[Response to Inquiry Concerning Reimbursement of GSA General Supply Fund for Office Furnishings]

GAO was asked to determine whether: (1) the furniture and equipment in the House of Representatives members' district offices was the property of the House or the General Services Administration (GSA), since GSA had been procuring items for the House and charging a use fee for furniture and equipment; (2) GSA legally continued to procure an item for the House through its General Supply Fund (GSF); and (3) it was necessary to continue to transfer House funds to GSA since the Department of the Treasury had already paid the cost of purchases. GAO determined that: (1) although the property belonged to the United States, GSA exercised most of the functions of ownership on behalf of the United States by maintaining ultimate custody and control of the property, including its disposition, maintenance, and repair; (2) while GSA possesses no authority to procure items for the House through GSF, as long as the House chooses to acquire property through GSF, it must reimburse GSF in full within 45 days after receiving a GSA voucher; (3) the House need not pay the entire current balance due GSA in 1 year; and (4) payments for purchases beginning in fiscal year 1987 would be due within 45 days and the entire cost would be chargeable to current funds.