A-62047, AUGUST 14, 1935, 15 COMP. GEN. 134

A-62047, AUGUST 14, 1935, 15 COMP. GEN. 134

CONTRACTS FOR FURNISHING OXYGEN OR ACETYLENE UNDER A CONTRACT FOR FURNISHING CYLINDERS OF OXYGEN OR ACETYLENE PROVIDING FOR A LOAN FREE OF RENTAL CHARGE UP TO 30 DAYS AND FOR RENTAL FOR ALL CYLINDERS RETAINED BY THE GOVERNMENT BEYOND THE FREE PERIOD, VOUCHERS SUBMITTED FOR RENTAL BEYOND THE FREE PERIOD SHOULD SHOW ALL ESSENTIAL DATA TO ENABLE THE GENERAL ACCOUNTING OFFICE TO ASCERTAIN THE FREE PERIOD WITH RESPECT TO ANY PARTICULAR CYLINDER AS WELL AS THE PERIOD FOR WHICH RENTAL IS CHARGED.

COMPTROLLER GENERAL MCCARL TO THE SECRETARY OF AGRICULTURE, AUGUST 14, 1935:

CONSIDERATION HAS BEEN GIVEN TO THE MATTER PRESENTED BY THE ACTING FORESTER, UNITED STATES DEPARTMENT OF AGRICULTURE, IN HIS LETTER OF MAY 10, 1935 (REF. FA, DISBURSEMENT, R-6, G.A.O.) AS FOLLOWS:

THERE IS ATTACHED VOUCHER IN FAVOR OF THE AIR REDUCTION SALES COMPANY COVERING RENTAL CHARGES UNDER CONTRACTS A6FS-5270 AND A6FS 5692 FOR CYLINDERS RETAINED BY THE GOVERNMENT AFTER THE EXPIRATION OF THE FREE PERIOD OF THIRTY DAYS. AS THE FOREST SERVICE WILL HAVE A NUMBER OF VOUCHERS OF THIS CHARACTER, WE DESIRE BEFORE EFFECTING PAYMENT INFORMATION AS TO WHETHER THEY ARE IN PROPER FORM AND OTHERWISE SATISFACTORY.

THE INVOICES SHOW DATA AS TO THE NUMBER OF CYLINDERS FURNISHED AND RETURNED, THE NUMBER OF CYLINDER DAYS CHARGED, AND THE CREDIT TIME ALLOWED ON THE BASIS OF THIRTY DAYS' FREE PERIOD. THE NET DEBIT OR CREDIT OF EACH INVOICE IS BROUGHT FORWARD TO THE SUCCEEDING INVOICE, TO WHICH ARE ADDED THE TIME CHARGES AND CREDITS OF THE CURRENT INVOICE. PRESUMABLY IT WOULD BE NECESSARY THAT SUBSEQUENT VOUCHERS BEAR A REFERENCE TO THE PREVIOUS VOUCHERS BY VOUCHER NUMBER, DISBURSING OFFICER, AND PAYMENT DATE TO PERMIT CHECKING THE CREDIT BROUGHT FORWARD FROM THE PREVIOUS VOUCHER.

NO REFERENCE IS MADE ON THE RENTAL VOUCHERS OR INVOICES TO THE VOUCHER ON WHICH PAYMENTS WERE MADE FOR THE OXYGEN OR ACETYLENE SHIPPED IN THE CYLINDERS. IT IS NOT PRACTICABLE TO SHOW THIS INFORMATION, AS THE COMPANY KEEPS NO RECORD OF THE INDIVIDUAL CYLINDERS SHIPPED AND RETURNED. INSTEAD IT RECORDS ON EACH DATE THE NUMBER OF CYLINDERS SHIPPED AND THE NUMBER RETURNED. TIME IS COMPUTED FOR THE PERIOD THAT CYLINDERS ARE IN POSSESSION OF THE GOVERNMENT, AND FOR EACH SHIPMENT A CREDIT OF THIRTY DAYS PER CYLINDER IS DEDUCTED, WHICH SEEMS TO BE A PRACTICABLE WAY OF ARRIVING AT THE AMOUNT DUE THE COMPANY FOR RETENTION OF CYLINDERS IN EXCESS OF THE FREE PERIOD OF THIRTY DAYS. THE RESULT IS THAT TIME SAVED THROUGH THE RETURN OF CYLINDERS BEFORE THE EXPIRATION OF THE THIRTY-DAY PERIOD SERVES TO OFFSET TO THAT EXTENT PERIODS IN EXCESS OF THIRTY DAYS.

WITH THE RETURN OF THE VOUCHER, INFORMATION WOULD BE APPRECIATED AS TO WHETHER VOUCHERS IN THIS FORM MEET THE REQUIREMENTS OF YOUR OFFICE.

THE CONTRACTS REFERRED TO PROVIDE FOR THE FURNISHING OF OXYGEN AND ACETYLENE TO THE FOREST SERVICE AT PORTLAND, OREG., AND SEATTLE AND SPOKANE, WASH., FOR THE PERIODS MAY 17 TO JUNE 30, 1934, AND OCTOBER 1 TO DECEMBER 31, 1934, RESPECTIVELY. EACH OF THE CONTRACTS CONTAINS, AMONG OTHER THINGS, THE FOLLOWING PROVISION:

* * * CYLINDERS TO BE FURNISHED BY THE CONTRACTOR SHALL BE LOANED FREE OF RENTAL CHARGES FOR A PERIOD UP TO 30 DAYS IF NECESSARY. BEYOND 30 DAYS THE CONTRACTOR WILL SHOW HERE HOW MUCH RENTAL WILL BE CHARGED PER CYLINDER PER DAY, TWO CENTS (2 CENTS).

WHILE THE VOUCHER (ADMINISTRATIVE NO. 2910) SUBMITTED WITH THE LETTER, SUPRA, PURPORTS TO COVER RENTAL CHARGES FOR THE PERIOD APRIL 30 TO DECEMBER 31, 1934, UNDER THE TWO CONTRACTS REFERRED TO, THERE ARE NOT INCLUDED IN THE RENTAL CHARGES ANY CYLINDERS DELIVERED PRIOR TO MAY 23, 1934. SAID CONTRACTS, HOWEVER, DO NOT COVER THE PERIOD JULY 1, TO SEPTEMBER 30, 1934, OVER WHICH PERIOD THERE APPEAR TO HAVE BEEN DELIVERED 12 CYLINDERS, NOTABLY, ON JULY 2, 1934.

THE VOUCHER AS SUBMITTED IS NOT IN PROPER FORM FOR PAYMENT. THE CONTRACTS REFERRED TO PROVIDE THAT A CHARGE OF 2 CENTS PER DAY BE MADE FOR ALL CYLINDERS RETAINED BY THE GOVERNMENT BEYOND THE FREE PERIOD OF 30 DAYS. WHEN A CHARGE FOR RENTAL IS MADE ON A VOUCHER IT IS NECESSARY THAT THERE BE FURNISHED WITH THE VOUCHER ALL ESSENTIAL DATA TO ENABLE THIS OFFICE TO ASCERTAIN THE FREE PERIOD IN RESPECT OF ANY PARTICULAR CYLINDER AS WELL AS THE PERIOD FOR WHICH RENTAL CHARGE IS MADE THEREFOR. IN SUCH CASES, THEREFORE, THE VOUCHER SHOULD SHOW THE ACTUAL DATE OF DELIVERY OF THE FILLED CONTAINER, TOGETHER WITH A CITATION TO THE DISBURSING OFFICER'S VOUCHER (BY NUMBER AND DATE OF PAYMENT) UPON WHICH PAYMENT WAS MADE FOR THE FILLED CONTAINER, TOGETHER WITH THE DATE OF RETURN OF THE EMPTY CYLINDER FOR WHICH A RENTAL CHARGE MAY BE MADE IN ANY PARTICULAR INSTANCE.

THERE IS NOTED IN THIS CONNECTION THE STATEMENT MADE IN THE LETTER, SUPRA, THAT: "IT IS NOT PRACTICABLE TO SHOW THIS INFORMATION AS THE COMPANY KEEPS NO RECORD OF INDIVIDUAL CYLINDERS SHIPPED AND RETURNED.' WHILE THE COMPANY MAY NOT MAINTAIN THE COMPLETE RECORD CONSIDERED ESSENTIAL TO A PROPER AUDIT, IT WOULD APPEAR THAT GOOD ADMINISTRATIVE PROCEDURE WOULD REQUIRE THE MAINTENANCE BY YOUR DEPARTMENT OF SUCH A RECORD, AND SUCH INFORMATION MAY AND SHOULD BE FURNISHED TO THIS OFFICE INDEPENDENTLY OF THE RECORDS WHICH MAY BE MAINTAINED BY THE COMPANY.

THE VOUCHER AS SUBMITTED IS OBJECTIONABLE, ALSO, IN THAT THE CONTRACTS CITED AS AUTHORITY FOR THE RENTAL CHARGES DO NOT COVER A PORTION OF THE RENTAL PERIOD COVERED BY THE VOUCHER AND NO EXPLANATION IS MADE IN REFERENCE TO THE CHARGE MADE FOR SUCH PERIOD. IN ALL SUCH CASES THE VOUCHER SHOULD CONTAIN A FULL EXPLANATION RELATIVE TO ANY CHARGES MADE FOR A PERIOD OUTSIDE THAT COVERED BY THE CONTRACT OR CONTRACTS CITED.