[Letter], B-260606, July 25, 1997

B-260606 Jul 25, 1997 Jump To VIEW DECISION RELATED PAGES GAO CONTACTS Highlights Advances from goverment customers that represent orders placed but not yet filled have been "earned" and are thus available to support GPO operations. Advances from government customers that are in anticipation of orders to be placed in the future are not earned are not available to GPO. DiMario: You have requested our opinion concerning the use of balances credited to the Government Printing Office's (GPO's) revolving fund established under 44 U.S.C. Which it was unable to pass on to its customers. You are concerned that using "fiduciary" funds to pay for operating expenses may conflict with the holding in a 1992 Comptroller General decision. The fund "is available. "the operation and maintenance of the Government Printing Office (except for those programs of the Superintendent of Documents which are funded by specific appropriations) . . . ." 44 U.S.C. View Decision B-260606 July 25, 1997 DIGEST The Honorable Michael F. DiMario Public Printer U.S. Government Printing Office Dear Mr. DiMario: You have requested our opinion concerning the use of balances credited to the Government Printing Office's (GPO's) revolving fund established under 44 U.S.C. Sec. 309. Specifically, you ask whether you may use balances in the fund that you refer to as "fiduciary" funds to meet the normal operating expenses of GPO. The "fiduciary" funds consist of balances for such items as advances from customers, accrued salaries and leave, and estimated incentives and lump-sum leave payments for expected early retirements. In the past, GPO has experienced significant cash shortages in its revolving fund due to increasing costs, which it was unable to pass on to its customers. These shortages threatened GPO's ability to fund its daily operating costs. You advise that auditors informed you that money that GPO has traditionally restricted as "fiduciary" funds can be used to cover the costs of daily operations. You are concerned that using "fiduciary" funds to pay for operating expenses may conflict with the holding in a 1992 Comptroller General decision, 71 Comp.Gen. 224 (1992). In that decision the Comptroller General concluded that the National Technical Information Service (NTIS) could not use funds advanced by customers except to cover expenses "directly related to services performed or to be performed" for those customers. GPO finances most of its operations out of its revolving fund. The fund "is available, without fiscal year limitation, for--"the operation and maintenance of the Government Printing Office (except for those programs of the Superintendent of Documents which are funded by specific appropriations) . . . ." 44 U.S.C. Sec. 309(a). The statute further states that: "The fund shall be--- "(1) reimbursed for the cost of all services and supplies furnished, including those furnished other appropriations of the Government Printing Office . . . ; and "(2) credited with all receipts including sales of Government publications, waste, condemned, and surplus property and with payments received for losses or damage to property." 44 U.S.C. Sec. 309(b). The enabling statute further requires that Congress approve GPO's annual budget for expenditures from the revolving fund. 44 U.S.C. Sec. 309(c). Thus, the Legislative Branch Appropriations Act, 1997 provides as follows: "The Government Printing Office is hereby authorized to make such expenditures, within the limits of funds available and in accord with the law . . . as may be necessary in carrying out the programs and purposes set forth in the budget for the current fiscal year for the 'Government Printing Office revolving fund . . .'" Pub. L. No. 104-197, 110 Stat. 2394 at 2410. Since GPO's annual budget indicates that it finances almost all its operations through the revolving fund, the fund "is analogous to an agency's annual appropriation for salaries and expenses under which all necessary expenses of an agency can be paid." B-216943, March 21, 1985. By the terms of its enabling statute, the GPO revolving fund is available to meet the operating expenses of the GPO. 44 U.S.C. Sec. 309(a). The revolving fund is a single fund consisting of all income received by GPO for services and goods it provides to other agencies and for sales of publications. Although GPO has administratively divided the fund into several accounts, it may move budgetary resources among these accounts to the extent they are not already obligated. According to your submission, GPO restricts balances in the fund, reserving them for certain purposes. One category of restricted cash is "Fiduciary Funds," which at the time of your submission consisted of Advances From Customers for Sales of Publications and Printing and Binding Work, Estimated Incentive Pay for Early Retirement, Estimated Lump Sum Annual Leave for Early Retirees, Accrued Salaries, Wages & Withholdings, and Accrued Annual Leave.