Impoundment Control

This letter discusses deferrals of budget authority in the General Services Administration (GSA) building programs that the President should have, but did not, report to Congress as required by the Impoundment Control Act. GAO must report to Congress whenever it finds a reserve or deferral of budget authority for which the President has not transmitted a special impoundment message. In September 1993, the head of the Public Buildings Service requested an immediate review of new public buildings projects not yet under construction to ensure that the need for new buildings was justified. This directive affected 188 GSA projects. GAO disagrees with GSA that the current delay is not an impoundment. GAO concludes that the deferral is clearly intended to "achieve savings made possible by or through changes in requirement or greater efficiency of operations." In GAO's view, the GSA order constitutes a reportable, but authorized, deferral.

GAO found that: (1) in September 1993, GSA ordered all assistant regional administrators to review all new public buildings projects not yet under construction and not proceed with any new construction contracts, leases, site procurements, or solicitations; (2) GSA has not placed any funds in reserve while reviewing its building programs, since it believes project reviews only cause minimal delays and do not constitute a deferral of budget authority; (3) the GSA moratorium on all construction projects is an authorized deferral of budget authority; (4) GSA does not have a reasonable time to defer funds before it reports an impoundment to Congress; (5) the GSA deferral is authorized to achieve savings due to changes in requirements or greater efficiency of operations and is a reportable deferral under the applicable law; and (6) it is reporting the deferral of budget authority in GSA building programs to Congress.