B-306975, National Archives and Records Administration Records Center Revolving Fund--Advance Payments, February 27, 2006

B-306975 Feb 27, 2006 Jump To VIEW DECISION DOWNLOADS RELATED PAGES GAO CONTACTS Highlights The Treasury and General Government Appropriations Act, 2000, Pub. L. No. 106-58, Title IV, National Archives and Records Administration (NARA), Revolving Fund, 113 Stat. 430, 460--61 (Sept. 29, 1999), authorizes agencies to make advance payments to the NARA Records Center Revolving Fund for the monthly charges for storage and related services for temporary and pre-archival records. NARA proposes to bill its customers at the beginning of each month based on its estimate of services it will provide that month and to adjust the next month's bill to reflect actual costs of services rendered. GAO has no objection to this billing method, except to note that if a customer advances fiscal year funds for September's estimated costs, NARA may not credit excess amounts in adjusting October's bill. NARA must return the excess to the customers. These funds would not be available for obligation of the next fiscal year commencing October 1. Likewise, if a customer agency owes more than the amount advanced in September, the customer must cover the underpayment from the previous fiscal year's funds. View Decision B-306975, National Archives and Records Administration Records Center Revolving Fund--Advance Payments, February 27, 2006 Decision Matter of: National Archives and RecordsAdministrationRecordsCenter Revolving Fund—Advance Payments File: B-306975 Date: February 27, 2006 DIGEST 1. The Treasury and General Government Appropriations Act, 2000, Pub. L. No. 106-58, Title IV, National Archives and Records Administration (NARA), Revolving Fund, 113 Stat. 430, 460--61 (Sept. 29, 1999), authorizes agencies to make advance payments to the NARA Records Center Revolving Fund for the monthly charges for storage and related services for temporary and pre-archival records. 2. NARA proposes to bill its customers at the beginning of each month based on its estimate of services it will provide that month and to adjust the next month's bill to reflect actual costs of services rendered. GAO has no objection to this billing method, except to note that if a customer advances fiscal year funds for September's estimated costs, NARA may not credit excess amounts in adjusting October's bill. NARA must return the excess to the customers. These funds would not be available for obligation of the next fiscal year commencing October 1. Likewise, if a customer agency owes more than the amount advanced in September, the customer must cover the underpayment from the previous fiscal year's funds. DECISION The National Archives and Records Administration (NARA) has requested a decision on whether its customer agencies' appropriations are available to pay, in advance, monthly charges for storage services for temporary and pre-archival records. NARA also asks that if we find that advance payments are authorized, whether NARA may base the charges on monthly projections and then adjust agencies' bills the following month to reflect the actual amount of services provided. Letter from Michael Whitacre, Director, Revolving Fund Finance Staff, NARA, to Anthony H. Gamboa, General Counsel, GAO, faxed to GAO on November 22, 2005. (Whitacre Letter). As we explain below, the Treasury and General Government Appropriations Act, 2000, Pub. L. No. 106-58, Title IV, National Archives and Records Administration, Revolving Fund, 113 Stat. 430, 460--61 (Sept. 29, 1999), provides authority for agencies to use appropriated funds for advance payments to NARA for providing the storage services in question. We have no objection to the method NARA proposes for assessing the charges. BACKGROUND NARA stores temporary and pre-archival records that belong to it and other federal agencies in its Records Center Program Facilities. Other federal agencies may enter into agreements with NARA to transfer and store records at NARA records centers. See 44 U.S.C. sect. 3103; 36 C.F.R. sections1220.38(a), 1228.156(a). See generally 44 U.S.C. sections 2901--2909 (Records Management). The Treasury and General Appropriations Act, 2000, established the –Records Center Revolving Fund— (revolving fund) to pay for expenses and equipment necessary to provide storage and related services for temporary and pre-archival records of federal agencies. Pub. L. No. 106--58, Title IV, National Archives and Records Administration, Revolving Fund, 113 Stat. 430, 460-61 (Sept. 29, 1999). Congress established the revolving fund to make NARA's record center storage operations completely self-sufficient, without the necessity for additional appropriations. S. Rep. No. 106-87, at 68 (1999). As prescribed in the revolving fund's authorizing legislation, NARA charges other agencies user fees –as payment for providing personnel, storage, materials, supplies, equipment, and services . . . .— Pub. L. No. 106-58, 113 Stat. 461.