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![handle is hein.gao/gaobacsob0001 and id is 1 raw text is: 205
United Stew.
General Accounting Office
iggn, D.C. 20548
ogee of the General Counsel
B-237127
December 12, 1989
Roy J. Heinbuch, Chief
office of Financial Management
Department of the Interior
Geological Survey
Dear Mr. Heinbuch:
This responds to your letter of September 25, 1989 asking
for our opinion on whether the U.S. Geological Survey (USGS)
can institute a budget plan bill paying system with local
gas and electric utility companies. In our view, such a
system would involve unauthorized adva e payments and thus
be prohibited by 31 U.S.C. S 3324(a).
In your letter you stated that the USGS's accounting system,
the Federal Financial System, has the capability to
automatically process recurring payments such as the utility
bills sent to your many widespread facilities and processed
monthly by your central payment office. You stated that
you are seeking to use this feature to reduce paperwork and
the time and effort involved in processing payments by
using budget plans with local utility companies wherever
possible. This would involve agreements with the companies
for automatic monthly or quarterly payments of predetermined
amounts, with an end-of-year 'adjustment' if necessary.*
You raise the question whether this method of processing
utility bills would constitute a form of impermissible
advance payment.
31 U.S.C. S 3324(a)4'1982) prohibits the U.S. Government
from paying in advance for goods and services. [A] payment
under a contract to provide a service . . . for the United
States Government may not be more than the value of the
service already provided . . . . In the case of utility
service this means that the government can pay only for
service already rendered rather than on an advance basis, as
utility c apanies often arrange with other customers.
B-158453, Feb. 10, 1966.
In 42 Comp. Gen. 659()1963) we held that a proposed billing
change to provide for the advance payment of local telephone
service may not be approved. We noted that exceptions to
Section 3324 have been extended only when provided for in](ViewImageLocal?handle=hein.gao/gaobacsob0001&div=1&collection=&method=preview&ext=.png&size=3)