DISPOSITION OF EXCESS COST RECOVERED UNDER A CONTRACT.

The appropriation for the fiscal year to which the original contract was chargeable is available for the purchase necessitated by a default in that contract, and the excess cost when recovered should be deposited to the credit of that appropriation.

Comptroller Downey to the Secretary of the Treasury, April 27, 1915:

I have your inquiry of April 19, 1915, as to whether $223.72 paid by D. P. Winne Co. as the difference between the price at which they had contracted in May, 1914, to furnish shot lines to the LifeSaving Service and the price at which they were procured on the contractor's failure to deliver satisfactory lines should be deposited to the credit of miscellaneous receipts or to the credit of the appropriation "Pay of crews, miscellaneous expenses, etc., Life-Saving Service," for the fiscal year 1914 or the fiscal year 1915.

The contract with D. P. Winne Co. was made in May, 1914, as a need of the fiscal year 1914 and under the appropriation for that fiscal year, but the purchase arising out of the default was not advertised until November, 1914, proposal accepted in December, and delivery obtained January, 1915, and charged against the appropriation for the fiscal year 1915.

As a general proposition the appropriation to which the contract under which there has been a default relates is chargeable with the purchase necessitated on account of such default, and hence, if the excess cost is recovered from the defaulting contractor, it is viewed not as a miscellaneous receipt, but as properly to be placed to the credit of that fiscal year appropriation. In that way the appropriation is finally charged only with the amount it was obligated by reason of the original contract. (See 21 C. D., 107; 16 Id., 384; 9 Id., 10.)

In the present case the purchase was not charged against the 1914 appropriation, which was the appropriation under which the original contract was made, but was charged against the 1915 appropriation.

Why this was done is not stated, but it is assumed it was because the proposal and acceptance were made in that fiscal year. The fact that the purchase was made on account of the defaulted contract shows that the fulfillment of the contract for the fiscal year 1914 was concerned rather than a need of the fiscal year 1915, and there being a sufficient balance in the 1914 appropriation the expenditure should be charged against the 1914 appropriation.

The account of the disbursing clerk in which the payment was made is now pending before the auditor for settlement, and the auditor is authorized in his settlement to call for a transfer of appropriations accordingly.

This will result in charging the 1914 appropriation with the full amount for which the shot lines were procured, $1,466.60. The cost under the original contract would have been $1,242.88. The excess cost ($223.72) received from the defaulting contractor should be deposited to the credit of the 1914 appropriation. In the final analysis that appropriation will be charged with $1,242.88, the amount it was chargeable with in the first instance under the original contract.

ESTABLISHMENT OF AN IRRIGATION SYSTEM AT A MILITARY POST.

The appropriation for procuring and introducing water to buildings and premises at military posts and stations is not available for the establishment of an irrigation system at the posts and stations.

Decision by Comptroller Downey, April 27, 1915:

Capt. Sam Van Leer, Quartermaster Corps, United States Army, appealed April 16, 1915, from so much of the action of the Auditor for the War Department in settlement No. 32440, dated October 8, 1914, as disallowed therein the sum of $1,681.06, described and itemized as follows:

Voucher 38, June, 1914, purchase of one centrifugal pump, etc‒‒‒‒‒‒‒ Voucher 39, June, 1914, purchase of miscellaneous supplies, fittings, etc___

$294. 60

349. 74

Voucher 47, June, 1914, services of an irrigation engineer and assistant__

100.00

Voucher 62, June, 1914, purchase of one 20-horsepower engine complete_
Voucher 65, June, 1914, purchase of cement, lumber, etc----

655.75

280.97

Total---.

1,681.06

The auditor disallowed the vouchers because the expenditures were in connection with an irrigation system being constructed or established at Fort Keough Remount Depot, Fort Keough, Mont., and no authority of law was known for the use of the appropriation “Water and sewers at military posts" for such purpose.

Appellant does not controvert the statement of the auditor that the expenditures were made in connection with the establishment of an irrigation system, but rather admits it. In his appeal he says that said expenditures were charged to said appropriation because they were "for procuring and introducing water to premises," to economically conduct an authorized project of raising forage at a remount depot, and contends that the statute does not specify uses of water to the exclusion of this.

The Army appropriation act of March 2, 1913 (37 Stat., 704, 716), fiscal year 1914, provides:

"Water and sewers at military posts: For procuring and introducing water to buildings and premises at such military posts and

stations as, from their situation, require it to be brought from a distance; for the installation and extension of plumbing within buildings where the same is not specifically provided for in other appropriations; for the purchase and repairs of fire apparatus, including fire-alarm systems; for the disposal of sewage and expense incident thereto, including the authorized issue of toilet paper; for repairs to water and sewer systems and plumbing within buildings; and for hire of employees, $1,534,412."

I think appellant in making the above expenditures has gone beyond the intent and purpose of said appropriation. It seems to me that nothing more was contemplated by the appropriation than the procurement and introduction of water at military posts for ordinary uses such as the water would be used in the average city or town. The establishment of an irrigation plant or system is outside the ordinary uses of water as applied to military posts. What was done may be desirable and beneficial, but its establishment should be by the authorization or sanction of Congress. I do not feel warranted in giving credit for the expenditures in the absence of express authorization or sanction by Congress.

The action of the auditor in disallowing the vouchers is affirmed.

COMMUTATION OF HEAT AND LIGHT.

The provision in the Army appropriation act of March 4, 1915, for the payment of commutation of heat and light to commissioned officers and others, authorizes the payment of the commuted value of the heat and light actually necessary for the authorized allowance of quarters occupied. Submitted rates of payment approved.

Comptroller Downey to the Secretary of War, April 28, 1915:

By indorsement of the 21st instant you submit for my approval certain forms for the payment of heat and light allowances for the fiscal year 1916, and request my decision as to the rates at which such allowances may be commuted.

Your submission gives the impression that you construe a certain provision in the Army appropriation act of March 4, 1915 (Public, No. 292), as authorizing the payment of commutation of heat and light to officers and enlisted men of the Army at such rates as the Secretary of War may fix.

Said provision is as follows (p. 8):

"For commutation of quarters, and of heat and light, to commissioned officers, acting dental surgeons, veterinarians, pay clerks, members of the Nurse Corps, and enlisted men, $640,000."

At the time this provision, in its present form, was incorporated into the Army appropriation bill for the fiscal year 1916, then being

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considered in Congress, there was another provision inserted in said bill, as follows:

"Provided further, That hereafter heat and light for the authorized allowance of quarters of commissioned officers, acting dental surgeons, veterinarians, pay clerks, nurses (female), and enlisted men, when on duty where there are no public quarters available, will be commuted at rates fixed by the Secretary of War, and paid with and as a part of commutation of quarters, which rates shall, as nearly as possible, be computed upon a reimbursement basis."

This proviso was rejected by each House of Congress, and therefore did not become a law.

The action taken on this proviso indicates clearly, I think, that Congress did not intend to vest in the Secretary of War the authority to fix the rates at which heat and light allowances are to be commuted. The act of March 2, 1907 (34 Stat., 1167), provides:

"That hereafter the heat and light actually necessary for the authorized allowance of quarters for officers and enlisted men shall be furnished at the expense of the United States under such regulations as the Secretary of War may prescribe."

Considering the appropriation, supra, in connection with this permanent law, it must be construed as authorizing the payment of the commuted value of only the heat and light actually necessary for the authorized allowance of quarters occupied.

After investigations, tests, etc., by the War Department and other branches of the Government service, it has been determined that, under present conditions, the commuted value of the heat actually necessary for quarters consisting of from one to ten rooms, respectively, is as set forth in paragraph 1036, Army Regulations of 1913, as amended February 19, 1915 (C. A. R., 21).

It has also been determined that the commuted value of light actually necessary is as set forth in the following table (subject to the changes indicated in section 3, paragraph 1057, Army Regulations, 1913, as amended February 10, 1915, C. A. R. 19, for stations in Alaska, the Tropics, and the South Temperate Zone):

You are advised, therefore, that commutation of heat and light for the fiscal year 1916 should be paid at the rates herein indicated for the number of rooms actually occupied, not exceeding the authorized allowance.

The forms submitted will be considered in the usual way and you will be duly advised of the action taken thereon.

It is thought advisable to give you now the benefit of the conclusions reached herein and avoid the delay necessarily incident to the proper consideration of the forms.

ADMINISTRATIVE EXAMINATION OF ACCOUNTS OF DISBURSING OFFICERS-NEW BONDS OF SPECIAL DISBURSING AGENTS.

The laws relating to administrative examination of accounts of disbursing officers contemplate such examination in the proper executive department at the seat of government and not elsewhere.

The accounts and vouchers relating to the expenditure of appropriations for government in the Territories, except such as are directed by the act of August 1, 1914 (38 Stat., 653), to be paid by United States marshals, should be transmitted to the Secretary of the Interior for administrative examination, and accounts of marshals should be transmitted to the Attorney General.

The present bonds of the Governor of Alaska and Secretary of Hawaii may be continued in connection with their accounts under such appropriation.

Comptroller Downey to the Secretary of the Interior, April 28, 1915:

I have your letter of the 19th instant in which you state that, with a view to securing better administrative results it is proposed, unless some law or regulation prevents, to handle disbursements of appropriations for government in the Territories in the manner outlined by you as follows:

"The appropriations for legislative expenses in Hawaii, contingent expenses of the office of the governor, and the salaries of the governor and secretary of Hawaii to be disbursed by Secretary Thayer as special disbursing agent, on the order of the governor of Hawaii, the administrative examination of Secretary Thayer's accounts to be made under supervision of the Governor of Hawaii.

"The appropriations for legislative expenses in Alaska, contingent expenses of the office of the governor, and the salary of the governor of that Territory to be disbursed by Governor Strong as special disbursing agent, the administrative examination of his accounts to be given by his private secretary, Mr. W. W. Shorthill.

"The appropriations for protection of game in Alaska and suppression of the traffic in intoxicating liquors among the natives of Alaska (contained in the sundry civil act approved Mar. 3, 1915), to be disbursed by Mr. Shorthill as special disbursing agent, as in the past and current fiscal years, administrative examination of accounts arising under the former appropriation to be given by the governor of Alaska, and under the latter appropriation in the office of the Secretary of the Interior."