B-306424, Presidio Trust--Use of Appropriated Funds for Audio Equipment, March 24, 2006

B-306424 Mar 24, 2006 Jump To VIEW DECISION DOWNLOADS RELATED PAGES GAO CONTACTS Highlights Where Congress authorized the Presidio Trust to lease, manage, and administer the operations of the Presidio property and the Trust's regular operating procedures include providing a venue for public and private events, providing audio equipment and related services is a necessary and incidental part of the Trust's operations. Accordingly, the Trust's appropriations were available to cover expenses incurred during the National Academy of Public Administration's use of the Presidio's facilities for its 2005 annual Board of Directors meeting. View Decision B-306424, Presidio Trust--Use of Appropriated Funds for Audio Equipment, March 24, 2006 Decision Matter of: Presidio Trust—Use of Appropriated Funds for Audio Equipment Rental Fees and Services File: B-306424 Date: March 24, 2006 DIGEST Where Congress authorized the Presidio Trust to lease, manage, and administer the operations of the Presidio property and the Trust's regular operating procedures include providing a venue for public and private events, providing audio equipment and related services is a necessary and incidental part of the Trust's operations. Accordingly, the Trust's appropriations were available to cover expenses incurred during the National Academy of Public Administration's use of the Presidio's facilities for its 2005 annual Board of Directors meeting. DECISION This responds to a request for a legal decision on whether the Presidio Trust's (Trust) appropriation was available to pay $2,685.00 for the costs of audio equipment rental and for related services incurred on behalf of a patron's use of the Presidio facilities. Letter to Anthony Gamboa, General Counsel, Government Accountability Office, from Carla A. Armstrong, Controller, The Presidio Trust, Oct. 4, 2005 (Armstrong Letter), at 2. For the reasons stated below, we conclude that the Trust's appropriations were available to pay the rental fees and services in question. BACKGROUND The Presidio, located in San Francisco, was the oldest continuously operated military post in the United States before becoming a national historic landmark and part of the Golden Gate National Recreation Area. The OmnibusParks and Public Lands Management Act of 1996, Pub. L. No. 104-333, title I, sect. 101, 110 Stat. 4093, 4097 (Nov. 12, 1996). In 1996, Congress created the Trust to –manage the leasing, maintenance, rehabilitation, repair and improvement of property within the Presidio.— Id. sect. 104(a). In pursuing this goal, Congress authorized the Trust to –participate in development of programs and activities at the properties . . . to negotiate and enter into such agreements, leases, contracts and other arrangements with any person, firm, association, organization, corporation or government entity . . .— Id. sect. 104(b). Congress also envisioned that the Trust would become a self-sustaining organization, requiring that the Trust receive no annual appropriations 15 years after the first meeting of the Trust's Board of Directors. Id. sect. 105(b). In March 1993, the Trust contracted with the National Academy of Public Administration[1] (NAPA) to assess the Trust's finance and business practices, its long-range strategic plans, and its overall progress in becoming a self-sustaining organization as required by its authorizing legislation.[2] NAPA completed its study in January 2004. Subsequently, the Executive Director of the Trust, Craig Middleton, encouraged NAPA to hold one of its Board meetings at the Presidio. Statement of Craig Middleton, Sept. 27, 2005 (Middleton Statement). As part of its operations, the Trust rents venue space to the public. Armstrong Letter, at 1. Mr. Middleton offered that the Trust would pay for some costs related to NAPA's use of the Presidio facilities. Middleton Statement. NAPA held its Board of Directors meeting at the Presidio in June 2005. The meeting lasted about 2 1/2 days. It included an afternoon session led by Mr. Middleton discussing NAPA's study of the Presidio and a reception with the Board of the Trust. Letter to Thomas H. Armstrong, Assistant General Counsel, GAO, from Karen A. Cook, General Counsel, The Presidio Trust, Jan. 10, 2006 (Cook Letter), exhibit 2. Related to NAPA's use of the Presidio facilities, the Trust incurred expenses for the rental of audio equipment and services for the installation and the dismantling of such equipment. This equipment included rental of table microphones, a 16-channel audio mixer, a podium microphone, a dual cassette recorder, an audio equalizer, and a wireless microphone. Armstrong Letter, Attached Invoice. The total expense incurred was $2,685.00. Id. Prior to certifying payment for the audio equipment and related services, the Controller of the Trust, Carla A. Armstrong, requested an advance decision, pursuant to 31 U.S.C. sect.