[Request for Reconsideration]

A request was made for reconsideration of several decisions pertaining to the services that Federal agencies may provide Federal credit unions under the Credit Union Act. The effect of the decisions is to allow Federal agencies to provide Federal credit unions with only those services that normally accompany space allotted, and to require the credit unions to directly procure special services such as telephones and security alarm systems. Although Federal credit unions are organized under Federal law and are subject to supervision by the National Credit Union Administrative Board, they are private organizations whose funds are obtained from private sources rather than from appropriations of the Federal Government. Statutory regulations provide that no rent may be charged for use of the allotted space and that a reasonable charge may be collected for services furnished to the union. GAO held that, although Federal agencies have appropriations to fund such services as telephone lines and security alarm systems, expending agency appropriations for them on behalf of the credit unions themselves would violate the statutory regulation which requires that appropriated funds be used solely for the purposes for which they were appropriated. Absent a statute authorizing agencies to pay for services, the use of appropriated funds for payment may not be used. However, GAO did not object to such actions as credit unions' tying in their security systems to those used by the Federal agencies, or putting telephone services of the credit union and its host agency on the same lines, if the result would be a savings to the credit union. Accordingly, the previous decisions were affirmed.