FIN 02-20

I. Legislative Authority to Retain Reimbursements

A. Advance of Funds Required to Accompany Customer Order

(1) Operation and Maintenance of Water Resource Projects (43 U.S.C. § 397a)

(2) Loan Program (43 U.S.C. § 422c)

(3) Delivery and Sale of Publications (43 U.S.C. § 1460)

(4) Quarters and Facilities Rentals (5 U.S.C. § 5911c)

(5) Federal Technology Transfer Act (15 U.S.C. § 3710a.(b))

B. Advance of Funds Optional for Other Governmental Entities

(1) Foreign Governments (22 U.S.C. § 2357)

(2) Other Federal Agencies (31 U.S.C. §§ 1535, 1536)

(3) State and Local Governments (31 U.S.C. § 6505)

II. Appropriations Authorized to Receipt/Spend Reimbursements

A. Energy and Water Appropriation Act

B. Distinction of Working Capital Fund and User Fee Statute

I. Legislative Authority. The laws authorizing Reclamation to retain offsetting collections as credits to an appropriation fall into two categories--those requiring payment in advance and those which provide an option to an advance payment.

A. Advance of Funds Required to Accompany Customer Order. The following four statutes either mandate or fail to specifically exempt the requirement for an advance payment:

(1) Operation and Maintenance of Water Resource Projects (43 U.S.C. § 397a). General Reclamation Law (44 Stat. 957, dated January 12, 1927) provides as follows:

"Any moneys . . . advanced for operation and maintenance of any project or any division of a project shall be available for expenditure for the purposes for which advanced in like manner as if said funds had been specifically appropriated for said purposes."

(2) Loan Program (43 USC 422c). The Small Reclamation Projects Act

(P.L. 84-984, Section 3) and the Distribution Systems Act (P.L. 83-130, as amended) provide as follows:

"Any organization desiring to avail itself of the benefits provided in this subchapter shall submit a proposal therefore to the Secretary in such form and manner as he shall prescribe. Each such proposal shall be accompanied by a payment of $5,000 to defray, in part, the cost of examining the proposal."

(3) Delivery and Sale of Publications (43 U.S.C. § 1460). The Copy Fee Statute (as amended by P.L. 80-264) authorizes all officers of the Department of the Interior (DOI) to provide copies of:

". . . any official books, records, papers, documents, maps, plats, or diagrams within his custody and may charge therefore a sum equal to the cost of production thereof, plus the cost of administrative services involved in handling the records for such purpose . . . The money received for copies under this section shall be deposited in the Treasury to the credit of the appropriations then current and chargeable for the cost of furnishing copies as herein authorized."

(4) Quarters and Facilities Rental Program (5 U.S.C. § 5911c). Public Law 98-473 (October 14, 1984), Section 320. states in part as follows:

". . . rent and charges collected by payroll deduction or otherwise for the use or occupancy of quarters . . . shall . . . be deposited in a special fund in each agency, to remain available until expended, for the maintenance and operation of the quarters of that agency . . . "

(5) Federal Technology Transfers (15 U.S.C. § 3710a). Public Law 99-502 (October 20, 1986), states in part as follows:

"(b) Enumerated authority
... a Government operated Federal laboratory may...
(1) accept, retain, and use funds...from collaborating parties..."

"(d) Definitions
As used in this section--
(1) the term "cooperative research and development agreement" means any agreement between one or more Federal laboratories and one or more non-Federal parties under which the Government, through its laboratories, provides personnel, services, facilities, equipment, or other resources with or without reimbursement..." (Emphasis added).

B. Advance of Funds Optional for Governmental Entities. Agreements under the following three statutes provide an option to bill in arrears. It is Department of the Interior policy to extend credit to non-Federal governmental entities only when a compelling programmatic need exists.

(1) Foreign Governments (22 U.S.C. § 2357). The Foreign Assistance Act (P.L. 87-195, dated September 4, 1961) states:

Sec. 607. Furnishing of Services and Commodities. Whenever the President determines it to be consistent with and in furtherance of the purposes . . . of this Act, any agency of the United States Government is authorized to furnish services and commodities on an advance-of-funds or reimbursement basis to friendly countries, international organizations, . . . Such advances and reimbursements . . . may be credited to the current applicable appropriation . . . and shall be available for the purpose for which such appropriation . . . is authorized to be used.

(2) Other Federal Agencies (31 U.S.C. §§ 1535, 1536). The Economy Act of 1932, as amended, states in § 1535(b) that orders placed in accordance with agreements between Federal agencies may be paid "in advance or on providing the goods or services ordered." In § 1536(a) the statute specifies that advances are to be treated differently from reimbursable collections as follows.

"(a) An advance payment made on an order under 1535 of this title is credited to a special [consolidated] working fund ... any other payment is credited to the appropriation or fund against which charges were made to fill the order." (Emphasis added).

(3) State and Local Governments (31 U.S.C. 6505). The Intergovernmental Cooperation Act of 1968 states in part as follows:

Sec. 303. All moneys received by any department or agency of the executive branch of the Federal Government, or any bureau or other administrative division thereof, in payment for furnishing specialized or technical services as authorized under section 302 shall be deposited to the credit of the principal appropriation from which the cost of providing such services has been paid or is to be charged.

As implemented by OMB Circular A-97, Subject: Rules and regulations permitting Federal agencies to provide specialized or technical services to State and local units of government under Title III of the Intergovernmental Cooperation Act of 1968, which states in part:

4. Definitions. For purposes of this Circular: . . .
b. The terms "political subdivision" or "local government" mean a local unit of government, including specifically a county, municipality, city, town, township, or a school or other special district created by or pursuant to State law, or combinations thereof.

7. Conditions under which services may be provided ...
e. Such services will be provided only upon payment or provision for reimbursement to the Federal agency involved,..." (Emphasis added.)

II. Appropriations Authorized to Receipt/Spend Reimbursements. Under appropriation law concepts, appropriations must also be specifically authorized to receipt and spend the reimbursements authorized to be retained by the statutes enumerated above.

A. Energy and Water Appropriation Act. Title II (Department of the Interior, Bureau of Reclamation) of the annual Energy and Water Appropriation Act has successively granted authority to accept deposits and make expenditures for reimbursable work as follows:

". . . Provided further, that funds advanced by water users for operation and maintenance of reclamation projects, or parts thereof, shall be deposited to the credit of this appropriation and may be expended for the same purpose and in the same manner as sums appropriated herein may be expended, and such advances shall remain available until expended: . . ."

B. Title 43 - Public Lands. 43 U.S.C. § 1471c. Availability of appropriations for operation of warehouses, garages, shops, and similar facilities

"Appropriationso in this title or appropriations made under this title in subsequent Energy and Water Development Appropriations Acts shall on and after October 2, 1992, be available for operation of warehouses, garages, shops, and similar facilities, wherever consolidation of activities will contribute to efficiency or economy, and said appropriations shall be reimbursed for services rendered to any other activity in the same manner as authorized by sections 1535 and 1536 of title 31 [Economy Act]: Provided, That reimbursements for costs of supplies, materials, equipment, and for services rendered may be credited to the appropriation current at the time such reimbursements are received." (Emphasis added.)

C. Distinction of Working Capital Fund and User Fee Statute. The WCF (14x4524) is authorized to ". . . be credited with appropriations and other funds . . . for providing materials, supplies, equipment, work, and services as authorized by law." (Emphasis added). Some revolving funds, such as the WCF, are established primarily as an accounting convenience and the fact that work is accomplished and reimbursement is made through the use of a working capital fund is immaterial to the availability of funds. That is, the availability of reimbursements to appropriations as to time, amount, and purpose is based on the legislative authorities cited in sec. I. above.

The recovery of miscellaneous "administrative fees" under the authority of Title V of the Independent Offices Appropriation Act (IOAA) (31 U.S.C. § 9701) are required to be deposited to the miscellaneous (general) receipts of the U.S. Treasury.