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B-226132 1 (1988-02-26)

handle is hein.gao/gaobadmzx0001 and id is 1 raw text is: 

The Comptroller General
of the United States
Washington, D.C. 20548

Decision


           USDA Forest Service - Authority to Reimburse
 Matterof: General Appropriations with the Proceeds of
           Forfeited Performance Bond Guarantees.
 File:
           B-226132
 Date:     February 26, 1988


 DIGEST

 Under section 579c of title 16 of the United States Code,
 proceeds received from bond forfeitures can reimburse
 general Forest Service appropriations to the extent of the
 costs of repairs related to the bond forfeitures. The
 language of section 579c stating cover the cost to the
 United States for the needed repairs supports this con-
 clusion. Moneys received that exceed these costs should be
 deposited into the miscellaneous receipts of the Treasury.


 DECISION

 The United States Department of Agriculture, Forest Service,
 asks whether it can use the proceeds from performance bond
 forfeitures to reimburse general appropriations used for
 repairing damage to United States lands. For the reasons
given, we find that the Service can make these reimburse-
ments to the extent of the costs of the repairs.

The Forest Service states that it requires performance bond
guarantees from occupants of the National Forest System,
including commodity contractors. Occasionally these
occupants cause damage to lands and do not make the
necessary repairs. This results in the Forest Service
itself having to make the needed repairs, often prior to
collecting the proceeds from the performance bonds. It
cites as an example the need to undertake immediate erosion
control measures after a fire.

As a remedy, the Service would like to use general appro-
priations supporting the type of repair involved to pay for
the necessary work, and subsequently reimburse that
appropriation with the later-received performance bond
proceeds. The Forest Service maintains that the law does
not specifically authorize such reimbursements, but cites
our decision in 64 Comp. Gen. 625 (1985), involving use of
forfeited bond proceeds to fund replacement contracts, as

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