Request by Nonappropriated Fund Instrumentality for Reimbursement From Appropriated Funds

The Finance and Accounting Officer at Fitzsimons Army Medical Center, Denver, Colorado requested an opinion on the propriety of paying a voucher. The voucher, in the form of a request for reimbursement, was presented by the Custodian of the Consolidated Post Housing Fund, a nonappropriated fund instrumentality, for salaries paid to Housing Fund employees and other costs incured in providing maid service, custodial services, and property maintenance services. The Finance and Accounting Officer asked whether the payment for these services could be considered a proper use of appropriated funds; whether the form used met the requirements of Army regulations to establish and record a commitment and obligation of appropriated funds; and whether the commanding officer's approval of the Housing Fund Council minutes constituted the creation of a valid contract and obligation. There was no question that the procurement of these services was a proper use of appropriated funds, if the procurement was otherwise made properly. An answer to the contracting officer's second question was unnecessary since no valid contract was ever made with the Fund. Rather, it appeared that the Housing Fund provided these services at its own initiative and until the end of May 1978 did not even request payment for these services. In fact, neither the form as prepared by the Custodian nor the Acting Commander's approval of the Governing Council's minutes created a binding contract. Therefore, the Finance and Accounting Officer may not pay the Housing Fund on the basis of the form as a voucher. It was also pointed out that part of the costs for which the Housing Fund sought reimbursement were for services not the responsibility of the Army and cannot be paid for from appropriated funds.