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B-207047-O.M. 1 (1983-06-17)

handle is hein.gao/gaobadbjs0001 and id is 1 raw text is: 

UNr'ED STATES GOVERNMENT          GENERAL  ACCOUNTING   OFFICE

Memorandum                                June 17, 1983


TO      Acting Director, AFMD  Wilbur  P  Campbell



FROM  kActing  General Couhsel -           a4, C,>



SUmjECt Applicqtion of' Antideficiency Act to overinvestment
        of Indian Trust Funds' CB-207047-0.eM.1



      This responds to a request by Associate Director John F.
 SiMonette for an opinion as to whethet the overinvestment of
 Indian trust funds by-the Bureau of Indtn 'Affairs (BIA) violated
 the Antideficiency Act or other statutory 'provisions. As dis-
 cussed below, while we conclude that the Antideficiency Act'ris
 generally applicable to.the obligation and expenditure of Indian
 trust funds, we do.not consider the investments in questiqn to
 be obligations or expenditures within the meaning of the.Act..
 In addition.we do not consideroverinvestments to Come within
 the prohibition' of' Article I, section. 9, clause 7 of the United
 States Constitution', which 'states that' no money' shall be drawn
 from the Treasury except in consequence of appropriations made.
 by law.

                            'BACKGROUND

      Accofding to-your recent audit report entitled Major
 Improvements Needed in the Bureau of Indian Affairs Accounting
 System, GAO/AFMD 82-71, 'September 8, 1982, the Bureau,-.because
 of poor accounting practices,'frequently overestimates the actual
 amount of .Indian trust fund assets available for investment'at
 any given time.  .Investment.decisions based-on such unreliable
 information often resu~t in trust fund investments that actually
 exceed available trust assets.. This practice is possible, we
 understand, because investments are made with checks drawn on
 the United States Treasury, which makes funds available based
 upon cash reserve estimates by' the Bureau. .Overinvestments
 have therefore been covered by other funds of the Treasury.

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