[Comments on Whether Certain REA Policies Are Within Its Legal Authority]

B-195437.2: Published: Sep 17, 1986. Publicly Released: Sep 29, 1986.

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GAO was asked to: (1) determine whether the Department of Agriculture's Rural Electrification Administration's (REA) reliance on its general funds policy in recent years caused it to fail to achieve congressionally imposed minimum loan levels for those years; and (2) comment on the REA failure to meet statutory minimum loan levels in fiscal years (FY) 1984 and 1985 as a result of its adherence to its general funds criteria, and the extent to which REA has complied with the requirements of the Administrative Procedure Act in issuing agency bulletins. GAO noted that REA: (1) reliance on its general funds criteria in FY 1984 and 1985 violated congressionally imposed minimum loan levels for those years; and (2) failure to publish its substantive bulletins in the Federal Register, as the act required, was not consistent with the requirements of that statute.

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