[Request for Decision on Corps of Engineers' Disbursement of Settlement Funds]

B-220210: Sep 8, 1986

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Shirley Jones
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The Army Corps of Engineers requested a decision on whether it should: (1) use the funds it recovered from an architect-engineering firm for faulty design of an Air Force support center to reimburse the appropriation it used to correct the design and the revolving fund for the Corps' supervision and administration (S&A) expenses; or (2) deposit the funds into the Treasury as miscellaneous receipts. GAO noted that the appropriation charged was still available for obligation at the time the Corps recovered the funds. Accordingly, GAO held that since the Air Force had already paid the additional construction expenses plus a flat rate for additional S&A expenses, the Corps should: (1) credit the collected funds to the Air Force appropriation account; and (2) deposit the balance of the S&A collection into the Treasury's general fund account as miscellaneous receipts.