Principles of Federal Appropriations Law - US Government ...

Chapter 5
Availability of Appropriations: Time
The Comptroller General followed a similar approach in 62 Comp. Gen. 527
(1983). A labor union had filed an unfair labor practice charge with the
statutorily created Foreign Service Labor Relations Board, based on a
refusal by the United States Information Agency to implement a decision of
the Foreign Service Impasse Disputes Panel. The dispute concerned fiscal
year 1982 performance pay awards for members of the Senior Foreign
Service. The question presented to GAO was the availability of fiscal year
1982 funds to pay the awards after the end of the fiscal year. GAO first
found 31 U.S.C. § 1501(a)(6) (which provides that an obligation may be
recorded when supported by documentary evidence of a liability that may
result from pending litigation) inapplicable, then concluded that, by virtue
of 31 U.S.C. § 1502(b), the unobligated balance of fiscal year 1982 funds
remained available for the awards. The unfair labor practice proceeding
was a “right of action,” and the statute therefore operated to preserve the
availability of the funds.
Under 31 U.S.C. §§ 1551–1557, funds are “returned to the general fund of
the Treasury” only when the account is closed, raising the question whether
section 1502(b) continues to apply to expiration in addition to closing. If
section 1502(b) is to be construed in light of its purpose, then the answer is
that expired appropriations will continue to be available to liquidate
obligations that arise from injunctive relief ordered by a court or agreed to
by an agency in settlement of a legal dispute. See 70 Comp. Gen. 225, 229–
30 (1991). In general, section 1553(a) “provides that an expired account
retains its fiscal year identity and remains available for recording,
adjusting, and liquidating obligations properly chargeable to that account.”
(Emphasis in original.) 71 Comp. Gen. 502, 505 (1992).
However, pursuant to section 1552(a), an appropriation may only be used
to pay properly chargeable obligations during the period of the
appropriation’s availability and during the five fiscal years immediately
following the period of availability. After that, the appropriation account is
closed and the remaining balance is canceled. 73 Comp. Gen. 338, 342
(1994). If a valid obligation arises after the appropriation account is closed,
section 1553(b) authorizes payment of the obligation from current
appropriations if account records show that sufficient funds remained
available to cover the obligation when the account was closed by operation
of law. Id.; 71 Comp. Gen. at 505–506.
Similar problems exist in the case of bid protests. If a protest is filed near
the end of a fiscal year and the contract cannot be awarded until the protest
is resolved, the contracting agency risks expiration of the funds.
Page 5-88 GAO-04-261SP Appropriations Law—Vol. I