Use of Military Sealift Command (MSC) Industrial Funds to Augment Appropriated Funds
B-181714-O.M.
Jan 03, 1975
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Highlights
The director of FGMSD requested a legal opinion on the propriety of the methods being used by the Military Sealift Command (MSC) with regards to its tariff system for billing customers for ocean transportation costs. The MSC operates under the authority of 10 U.S.C. 2208.
GAO found that, in so far as is reasonably possible, billings by working funds established under 10 U.S.C. 2208 are required by law to reflect the full costs of doing business. The nature of industrial fund operations under 10 U.S.C. 2208 and the fact that appropriate Congressional committees are advised annually of fund profits or losses suggests that it is legal to adjust Military Sealift Command tariff rates to recover losses or return profits of prior years.