Expenditures Permitted by the Public Buildings Act of 1959

The Chairman of the Senate Committee on Environmental and Public Works requested that GAO report on the General Services Administration's (GSA) leasing practices vis-a-vis prospectuses approved under the provisions of the Public Buildings Act of 1959, as amended, 40 U.S.S. 601 et seq. (1976).

GAO found that unless Congress specifically appropriates fund for particular leases without the need for prospectus approval, approval of a lease prospectus by the statutorily designated committees constitutes the authorization GSA needs to enter into a lease with the annual rental in excess of $500,000. The actual lease should conform to the space description, location, and estimated cost set forth in the approved prospectus and significant deviations would require further committee approval.