Summary

Questions were raised regarding the authority of the National Archives and Records Service (NARS) to establish its records management Reimbursable Technical Assistance Program, focusing on: (1) whether NARS was justified in establishing the program and hiring additional staff under provisions of the Economy Act of 1932; (2) whether the inclusion of NARS' program in its budget request resulted in de facto approval from Congress; (3) the feasibility of shifting Economy Act resources to appropriated funding to finance the program; and (4) whether NARS could legally perform Economy Act assistance during one fiscal year and bill for the work in a subsequent fiscal year. GAO noted that: (1) while NARS is authorized to establish a program to assist agencies in performing individual agency records management functions on a reimbursable basis under the Economy Act, it is not authorized to seek reimbursements for costs relating to performance of its general oversight responsibilities; (2) there has been no de facto approval of NARS reimbursable program by Congress on the basis of the limited information provided in NARS' budget request; (3) since NARS is authorized to be reimbursed under the Economy Act, there is no reason for it to receive additional appropriations; (4) reimbursements for work or service performed or materials supplied under the Economy Act must be credited to the fiscal year appropriations which earned them irrespective of when reimbursements are collected; and (5) NARS should either request payment in advance with adjustments based on actual costs after completion of the work or service or promptly bill the client agency upon completion of work.