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B-302710 1 (2004-05-19)

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         G     A    0                                                 Comptroller General
             SIntegrity Reliability                                   of the United States
 ~ccountabthty Inert Rea iy
United States General Accounting Office
Washington, DC 20548



          Decision


          Matter of: Department of Health and Human Services, Centers for Medicare &
                      Medicaid Services-Video News Releases

          File:       B-302710

          Date:       May 19, 2004

          DIGEST

          1. The Centers for Medicare & Medicaid Services's (CMS) use of appropriated funds
          to pay for the production and distribution of story packages that were not attributed
          to CMS violated the restriction on using appropriated funds for publicity or
          propaganda purposes in the Consolidated Appropriations Resolution of 2003,
          Pub. L. No. 108-7, Div. J, Tit. VI, § 626, 117 Stat. 11, 470 (2003).

          2. CMS, in using appropriations in violation of the publicity or propaganda
          prohibition, incurred obligations in excess of appropriations available for that
          purpose. See B-300325, Dec. 13, 2002. Accordingly, CMS violated the Antideficiency
          Act, 31 U.S.C. § 1341, and must report the violation to the Congress and President in
          accordance with 31 U.S.C. § 1351 and Office of Management and Budget Circular
          No. A-11.

          DECISION

          In a March 10, 2004, opinion, we concluded that the Department of Health and
          Human Services's (HHS) use of appropriated funds to produce and distribute a flyer
          and print and television advertisements, as part of a campaign to inform Medicare
          beneficiaries about changes to Medicare under the Medicare Prescription Drug,
          Improvement and Modernization Act of 2003 (MMA), did not violate publicity or
          propaganda prohibitions in the Consolidated Appropriations Act of 2004, Pub. L.
          No. 108-199, Div. F, Tit. VI, § 624, 118 Stat. 3, 356 (2004), and the Consolidated
          Appropriations Resolution of 2003, Pub. L. No. 108-7, Div. J, Tit. VI, § 626, 117 Stat.
          11, 470 (2003). B-302504, Mar. 10, 2004. During our development of that opinion, we
          learned that the Centers for Medicare & Medicaid Services (CMS), an agency in the
          Department of Health and Human Services, had prepared as part of this campaign
          video news releases or VNRs, including a news story for television broadcast, to
          provide information to the television medium. Letter from Dennis G. Smith,

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