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B-132900 1 (1976-02-19)

handle is hein.gao/gaobaddga0001 and id is 1 raw text is: 



                    COMPTROLLER GENERAL OF THE UNITED STATES
                               WASHINGTON. D.C. 20.48
NITS




B-132900                            February 19, 1976
                                                             7g a

 The Honorable George H. MahonV
 Chairman, Committee on Appropriations%/
 House of Representatives

 Dear Mr. Chairman:

      By letter of December 19, 1975, with enclosure, you requested our
 views on the legality and propriety of certain actions proposed to be
 taken by the Department of the Army (Army) to deal with overobligations
 in four separate Army procurement appropriations:  Procurement of Equip-
 ment and Missiles, Army, 1971/1973; Other Procurement, Army, 1972/1974;
 Procurement of Weapons and Tracked Combat Vehicles, Army, 1972/1974;
 and Procurement of Weapons and Tracked Combat Vehicles, Army, 1973/1975.
 The exact amount is not yet known,but the Army estimates that the
 ultimate overobligations and consequent cash deficiencies will be
 approximately $160 to 180 million.

      It appears that the overobligation results from numerous contracts--
 some completed and others in progress--for which recorded obligations
 exist in the full contract amounts.  Most of these contracts have been
 identified.  Approximately 900 contractors and suppliers are currently
 performing and/or awaiting payment for completed work on 1,200 contracts
 financed by these accounts.  No payments have been made since November 11,
 1975, when the Secretary of the Army directed an immediate halt to
 disbursement of funds from these appropriations.

      Obviously these contracts violate the Antideficiency Act,
 R.S. § 3679, as amended, 31 U.S.C. § 665*V/(1970), which provides in
 pertinent part as follows:

           (a) No officer or employee of the United States shall
      make or authorize an expenditure from or create or authorize
      an obligation under any appropriation or fund in excess of
      the amount available therein; nor shall any such officer or
      employee involve the Government in any contract or other
      obligation, for the payment of money for any purpose, in
      advance of appropriations made for such purpose, unless such
      contract or obligation is authorized by law.



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