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B-168904, DEC 23, 1974

B-168904 Dec 23, 1974
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BEFORE RENTAL AGREEMENT WAS REACHED WITH GENERAL SERVICES ADMINISTRATION (GSA). PUBLIC LAW NO. 92-313 WAS ENACTED REQUIRING ALL AGENCIES TO PAY RENT AND OCC NOW IS OF VIEW THAT IT WOULD BE IMPROPER TO PAY RENT FOR PERIOD PRIOR TO EFFECTIVE DATE OF PUBLIC LAW NO. 92-313 AND WHILE GAO DOES NOT AGREE WITH OCC'S POSITION WE WILL NOT PURSUE MATTER FURTHER. GSA RENTAL OF OFFICE SPACE TO THE COMPTROLLER OF THE CURRENCY IN GOVERNMENT FURNISHED BUILDINGS: THIS DECISION TO THE ADMINISTRATOR OF THE GENERAL SERVICES ADMINISTRATION (GSA) IS IN RESPONSE TO THE REQUEST OF ROBERT A. THE COMPTROLLER OF THE CURRENCY HAS OFFICES IN VARIOUS BUILDINGS LOCATED AROUND THE COUNTRY WHICH ARE UNDER THE JURISDICTION OF GSA.

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B-168904, DEC 23, 1974

ALTHOUGH OFFICE OF COMPTROLLER OF CURRENCY (OCC) ORIGINALLY AGREED WITH OUR RECOMMENDATION THAT OCC PAY RENT FOR SPACE IN FEDERAL BUILDINGS, BEFORE RENTAL AGREEMENT WAS REACHED WITH GENERAL SERVICES ADMINISTRATION (GSA), PUBLIC LAW NO. 92-313 WAS ENACTED REQUIRING ALL AGENCIES TO PAY RENT AND OCC NOW IS OF VIEW THAT IT WOULD BE IMPROPER TO PAY RENT FOR PERIOD PRIOR TO EFFECTIVE DATE OF PUBLIC LAW NO. 92-313 AND WHILE GAO DOES NOT AGREE WITH OCC'S POSITION WE WILL NOT PURSUE MATTER FURTHER.

GSA RENTAL OF OFFICE SPACE TO THE COMPTROLLER OF THE CURRENCY IN GOVERNMENT FURNISHED BUILDINGS:

THIS DECISION TO THE ADMINISTRATOR OF THE GENERAL SERVICES ADMINISTRATION (GSA) IS IN RESPONSE TO THE REQUEST OF ROBERT A. PRINCE, ASSISTANT GENERAL COUNSEL, GSA, FOR ASSISTANCE IN THE COLLECTION OF RENT FOR OFFICE SPACE OCCUPIED BY THE OFFICE OF THE COMPTROLLER OF THE CURRENCY (OCC), DEPARTMENT OF THE TREASURY, DURING FISCAL YEAR 1973. THE COMPTROLLER OF THE CURRENCY HAS OFFICES IN VARIOUS BUILDINGS LOCATED AROUND THE COUNTRY WHICH ARE UNDER THE JURISDICTION OF GSA. BASED UPON THE NUMBER OF SQUARE FEET, GSA CALCULATED THE RENT FOR THIS OFFICE SPACE DURING FISCAL YEAR 1973 TO BE $163,851 AND PRESENTED AN INVOICE FOR THIS AMOUNT TO THE COMPTROLLER OF THE CURRENCY. BECAUSE GSA AND COMPTROLLER OF THE CURRENCY OFFICIALS CANNOT AGREE ON THE PAYMENT OF THIS RENTAL CHARGE, GSA HAS REQUESTED OUR ASSISTANCE.

THIS MATTER STEMS FROM OUR REPORT TO THE CONGRESS DATED AUGUST 24, 1970, B-168904, IN WHICH WE RECOMMENDED THAT THE POSTMASTER GENERAL AND THE ADMINISTRATOR OF GENERAL SERVICES NEGOTIATE WITH THE COMPTROLLER OF THE CURRENCY FOR THE PAYMENT OF FAIR RENTAL FOR SPACE THAT THAT OFFICE OCCUPIES IN BUILDINGS UNDER THEIR JURISDICTION. PAYMENT OF RENT WAS CONSIDERED BY OUR OFFICE TO BE JUSTIFIED IN THAT FUNDS FOR FINANCING THE OCC'S OPERATIONS ARE OBTAINED BY ASSESSMENTS AGAINST THE NATIONAL BANKS WHICH IT REGULATES AND SUPERVISES.

WHILE OFFICIALS IN THE OFFICE OF THE COMPTROLLER OF THE CURRENCY AGREED WITH THE PRINCIPLE OF PAYING RENT, BEFORE AN AGREEMENT WAS REACHED WITH GSA THERE WAS ENACTED THE PUBLIC BUILDINGS AMENDMENTS OF 1972, PUB. L. NO. 92-313 APPROVED JUNE 16, 1972, 86 STAT. 216. THIS ACT REQUIRES, IN GENERAL, THAT ALL GOVERNMENT AGENCIES OCCUPYING SPACE IN FEDERALLY OWNED OR CONTROLLED BUILDINGS PAY RENTAL THEREFOR.

THE COMPTROLLER OF THE CURRENCY AND THE GENERAL COUNSEL OF THE TREASURY DEPARTMENT NOW TAKE THE VIEW THAT IT WOULD NOT BE APPROPRIATE OR LEGAL FOR OCC TO PAY RENT FOR SPACE OCCUPIED PRIOR TO THE EFFECTIVE DATE OF PUBLIC LAW NO. 92-313.

WE DO NOT AGREE THAT RENTAL PAYMENTS BY OCC FOR THE PERIOD IN QUESTION WOULD BE IMPROPER. HOWEVER, SINCE OCC ADVISES THAT IT WILL COMPLY WITH THE PROVISIONS OF THE PUBLIC BUILDINGS ACT AMENDMENTS OF 1972 REQUIRING THE PAYMENT OF RENT, THE RECOMMENDATION IN OUR REPORT WILL BE SATISFIED. THEREFORE, WE WILL NOT PURSUE THE MATTER FURTHER.

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