B-138706, JUN 2, 1959

B-138706, JUN 2, 1959

PRECIS-UNAVAILABLE

MR. AMOS JARRETT:

BY LETTER DATED FEBRUARY 11, 1959 (REFERENCE 370), THE CHIEF, DIVISION OF PROGRAM COORDINATION AND FINANCE, FORWARDED TO US YOUR LETTER DATED FEBRUARY 5, 1959 (REFERENCE 375), REQUESTING A DECISION RELATIVE TO THE DISPOSITION OF MONIES COLLECTED ON CERTAIN DELINQUENT ACCOUNTS FORWARDED TO THE GENERAL ACCOUNTING OFFICE PURSUANT TO 4 GAO 5050.20.

YOU REFER TO 161 BILLS FOR COLLECTION WHICH WERE FORWARDED TO THE COMMISSIONER OF THE BUREAU OF RECLAMATION BY LETTER OF MARCH 21, 1957, AND WHICH WERE FORWARDED TO THE GENERAL ACCOUNTING OFFICE CLAIMS DIVISION BY THE ASSISTANT COMMISSIONER ON APRIL 16, 1957. THE BILLS COVER OPERATION AND MAINTENANCE CHARGES AND CONSTRUCTION CHARGES DUE UNDER EIGHT CONTRACTS FOR WATER TO BE FURNISHED FROM THE MILK RIVER IRRIGATION PROJECT.

IT WAS STATED IN LETTER OF MARCH 21, 1957, WHICH ACCOMPANIED THE BILLS THAT THE BUREAU OF RECLAMATION HAD EXHAUSTED ALL MEANS OF EFFECTING COLLECTION AND THAT THE BILLS WERE BEING SUBMITTED TO OUR OFFICE FOR ANY FURTHER ACTION WE MIGHT DEEM ADVISABLE. THE DELINQUENT OPERATION AND MAINTENANCE CHARGES WERE WRITTEN OFF YOUR BOOKS BUT THE DELINQUENT CONSTRUCTION CHARGES WERE NOT.

THE DELINQUENT CHARGES WERE ACCUMULATED OVER VARYING PERIODS BETWEEN 1945 AND 1957. THE INDIVIDUAL DEBTS RANGE FROM $30 TO $2,200. IT WAS REQUESTED THAT THE DELINQUENT OPERATION AND MAINTENANCE CHARGES (AMOUNTING TO $933.50) BE DEPOSITED TO THE OPERATION AND MAINTENANCE APPROPRIATION (SYMBOL 14-0664.300) FOR THE FISCAL YEAR IN WHICH THE COLLECTION IS RECEIVED, AND THAT THE DELINQUENT CONSTRUCTION CHARGES (AMOUNTING TO $3,810) BE DEPOSITED TO THE RECLAMATION FUND, RECEIPT ACCOUNT SYMBOL 145000.100. AS OF MARCH 6, 1959, $642.50, APPLICABLE TO THREE OF THE EIGHT ACCOUNTS HAD BEEN COLLECTED BY OUR CLAIMS DIVISION AND THE MONEY COLLECTED BUT DEPOSITED TO THE MISCELLANEOUS RECEIPT ACCOUNT "053582 GENERAL ACCOUNTING OFFICE COLLECTIONS FOR OTHER AGENCIES" IN ACCORDANCE WITH 4 GAO 5060.10 AND PURSUANT TO OUR USUAL PROCEDURE, SINCE THE COLLECTIONS WERE NOT APPLICABLE TO TRUST OR DEPOSIT FUND ACCOUNTS. THE BUREAU OF RECLAMATION WAS NOT NOTIFIED OF THESE COLLECTIONS IN VIEW OF 4 GAO 5060.30.

YOU REQUEST THAT WE GIVE CONSIDERATION TO (1) TRANSFERRING ALL AMOUNTS COLLECTED TO DATE FOR DELINQUENT CONSTRUCTION REPAYMENT CHARGES TO FUND 145000.100, IF NOT PREVIOUSLY CREDITED TO THAT FUND; (2) TRANSFERRING ALL AMOUNTS COLLECTED TO DATE FOR DELINQUENT OPERATION AND MAINTENANCE CHARGES TO FUND 148/90664.300; (3) HANDLING ALL FUTURE COLLECTIONS OF DELINQUENT CONSTRUCTION REPAYMENT AND OPERATION AND MAINTENANCE CHARGES IN THIS MATTER; AND (4) ADVISING YOU THROUGH THE COMMISSIONER, BUREAU OF RECLAMATION, OF ALL COLLECTIONS MADE TO DATE AND IN THE FUTURE.

4 GAO 5050.20 STATES THAT THE GENERAL RULE IS THAT ALL DEBTS DUE THE UNITED STATES WHICH ARE WITHIN THE SCOPE OF THAT TITLE SHALL BE REPORTED TO THE GENERAL ACCOUNTING OFFICE FOR FURTHER COLLECTION ACTION UPON DETERMINATION BY THE ADMINISTRATIVE AGENCY THAT THEY ARE UNCOLLECTIBLE THROUGH MEANS AVAILABLE TO THE AGENCY. 4 GAO 5050.80 PROVIDES THAT ADMINISTRATIVE AGENCIES SHALL WRITE OFF AS UNCOLLECTIBLE, RECEIVABLES WHICH ARE DETERMINED TO BE UNCOLLECTIBLE THROUGH MEANS AVAILABLE TO THEM LEAVING UNDER ACCOUNTING CONTROL ONLY THOSE DEBTS UPON WHICH COLLECTION ACTION IS BEING PURSUED. IT IS TO BE NOTED THAT THE REGULATION IN EFFECT IN MARCH OF 1957 (GENERAL REGULATIONS NO. 129) DID NOT REQUIRE AGENCIES TO WRITE OFF ADMINISTRATIVELY UNCOLLECTIBLE RECEIVABLES BUT DID MAKE SUCH ACTION PERMISSIBLE. IN VIEW OF THE INFORMATION CONTAINED IN THE LETTER OF MARCH 21, 1957, HOWEVER, IT APPEARS THAT THE ACCOUNTS EITHER SHOULD HAVE BEEN WRITTEN OFF IN THEIR ENTIRETY AT THE TIME THEY WERE REPORTED OR SUBSEQUENTLY IN ACCORDANCE WITH 4 GAO 5050.80. 4 GAO 5060.10(1) PROVIDES THAT COLLECTIONS NOT APPLICABLE TO TRUST OR DEPOSIT FUND ACCOUNTS WILL BE DEPOSITED BY THE GENERAL ACCOUNTING OFFICE TO MISCELLANEOUS RECEIPTS WHEN THE RECEIVABLE HAS BEEN WRITTEN OFF AS UNCOLLECTIBLE BY THE AGENCY AND REPORTED TO THE GENERAL ACCOUNTING OFFICE PURSUANT TO 4 GAO 5050.20, EVEN THOUGH THE ACCOUNT OTHERWISE AUTHORIZED TO RECEIVE THE COLLECTION IS AN OPEN ACCOUNT (ANNUAL, NO YEAR, OR "M"). THAT REGULATION WAS ISSUED UNDER AUTHORITY OF SECTION 1(C) OF THE ACT OF JULY 25, 1956, PUBLIC LAW 798, 84TH CONGRESS, 70 STAT. 648, 31 U.S.C. A. 701(C), WHICH PROVIDES IN PERTINENT PART, THAT "*** ANY COLLECTION MADE BY THE GENERAL ACCOUNTING OFFICE FOR OTHER GOVERNMENT AGENCIES MAY BE DEPOSITED INTO THE TREASURY AS MISCELLANEOUS RECEIPTS."

WHEN AN AGENCY HAS EXHAUSTED ALL REASONABLE EFFORTS TO COLLECT A DEBT WITHOUT SUCCESS, AND HAS, AS A RESULT THEREOF, WRITTEN THE ITEM OFF ITS BOOKS AS UNCOLLECTIBLE, THAT ITEM NO LONGER MAY BE REGARDED AS AN ASSET TO THE AGENCY. TO REINSTATE IN AGENCY ACCOUNTS UNCOLLECTIBLE ITEMS THAT ARE COLLECTED BY THE GENERAL ACCOUNTING OFFICE WOULD INVOLVE ADMINISTRATIVE EXPENSES TO BOTH OF OUR AGENCIES AND WOULD BE INCONSISTENT WITH THE PURPOSE OF PUBLIC LAW 798 WHICH WAS TO SIMPLIFY FISCAL ACCOUNTING.

ACCORDINGLY, WE MUST DECLINE TO ACCEDE TO THE REQUEST TO TRANSFER TO OTHER ACCOUNTS AMOUNTS COLLECTED BY US FOR DELINQUENT CONSTRUCTION REPAYMENT CHARGES AND FOR DELINQUENT OPERATION AND MAINTENANCE CHARGES FROM THE MISCELLANEOUS RECEIPT ACCOUNT IN WHICH THEY WERE PLACED PURSUANT TO 4 GAO 5060.10, OR CHANGE OUR PROCEDURE IN THIS RESPECT.

WHILE 4 GAO 5060.30 PROVIDES THAT GENERALLY ADMINISTRATIVE AGENCIES WILL NOT BE NOTIFIED OF COLLECTIONS WHICH ARE DEPOSITED AS MISCELLANEOUS RECEIPTS, IN VIEW OF THE FACTS OF THIS MATTER, WE WILL BE GLAD, IN ACCORDANCE WITH YOUR REQUEST, TO NOTIFY THE BUREAU OF RECLAMATION OF EACH G. A. O. COLLECTION HERETOFORE AND HEREAFTER MADE AGAINST THESE AND SIMILARLY REPORTED DELINQUENT ACCOUNTS.