STAT. 563 (WHICH READS," THE APPROPRIATIONS OR PORTIONS OF APPROPRIATIONS UNEXPENDED BY REASON OF THE OPERATION OF THIS TITLE SHALL NOT BE USED FOR ANY PURPOSE, BUT SHALL BE IMPOUNDED AND RETURNED TO THE TREASURY"), THAT THE DIRECTOR OF THE BUDGET WILL DIRECT THE ESTABLISHMENT OF BUDGETARY RESERVES AGAINST THE VARIOUS FUNDS TRANSFERRED, FOR EVENTUAL IMPOUNDING IN THE TREASURY SO FAR AS NOT RELEASED FOR EXPENDITURE. NO PLAN WAS AGREED UPON EMBODYING YOUR PRESENT PROPOSAL.

IT WOULD SEEM THAT UNDER ANY PLAN THE DATA AS TO THE PAYMENTS CHARGEABLE TO THE LIGHTHOUSE FUNDS MUST BE ASSEMBLED CURRENTLY, AND IF PAYMENT OF ALL SALARIES FROM THE SINGLE FUND WOULD EXPEDITE MATTERS IN THE FIRST INSTANCE, THERE WOULD RESULT, ALSO, A GREATER COUNTERVAILING OUTLAY, BOTH ADMINISTRATIVELY AND IN THIS OFFICE, IN THE MATTER OF THE PREPARATION AND THE AUDIT OF THE TRANSFER AND ADJUSTMENT VOUCHERS, FORM NO. 1080. IT IS SUGGESTED THE OBJECTIVES SOUGHT MAY AS WELL BE ATTAINED BY INCLUDING AS MANY OF THE PERSONNEL AS DESIRED ON A SINGLE PAY ROLL, INDICATING ON THE REVERSE SIDE A CHARGE TO AS MANY OF THE INVOLVED APPROPRIATIONS AS IS INDICATED BY THE SERVICE ON WHICH THE MEN WERE ENGAGED DURING THE PAY PERIOD. CF. 14 COMP. GEN. 103; 19 ID. 24. IF SEPARATE ROLLS ARE TO BE PREPARED, IT IS NOT CLEAR HOW ANY APPRECIABLE SIMPLIFICATION WOULD RESULT FROM THE CIRCUITOUS USE OF THE ADDITIONAL FORM, SINCE, AS STATED, SEGREGATED RECORDS WOULD APPEAR TO BE REQUIRED TO BE KEPT IN ANY CASE.

IN ANY EVENT, PROCEDURES SUCH AS THAT PROPOSED IN YOUR LETTER HAVE CONSISTENTLY BEEN REGARDED AS CONTRAVENING THE ACCOUNTING PRINCIPLE THAT, IN CONSEQUENCE OF SECTION 3678, REVISED STATUTES, PUBLIC EXPENDITURES ARE REQUIRED TO BE CHARGED DIRECTLY TO THE FUNDS WHICH ARE PROVIDED FOR THEM, AND NOT TO SOME OTHER FUNDS WITH THE HOPE OR EXPECTANCY OF A SUBSEQUENT ADJUSTMENT. SEE 14 COMP. GEN. 103. I FIND NOTHING IN THE CITED ACT OF AUGUST 5, 1939, OR IN ITS LEGISLATIVE HISTORY, WHICH WOULD REQUIRE OR WARRANT ANY DEPARTURE FROM THAT SOUND ACCOUNTING PRACTICE.

ACCORDINGLY, YOU ARE ADVISED THAT THE PERSONNEL, NOW OF THE COAST GUARD, WHO ARE ENGAGED DURING THE PRESENT FISCAL YEAR IN THE PERFORMANCE OF THE FUNCTIONS PROVIDED FOR BY THE APPROPRIATIONS OF THE FORMER LIGHTHOUSE SERVICE, MUST BE PAID FROM THOSE FUNDS, AS MADE AVAILABLE TO THE COAST GUARD.