[Decision Concerning Army Payment of Hotel's Claim for Cost of Food and Refreshments]

B-230382: Dec 22, 1989

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The Army requested a decision regarding a hotel's claim for food and refreshment costs under an unauthorized contract. GAO held that: (1) participating personnel should have charged the expenses against their per diem allowances; (2) appropriated funds could not be used to pay entertainment expenses; (3) the expenses did not qualify as exceptions to the restrictions; and (4) the Army could pay attendance guarantee costs on a quantum meruit basis, since they qualified as administrative expenses. Accordingly, the claim was allowed in part and denied in part.

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