Crotty Brothers, Rhode Island Inc.

A-95642: Mar 19, 1943

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Crotty Brothers, Rhode Island, Inc. (CB) runs the cafeteria as a "concession" at Naval Air Station, Quonset Point, Rhode Island. All of its profits are placed in the "Cafeteria Fund" and no disbursements may be made of such funds without the prior approval of the Commanding Officer of the station. Under the terms of the contract, CB is required to serve food of good quality in reasonable portions, and as a result of complaints made to the Cafeteria Committee, CB complained that it was making no money and that one of three things would have to be done: (1) reduce the commission on gross receipts 2 percent, (2) permit the sale of food of lower quality, or (3) the 60-day notice clause would be invoked. Bids were made on the "concession" at Naval Air Station, Quonset Point, and the captain of the station accepted CB's proposal. This contract was not forwarded to the General Accounting Office (GAO) because it was believed that no public funds were concerned.

The original contract and all amendments should have been forwarded to the GAO promptly, together with the related solicitations and proposals. No statutory basis exists permitting the retention of revenues received by the Cafeteria Committee, nor the use thereof to supplement other purposes for which Federal appropriations are made. In order for Naval Air Station Cafeteria Committee to retain the revenue accruing therefrom, it much necessarily be held that the revenues are required to be covered into the general fund of the Treasury as "miscellaneous receipts" under the provisions of section 3617, Revised Statutes.

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