REPORT ON UNAUTHORIZED ACQUISITION OF PASSENGER VEHICLES BUREAU OF INDIAN AFFAIRS DEPARTMENT OF THE INTERIOR INTRODUCTION The General Accounting Office has made a review of the acquisition of passenger vehicles by the Bureau of Indian Affairs, Department of the Interior. This review was made pursuant to the Budget and Accounting Act, 1921 (31 U.S.C. 53), the Accounting and Auditing Act of 1950 (31 U.S.C. 67), and the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 487). We reviewed the acquisition of passenger vehicles by the Bureau during fiscal years 1962 and 1963 and examined into those aspects of the vehicle management program which appeared to warrant particular attention. We examined applicable laws, regulations, and vehicle procurement records and interviewed responsible Bureau officials. Our review was conducted at the Bureau's Central Office in Washington, D.C., and the Muskogee Area Office, Muskogee, Oklahoma, which administers Bureau activities in eastern Oklahoma and Mississippi. Muskogee is also responsible for the property management functions of the Anadarko Area Office, Anadarko, Oklahoma, which administers Bureau activities in western Oklahoma and Kansas. In addition, we discussed certain policies and practices applicable to the procurement and disposal of vehicles with General Services Administration (GSA) officials in Washington, D.C., and at the Kansas City, Missouri, Regional Office. The Bureau's Branch of Property and Supply, which is under the supervision of the Assistant Commissioner, Division of Administration, is responsible for formulating policies and coordinating the Bureau's property supply functions. Area office directors are re sponsible for carrying out in their areas the property management program which includes the procurement, utilization, and disposition of vehicles. Property management functions are under the direct supervision of area office property and supply officers. At June 30, 1963, the Bureau's motor vehicle fleet included 1,371 passenger vehicles, an increase of 70 vehicles over the number at June 30, 1962. The Department advised us that at June 30, 1964, the Bureau owned 1,103 passenger vehicles, a reduction of 268 from the 1963 total. This reduction was offset, however, by an increase during fiscal year 1964 of more than 300 passenger vehicles in the number assigned from GSA motor pools. Therefore, although there was a reduction in the number of passenger vehicles owned by the Bureau, there was an increase in the total number used during fiscal year 1964. The principal officials of the Department of the Interior and the Bureau of Indian Affairs responsible for the administration of activities discussed in this report are listed in the appendix. UNAUTHORIZED ACQUISITION OF PASSENGER VEHICLES FINDINGS During fiscal years 1962 and 1963, the Bureau's area offices acquired 188 more passenger vehicles than the number authorized by the Congress. The unauthorized vehicles consisted of 86 new passenger vehicles purchased in excess of the number authorized in the annual appropriation acts and 102 used passenger vehicles transferred from other Government agencies without being considered subject to limitations in the appropriation acts. In purchasing the 86 new vehicles, the Bureau violated the Anti-Deficiency Act (31 U.S.C. 665) which prohibits an officer or employee from involving the Government in any contract, or other obligation, for the payment of money in advance of appropriations made for such purposes. The Bureau also augmented its passenger vehicle fleet by the concurrent use of old vehicles with their replacements, a practice which is inconsistent with the intent of existing legislation. Our review showed that (1) the Bureau's accounting system did not provide adequate controls to ensure compliance with statutory limitations on the acquisition of passenger vehicles, (2) Muskogee failed to report all new passenger vehicle purchases to the Central Office due to a breakdown in the reporting system, (3) Bureau officials failed to properly classify certain vehicles, and (4) passenger vehicles acquired from excess property lists were not considered by the Bureau as chargeable against the statutory limitation because of a misinterpretation of applicable statutes and a misapplication of a Comptroller General's decision. Recorded purchases of new passenger vehicles exceeded statutory limitations The Bureau's area offices reported to the Central Office that 245 new passenger vehicles were purchased during fiscal year 1962 and 277 were purchased during fiscal year 1963; however, the statutory limitations on passenger vehicle purchases were 230 and 220, in the respective fiscal years. These violations indicated a serious weakness in the Bureau's accounting system. Annual appropriation acts for the Department place limitations on the number of passenger vehicles that the Bureau may purchase. For example, in fiscal year 1963 the Department of the Interior and Related Agencies Appropriation Act, 1963 (76 Stat. 335), stated: "Appropriations for the Bureau of Indian Affairs (except the revolving fund for loans) shall be available Prior to fiscal year 1961, the Bureau maintained control over passenger vehicle purchases by requiring that all vehicle purchase orders be processed through the Central Office. However, in 1961 the area offices were instructed by the Assistant Commissioner for Administration to submit vehicle purchase orders directly to GSA and to submit quarterly reports of the purchases to the Branch of Property and Supply at the Central Office. These quarterly reports were the only means the Bureau had of determining the number of new passenger vehicles purchased since specific purchase authorizations were not allocated to the area offices and each office was permitted to determine its requirements and to acquire vehicles as needed. Therefore, only after the reports for the quarter ending June 30 had been received and tabulated could the Central Office determine the total number of new passenger vehicles purchased during |