Legality of the Navy's Expenditures for Project Sanguine During Fiscal Year 1974

LCD-75-315: Published: Jan 20, 1975. Publicly Released: Jan 20, 1975.

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GAO reviewed the legality of the Navy's expenditures of fiscal year (FY) 1974 appropriated funds for Project Sanguine, a communication system.

GAO noted that: (1) the legality of the expenditures was questioned because the Navy: (a) obligated more funds in FY 1974 for Project Sanguine than it had obligated and disbursed in FY 1973; (b) spent more funds for Project Sanguine during FY 1974 than the Committee of Conference had designated as being appropriated for the project; and (c) reprogrammed funds from other projects for Project Sanguine after the House Committee on Appropriations rejected its request to do so; (2) since reprogramming is a nonstatutory agreement between an individual agency and a congressional committee, GAO is unable to conclude that the Navy's reprogramming action was illegal because it failed to comply with the agreement; and (3) GAO believes that the Navy, in spending funds to prepare and present its reprogramming request, violated section 745 of the Department of Defense Appropriation Act of 1974, and technically, violated the Anti-Deficiency Act.

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