Funding for Army Repair Projects, B-272191, November 4, 1997

B-272191 Nov 04, 1997 Jump To VIEW DECISION RELATED PAGES GAO CONTACTS Highlights DIGEST The Army was not required to make an election between two appropriation accounts available for major repair and minor construction projects during fiscal year 1993. Were incurred in fiscal year 1993. Could have been charged to O&M at the time they were incurred. We have no objection to Army's adjustment of the accounts. Was "available [only] for recording. D funds after the end of the fiscal year was not an authorized "adjustment" under the statute. These funds were also a two-year appropriation. D appropriation and the fiscal year 1993 O&M appropriation are at issue here. D appropriation was the only appropriation available for real property major repair and minor construction projects. View Decision Matter of: Funding for Army Repair Projects File: B-272191 Date: November 4, 1997 DIGEST DECISION The Deputy Chief of Staff, Resource Management, Department of the Army, a certifying officer, requested our opinion regarding the funding for Army real property maintenance and repair projects in Europe during fiscal year 1993. The request stemmed from a draft audit report entitled "Funding for Army Facility Maintenance and Repair Projects in Europe" (Report), issued by the Inspector General (IG), Department of Defense, dated February 8, 1996. The IG reported that after the end of fiscal year 1993, the Army, asserting authority under 31 U.S.C. Sec. 1553(a), deobligated about $20.4 million that it had properly charged for fiscal year 1993 projects to the fiscal year 1993-94 Real Property Maintenance, Defense (RPM,D) appropriation and obligated this amount against the fiscal year 1993 Operation and Maintenance, Army (O&M) appropriation. By using unobligated balances of FY 1993 O&M funds to cover amounts originally charged to the two-year RPM,D funds, the Army freed up RPM,D funds for new obligations. The Inspector General questioned the Army's actions, noting that under 31 U.S.C. Sec. 1553(a), the Army's O&M appropriation, after its expiration at the end of fiscal year 1993, was "available [only] for recording, adjusting, and liquidating obligations properly chargeable to that account." The IG argues that substituting O&M funds for RPM,D funds after the end of the fiscal year was not an authorized "adjustment" under the statute. The certifying officer, however, argues that "the substitution directly furthered Congress' intent in enacting Public Law No. 103-35, . . . which expressly authorized the Army to use FY 93 [O&M] funds in addition to RPM,D funds for major repair and minor construction projects." For the reasons discussed below, we do not object to the Army's use of the expired fiscal year 1993 O&M funds in this manner. Background In the Department of Defense Appropriations Act for fiscal year 1992, the Congress, for the first time, appropriated $500,000,000, available until September 30, 1993 (a two-year appropriation), for Real Property Maintenance, Defense, to finance maintenance and repair projects. Pub. L. No 102-172, 105 Stat. 1150, 1159 (Nov. 26, 1991). In the Department of Defense Appropriations Act for fiscal year 1993, the Congress appropriated additional funds, $507,962,000, for RPM,D. Pub. L. No. 102-396, 106 Stat. 1876, 1885 (Oct. 6, 1992). These funds were also a two-year appropriation, available until September 30, 1994. Congress routinely appropriates annual funds to the Army to cover Operations and Maintenance (O&M) expenses. In the fiscal year 1993 DOD Appropriations Act, Congress appropriated over $13 billion to the Army's O&M account, available for obligation until September 30, 1993. The fiscal years 1993-94 RPM,D appropriation and the fiscal year 1993 O&M appropriation are at issue here. Until enactment in 1992 of the first RPM,D appropriation, the military departments had used their O&M appropriations to finance maintenance and repair projects. With enactment of the RPM,D appropriation, a question arose concerning the continued availability of O&M for this purpose. In November 1992, shortly after enactment of the 1993 Defense Appropriations Act, the Comptroller, Department of Defense (DOD), concluded that the RPM,D appropriation was the only appropriation available for real property major repair and minor construction projects. Memorandum from DOD's Associate Deputy General Counsel, Feb. 10, 1995 at 1 (Memorandum). In response, on May 31, 1993, the Congress enacted section 301 of Public Law 103-35. Section 301 of Public Law 103-35 provides: "In addition to using the funds specifically appropriated for real property maintenance under the heading "REAL PROPERTY MAINTENANCE, DEFENSE" in title II of the Department of Defense Appropriations Act, 1993 . . .