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B-205836 1 (1982-09-28)

handle is hein.gao/gaobadkqn0001 and id is 1 raw text is: CEVCISION FILE: B-205836 THE CIOMPTRLLFER GENMRAL OF THE UNITED TATiEU WASHINGTON, D.C 2OfM4U DATE: September 28, 1932 MATTER OF: Insses on exchange of foreign currency for accnurodation purposes--use of pegged rate DIGEST: 1, losses incurred from time to time throughout year by Accounting and Finance Off icer, Depar~sirnt of the Army, while raking accommoxations exchanges and ex- change transactions pursuant to 31 L4SI.C. 5 492a, are accepted part of handling these transactions. As an accnuntable officer, the Finance Officer is not liable for losses in foreign currency dealings which occur because Army egulations call for him to use an estimated, rather than the actual, exchange rate. Under 31 U.S.C. S 492b an agency is autho- rized to place itself in a deficiency situation and not be in violation of the Antideficiency Act. 2. Treasury Departrent calls for agencies making acccn- niodations exchanges arid exchange transactions to use an estimated, rather than the actual, foreign ex- change rate. Army Fcgulations call for the use of an average rate formula. The Army has decided to test the pegged rate forrula in Europe as, in effect, a deviation from the avterage rate formula. Tbe T reasury Ipartnent, which under the statute has overall responsibility for these transact ions, has no objection to this iretlod. WV;e also have no legal objection to this methcxi of estimating the exchange rate. In our view, an Accounting and Finance Officer in Europe may use this method, as long as it is properly authorized by the Army, without concern about being held liable for losses resulting fra3 foreign currency exchanges. [1wver, the Army shoull take action to rectify certain area-s of con- corn, such as the potential for abuse by individual officers who my be permitted to vary the ugyed rate to lessen their gains and losses. Lieutqnant Colonel lI,D. Flynn, Finance and Accounting officer, U.S. Army in Eurn, requests an advance decision as to the proper mt-hod of effecting official and accxmodation exchaniges of foreign currency, Slpcifically, he asks whether the use of the pecjed rate sys- tem of accowting is authorized, or whether in fact it may violate the Antideficiency Act, 31 U.s.c..§ 665 or the provisions of 31 U.S.C. 9 620. lie also asks whether he is liable for losses in- curred in exchanges. P r the reasons discussed below, we find that

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