General Government Matters: Appropriations And Miscellaneous Digest Of Unpublished Decisions Of The Comptroller General Of The United States-OGC/ Index Digest Section Volume XXVII

Number 2

GAO United SlalCSGenernl Accounting orrlCe January-March 1984

UNITED STATES GENERAL ACCOUNTING OFRCE

CHARLES A. BOWSH ER

Comptroller General of the United States

VACANT

Deputy Comptroller General of the United States

HARRY R. VAN CLEVE

Acting General Counsel

VOLUME XXVII

January through March 1984

Table of Decisions

Digests

Ind=

Compiled in the Index-Digest Section

Office of the General Counsel

No . 2

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TABLE OF DECISIONS

January through March 1984

~ 8-174839 Ma:r. 20 8 8- 209558 Mar. 27 8 8- 210555.3 Feb . 7 3 8-210555.4 Feb. 2 2 8-210638 Feb . 8 3 8-210648 Ma:r . 15 6 8- 210922 Ma:r. 30 10 8-211323 Jan. 3 1 B- 211700 Mar. 16 7 8-212337 Feb. 17 4 8-212603,

et a~. Mar. 27 9 8-213074 Jobr. 15 6 8- 213259 Ma:r. 13 5 8-213427 Ma:r . 14 6 8-213471,

et a~ . Jan. 24 1 8- 213548 Feb. 6 2 8-213571,

et at. Feb . 24 4 8-213598 MaI' . 28 9 8-213721 Jan . 31 1 8-213975 MaI'. 19 8 8-214080 MaI' . 13 5 8-214086 Feb . 2 2

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VOWME XXVII No.2

January th2-0ugh March 1984

B- 211323 Jan. 3, 1984 APPROPRIKrIONS --OBLIGATION --DEOBLIGAT ION--A VAILABILITY OF DEOBLIGATED FUNDS

Funds apportioned to states in accordance with sec. 304 of Public Works and Economic Development Ac t of 1965, as amended, and recov-ered due to cost underruns may be reob1igated by states for purposes within scope of authorizing statute. Once appropriated to states, sec. 304 funds take on characteristics of no-year money and remain available until expended.

B-213471, et aZ. Jan. 24, 1984 DISBURSING OFFICERS--liELIEF-EItRoNEOUS PAYMENTS--NOT RESULT OF BAD FAITH OR NEGLIGENCE

Relief is granted in three cases with s1m11ar facts to Army disbursing officers and their assistants under provisions of 31 U.S.C. 3527(c) for improper payments resulting from their respective payees' negotiation of both original and substitute military checks. Proper procedures were followed in issuance of substitute check, there was no indication of bad faith on part of disbursing officer, and subsequent aggressive collection attempts have been pursued in all three cases .

B-213721 Jan. 32, 1984 ACCOUNTABLE OFFICERS--Pl/ISICAL LOSSES, ETC. OF FUNDS, VOUCHERS, ETC. - -CASHIERS, ETC. --RELIEF GRANTED

Under authority of 31 U.S.C. 3527 relief is granted to cashier, V.A. hospital, for loss of funds in her account resulting from robbery. The V.A. determined, and record corroborates, that robbery was not result of fault or negligence on part of the cashier.

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B-210555.4 Feb . 2, 1984 VEHICLES-GOVERNMENT--HOME TO WORK TRANSPORTATION--GOVERNMENT EMPWYEES--PROHIBITION

Principal Deputy Representative to the United Nations may not be transported between his home and Office in a Government vehicle, because such use of Government vehicles is generally prohibited by 31 U.S.C. l344(a) , and neither 31 U. S.C. 1344(b)(3), 22 U.S. C. 2678, nor 22 U.S.C. 2700 form the basis of an exception to that general prohibition.

B- 214086 Feb . 2, 1984 ACCOUNTABLE OFPICERS--PHYSICAL WSSES, ETC. OF FUNDS , VOUCHrRS, ETC. --DELEGATION OF RELIEF AUTHORITY

Any Government employee who has custody of funds by reason of his employment is an accountable officer and may be relieved of liability for physical loss of funds under 31 U.S.C. 3527(a). While generally relief must be granted by GAO, after an agency head makes requisite statutory findings and authorizes relief, GAO has delegated agency heads authority to decide whether relief should be granted for all physical losses or deficiencies of less ths~ $500.

B-213548 Feb. 6, 1984 ACCOUNTABLE OFFICERS--RELIEF--ILLEGAL OR ERRONEOUS PAYMENTS--WITHOUT FAULT OR NEGLIGENCE

Relief is granted Army disbursing officer under 31 U.S.C. 3527(c) from liability for improper payment resulting from payee's negotiation of both original and substitute military checks. Proper procedures were followed in the issuance of the substitute check, there was no indica-tion of bad faith on the psrt of the disbursing officer, and subsequent aggressive collection attempts· have been pursued.

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B-210555.3 Feb. 7, 1984 VEHICLES-GOVERJlMENT-HOME TO WORK TI«NSPORTATION-...(;()VERNMENT EMPLOYEES-PROHIBITION-EIEMPTIONS

General Counsel of Office of Personnel Management is advised to rely on GAO dec1sion of June 3, 1983 (62 Comp. Gen. 438) in updatina his advice to his Administrator about the use of Government cars for transportation between the homes and offices of Government officials . In GAO's view, no OPM em-ployee (not in travel status) is included in the small group of Government officials exempted from the general prohibition of 31 U.S.C. 1344(b).

VEHICLES-...(;OVEHNMENT-HOME TO WORK TRANSPORTA'l'ION-...(;()VERNNEfiT EMPLOYEES-PROPOSED LEGISLATION

GAO recognizes that the statutory prohibition in 31 U.S.C . 1344(b) against use of Government cars for home-to-work travel may work a hard-ship on many Government agencies in specific circumstances. If this is true of OPM, its General Counsel is advised to submit this information and any suggested amendments he may have to the Office of Management and Budget which, at the request of the Chairman, House Government Operations Committee, is coordinating the submission of proposed legislative amendments to the Congress.

B-210638 f6b. 8, 1984 APPROPRIATIONS--AVAILABILIT.Y--'~D OF MONEYS ERRONEOUSLY RECEIVED AND COVERED' ACCOUNT-LIENHOLDER

Where Army erroneously sold vehicle subject to claimant's lien and deposited proceeds in Treasury, claimant may be paid in satisfaction of its secured interest from appropriation for moneys erroneously received and covered into the Treasury, 31 U.S.C. 1322(b) (2) , as there is no other specific appropriation or account available for this purpose.

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B-21 0638 Feb. 8, 1984 - Con. CLAIMS--SETTLEMENT BY GENERAL ACCOUNTING OFFICE--SALE OF UNCLAIMED PROPERTY-CLAIMANTS TO NET PROCEEDS--LIENBOLDER

A lienholder is not a proper party under 10 U.S.C. 2575 (1982) and is not entitled under that statute to proceeds collected from the Army's sale of unclaimed vehicle even though the vehicle should not have been sold when still subject to a lien.

B-212337 Feb . 17, 1984 DISBURSING OFFICERS--LACK OF DUE CARE, ETC.--EHRONEOUS PAIMENTS--RELIEF DENIED

Request for relief of Army disbursing officer under 31 U.S.C. 3527(c) for deficiency in his accounts of $46 resulting from two incorrect payments may not be granted where record fails to show that officer was not personally responsible for the improper payment and that he properly supervised his subordinates and maintained ad-equate system of procedures and controls.

Relief for erroneous per diem payments to Republic of Philippines trainees not granted. Army terminated claim collected based on Department of Defense (DOD) regulation pro-viding collection may not be pursued against trainees who have left the country. DOD regula-tion appears contrary to Claims Collection Act regulations. Accordingly, Army did not diligently pursue collection of claim. 31 U.S.C. 3527(c).

B-213571, et a~. Feb. 24, 1984 ACCOUNTABLE OFFICERS--RELIEF--DUPLICATE CHECKS ISSUED--IMPROPER PAYMENT

Three separate requests for relief of Army FinsRc8 and Accou~tin~ Of£tCQrs under 31 V. S.c, . 3527(c) from liability for improper payments made

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from their accounts are granted. Each request in-volved negotiation by payee of both an original check and a subsequently issued replacement check. Relief is granted when Army personnel acted within bounds of due care as established by regulations, there is no evidence of bad faith on the part of the accountable officer, and a diligent effort was made to collect the overpayment.

CHECKS--SUBSTITUTE-REPLACEMENT OF LOST OR STOLEN CHECKS

Army is reminded that agency should delay issuing replacement check for sufficient time to determine that original check was lost, stolen or destroyed when sole basis for determination is payee's allegation of non-receipt.

B-213259 Mar. 13, 1984 ACCOUNTABLE OFFICERS--HELIEF--DUPLICATE CHECKS ISSUED--IMPROPER PAYMENT

Relief is granted Army disbursing officer under 31 U.S.C. 3527(c) from liability for improper payment resulting from payee's negotiation of both original and substitute military checks. Proper procedures were followed in the issuance of the substitute check, there was no indication of bad faith on the part of the disbursing officer, and subsequent aggressive collection attempts have been pursued.

B-214080 Mar. 13, 1984 ACCOUNTABLE OFFICERS--RELIEF--REQUIREMENTS FOR GRANTING

General Accounting Office has no authority to grant relief to an accountable officer for a physical loss of imprest funds where the officer's agency did not make the required de-terminations that the loss occurred while

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the officer was acting in the discharge of his official duties and that the loss did not result from fault or negligence on the part of the officer.

B-213427 Mar. 14, 1984 ACCOUNTABLE OFFICERS--RELIEF--DENIAL--PRESUMPTION OF NEGLIGENCE

Agency requests reconsideration of denial of relief to cashier who was presumed negligent for cash shortage of $1710. Agency relies on affidavit of cashier's supervisor that concludes that cashier was not negligent since when supervisor occasionally observed her she seemed to be following all procedures and regulations. Such occasional observations do not explain the loss, nor do they establish that the cashier followed all procedures and regulations throughout the day. Relief is denied since loss is still unexplained and presumption of negligence has not been rebutted.

B- 210648 Mar . 15, 1984 ACCOUNTABLE OFFICERS--RELIEF--ILLEGAL OR ERRONEOUS PAYMENTS--WITHOUT FAULT OR NEGLIGENCE

On reconsideration, we grant relief to an Army supervising financial officer whose subordinates improperly paid fraudulent travel claims. New evidence indicates that the account-able officer properly supervised his staff at the time of the incident by maintaining and implementing an effective system of procedures and controls.

B-213074 Mar. 15, 1984 APPROPRIM'IONS--RESTRICTIONS--ANTI- WORKFARE DEMONSTRATIONS

Center for National Policy Review, a public interest advocacy group, requested GAO to immediately halt an investigation we initiated

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at the request of a Member of Congress into whether certain Federal grantee organizations had used Federal funds in connection with anti-workfare demonstrations in violation of 7 u.s.c. 2027. We advised the center that GAO has a statutory obligation to conduct such investigations which we consider to be entirely appropriate.

B-211700 Mar. 16, 1984 APPROPRIATIONS--AVAILABILflY --INVITATIONS

The Uniformed Services University of the Health Sciences may bear expense of printing invitations and announcements to its annual graduation ceremony since a ceremony is the traditional method of observing graduation and these invitations and announcements, which were procured for the purpose of inviting appropriate people to the ceremony, constituted expenses necessarily incident to the ceremony.

CLOTHING AND PERSONAL PURNISBINGS- -SPECIAL CWTHING AND EQUIPMENT--REIMBURSEMENT CRflERIA

The Uniformed Services University of the Health Sciences may use appropriated funds to pay for the cost of renting academic regalia worn by invited guests to its annual graduation cermony, as this special attire is only required to be worn during graduation ceremonies and apparently universities typically bear this cost. The University may also pay for the regalia worn by graduating military students as these students in essence are performing required duty and they cannot be expected to pay for equipment necessary to perform this duty. The University may not use funds to pay for the cost of renting regalia for civilian students and faculty members, however, as the renting of such apparel is typically borne by the individual.

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B-213975 Mar., 19, 1984 ACCOUNTABLE OFFICERS-~ELIEF-DUPLICI!'J'E CHECKS ISSUED--IMPROPER PAYMENT

Relief is granted Army disbursing officer under 31 U.S.C. 3527(c) from liability for improper payment resulting from payee's negotiation of both original and substitute military checks. Proper procedures were followed in the issuance if the substitute check, there was no indication of bad faith on the part of the disbursing officer, and subsequent aggressive collection attempts have been pursued.

B-174839 Mar. 20, 1984 VESSELS--CHARTERS--LONG-TERM--OBLIGATIONAL AVAILABILITY--NAVY INDUSTRIAL FUND--TERMINATION EXPENSES

Provision in Supplemental Appropriations Act, 1983, specifies that termination liability of Navy's TAKX and T~5 ship-leasing programs should be recorded as obligation in the Navy's current operations and maintenance appropria-tion, but only in an amount equal to Ie percent of outstanding gross termination liability. GAO agrees with Navy position that the enact-ment constitutes contract authority to cover remaining 90 percent of TAKX and T-5 termina-tion liability.

B-209558 Mar. 27, 1984 ACCOUNTABLE OFFICERS--CONCEPT

An accountable officer is any Government official or employee who by reason of his or her employment is responsible for or has custody of Government funds. Passport Office Instruction makes Agent-in-Charge responsible for, "receiving, examining, recording, safeguarding and depositing all monies received for passport service." By virtue of responsibility to safeguard funds at the time the theft occurred, the Agent-in-charge, Miami Passport Office, Department of

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State is the accountable officer for consular fees lost as a result of theft from safe occurring over a weekend.

ACCOUNTABLE OFFICERS-- PHYSICAL LOSSES, ETC. OF FUNDS, VOUCHERS, ETC.-- WITHOUT NEGLIGENCE OR FAULT

Agent-in-Charge, Department of State, is re-lieved of liability under 31 U.S.C. 3527(a) (formerly 31 U.S.C. 82a-l (1976», for loss of consular fees occurring sometime over weekend as a result of a burglary of Miami Passport Office. Since record indicates that violent entry of safe containing fees was required, it appears that safe was properly secured prior to theft. Accordingly, GAO concurs in agency determination that loss occurred without fault or negligence on part of officer. B-2l206l, July 7, 1983; B-205559, January 18, 1982 cited.

B-212603, et aZ. Mar . 27, 1984 ACCOUNTABLE OFFICERS--RELIEF--LACK OF DUE CARE, ETC.--RELIEF DENIED

Army Finance and Accounting Officer is not relieved of liability for improper payments of funds by unidentifiable cashier(s) under his supervision where the record does not present evidence that an adequate system of super-vision was maintained and policed. Even though cashiers of fraudulently endorced checks cannot be determined, the record does not show what supervisory actions were taken by a responsible officer that could reasonably be expected to result in cashiers abiding by regulations de-signed to protect Army from fraudulent checks being cashed.

B-213598 Mar. 28, 1984 PEACE CORPS--VOWNTEERS--PAYMENTS

GAO does not object to proposed system of pay-ing Peace Corps volunteers at overseas posts using in-country postal facilities and money orders.

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B-2J.0922 MaI' . 30, J.984 AFPROPRIAPIONS --A VAILABILITy"--FlflINITURE , ETC. PURCHASES

The limitation imposed on all Presidential appointees throught the Government on using appropriated funds to renovate offices, contained in section 619 of S. 2916 Agent-in-Charge, Department of State, is re-year 1983 continuing resoiution and was therefore not binding on the Internal Revenue Service. While there was a flat prohibition on renovating two specified IRS offices contained in the 1982 supplemental appropriations act which made it applicable as well to the 1982 final continuing resolution, the terms of the 1982 provision are very different from the terms of the 1983 provision in the Senate bill. Therefore, we cannot say that the same restriction appeared in an applicable appropriation act for 1982.

AFPROPRIATIONS--CONTINUING RESOLUTIONS--AVAILABILITY OF FUNDS--lfNTIL EXPENDED

UDder the f1.aca1 Jeer 1983 continliing reeolution not more than $40,400,000 of the funds appropriated for Taxpayer Service and Returns Processing were made available until expended for systems moder-nization initiatives. This corresponds to the amount ,of no- year authority made available in the House bill. While the overall appropriation contained in the House bill was higher than the amount in the Senate bill, section 116 of the resolution sub-stituted designated amounts for the amounts that would have been otherwise provided for specific appropriation accounts under subsection 101(a) of the resolution. For other purposes, subsection 101(a) still applied to these accounts . Under paragraph 101(a) (3) , when the House and Senate versions of an appropriation bill provide different authority, the project or activity is to be continued under the more restrictive authority . The House no- year authority was t he more restrictive provision.

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B-210922 MaY:'. 30, 1984 - Con. APPROPRIATIONS--CONTLNULNG RESOLUTIONS--~STRICTIONS--LN PERMANENT APPROPRIATIONS

The prohibition on using appropriated funds to impose or collect the excise tax on custom-.ade firearms. contained in section 105 of S. 2916 (97th Cong.). was not incorporated into the fiscal year 1983 continuing resolution and was therefore not applicable during that year. Section 101(a)(5) of the resolution provides that a condition or limitation. applicable by its terms to more than one appropriation account. that does not appear in both the House and Senate versions of an unenacted appropriation bill. is not incorporated into a continuing resolution unless it also appeared in the applicable appropriation act for the previous fiscal year. While the prohibition was contained in the 1982 supplemental appropriation act. we do not consider it the "applicable" act for purposes of this section.

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INDEX

January tJuoough MccI'ch 1984

~ ACCOUNTABLE OFFIC8RS

Conoopt B-209558 Mar. 27 ••• 8

P"nysicaZ 1.ossss. etc. of funds. vouchers. etc.

Cashiers. etc. ReZief rP'anted B-213721 Jan. 31 ••• 1

DeZegation of reZief authority B-214086 Feb. 2 .•• 2

Without negZigence or fauZt 8-209558 J.1ar. 27 ••• 9

ReZief DeniaZ

Presumption of negZigenoo B-213427 Mar. 14 ••. 6

IJr,cpZicate checks ieBUed Improper payment B-213259 Mar. 13 ••• 5

B-213571 , et al. Feb. 24 ••• 4

B-213975 Mar. 19 ... 8

IZZegaZ or ert'OneOWl payments Without fauZt or negZigence B-210648 ,~4ar. IS .•• 6

B-213548 Feb. 6 ••• 2

lack of dus care, etc. ReZief denied 8-212603,

et aZ. Mar. 27 ••• 9

Requirements for rJ1'ar1ting B-214080 Mar. 13 ••• 5

APPROPRIATIONS AvaiZabiZity

Fwoniture. etc. purchases 8-210922 Mar. 30 ••• 10

Invitations 8-211700 Mar. 16 ••• 7

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INDEX ~ APPROPRIATIONS - Con.

AvailabiLity - Con. "Refwui of moneys eI'I'oneously received and covered" account

Lienholder B- 210638 Feb. 8 • • • 3

Continuing resolutions Availability of funds

Until expended 8-210922 Mar. 30 •• • 10

Restrictions In permanent appropriations B-210922 Mar. 30 . • . 11

Obligation Deobligation

Availability of deobligated funds B- 211323 Jan . 3 ••• 1

Restrictions Anti-workfare demonstrations B- 213074 Mar. 15 ... 6

CHECKS Substitute

Rep lacement of lost or stolen checks B- 213571 ,

et al. Feb . 24 ••• 5

CLAIMS Settlement by General Accounting Office

Sale of unclaimed property Claimants to net proceeds

Lienholder B- 21 0638 Feb . 8 .. . 4

CLOTHING AND PERSONAL FURNISHINGS Special clothing and equipment

Reimburs ement cZ'iteZ'ia B- 211700 Mar . 16 •• • 7

DISBURSING OFFICERS Lack of due care, etc .

EI'I'oneous payments Relief denied B-212337 Feb . 17 ••• 4

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INDEX DISBURSING OFFICERS - Con.

ReUef Enooneous payments

Not resuZt of bad faith ~ negZigence

PEACE COHPS VoZunteers

Payments

VEHICLES Government

Home to r.IOrk transportation Government empZoyees

Prohibition

&:empticms

Proposed ZegisZation

VESSELS Charters

Long- term ObligationaZ avai labiUty

Navy IndustriaZ Fund Tezmination e.rpenses

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B-213471, et aZ. Jan. 24 ••• 1

B-213598 Mar. 28 ••• 9

B-210555.4 Feb. 2... 2

B-210555.3 Feb. 7... 3

B-21 0555.3 Feb. 7. • • 3

B-174839 Mar. 20 ••• 8

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