Notes of Decisions. Statutory restrictions.-The statute restricts in every possible way the expenditures, expenses, and liabilities of the Government, so far as executive officers are concerned, to the specific appropriation for each fiscal year. Wilder v. U. S. (1880), 16 Ct. Cl. 528. Effect of appropriation.-An appropriation of a given amount of money for a specified purpose is not a designation of a specific parcel of money, but is simply an authority to apply that amount of money to that purpose. Hukill v. U. S. (1880), 16 Ct. Cl. 562. Every appropriation for the payment of a particular demand or class of demands involves and includes a congressional recognition of their legality and justice, and is equivalent to a mandate to the officers of the Treasury for the payment thereof. Id. Recovery of money paid.-Money paid by authority of a specific appropriation of Congress can not be recovered back. City of Louisville v. U. S. (1895), 31 Ct. Cl. 1. Reimbursement between departments.Where one department receives from another department supplies which are within the scope of appropriations belonging to each, a reimbursement of the appropriation of the one from the appropriation of the other of the cost of such supplies is not a violation of this section. (1882), 17 Op. Atty. Gen. 480. 223. Expenditures for commissions and inquiries.-No accounting or disbursing officer of the Government shall allow or pay any account or charge whatever, growing out of, or in any way connected with, any commission or inquiry, except courts-martial or courts of inquiry in the military or naval service of the United States, until special appropriations shall have been made by law to pay such accounts and charges. This section, however, shall not extend to the contingent fund connected with the foreign intercourse of the Government, placed at the disposal of the President. R. S. 3681. That hereafter no part of the public moneys, or of any appropriation heretofore or hereafter made by Congress, shall be used for the payment of compensation or expenses of any commission, council, board, or other similar body, or any members thereof, or for expenses in connection with any work or the results of any work or action of any commission, council, board, or other similar body, unless the creation of the same shall be or shall have been authorized by law; nor shall there be employed by detail, hereafter or heretofore made, or otherwise personal services from any executive department or other government establishment in connection with any such commission, council, board, or other similiar body. Sec. 9, act of Mar. 4, 1909 (35 Stat. 1027), making appropriations for sundry civil expenses. Notes of Decisions. Construction and operation. This section does not require a specific authorization of a commission by a law of the United States; it being sufficient if their appointment is authorized in a general way by law. (1909) 27 Op. Atty. Gen. 432. A board created pursuant to implied authority of 32 Stat. 941, would be "authorized by law" within the meaning of this section. (1909) 27 Op. Atty. Gen. 459. This section does not either repeal any portion of R. S. 1158, post, 600, or revoke the implied power there given to the President to order Army engineers to any duty, nor does it curtail his power under that section, or otherwise, to assign such engineers to any duty. (1910) 28 Op. Atty. Gen. 270. 224. Expenditures not to exceed appropriations. No Executive Department or other Government establishment of the United States shall expend, in any one fiscal year, any sum in excess of appropriations made by Congress for that fiscal year, or involve the Government in any contract or other obligation for the future payment of money in excess of such appropriations unless such contract or obligation is authorized by law. act Feb. 27, 1906 (34 Stat. 49). R. S. 3679, as amended by sec. 3, The heads of the executive departments were required to apportion the appropriations for the contingent funds among the bureaus and offices of the departments by act Aug. 23, 1912, sec. 6, post, 273. Other provisions prohibiting contracts or purchases on behalf of the United States, unless under an adequate appropriation, were made by R. S. 3732, post, 726. Restrictions on contracts for public buildings or any public improvements, exceeding the amount appropriated for the specific purpose, were made by R. S. 3733, post, 1153. Restrictions on contracts for the rent of any building in the city of Washington, until an appropriation therefor had been made, were made by a provision of act Mar. 3, 1877, post, 1180. A further restriction on contracts or purchases, unless authorized by law or under an adequate appropriation, except in the War and Navy Departments for certain supplies, etc., was made by a provision of act June 12, 1906, post, 752. Notes of Decisions. Construction and operation. These provisions apply to the public service in general, and must yield to special provisions relating to a particular department. New York Cent. & H. R. R. v. U. S. (1886), 21 Ct. Cl. 468. This section and sec. 748, post, should be construed together. The latter section authorizes the heads of the War and Navy Departments, in the absence of appropriations, to purchase or contract for clothing, subsistence, forage, fuel, quarters, or transportation, not exceeding the necessities of the current year. Such contracts are not within the prohibition of the former section. (1876) 15 Op. Atty. Gen. 124; (1877), Id. 209. The words "contingent expenses mean such incidental, casual expenses as are necessary or appropriate and convenient to the performance of duties required by law of the department or the office for which the appropriation is made. (1879) 16 Op. Atty. Gen. 412. The object of this section was to prevent executive officers from involving the Government in expenditures or liabilities beyond those contemplated and authorized by the law-making power. (1895) 21 Op. Atty. Gen. 248. Implied contracts.-The statute does not extend to implied contracts arising from the acts of public officers in the performance of their duties. Semmes v. U. S. (1891), 26 Ct. Cl. 119; Rives v. Same (1893), 28 Ct. Cl. 249. takes effect at the date of the act, and not at the beginning of the ensuing fiscal year. Chance v. U. S. (1903), 38 Ct. Cl. 75. Obligations beyond amount of appropriation. This section and R. S., sec. 3772, in effect prohibited any expenditure or contract in behalf of the Government in excess of appropriations therefor, except in the War and Navy Departments for specific purposes. Leavitt v. U. S. (D. C. 1888), 34 Fed. 623, 626. Where an alleged liability of the Government rests wholly on an appropriation, they must stand or fall together, so that when the latter is exhausted the former comes to an end. Shipman v. U. S. (1883), 18 Ct. Cl. 138. The fact that an appropriation is exhausted justifies an officer in stopping a contractor's work, but does not constitute a defense in a suit for breach of contract. Ferris v. U. S. (1892), 27 Ct. Cl. 542. Where, by the special provision for a particular work commenced and in progress, it was provided that nothing in the act should be so construed as to authorize any officer of the Government to bind the United States by contract beyond the amount of existing appropriation, held that if the public interest required the President to make a contract for the work exceeding such amount he might lawfully do so, subject to the chance of future appropriations for the object, without which the contract would not bind the United States. (1853) 6 Op. Atty. Gen. 27. In general, where the Constitution or an act of Congress requires the President to do a thing which requires the expenditure of money he may lawfully do it or contract to have it done in the absence of any adequate appropriation for the object; and the cost of the thing becomes a lawful charge on the Government. Id. Contracts and purchases in the War and Navy Departments for clothing, subsistence, etc., may be made, though there is no appropriation adequate to their fulfillment, provided such contracts and purchases do not exceed the necessities of the current year. (1876) 15 Op. Atty. Gen. 124. Executive officers are prohibited from continuing the employment of the contractors and involving the Government in expenditures or liabilities beyond those contemplated by Congress or authorized by law. If further appropriations are made, there must be a new contract for their expenditure. (1895) 21 Op. Atty. Gen. 244. Leases. A failure by Congress to appropriate the full amount of the rent reserved in a valid lease does not imply a new lease nor relieve the Government from liability for the rent reserved in the old lease. Freedman's Savings & Trust Co. v. U. S. (1880), 16 Ct. Cl. 19. Leases entered into under an appropriation for one fiscal year, though for a term of years are binding on the lessee, the Government, only for the year covered by the appropriation act, but the extended term named in the lease in effect gives an option to the Government to continue it, holding, if subsequent appropriations be Diade, until the expiration of the designated term. McCollum v. U. S. (1881), 17 Ct. CI. 92. Though a tenancy from year to year will continue until terminated by notice, yet the Postmaster General has authority to bind the Government no longer than the current fiscal year. Connecticut Mutual Life Ins. Co. v. U. S. (1886), 21 Ct. Cl. 195. The statute in effect prohibits a lease for a longer term than the fiscal years for which appropriations may be made. Smoot v. U. S. (1903), 38 Ct. Cl. 418. A lease for a term of years is binding on the Government only until the end of the fiscal year in which it is made, with a future option from year to year until the end of the term. Id. No contract can be implied from the occupancy of buildings which will involve the Government in a greater liability than that fixed by Congress. Hooe v. U. S. (1908), 43 Ct. Cl. 245. By reason of this section and sec. 726, post, the Secretary of the Treasury has no power, in the absence of statutory authority, to make for the United States a contract to lease for five years a building for the use of the Customs Service, and such a contract is not binding on the United States. U. S. v. Doullut (C. C. A. 1914), 213 Fed. 729. Obligations incurred after appropriation exhausted. A party employed by the proper officer may recover for services necessarily required by the United States notwithstanding that the appropriation for the work has been previously exhausted. King r. U. S. (1863), 1 Ct. Cl. 38. If a contract dependent upon an appropriation for its validity does not exceed the appropriation it will be deemed valid. though the appropriation be exhausted. New York Cent. & H. R. R. v. U. S. (1886), 21 Ct. Cl. 468. After an appropriation is exhausted a contract not for the completion of any specific work, as the erection of a building, the construction of a real or rendering a channel adequate for the passage of vessels of a certain draft is at an end. Work done after the appropriation is exhausted would not come within such a contract. And if further appropriations are made there naist be a new contract for their expenditure. (1895) 21 Op. Atty. Gen. 244. The Secretary of War is without authority to contine the employment of certain contractors er to supervise their work after the appropriation under which they are employed is exhausted and their contract with the Government, so far as authorized by Congress, has been exhausted. Id. After an appropriation has been exhausted the Secretary of the Navy has no power to incur any obligation for work on an uncompleted dry lock, even though immediate action is very important. (1896) 21 Op. Atty. Gen. 288. Obligations incurred without appropriation. The absence of an appropriation constitutes no bar to the recovery of a judg ment in cases where the liability of the Government has been established. Parsons v. U. S. (1879), 15 Ct. Cl. 246. If an officer is clothed with authority to do a piece of work without limitation as to cost, the contracts made by him therefor are binding on the Government whether money is appropriated for the purpose or not. Shipman v. U. S. (1883), 18 Ct. Cl. 138. The absence of an appropriation out of which payment can be made is no defense to a valid claim. Winchester & Potomac R. Co. v. U. S. (1892), 27 Ct. Cl. 494, citing Collins' Case (1879), 15 Ct. Cl. 35; Shipman's Case (1883), 18 Ct. Cl. 147. Validation by future appropriation.-A contract for postal car facilities which makes the liability of the Government conditional upon future appropriations is valid and becomes operative if appropriations be subsequently made. New York Cent. & II. R. R. v. U. S. (1886), 21 Ct. Cl. 468. Knowledge chargeable to contracting party. Where one contract on its face assumes to provide for all the work au thorized by an appropriation the contractor is bound to know the amount of the appropriation and can not recover beyond it. It is otherwise where the contract is for partial service under a general appropriation. Dougherty v. U. S. (1883), 18 Ct. Cl. 496. Thus a contractor, building a vessel under a general appropriation is not chargeable with a knowledge of the condition of the fund. Myerle v. U. S. (1896), 31 Ct. Cl. 105; Id. (1897), 33 Ct. Cl. 1. The contractor is bound to know the restrictions imposed by statute. Sanger & Moody v. U. S. (1904), 40 Ct. Cl. 47. Salary and compensation.-An employee of the Government is entitled to the salary allowed by law and is not limited by the amount appropriated by Congress. Graham v. U. S. (1865), 1 Ct. Cl. 380; French v. Same (1880), 16 Ct. Cl. 419; Mitchell v. Same (1883), 18 Ct. Cl. 281; judgment reversed (1883), 19 Ct. Cl. 703, and (1883), 109 U. S. 146, 3 Sup. Ct. 151, 27 L. Ed. 887; Langston v. U. S. (1886), 21 Ct. Cl. 10. But this right does not extend to cases where the appointment and salary depend upon appropriations alone. Smith v. U. S. (1902), 37 Ct. Cl. 119. The compensation of public officers depends upon general and continuing laws irrespective of the annual appropriation acts. Collins v. U. S. (1879), 15 Ct. Cl. 22. A statute which establishes a salary or prescribes a rate of remuneration expresses the intent of both parties, as a written agreement does in the cases of private em Where an appropriation is made specifically as compensation for a designated service, it may be inferred that the legislative intent was that the amount appropriated should be the measure of compensation; but where the salary or pay is contingent or variable, it must be inferred that an appropriation in excess of the minimum salary was intended to provide for the contingencies. Campagna v. U. S. (1891), 26 Ct. Cl. 316. The Secretary of War may properly issue an order authorizing paymasters of the Army to make a certificate upon the pay accounts of officers in the following form: "The within account is believed to be correct, and would be paid by me if I had public funds available for that purpose." (1877), 15 Op. Atty. Gen. 271. Continuance and expiration of offices.Where an appropriation act authorizes the Secretary of the Treasury to appoint assistant agents at a designated place, the office will expire by its own limitation with the expenditure of the appropriation, and the incumbent can not prolong its existence by Beaman continuing to perform its duties. v. U. S. (1883), 19 Ct. Cl. 5. Application of balances.-The balance of an appropriation made for a specific purpose may be used for that purpose in the discharge of obligations imposed by a lawful continuous contract. (1887), 18 Op. Atty. Gen. 566. 225. Scientific investigations.-During the fiscal year 1922 the head of any department or independent establishment of the Government having funds available for scientific investigations and requiring cooperative work by the Bureau of Standards on scientific investigations within the scope of the functions of that bureau and which it is unable to perform within the limits of its appropriations may, with the approval of the Secretary of Commerce, transfer to the Bureau of Standards such sums as may be necessary to carry on such investigations. The Secretary of the Treasury shall transfer on the books of the Treasury Department any sums which may be authorized hereunder and such amounts shall be placed to the credit of the Bureau of Standards for the performance of work for the department or establishment from which the transfer is made. Act of Mar. 3, 1921 (41 Stat. 1302), making appropriations for legislative, executive, and judicial expenses: Bureau of Commerce. Similar provision appears in previous appropriation acts. 226. Apportionment of appropriations for monthly expenditures.All appropriations made for contingent expenses or other general purposes, except appropriations made in fulfillment of contract obligations expressly authorized by law, or for objects required or authorized by law without reference to the amounts annually appropriated therefor, shall, on or before the beginning of each fiscal year, be so apportioned by monthly or other allotments as to prevent expenditures in one portion of the year which may necessitate deficiency er additional appropriations to complete the service of the fiscal year for which said appropriations are made; and all such apportionments shall be adhered to and shall not be waived or modified except upon the happening of some extraordinary emergency or unusual circumstances which could not be anticipated at the time of making such apportionment, but this provision shall not apply to the contingent appropriations of the Senate or House of Representatives; and in case said apportionments are waived or modified as herein provided, the same shall be waived or modified in writing by the head of such Executive Department or other Government establishment having control of the expenditure, and the reasons therefor shall be fully set forth in each particular case and communicated to Congress in connection with estimates for any additional appropriations required on account thereof. Any person violating any provision of this section shall be summarily removed from office and may also be punished by a fine of not less than one hundred dollars or by imprisonment for not less than one month. R. S. 3679, as amended by sec. 3, act of Feb. 27, 1906 (34 Stat. 49). 227. Restriction of appropriations to fiscal year.-No specific or indefinite appropriation made hereafter in any regular annual appropriation Act shall be construed to be permanent or available continuously without reference to a fiscal year unless it belongs to one of the following five classes: "Rivers and harbors," "lighthouses," "fortifications," "public buildings," and "pay of the Navy and Marine Corps," last specifically named in and excepted from the operation of the provisions of the so-called "covering-in Act" approved June twentieth, eighteen hundred and seventy-four, or unless it is made in terms expressly providing that it shall continue available beyond the fiscal year for which the appropriation Act in which it is contained makes provision. Sec. 7, act of Aug. 24, 1912 (37 Stat. 487), making appropriations for sundry civil expenses. This section, so far as it excepts appropriations for "fortifications" from the operation thereof, is repealed by sec. 6, act of Mar. 3, 1919 (40 Stat. 1309). See ante, 209. The "covering-in act," act June 20, 1874, sec. 5, mentioned in this section, is set forth post, 231. Notes of Decisions. Permanent and indefinite appropriations distinguished. Permanent appropriations are those made for an unlimited period; indefinite appropriations are those in which no amount is named. (1870) 13 Op. Atty. Gen. 289. 223. Fiscal year. That the fiscal year of the Treasury of the United States in all matters of accounts, receipts, expenditures, estimates, and appropriations, except accounts of the Secretary of the Senate for compensation and traveling expenses of Senators, and accounts of the Sergeant-at-Arms of the House of Representatives for compensation and mileage of members and delegates, shall commence on the first day of July in each year; and all accounts of receipts and expenditures required by law to be published annually shall be prepared and published for the fiscal year, as thus established. The fiscal year for the adjustment of the accounts of Secretary of the Senate for compensation and traveling expenses of Senators, and of the Sergeant-at-Arms of the House of Representatives for compensation and mileage of members and delegates, shall extend to and include the third day of July. R. S. 237, as amended by sec. 9, act of Oct. 1, 1890 (26 Stat. 646). |