Use of Agencies' Appropriations to Purchase Computer Hardware for Department of Labor's Executive Computer Network

B-238024: Jun 28, 1991

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The Department of Labor (DOL) requested a decision regarding whether it complied with applicable appropriation laws when it used various component agency funds to procure equipment for an internal communications system. GAO held that DOL violated federal regulations, since: (1) the DOL cost-allocation methodology exceeded the allowable authority; and (2) 8 of the 10 component agencies paid for more equipment than they received. Accordingly, GAO recommended that DOL: (1) adjust its fiscal year (FY) 1987 appropriation accounts accordingly; (2) reimburse the 8 agencies for the amount over and above the actual costs of equipment they received; and (3) report unobligated FY 1987 funds appropriately.

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