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B-177610, AUGUST 17, 1981, 60 COMP.GEN. 653

B-177610 Aug 17, 1981
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WHICH MAKES APPROPRIATIONS AVAILABLE SOLELY FOR THE OBJECTS FOR WHICH THEY ARE MADE. 58 COMP.GEN. 610. 1981: THIS IS IN RESPONSE TO A REQUEST FOR FURTHER DISCUSSION OF ISSUES IN OUR DECISION. THE FOREST SERVICE NOW QUESTIONS WHETHER A FEDERAL AGENCY CAN PROVIDE CREDIT UNIONS WITH THE TELEPHONE EQUIPMENT AND SERVICES EVEN THOUGH THESE SERVICES ARE REIMBURSED BY THE CREDIT UNION. THE FOREST SERVICE CONTENDS THAT SINCE WE HAVE RULED THAT TELEPHONE SERVICES FOR CREDIT UNIONS ARE SPECIAL SERVICES THE COST OF WHICH SHOULD BE BORNE BY THE CREDIT UNION. WHICH REQUIRES APPROPRIATED FUNDS TO BE USED SOLELY FOR THE PURPOSES FOR WHICH THEY WERE APPROPRIATED. THE NET EFFECT IS THAT THE AGENCY'S APPROPRIATION IS USED TO FUND THE CREDIT UNION'S TELEPHONE SERVICES.

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B-177610, AUGUST 17, 1981, 60 COMP.GEN. 653

FEDERAL CREDIT UNIONS - SERVICES FURNISHED BY GOVERNMENT - TELEPHONES NOT INCLUDED FEDERAL AGENCY MAY NOT PROVIDE TELEPHONE SERVICES, ON A REIMBURSABLE BASIS, TO FEDERAL EMPLOYEES' CREDIT UNION WHICH HAS BEEN ALLOCATED SPACE BY THE AGENCY PURSUANT TO 12 U.S.C. 1770. SUCH USE, ABSENT AUTHORITY SIMILAR TO THAT PROVIDED BY 12 U.S.C. 1770, WOULD VIOLATE 31 U.S.C. 628, WHICH MAKES APPROPRIATIONS AVAILABLE SOLELY FOR THE OBJECTS FOR WHICH THEY ARE MADE. 58 COMP.GEN. 610, MODIFIED IN PART.

MATTER OF: FEDERAL SERVICES TO EMPLOYEE'S CREDIT UNION SERVICE CENTER, 58 COMP.GEN. 610 (1979) - FURTHER ISSUES, AUGUST 17, 1981:

THIS IS IN RESPONSE TO A REQUEST FOR FURTHER DISCUSSION OF ISSUES IN OUR DECISION, FEDERAL SERVICES TO EMPLOYEES' CREDIT UNION SERVICE CENTERS, 58 COMP.GEN. 610 (1979). IN THAT DECISION, RENDERED AT THE REQUEST OF THE DIRECTOR, FISCAL AND ACCOUNTING MANAGEMENT, UNITED STATES FOREST SERVICE, DEPARTMENT OF AGRICULTURE, WE HELD THAT THE COST OF TELEPHONE SERVICES PROVIDED BY THE GOVERNMENT TO A FEDERAL EMPLOYEE CREDIT UNION SHOULD BE BILLED TO THE CREDIT UNION. THE FOREST SERVICE NOW QUESTIONS WHETHER A FEDERAL AGENCY CAN PROVIDE CREDIT UNIONS WITH THE TELEPHONE EQUIPMENT AND SERVICES EVEN THOUGH THESE SERVICES ARE REIMBURSED BY THE CREDIT UNION.

THE FOREST SERVICE CONTENDS THAT SINCE WE HAVE RULED THAT TELEPHONE SERVICES FOR CREDIT UNIONS ARE SPECIAL SERVICES THE COST OF WHICH SHOULD BE BORNE BY THE CREDIT UNION, AN AGENCY'S INITIAL EXPENDITURE OF APPROPRIATED FUNDS FOR THE SERVICE WOULD BE IN VIOLATION OF 31 U.S.C. 628, WHICH REQUIRES APPROPRIATED FUNDS TO BE USED SOLELY FOR THE PURPOSES FOR WHICH THEY WERE APPROPRIATED. THE FOREST SERVICE STATES FURTHER THAT, SINCE REIMBURSEMENT MUST BE DEPOSITED IN THE MISCELLANEOUS RECEIPTS ACCOUNT OF THE U.S. TREASURY, THE NET EFFECT IS THAT THE AGENCY'S APPROPRIATION IS USED TO FUND THE CREDIT UNION'S TELEPHONE SERVICES.

UPON RECONSIDERATION, WE CONCLUDE THAT ABSENT AUTHORITY SIMILAR TO THAT IN 12 U.S.C. 1770, FOR PROVIDING SPACE AND RELATED SERVICES TO FEDERAL EMPLOYEE CREDIT UNIONS AT NO COST, PROVISION OF TELEPHONE SERVICES TO CREDIT UNIONS, WHICH ARE PRIVATE ORGANIZATIONS, WOULD VIOLATE 31 U.S.C. 628 WHETHER OR NOT THE COST OF PROVIDING THE SERVICES WERE REIMBURSED. THE FIRST PLACE, IT IS CLEAR, AS STATED IN OUR 1979 DECISION, THAT PROVISION OF TELEPHONE SERVICE TO CREDIT UNIONS WOULD RESULT IN EXTRA EXPENSE TO THE GOVERNMENT AGENCY PROVIDING THE SERVICE. SUCH EXPENSE WOULD BE REFLECTED IN DIRECT CHARGES FOR INSTALLATION OF TELEPHONES TO BE USED BY THE CREDIT UNION AND FOR MONTHLY USE RATES FOR SUCH TELEPHONES (WHICH WOULD IN ALL PROBABILITY BE DEDICATED TO THE EXCLUSIVE USE OF THE CREDIT UNION). ALSO, CREDIT UNION USE OF FTS LINES WOULD ULTIMATELY BE REFLECTED IN THE COST TO THE AGENCY FOR USE OF FTS LINES. FURTHERMORE, IT WOULD NOT APPEAR IMPRACTICAL FOR CREDIT UNIONS TO PROCURE TELEPHONE SERVICE DIRECTLY EVEN WHERE THE SERVICE IS TO BE INSTALLED IN FEDERALLY CONTROLLED SPACE.

ACCORDINGLY, WE CONCLUDE THAT GOVERNMENT AGENCIES MAY NOT PROVIDE TELEPHONE SERVICES TO FEDERAL EMPLOYEE CREDIT UNIONS ON A REIMBURSABLE BASIS BUT THAT, INSTEAD, CREDIT UNIONS SHOULD PROCURE SUCH SERVICES DIRECTLY. 58 COMP.GEN. 610 (1979) IS MODIFIED ACCORDINGLY.

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