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B-290659 1 (2002-09-20)

handle is hein.gao/gaocrptaogm0001 and id is 1 raw text is: 




          GAO
~mAccountability * 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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