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Query Concerning Advance Payment of Annual Rent on Property Leased to Park Service

B-207215 Mar 01, 1983
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Highlights

An advance decision was requested as to whether 31 U.S.C. 3324 prohibits advance payment of the annual rent on property leased by the National Park Service. The purpose of the statute is to preclude the possibility of loss to the Government in the event that a contractor, after receipt of payment, should fail to perform his contract or refuse or fail to refund moneys advanced. Since the probability of loss to the Government is minimal where the National Park Foundation leases property to the Service, GAO had no objection to advance payment of the annual rent. However, GAO believes that the lease should be restructured to conform to the Federal fiscal year.

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