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B-220527 1 (1987-08-11)

handle is hein.gao/gaobadmug0001 and id is 1 raw text is: 0The Comptroller General of the United States Washington, D.C. 20548 Decision Economic Development Administration--Claim for Expenditures by Town of Franklin, Connecticut Matter of: B-220527 File: Date: August 11, 1987 DIGEST The First Selectman of the Town of Franklin, Connecticut (Town), accepted a fiscal year 1983 Economic Development Administration (EDA) grant for the Town. However, unknown to EDA, the First Selectman did not have the authority to accept the grant, so that there was no valid grant from EDA in tiscal year 1983. See B-220527, December 16, 1985. The Town expended funds tor the project in fiscal year 1984 after the receipt of an EDA letter extending the period for project construction. By use of the doctrine of equitable estoppel the Town seeks to prevent EDA from denying that there was a valid grant. Since the Town knew that its official lacked the authority to accept the grant, its actions, and not any affirmative misconduct on the part of EDA, were responsible for the expenditure of funds for the project. Theretore, the doctrine of equitable estoppel is not applicable to this case. Also, there was no new grant offer, renewal, or ratification of the prior year's offer, in fiscal year 1984. Accordingly, the Town may not recover its expenses from EDA. DECISION The attorney for the Town of Franklin, Connecticut (Town) has requested that we consider the Town's claim for reim- bursement of expenditures which are said to have been made in reliance upon the promise of funds from the Economic Development Administration (EDA) of the Department of Commerce. In our decision B-220527, December 16, 1985, we concluded that EDA did not obligate fiscal year 1983 funds when it made an offer to the Town that was accepted by the First Selectman who lacked the authority to accept the grant offer. Accordingly, there was no valid grant. The Town's attorney now contends that a claim for expenditures of CQ _1 k

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