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B-207215 1 (1983-03-01)

handle is hein.gao/gaobadkxh0001 and id is 1 raw text is: Ii ,.., F:; THE COMPTROLLER GENERAL OF THE UNITEi STATEB WASHINGTON. D.C. 20548 DECISION FILE: B-207215 MATTER OF: National Park Foundation Lease DIGEST: 1. 31 U.S.C. S 3324 (formerly S 529) does not prohibit the advance payment by the National Park Service of the annual rent for property leased to it by the National Park Foundation, a statutorily created charitable nonprofit organization. 2. Since fiscal year appropriation may be obligated only to meet bona fide needs arising in the fiscal year for which the appropriation is made, rent pay- ments for the months after September may not be paid with the appropriation available on May 1. Contin- gency clause making liability for those months sub- ject to availability of new appropriation does not solve the problem where entire year's rent, includ- ing impermissible portion, is paid in advance from prior year's funds. A certifying officer of the National Park S rvice has requested an advance decision on whether 31 U.S.C. S 3324;formerly S 529) prohibits the advance payment of the annual rent on property leased by the National Park Foundation to the National Park Service. The purpose of 31 U.S.C. S 3324Xis to preclude the possibility of loss to the Government in the event that a contractor, after receipt of payment, should fail to perform his contraqt or refuse or fail to refund moneys advanced, 25 Comp. Gen. 834A 35 (1946). Since the probability of loss to the Government is minimal where the National Park Foundation, which was established by statute to accept and administer gifts to the National Park Service, leases property to the National Park Service, we have no objection to advance payment of the annual rent. For the reasons explained below, however, the lease should be restructured to conform to the Federal fiscal year. In an agreement dated May 10, 1979, the National Park Founda- tion, a charitable and nopprofit corporation created by Pub. L. No. 90-209, 81 Stat. 656,Kto accept and administer gifts to.the National Park Service, leased to the National Park Service, Chickamauga and Chattanooga National Military Park, the residence -known as the Bennett House on Lookout Mountain, Tennessee. The property was lea-sed for---term of-5-years, conrnencing May-1, 1979, at an annual rental rate of $1200. The lessee agreed to pay the rent annually on May 1. A clause in the lease specified that where the operations extended beyond fiscal year 1979, the lease was made contingent upon the necessary appropriation and reservation of funds. DATE: March 1, 1983

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