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B-290659 1 (2002-09-20)

handle is hein.gao/gaobacycs0001 and id is 1 raw text is: 


   I


7=Accountability * Integrity * Reliability
United States General Accounting Office
Washington, DC 20548



         B-290659



         September  20, 2002

         William H. Taft, IV, Esq.
         Legal Adviser
         U.S. Department of State

         Subject: Transfer of funds originally allocated for the United Nations PoDulation
                  Fund

         Dear Mr. Taft:

         As you may  be aware, in response to a congressional inquiry, we were asked to
         consider whether the Department of State had impounded, and failed to so report,
         $34 million of a fiscal year 2002 lump sum appropriation for International
         Organizations and Programs. The State Department was authorized to make up to
         $34 million of that lump sum available for the United Nations Population Fund
         (UNFPA),  but only after ensuring that UNFPA practices satisfied a number of
         statutory conditions. Pub. L. No. 107-115, § 576, 115 Stat. 2168 (January 10, 2002). In
         a statement issued July 22, 2002, the State Department reported that it had decided
         not to fund UNFPA  for program-related reasons.

         After reviewing the State Department information provided to us, as well as
         discussions with State Department officials, we issued an opinion letter to Senator
         Barbara Boxer  on July 24, 2002 (copy enclosed). We concluded that since the State
         Department  delayed obligating the funds because of uncertainty whether the
         statutory conditions were met, the delay did not constitute an impoundment. We
         noted, however, that the State Department must release the funds with sufficient time
         remaining in the fiscal year to obligate them and stated that we would continue to
         monitor the use of these funds.

         In this regard, we recently learned that the State Department formally notified
         Congress by letter dated August 28, 2002, that the President intends to transfer $34
         million in Fiscal Year 2002 International Organizations and Programs (IO&P) funds,
         originally allocated for the United Nations Population Fund, to the Child Survival and
         Health Programs  Fund. After reviewing the letter and attached justification, we have
         the following questions:

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