B-8410, FEBRUARY 14, 1940, 19 COMP. GEN. 727

B-8410: Feb 14, 1940

Additional Materials:

Contact:

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

 

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

THERE IS NO AUTHORITY FOR SETTING UP A SEPARATE FUND WITHOUT FISCAL YEAR LIMITATION TO BE CREDITED WITH SUCH PORTIONS OF THE COLLECTIONS AS REPRESENT UNUSED ACCRUED LEAVE OF THE PERSONNEL INVOLVED AGAINST WHICH CHARGES WOULD BE MADE IN SUBSEQUENT FISCAL YEARS WHEN THE LEAVE IS ACTUALLY TAKEN. 1940: I HAVE YOUR LETTER OF FEBRUARY 5. AS FOLLOWS: THE UNITED STATES HOUSING AUTHORITY WAS AUTHORIZED. CERTAIN PROBLEMS HAVE ARISEN IN CONNECTION WITH THE REIMBURSEMENT FOR SUCH LEAVE. WHICH ARE HEREWITH SUBMITTED FOR YOUR CONSIDERATION AND DECISION: 1. WHAT DISPOSITION SHALL BE MADE OF FUNDS COLLECTED IF THE LEAVE WERE NOT USED BY THE EMPLOYEES IN THE FISCAL YEAR IN WHICH THE MONEY WAS COLLECTED ON THE BASIS THAT SOME OF THE LEAVE EARNED BY THE EMPLOYEES WILL BE TAKEN IN SUBSEQUENT FISCAL YEARS.

B-8410, FEBRUARY 14, 1940, 19 COMP. GEN. 727

APPROPRIATION REIMBURSEMENT COLLECTIONS BY UNITED STATES HOUSING AUTHORITY FISCAL YEAR LIMITATION APPLICABILITY - NONFEDERAL PROJECT PAYMENTS FOR UNUSED ACCRUED LEAVE OF FEDERAL PERSONNEL ALL FUNDS COLLECTED AS COSTS OF REIMBURSABLE SERVICES PURSUANT TO THE PROVISION IN THE INTERIOR DEPARTMENT APPROPRIATION ACT FOR THE FISCAL YEAR 1940, AUTHORIZING THE UNITED STATES HOUSING AUTHORITY TO FURNISH SERVICES ON A REIMBURSABLE BASIS TO PUBLIC HOUSING AGENCIES CONSTRUCTING NON- FEDERAL PROJECTS, MAY BE USED FOR OBLIGATION ONLY DURING THE FISCAL YEAR 1940, AND SHOULD BE DEPOSITED TO THE CREDIT OF THE INVOLVED FISCAL YEAR APPROPRIATION FOR COVERING INTO THE GENERAL CORPORATE FUND ANY UNEXPENDED BALANCE AT THE END OF THE FISCAL YEAR, AND THERE IS NO AUTHORITY FOR SETTING UP A SEPARATE FUND WITHOUT FISCAL YEAR LIMITATION TO BE CREDITED WITH SUCH PORTIONS OF THE COLLECTIONS AS REPRESENT UNUSED ACCRUED LEAVE OF THE PERSONNEL INVOLVED AGAINST WHICH CHARGES WOULD BE MADE IN SUBSEQUENT FISCAL YEARS WHEN THE LEAVE IS ACTUALLY TAKEN.

ACTING COMPTROLLER GENERAL ELLIOTT TO THE FEDERAL WORKS ADMINISTRATOR, FEBRUARY 14, 1940:

I HAVE YOUR LETTER OF FEBRUARY 5, 1940, AS FOLLOWS:

THE UNITED STATES HOUSING AUTHORITY WAS AUTHORIZED, UNDER THE INTERIOR DEPARTMENT APPROPRIATION ACT, FISCAL YEAR 1940 ( PUB. NO. 68, 76TH CONGRESS), TO EXPEND NOT TO EXCEED FOUR MILLION FIVE HUNDRED THOUSAND DOLLARS ($4,500,000) OF ITS OWN FUNDS FOR NECESSARY ADMINISTRATIVE EXPENSES FOR THE FISCAL YEAR 1940. UNDER THIS AUTHORIZATION, CONGRESS FURTHER PROVIDED:

" THAT OF THE $4,500,000 HEREBY MADE AVAILABLE FOR ADMINISTRATIVE EXPENSES OF THE AUTHORITY, NOT TO EXCEED $1,500,000 SHALL BE AVAILABLE FOR SUCH EXPENSES INCURRED AT THE SITE, AND IN CONNECTION WITH THE CONSTRUCTION OF THE UNITED STATES HOUSING AUTHORITY NON-FEDERAL PROJECTS, AND SHALL BE REIMBURSED BY THE PUBLIC HOUSING AGENCIES CONSTRUCTING SUCH PROJECTS, AND SUCH REIMBURSEMENTS SHALL BE AVAILABLE FOR ADMINISTRATIVE EXPENSES OF THE AUTHORITY.'

IN CONNECTION WITH THIS PROVISION, THE UNITED STATES HOUSING AUTHORITY HAS BEEN MAKING SUCH CHARGES AND RECEIVING REIMBURSEMENTS FROM THE PUBLIC HOUSING AGENCIES AFFECTED. THE UNITED STATES HOUSING AUTHORITY, IN MAKING CHARGES TO THE PUBLIC HOUSING AGENCIES FOR PERSONNEL SERVICES RENDERED AT THE SITE OF THE NON-FEDERAL PROJECTS, HAS INCLUDED, IN ADDITION TO THE SALARIES OF THE PERSONNEL AFFECTED, A PERCENTAGE OF SUCH SALARIES FOR LEAVE ACCRUED AND EARNED. CERTAIN PROBLEMS HAVE ARISEN IN CONNECTION WITH THE REIMBURSEMENT FOR SUCH LEAVE, WHICH ARE HEREWITH SUBMITTED FOR YOUR CONSIDERATION AND DECISION:

1. UPON REIMBURSEMENT FROM LOCAL HOUSING AUTHORITIES FOR ACCRUED LEAVE, WHAT DISPOSITION SHALL BE MADE OF FUNDS COLLECTED IF THE LEAVE WERE NOT USED BY THE EMPLOYEES IN THE FISCAL YEAR IN WHICH THE MONEY WAS COLLECTED ON THE BASIS THAT SOME OF THE LEAVE EARNED BY THE EMPLOYEES WILL BE TAKEN IN SUBSEQUENT FISCAL YEARS, WOULD IT BE POSSIBLE TO ESTABLISH A SPECIAL FUND TO BE CARRIED OVER TO SUBSEQUENT FISCAL YEARS FOR THE SOLE PURPOSE OF PAYING OUT OF THIS FUND ACCRUED LEAVE NOT TAKEN IN THE CURRENT FISCAL YEAR? IF THE ESTABLISHMENT OF SUCH A FUND IS FEASIBLE, WOULD IT BE NECESSARY TO HAVE A SPECIAL LIMITATION SYMBOL INTO WHICH WOULD BE DEPOSITED THE FUNDS COLLECTED FOR ACCRUED LEAVE ONLY, AND OUT OF WHICH LEAVE USED WOULD BE PAID?

2. WHAT DISPOSITION SHALL BE MADE OF THE LEAVE FUNDS COLLECTED IF LEAVE EARNED WERE NOT TAKEN BY AN EMPLOYEE DUE EITHER TO DEATH, TRANSFER TO ANOTHER GOVERNMENT AGENCY, LOSS OF LEAVE DUE TO EXCESS ACCUMULATION,OR FOR ANY OTHER REASON? WOULD SUCH EXCESS BE TRANSFERRED TO THE GENERAL CORPORATE ASSETS OF THE UNITED STATES HOUSING AUTHORITY?

YOUR PROMPT CONSIDERATION AND DECISION ON THE ABOVE QUESTIONS WILL BE SINCERELY APPRECIATED.

THE AUTHORIZATION TO MAKE USE OF NOT TO EXCEED $4,500,000 OF THE FUNDS OF THE UNITED STATES HOUSING AUTHORITY FOR ADMINISTRATIVE EXPENSES IS SPECIFICALLY RESTRICTED IN THE AUTHORIZATION TO THE FISCAL YEAR 1940, THE REIMBURSABLE PROVISION BEING ADDED THERETO BY A PROVISO. IT IS A WELL- ESTABLISHED RULE OF STATUTORY CONSTRUCTION THAT THE OFFICE OF A PROVISO IS TO RESTRICT OR MODIFY THAT WHICH IMMEDIATELY PRECEDES IT UNLESS IT CLEARLY APPEARS THAT THE LEGISLATIVE BODY INTENDED IT TO HAVE A WIDER SCOPE. COMP. GEN. 668. ACCORDINGLY, THE AUTHORIZATION IN THE PROVISO TO USE REIMBURSEMENTS UNDER THE $1,500,000 ITEM, WHILE INCREASING THE TOTAL AMOUNT AUTHORIZED FOR THE ADMINISTRATIVE EXPENSES OF THE AUTHORITY FOR THE FISCAL YEAR 1940 IF RECEIVED DURING THAT FISCAL YEAR, SUCH REIMBURSEMENTS ARE AVAILABLE AND MAY BE USED AS SUCH ONLY DURING THAT FISCAL YEAR. SUCH BEING THE CASE, THERE APPEARS NEITHER AUTHORITY NOR NECESSITY FOR SETTING UP A SEPARATE FUND TO BE USED FOR ACCRUED LEAVE PAYMENTS. ALL FUNDS COLLECTED AS COSTS OF REIMBURSABLE SERVICES INCLUDING THE COST OF ACCRUED LEAVE SHOULD BE DEPOSITED TO THE CREDIT OF THE ADMINISTRATIVE EXPENSE APPROPRIATION FOR THE FISCAL YEAR INVOLVED, AND ANY UNEXPENDED BALANCE WILL REVERT TO THE GENERAL CORPORATE FUND AT THE END OF THE FISCAL YEAR. CF. 16 COMP. GEN. 1122.