TITLE:  �Transfer of funds originally allocated for the United Nations Population�������������������������������������� Fund, B-290659, September 20, 2002
BNUMBER:  B-290659
DATE:  September 20, 2002
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 Transfer of funds originally allocated for the United Nations
Population                                       Fund, B-290659, September 20,
2002

    
B-290659
    
    
    
September 20, 2002
    
William H. Taft, IV, Esq.
Legal Adviser
U.S. Department of State

   Subject:  Transfer of funds originally allocated for the United Nations
Population                                       Fund
    
Dear Mr. Taft:
    
As you may be aware, in response to a congressional inquiry, we were asked
to consider whether the Department of State had impounded, and failed to
so report, $34 million of a fiscal year 2002 lump sum appropriation for
*International Organizations and Programs.*  The State Department was
authorized to make up to $34 million of that lump sum available for the
United Nations Population Fund (UNFPA), but only after ensuring that UNFPA
practices satisfied a number of statutory conditions.  Pub. L. No.
107-115, S: 576, 115 Stat. 2168 (January 10, 2002).  In a statement issued
July 22, 2002, the State Department reported that it had decided not to
fund UNFPA for program-related reasons.
    
After reviewing the State Department information provided to us, as well
as discussions with State Department officials, we issued an opinion
letter to Senator Barbara Boxer on July 24, 2002 (copy enclosed).  We
concluded that since the State Department delayed obligating the funds
because of uncertainty whether the statutory conditions were met, the
delay did not constitute an impoundment.  We noted, however, that the
State Department must release the funds with sufficient time remaining in
the fiscal year to obligate them and stated that we would continue to
monitor the use of these funds.
    
In this regard, we recently learned that the State Department formally
notified Congress by letter dated August 28, 2002, that the President
intends to transfer $34 million in Fiscal Year 2002 International
Organizations and Programs (IO&P) funds, originally allocated for the
United Nations Population Fund, to the Child Survival and Health Programs
Fund.  After reviewing the letter and attached justification, we have the
following questions:
    
1.  The August 28, 2002 letter to the Chairman, Committee on
Appropriations, United States Senate, from the Acting Assistant Secretary
for Legislative Affairs, Department of State, constituted a notification
of the intent to transfer the funds ($34 million) from the IO&P account to
the Child Survival and Health Programs Fund.  Has the Department in fact
made this transfer?
    
2.  The authority for the transfer cited in the letter is contained in 22
U.S.C.            S: 2360(a), which provides in pertinent part:
    
*Whenever the President determines it to be necessary for the purposes of
this chapter, not to exceed 10 per centum of the funds made available for
any provision of this chapter . . . may be transferred to, and
consolidated with, the funds made available for any provision of this
chapter . . . .* (Emphasis added.)
    
Since authority for International Organizations and Programs and the Child
Survival and Health Programs Fund are both found in the cited chapter,
funds from IO&P may be transferred into the Child Survival and Health
Programs Fund.  However, as the emphasized language requires, the amount
transferred from IO&P must not exceed 10% of the total lump sum
appropriated for IO&P.  The total amount appropriated for IO&P in fiscal
year 2002 is $208,500,000.  By our calculations, the amount to be
transferred, $34,000,000, is 16.3% of $208,500,000.  Therefore, the
proposed transfer is 6.3% over the transfer amount allowable under 22
U.S.C. S: 2360.  In this case, up to $20,850,000 would be allowable for
transfer and the additional $13,150,000 would be an improper transfer.
    Given this scenario:
    
-         Is there some other transfer authority that would cover the
6.3%?
    
-         If not, when does the Department plan to move the 6.3% back to
the original IO&P appropriation?  That amount is legally available to IO&P
and can still be obligated before the end of the fiscal year.  What are
your intentions regarding this money?
    
-         If the money has already been transferred, has the Department
obligated any of the 6.3% while it was in the Child Survival and Health
Programs Fund?  If yes, when does the Department plan to shift that
obligation from the 6.3% money to other funds available within the Child
Survival and Health Programs appropriation?  If insufficient funds are
available in the Child Survival and Health Programs Fund to cover an
obligation of the 6.3% IO&P money, the Department would have to report
such an obligation as an Antideficiency Act violation (see 31 U.S.C. S:
1341) since it would be in excess of available funds in the Child Survival
and Health Programs Fund. 
    
3.  The 10% of the IO&P account properly transferred to the Child Survival
and Health Programs Fund is fiscal year 2002 money.  Have you obligated
this money and, if not, when will you obligate the transferred 10% IO&P
money?
    
Since it is nearly the end of the 2002 fiscal year, we would appreciate
receiving your response to our inquiries by September 25, 2002. If you
have any questions, please call Thomas Armstrong or Carlos Diz of my staff
at 202-512-5644.
    
Sincerely yours,
    
    
/signed/
    
Anthony Gamboa
General Counsel
    
Enclosure