About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline
LOG IN
LOG IN

B-188838 1 (1978-04-03)

handle is hein.gao/gaobadfwl0001 and id is 1 raw text is: I 0CISION FILE: B*188838 W / - 44 -Z lo COMPTROLLERN GENERAL 3 . TH EUN ITr 0 PTATEU W GHINGTON. 0. C. 20540 -A, DATE! April 3, 1978 MATTER OF: Lnpact Aaistance to Polar Rural Telephone Mutual Aid Corporation DIGEST: 1. Polar claims reimbursement under section 611, Pub. L. No. 94-411, for capital expenses of furnishing non- tactical telephone services to Government personnel stationed at Safeguard Antiballistic Missile System site. Polar is entitled to impact assistance under section 611 criteria since (1) expenditures are not otherwise recov- erable, (2) expenditures are direct result of establish- ment of Safeguard, and (3) in absence of financial assist- ance, Polar would sustain unfair and excessive financial burden. 2. GAO differs with Defense Contract Audit Agency regard- ing amount of eligible capital expenses under section 611 Pub. L. No. 94-431, in three major respects: (1) inter- est on loans used for construction of facility is allowable capital expenditure during constraction period; AAPR 15- 205. 17 which bars interest is inapplicable; (2) employees' termination pay is not allowable since it is not a capital expense of purchase'and installation of facilities and equipment; and (3) otherwise allowable amount should not be reduced by present value analysis since section 611 contemplates complete reimbursement for eligible non- tactical capital expenditure... 3. The third criterion of secti in 611 of Pub. L. No. 94-431 requires a determination by th± Secretary of Defense that Polar would sustain an unfair and excessive financial burden in absence of financial assistance. Although Polar reportedly is in generally sound financial condition, section 611' purpose is to afford relief because the Safe- guard closing removed the anticipated source of repay- mnent for nontactical facilities and equipment. Loss of specific source of repayment results in untair and exces- sive burden of repayment for eligible nontactical capital expenditures which should not be passed on to other com- mercial user-members of Polr. 4. Measure of assistance under E ction 611 of Pub. L. No. 4-431 is Polar's financial but-len--amount of eligible nontactical capital expenditur, 3 not otherwise recovered. -1- I -------------------------.-=---.----------~-.--.-~. ----iii

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Contact us for annual subscription options:

Contact Us

Already a HeinOnline Subscriber?

Log In

profiles profiles most