[Restoration of Withdrawn Joint Training Partnership Act Funds]

The Department of Labor requested an advisory opinion regarding restoration of Comprehensive Employment and Training Act (CETA) funds which were not recorded as obligated and were therefore withdrawn at the end of fiscal year (FY) 1983. Under the Job Training Partnership Act, the funds were to be distributed to service delivery areas (SDA's) in Puerto Rico; however, the Governor's designation of the SDA's was challenged in the courts, and the courts found that the Governor's initial designation had been appropriate. During the litigation, the funds were returned to Treasury by Labor. GAO was asked: (1) if the funds could have properly been obligated when the identity of the recipients was the subject of unresolved litigation; and (2) if the amounts determined to be due should be treated as though they were obligated prior to the end of the FY even though no formal record was made. GAO found that the amounts in question were payable to Puerto Rico based on the statutory formula and could have been recorded as obligations prior to the end of FY 1983, notwithstanding the fact that the issue of the propriety of the SDA's was unresolved. Since the funds represent payment for services provided in FY 1983, they must be charged to that FY. By treating the funds as being obligated during FY 1983, the accounts will reflect more accurately what actually occurred. Accordingly, the restoration of the withdrawn funds was authorized.