B-126760, MAY 4, 1956, 35 COMP. GEN. 615

B-126760, MAY 4, 1956, 35 COMP. GEN. 615

TELEPHONES - PRIVATE RESIDENCES - STATUTORY PROHIBITION - ADDITIONAL CHARGES FOR MESSAGE UNIT CALLS OFFICIAL TELEPHONE CALLS WHICH ARE MADE WITHIN A PARTICULAR TELEPHONE EXCHANGE AREA FROM PRIVATE RESIDENCES OF GOVERNMENT EMPLOYEES AND FOR WHICH ADDITIONAL CHARGES ARE MADE ON THE BASIS OF MESSAGE UNITS ARE LOCAL AS DISTINGUISHED FROM LONG-DISTANCE CALLS, REGARDLESS OF WHETHER THE CALLS ARE DIALED OR MANUALLY HANDLED AS PERSON-TO-PERSON CALLS, AND REIMBURSEMENT FROM APPROPRIATED FUNDS FOR SUCH CALLS IS PROHIBITED BY 31 U.S.C. 679. FEES WHICH ARE COLLECTED BY FEDERAL CREDIT UNIONS AND DEPOSITED TO A REVOLVING FUND FOR ADMINISTRATIVE AND SUPERVISORY EXPENSES, PURSUANT TO 12 U.S.C. 1755 AND 1756, REPRESENT APPROPRIATED FUNDS AND ARE SUBJECT TO STATUTORY RESTRICTIONS AND LIMITATIONS, INCLUDING THE PROHIBITION IN 31 U.S.C. 679 AGAINST THE USE OF APPROPRIATED FUNDS TO REIMBURSE EMPLOYEES FOR LOCAL OFFICIAL TELEPHONE CALLS MADE FROM PRIVATE RESIDENCES.

TO THE SECRETARY OF HEALTH, EDUCATION, AND WELFARE, MAY 4, 1956:

REFERENCE IS MADE TO LETTER OF JANUARY 23, 1956, FROM THE ACTING SECRETARY OF HEALTH, EDUCATION, AND WELFARE, CONCERNING THE ADMINISTRATIVE DIFFICULTY ENCOUNTERED IN DIFFERENTIATING BETWEEN LOCAL AND LONG-DISTANCE TELEPHONE CALLS MADE BY EMPLOYEES FROM THEIR PRIVATE RESIDENCES IN THE APPLICATION OF THE PROVISIONS OF SECTION 7 OF THE ACT OF AUGUST 23, 1912, 37 STAT. 414, AS AMENDED, 31 U.S.C. 679. THE ACT PROVIDES, IN PERTINENT PART, AS FOLLOWS:

EXCEPT AS OTHERWISE PROVIDED BY LAW, NO MONEY APPROPRIATED BY ANY ACT SHALL BE EXPENDED FOR TELEPHONE SERVICE INSTALLED IN ANY PRIVATE RESIDENCE OR PRIVATE APARTMENT OR FOR TOLLS OR OTHER CHARGES FOR TELEPHONE SERVICE FROM PRIVATE RESIDENCES OR PRIVATE APARTMENTS, EXCEPT FOR LONG-DISTANCE TELEPHONE TOLLS REQUIRED STRICTLY FOR PUBLIC BUSINESS, AND SO SHOWN BY VOUCHERS, DULY SWORN TO AND APPROVED BY THE HEAD OF THE DEPARTMENT, DIVISION, BUREAU, OR OFFICE IN WHICH THE OFFICIAL USING SUCH TELEPHONE OR INCURRING THE EXPENSE OF SUCH TOLLS SHALL BE EMPLOYED: * * *

THE ACTING SECRETARY STATES THAT THE PROBLEM IS PARTICULARLY ACUTE IN THE LARGER METROPOLITAN AREAS, SUCH AS LOS ANGELES, CALIFORNIA, AND PRESENTS THE FOLLOWING EXPLANATION OF THE MATTER:

IN THE LOS ANGELES AREA AN INDIVIDUAL STATION CALL FOR NOT LONGER THAN THE INITIAL PERIOD OF 3 MINUTES CAN COMPRISE AS MANY AS 8 MESSAGE UNITS. AT ?0425 PER UNIT, THE MINIMUM COST OF SUCH A CALL WOULD BE ?34. IF THE CALL CONSUMED 15 MINUTES THE COST WOULD BE $1.36, SINCE 2 MESSAGE UNITS ARE CHARGED FOR EACH ADDITIONAL MINUTE. ALTHOUGH MESSAGE-UNIT CALLS ARE NOT BILLED INDIVIDUALLY BY THE TELEPHONE COMPANY AND ARE NOT SHOWN AS "TOLL SERVICE," THE BASIS FOR DETERMINATION OF THE CHARGES IS THE SAME AS FOR LONG-DISTANCE TOLL CALLS, I.E., THE DISTANCE AND THE LENGTH OF THE CALL. THESE CALLS MAY BE DISTINGUISHED FROM THOSE WHICH ARE STRICTLY LOCAL IN THAT THE CHARGE FOR LOCAL CALLS IS NOT AFFECTED BY THE LENGTH OF THE CALL EVEN IF SUCH LOCAL CALLS ARE CHARGED AS MESSAGE UNITS. ALSO, CALLS WHICH ARE DIALED AND BILLED AS MESSAGE UNITS WITH CHARGES BASED ON DISTANCE AND LENGTH CALL ARE " STATION" CALLS; CALLS BETWEEN THE SAME POINTS, IF PLACED THROUGH THE OPERATOR AS "PERSON-TO-PERSON" CALLS, WOULD BE BILLED INDIVIDUALLY BY THE TELEPHONE COMPANY AS "TOLL CALLS.'

HE FURTHER STATES THE DEPARTMENT IS INFORMED BY THE TELEPHONE COMPANY THAT DIALING AREAS ARE CONSTANTLY BEING EXTENDED AND, THEREFORE, SUGGESTS THE POSSIBILITY THAT "CALLS WHICH NOW ARE PLACED THROUGH THE OPERATOR AND BILLED AS TOLL CALLS MAY IN THE FUTURE BE DIALED AND CONCEIVABLY COULD BE BILLED AS MESSAGE UNITS.' OUR DECISION IS REQUIRED ON THE FOLLOWING QUESTIONS:

1. MAY EMPLOYEES BE REIMBURSED FROM APPROPRIATED FUNDS FOR TELEPHONE CALLS MADE ON GOVERNMENT BUSINESS FROM THEIR PRIVATE RESIDENCES WHERE SUCH CALLS ARE BILLED AS MESSAGE UNITS AND WHERE THE CHARGES ARE BASED UPON DISTANCE AND LENGTH OF CALL?

2. IF THE ANSWER TO QUESTION ONE IS IN THE NEGATIVE, MAY REIMBURSEMENT BE MADE IF SUCH CALLS ARE PLACED THROUGH THE OPERATORAS PERSON-TO-PERSON CALLS AND BILLED BY THE TELEPHONE COMPANY AS TOLL CALLS EVEN THOUGH THE CALLS ARE WITHIN AN AREA WHERE DIRECT DIALING OF STATION CALLS IS AVAILABLE ON A MESSAGE-UNIT BASIS?

3. TO WHAT EXTENT, IF AT ALL, IS IT REQUIRED THAT BILLS OF THE TELEPHONE COMPANY BE SUBMITTED IN SUPPORT OF EMPLOYEES' REIMBURSEMENT VOUCHERS CONTAINING CLAIMS FOR REIMBURSEMENT OF TELEPHONE CALLS MADE FROM PRIVATE RESIDENCES?

THE LANGUAGE OF THE QUOTED SECTION CONSTITUTES A MANDATORY PROHIBITION AGAINST PAYMENT FROM APPROPRIATED FUNDS OF ANY PART OF THE EXPENSE OF FURNISHING TELEPHONE SERVICE, OR FOR TOLLS OR OTHER CHARGES FOR TELEPHONE SERVICE, TO A GOVERNMENT OFFICER OR EMPLOYEE IN ANY PRIVATE RESIDENCE OR APARTMENT, EXCEPT FOR LONG-DISTANCE TELEPHONE TOLLS REQUIRED STRICTLY FOR PUBLIC BUSINESS. CF. 33 COMP. GEN. 530.

MULTI-MESSAGE UNIT CALLS HAVE CONSISTENTLY BEEN REGARDED AS LOCAL CALLS. SEE A-13067, JUNE 17, 1939, A-13067, APRIL 30, 1940, AND B 75124, MAY 10, 1948, COPIES ENCLOSED HEREWITH. IT IS OUR UNDERSTANDING THAT MULTI- MESSAGE UNIT CHARGES ARE APPLIED BY ASSOCIATED BELL SYSTEM TELEPHONE COMPANIES ONLY TO LOCAL CALLS AND NOT TO LONG-DISTANCE TELEPHONE CALLS. THE FACT THAT TELEPHONE COMPANIES, IN SOME OF THE LARGER METROPOLITAN AREAS, PROVIDE PERSON-TO-PERSON CALL SERVICE WITHIN A MESSAGE UNIT RANGE, FOR WHICH CALLS AN ADDITIONAL CHARGE IS MADE AND BILLED ON A TOLL STATEMENT, IS NOT REGARDED AS CHANGING THE BASIC CHARACTER OF SUCH CALLS, OR AS OTHERWISE OPERATING TO CLASS THEM AS LONG-DISTANCE TELEPHONE TOLLS WITHIN THE NORMAL MEANING OF THAT TERM AS USED IN THE QUOTED SECTION AND APPLIED OVER A PERIOD OF MANY YEARS.

ACCORDINGLY, THE FIRST AND SECOND QUESTIONS ARE ANSWERED IN THE NEGATIVE. THAT IS TO SAY, PAYMENTS FROM APPROPRIATED FUNDS MAY NOT BE MADE TO EMPLOYEES FOR LOCAL (INCLUDING MULTI-MESSAGE UNITS) TELEPHONE CALLS MADE ON GOVERNMENT BUSINESS FROM THEIR PRIVATE RESIDENCES REGARDLESS OF WHETHER SUCH CALLS ARE DIALED OR MANUALLY HANDLED THROUGH THE OPERATOR AS PERSON-TO-PERSON CALLS. IT WOULD APPEAR THAT AN APPROPRIATE ADMINISTRATIVE REGULATION CALLING THIS TO THE ATTENTION OF EMPLOYEES WHO MAY BE INVOLVED AND DIRECTING THAT NO REIMBURSEMENT BE CLAIMED FOR SUCH LOCAL CALLS, WOULD MATERIALLY REDUCE THE ADMINISTRATIVE DIFFICULTIES COMPLAINED OF. AS TO THE THIRD QUESTION, THE GENERAL ACCOUNTING OFFICE ORDINARILY REQUIRES VOUCHERS, ON WHICH REIMBURSEMENT IS CLAIMED BY AN EMPLOYEE FOR LONG-DISTANCE TELEPHONE CALLS MADE FROM HIS PRIVATE RESIDENCE FOR PUBLIC BUSINESS, TO BE SUPPORTED BY THE TELEPHONE COMPANY BILLINGS COVERING SUCH EXPENDITURES. SEE 32 COMP. GEN. 432.

THE ACTING SECRETARY ALSO REFERS TO THE FACT THAT THE PROHIBITION CONTAINED IN SAID SECTION 7 RELATES TO THE USE OF APPROPRIATED FUNDS, AND POSES A FOURTH QUESTION AS TO WHETHER WE WOULD BE REQUIRED TO OBJECT TO A DETERMINATION BY THE DIRECTOR OF THE BUREAU OF FEDERAL CREDIT UNIONS THAT THE REVOLVING FUND OF THAT BUREAU IS AVAILABLE FOR REIMBURSEMENT OF MESSAGE UNIT CALLS. WITH REFERENCE THERETO HE SUBMITS THE FOLLOWING EXPLANATION:

* * * THE BUREAU IS ON A SELF-SUPPORTING BASIS, OPERATING FROM INCOME DERIVED FROM CHARTER, EXAMINATION, AND SUPERVISION FEES PAID BY THE FEDERAL CREDIT UNIONS. THE FUND WAS ESTABLISHED BY SECTION 5 OF THE FEDERAL CREDIT UNION ACT (12 U.S.C. 1755) WHICH PROVIDES IN PART AS FOLLOWS: " ALL SUCH FEES SHALL BE DEPOSITED WITH THE TREASURER OF THE UNITED STATES FOR THE ACCOUNT OF THE BUREAU AND MAY BE EXPENDED BY THE DIRECTOR FOR SUCH ADMINISTRATIVE AND OTHER EXPENSES INCURRED IN CARRYING OUT THE PROVISIONS HEREOF AS HE MAY DETERMINE TO BE PROPER, THE PURPOSE OF SUCH FEES BEING TO DEFRAY, AS FAR AS PRACTICABLE, THE ADMINISTRATIVE AND SUPERVISORY COSTS INCIDENT TO THE CARRYING OUT OF THIS CHAPTER.' SUITABLE GOVERNMENT OFFICE SPACE IS SELDOM AVAILABLE TO CREDIT UNION EXAMINERS WORKING IN THE FIELD. IN ORDER TO PERFORM HIS OFFICIAL DUTIES IT IS NECESSARY THAT HE PROVIDE SPACE IN HIS HOME FOR GOVERNMENT FILES AND EQUIPMENT TO BE USED BY HIM AS HIS OFFICE. A BLOCK OF INDIVIDUAL FEDERAL CREDIT UNIONS IS ASSIGNED TO HIM FOR HIS SUPERVISION AND EXAMINATION. IS MORE ADVANTAGEOUS TO THE GOVERNMENT TO CONDUCT CERTAIN SUPERVISORY FUNCTIONS BY TELEPHONE THAN BY MAKING MORE EXPENSIVE TIME-CONSUMING PERSONAL VISITS. TELEPHONE CONTRACTS ARE MADE FOR NUMEROUS OTHER PURPOSES SUCH AS FOLLOW-UP ON EXAMINATIONS, DELINQUENT CALL REPORTS, ADVICE ON OPERATING PROBLEMS, ETC. FREQUENTLY OFFICIALS OF THE CREDIT UNIONS CALL THE EXAMINER'S HOME WHILE HE IS OUT AND REQUEST THAT HE RETURN THEIR CALL. SINCE THE INITIAL AND MONTHLY RECURRING COSTS OF THE TELEPHONE MUST BE BORNE BY THE EXAMINER, IT APPEARS REASONABLE THAT THE EXAMINER SHOULD BE REIMBURSED FROM THE OPERATING FUND FOR ADDITIONAL COSTS FOR MESSAGE UNITS USED TO CONDUCT OFFICIAL BUSINESS.

FEES COLLECTED FROM FEDERAL CREDIT UNIONS IN PAYMENT FOR CHARTER, EXAMINATION, AND SUPERVISION SERVICES RENDERED ON ITS BEHALF BY THE BUREAU OF FEDERAL CREDIT UNIONS OF YOUR DEPARTMENT REPRESENT MONEYS RECEIVED FOR THE USE OF THE UNITED STATES. THE STATUTORY AUTHORIZATION THAT THE FEES BE CREDITED TO A SPECIAL FUND AND THE MAKING OF SUCH FUND AVAILABLE FOR EXPENDITURE, AS FAR AS PRACTICABLE, FOR THE ADMINISTRATIVE AND SUPERVISORY COSTS INCIDENT TO THE CARRYING OUT OF THE FEDERAL CREDIT UNION ACT, 12 U.S.C. 1755 AND 1756, CONSTITUTES A CONTINUING APPROPRIATION OF SUCH FEES FROM THE TREASURY WITHOUT FURTHER ACTION BY THE CONGRESS. HOWEVER, SUCH FUNDS NEVERTHELESS REPRESENT APPROPRIATED FUNDS AND IN THE ABSENCE OF AN EXPRESS PROVISION IN THE STATUTE TO THE CONTRARY, THEY ARE SUBJECT TO THE VARIOUS RESTRICTIONS AND LIMITATIONS ON THE USES OF APPROPRIATED MONEYS. WHILE THE SAID PROVISIONS OF THE CODE REFERRED TO, VESTS AUTHORITY IN THE DIRECTOR OF THE BUREAU OF FEDERAL CREDIT UNIONS TO EXPEND THE FEES FOR SUCH ADMINISTRATIVE AND OTHER EXPENSES "AS HE MAY DETERMINE TO BE PROPER," SUCH AUTHORITY MAY NOT BE SO CONSTRUED AS TO AUTHORIZE THAT OFFICIAL TO ACCOMPLISH THE EXPENDITURES DETERMINED UPON A MANNER CONTRARY TO OR INCONSISTENT WITH EXISTING LAW, OR TO RENDER INEFFECTIVE THE SPECIFIC AND MANDATORY RESTRICTIONS APPLICABLE TO SUCH APPROPRIATED FUNDS.

ACCORDINGLY, AND IN ANSWER TO THE FOURTH QUESTION, IT MUST BE CONCLUDED THAT PAYMENTS FROM THE REVOLVING FUND TO CREDIT UNION EXAMINERS IN REIMBURSEMENT FOR MESSAGE UNIT TELEPHONE CALLS MADE BY THEM FROM THEIR PRIVATE RESIDENCES FOR THE PUBLIC BUSINESS ARE UNAUTHORIZED. AS SUGGESTED BY THE ACTING SECRETARY, AND HAVING REGARD FOR THE CIRCUMSTANCES UNDER WHICH CREDIT UNION EXAMINERS WORKING IN THE FIELD ARE REQUIRED TO CONDUCT OPERATIONS, IT MAY BE THAT IT WOULD BE REASONABLE AND IN THE BEST INTEREST OF THE GOVERNMENT TO REIMBURSE THEM FOR SUCH TELEPHONE EXPENDITURES BUT THAT, OF COURSE, IS A MATTER PRIMARILY FOR CONSIDERATION BY THE CONGRESS.