Presidio Trust--Use of Appropriated Funds for Audio Equipment Rental Fees and Services
Highlights
Where Congress authorized the Presidio Trust to lease, manage, and administer the operations of the Presidio property and the Trust's regular operating procedures include providing a venue for public and private events, providing audio equipment and related services is a necessary and incidental part of the Trust's operations. Accordingly, the Trust's appropriations were available to cover expenses incurred during the National Academy of Public Administration's use of the Presidio's facilities for its 2005 annual Board of Directors meeting.
B-306424, Presidio Trust--Use of Appropriated Funds for Audio Equipment, March 24, 2006
Decision
Matter of: Presidio Trust—Use of Appropriated Funds for Audio Equipment Rental Fees and Services
DIGEST
Where Congress authorized the Presidio Trust to lease, manage, and administer the operations of the Presidio property and the Trust's regular operating procedures include providing a venue for public and private events, providing audio equipment and related services is a necessary and incidental part of the Trust's operations. Accordingly, the Trust's appropriations were available to cover expenses incurred during the National Academy of Public Administration's use of the Presidio's facilities for its 2005 annual Board of Directors meeting.
DECISION
This responds to a request for a legal decision on whether the Presidio Trust's (Trust) appropriation was available to pay $2,685.00 for the costs of audio equipment rental and for related services incurred on behalf of a patron's use of the Presidio facilities. Letter to Anthony Gamboa, General Counsel, Government Accountability Office, from Carla A. Armstrong, Controller, The Presidio Trust, Oct. 4, 2005 (Armstrong Letter), at 2. For the reasons stated below, we conclude that the Trust's appropriations were available to pay the rental fees and services in question.
BACKGROUND
The Presidio, located in
In March 1993, the Trust contracted with the National Academy of Public Administration[1] (
Related to
Prior to certifying payment for the audio equipment and related services, the Controller of the Trust, Carla A. Armstrong, requested an advance decision, pursuant to 31 U.S.C. sect. 3529(a), as to whether the Trust's appropriations are available for paying such expenses. A certifying officer has the statutory right to obtain an advance decision from the Comptroller General on any payment voucher presented for certification. 31 U.S.C. sect. 3529(a). Ms. Armstrong noted that occasionally the Trust will cosponsor an event with another organization where the event will benefit the Trust, for example, where the Trust personnel will obtain skills or knowledge useful to their jobs. Armstrong Letter, at 1. Ms. Armstrong expressed concern that the charges may be improper because the expenses did not benefit the Trust directly.
In an effort to develop the factual record, we contacted the Trust's General Counsel, Karen A. Cook. Ms. Cook contended that appropriated funds could be used to pay the equipment and related expenses because they were reasonable expenses incurred by the Trust under its broad statutory authority to manage the properties within the Presidio. Cook Letter, at 2--3.
DISCUSSION
Appropriated funds may be used only for the purposes for which they are appropriated and for any expenses that are reasonably necessary for the accomplishment of that purpose. 31 U.S.C. sect. 1301(a); see also B-304228,
In determining whether expenses are necessary or proper or incident to the object of an appropriation, we apply a three-part test: (1) the expenditure must have a logical relationship to the appropriation sought to be charged; (2) the expenditure must not be prohibited by law; and (3) the expenditure must not be provided for by another appropriation. E.g. B-303170,
For fiscal year 2005, Congress appropriated $20,000,000[3] to the Trust for necessary expenses to fulfill responsibilities under the Trust's authorizing legislation.[4] Pub. L. No. 108-447, div. E, title II, 118 Stat. 2809, 3092 (
On the basis of Mr. Middleton's explanations, the Trust's General Counsel believes that the expenses in question are necessary expenses of the Trust's appropriations. Mr. Middleton stated that he made the decision to incur the expense in an attempt to encourage
As noted above, Congress created the Trust to manage the leasing, maintenance, rehabilitation, repair and improvement of property within the Presidio. Under this authority, the Trust maintains regular business practices, which include leasing venue space on a short-term basis for public use. See Armstrong Letter, at 1. Such short term use of the Presidio facilities may include providing space for conference or special events, similar to the NAPA Board of Director's meeting. It is reasonable that an organization, such as the Trust, seeking to be competitive in the business of providing facilities for conferences and special events would provide audio equipment and related services in addition to providing space. Accordingly, we believe that providing such audio equipment and related services has a rational relationship to the Presidio's role in the managing the leasing, maintenance, rehabilitation, repair and improvement of the Presidio property. We conclude that the rental of audio equipment and related services were necessary expenses in fulfilling the Trust's statutory responsibilities, and the Trust's appropriations were available to pay for such expenses.
Although we conclude that the Trust's appropriations are available for paying for the rental of audio equipment and related services, we understand Ms. Armstrong's apprehension. In addition to providing the equipment and related services, the Trust, in this case, waived its usual fee. The Trust presently has no written policy regarding waiver of fees and/or covering costs such as rental of audio equipment. Cook Letter, at 2. With no definite guidelines or procedures, it is difficult for the certifying officer to make a determination of whether such expenses should be certified for payment. We urge the Presidio to develop and adopt more definite guidelines and operating procedures.
CONCLUSION
Since the Trust's regular operations include providing venue and facilities for the public use, we conclude that costs incurred to furnish the facilities with audio equipment and related services to be used by patrons of the Presidio's facilities are a necessary expense of the Trust's operations. Accordingly, we do not object to the Trust using its appropriations to pay for the rental of audio equipment and related services used during the NAPA 2005 Board of Directors meeting.
Anthony H. Gamboa
General Counsel
[1] The National Academy of Public Administration (
[2] In its report accompanying the fiscal year 2003 Interior appropriations bill, enacted as Pub. L. No. 108-7, 113 Stat. 11 (
[3] In addition to the amount appropriated in the annual appropriation act, the Trust, pursuant to statute, retains and credits any proceeds it receives to its appropriation. See Pub. L. No. 104-333, sect. 104(a).
[4] Pub. L. No. 104-333.