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[Funding for Corps of Engineers Projects]

B-205053 Published: Apr 29, 1982. Publicly Released: Feb 07, 1983.
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Highlights

GAO was asked to investigate whether funds appropriated for two Corps of Engineer projects in fiscal years 1981 and 1982 were being withheld in contravention of the Impoundment Control Act. In 1981, the Corps spent less on one project than was available after a budget deferral. The entire amount appropriated for general construction in fiscal year 1982, together with unobligated carry-over balances, has been apportioned. However, funds were not obligated for new construction contracts at the project, except for cemetery relocation, because the Corps perceived problems with the project design. The project will be terminated unless an acceptable alternate plan is developed. By reporting, withholding, and then releasing deferred funds by the end of the fiscal year, the President followed the procedures set out in the Impoundment Control Act. The Flood Control Act directed the Corps to proceed with an acceptable plan for the project. Therefore, the current reduction in funds did not contravene that mandate, and the fiscal year 1982 funding was not objectionable under the Impoundment Control Act. As long as the entire amount appropriated is allocated among authorized projects, there is no impoundment for purposes of the Impoundment Control Act. The Corps also expended less on the second project than was allotted. The full amount was not expended because the engineering and design work did not progress to the point where the entire amount could be used in fiscal year 1981. The fact that funds remain unobligated does not by itself constitute an impoundment. An impoundment need not be reported under the act when funds remain unobligated due to program-related factors and are not the result of fiscal policy or other nonprogrammatic considerations. With regard to fiscal year 1982 funds, the Corps plans to proceed with developing an alternate plan for the project, based on its judgment that the original plan is no longer desirable. Since the second project was funded from a lump sum appropriation, the Corps was not obligated to spend a specified amount.

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Appropriated fundsConstruction (process)Deferral of budget authorityImpoundmentUnobligated budget balancesWater resources developmentImpoundment controlFlood controlEnergy and water developmentEngineers