Questions Concerned With Vending Machine Operation on Government Property and GAO Audit Responsibility

An issue was raised concerning whether income received from vending machines operated on government property by government employee associations must be deposited in the Treasury. The GAO view was that funds derived from the installation and operation of vending machines on government-owned or controlled property were funds for the use of the United States and, as such, were required to be deposited into the Treasury as miscellaneous receipts. However, the Randolph-Sheppard Act Amendments of 1974 in effect recognize that this income is not required to be deposited in the Treasury. The amendments assign such income primarily to blind licensees operating vending facilities on the property or to a state agency for the blind. Under certain conditions, the blind licensees or state agency can receive only 50 percent of vending machine income; in other cases, they may receive none of the income. The amendments do not specify where the income not allocated to the blind licensee or state agency is to go. Another issue raised concerned the GAO audit responsibility under the Randolph-Sheppard Act. The Comptroller General is authorized to conduct regular and periodic audits of all nonappropriated fund activities which receive income from vending machines on federal property under such rules and regulations as he may prescribe. These audits, while authorized, are not required.