Authorization for Disposal of Surplus Personal Property

GAO was asked whether surplus personal property under the control of Federal Prison Industries (FPI) may be disposed of by donation in accordance with the U.S. Code. The amended Federal Property and Administrative Services Act authorizes the Administrator of General Services to transfer surplus personal property under the control of any executive agency to State agencies for donation to qualified recipients. However, the Act's implementing regulations exclude nonappropriated fund property as donable property under the Act. The General Services Administration believed that the operating fund of FPI constituted a nonappropriated fund and that personal property acquired with FPI funds did not qualify as donable property under regulations. The operating fund of FPI, the Prison Industries Fund, originated with appropriated funds derived from programs at two State penitentiaries. GAO held that, even though the amount originally appropriated has been returned to the Treasury and the Fund is self sufficient, its character as an appropriated fund remains unchanged. Therefore, surplus personal property acquired by the Fund does not constitute nonappropriated fund property within the meaning of the Act's implementing regulations. Accordingly, GAO found that the donation of surplus personal property under the control of FPI is donable under the U.S. Code.