B-36005, AUGUST 4, 1943, 23 COMP. GEN. 83

B-36005: Aug 4, 1943

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OR OPERATION OF MOTOR-PROPELLED PASSENGER-CARRYING VEHICLES UNLESS SPECIFICALLY AUTHORIZED BY LAW IN NOT APPLICABLE TO EXPENDITURES MADE FROM THE REGULAR FUNDS OF THE FEDERAL DEPOSIT INSURANCE CORPORATION (WHICH ARE DERIVED FROM ASSESSMENTS. ARE NOT APPROPRIATED FOR EXPENDITURE) FOR PAYMENTS ON A MILEAGE BASIS TO ITS OFFICERS AND EMPLOYEES FOR THE USE OF PRIVATELY- OWNED AUTOMOBILES WITHIN THE CORPORATE LIMITS OF THEIR OFFICIAL STATIONS WHILE ENGAGED ON OFFICIAL BUSINESS. 1943: I HAVE YOUR LETTER OF JULY 26. AS FOLLOWS: WE ARE SUBMITTING FOR YOUR CONCURRENCE A PROPOSAL BY THIS CORPORATION TO CONTINUE TO REIMBURSE CREDIT UNION EXAMINERS AT A RATE NOT TO EXCEED THREE CENTS PER MILE FOR OFFICIAL TRAVEL BY PRIVATELY OWNED AUTOMOBILES WITHIN THE CORPORATE LIMITS OF THEIR OFFICIAL STATION WHILE ENGAGED IN EXAMINING OR SUPERVISING THE ACTIVITIES OF FEDERAL CREDIT UNIONS.

B-36005, AUGUST 4, 1943, 23 COMP. GEN. 83

MILEAGE PAYMENTS FOR USE OF PRIVATELY OWNED AUTOMOBILES AT OFFICIAL STATIONS - AVAILABILITY OF FEDERAL DEPOSIT INSURANCE CORPORATION FUNDS THE PROHIBITION IN SECTION 5 OF THE ACT OF JULY 16, 1914, AGAINST THE USE OF APPROPRIATED MONEYS FOR THE PURCHASE, MAINTENANCE, REPAIR, OR OPERATION OF MOTOR-PROPELLED PASSENGER-CARRYING VEHICLES UNLESS SPECIFICALLY AUTHORIZED BY LAW IN NOT APPLICABLE TO EXPENDITURES MADE FROM THE REGULAR FUNDS OF THE FEDERAL DEPOSIT INSURANCE CORPORATION (WHICH ARE DERIVED FROM ASSESSMENTS, ETC., AND ARE NOT APPROPRIATED FOR EXPENDITURE) FOR PAYMENTS ON A MILEAGE BASIS TO ITS OFFICERS AND EMPLOYEES FOR THE USE OF PRIVATELY- OWNED AUTOMOBILES WITHIN THE CORPORATE LIMITS OF THEIR OFFICIAL STATIONS WHILE ENGAGED ON OFFICIAL BUSINESS.

COMPTROLLER GENERAL WARREN TO THE CHAIRMAN, FEDERAL DEPOSIT INSURANCE CORPORATION, AUGUST 4, 1943:

I HAVE YOUR LETTER OF JULY 26, 1943, RECEIVED HERE JULY 30, READING IN PART, AS FOLLOWS:

WE ARE SUBMITTING FOR YOUR CONCURRENCE A PROPOSAL BY THIS CORPORATION TO CONTINUE TO REIMBURSE CREDIT UNION EXAMINERS AT A RATE NOT TO EXCEED THREE CENTS PER MILE FOR OFFICIAL TRAVEL BY PRIVATELY OWNED AUTOMOBILES WITHIN THE CORPORATE LIMITS OF THEIR OFFICIAL STATION WHILE ENGAGED IN EXAMINING OR SUPERVISING THE ACTIVITIES OF FEDERAL CREDIT UNIONS.

THE QUESTION OF THE PROPRIETY AND ECONOMY OF SUCH REIMBURSEMENT HASBEEN SETTLED TO THE SATISFACTION OF THE CONGRESS AND ALL PARTIES CONCERNED AND, AS A RESULT, SUCH EXPENDITURE WAS SPECIFICALLY PROVIDED FOR IN A FORMER APPROPRIATION TO FINANCE THESE ACTIVITIES.

UNDER THE TERMS OF EXECUTIVE ORDER NO. 9148 DATED APRIL 27, 1942, AND EFFECTIVE MAY 16, 1942, THE SUPERVISION OF FEDERAL CREDIT UNIONS WAS TRANSFERRED FROM THE FARM CREDIT ADMINISTRATION TO THE FEDERAL DEPOSIT INSURANCE CORPORATION. PRIOR TO THE TRANSFER, THE FOLLOWING PROVISION APPEARED IN THE APPROPRIATION " SALARIES AND EXPENSES, FARM CREDIT ADMINISTRATION, DEPARTMENT OF AGRICULTURE" OF THE " DEPARTMENT OF AGRICULTURE APPROPRIATION ACT, 1942" PUBLIC NO. 144, APPROVED BY JULY 1, 1941. (55 STAT. 444, 12 U.S.C. 1756A):

"THAT OFFICERS AND EMPLOYEES WHO UNDER PROPER AUTHORIZATION USE PRIVATELY OWNED AUTOMOBILES IN THE PERFORMANCE OF OFFICIAL TRAVEL WITHIN THE CORPORATE LIMITS OF THEIR OFFICIAL STATIONS FOR THE PURPOSE OF EXAMINING, SUPERVISING, OR SERVICING FEDERAL CREDIT UNIONS LOCATED WITHIN SAID CORPORATE LIMITS, MAY BE REIMBURSED FOR SUCH TRAVEL AT A RATE NOT TO EXCEED THREE CENTS PER MILE; * * *"

UNDER THIS PROVISION A SURVEY WAS MADE AND THE RATE WAS ESTABLISHED AT TWO AND ONE-HALF CENTS PER MILE FOR EMPLOYEES OF THE FEDERAL CREDIT UNION SECTION WHICH HAD BEEN ESTABLISHED TO CARRY OUT THE DUTIES OF THE FARM CREDIT ADMINISTRATION UNDER THE FEDERAL CREDIT UNION ACT. THIS RATE WAS STILL IN EFFECT AT THE TIME OF THE TRANSFER OF THE FEDERAL CREDIT UNION ACTIVITIES TO THE FEDERAL DEPOSIT INSURANCE CORPORATION MENTIONED PREVIOUSLY, AND HAS BEEN CONTINUED BY THE CORPORATION INASMUCH AS THE SUPERVISION OF FEDERAL CREDIT UNIONS HAS REMAINED SUBSTANTIALLY UNCHANGED.

FROM MAY 16, 1942, UNTIL NOVEMBER 1, 1942, THESE ACTIVITIES WERE PAID FOR FROM THE APPROPRIATIONS TRANSFERRED BY THE ABOVE EXECUTIVE ORDER AND, AS PREVIOUSLY STATED, PROVISION WAS MADE IN THE APPROPRIATION FOR THIS PARTICULAR TYPE OF EXPENDITURE. SINCE NOVEMBER 1, 1942, THE PROGRAM HAS BEEN SUPPORTED BY THE REGULAR FUNDS OF THE CORPORATION AND THE EXPENDITURE TO WHICH REFERENCE HAS BEEN MADE HAS BEEN CONTINUED. THE LEGAL BASIS FOR THIS AND OTHER EXPENDITURES OF THE CORPORATION IS CONTAINED IN SECTION 12B OF THE FEDERAL RESERVE ACT AS AMENDED. SPECIFICALLY, SUBSECTION K, PARAGRAPH 1 READS IN PART "* * * MANNER IN WHICH ITS OBLIGATIONS SHALL BE INCURRED AND ITS EXPENSES ALLOWED AND PAID * * *.' ( ACT OF JUNE 16, 1933, 48 STAT. 172, 12 U.S.C. 264.)

THE POLICY OF THE CORPORATION WITH RESPECT TO TRAVEL OF ITS EMPLOYEES IS TO FOLLOW THE STANDARDIZED GOVERNMENT TRAVEL REGULATIONS. INASMUCH AS THE TYPE OF EXPENDITURE WITH WHICH WE ARE CONCERNED IN THIS LETTER IS NOT PERMITTED BY THESE REGULATIONS, WE ARE ASKING THAT A RULING BE MADE BY YOUR OFFICE FOR THE GUIDANCE OF THE CORPORATION IN ORDER THAT WE MAY CONTINUE THE ABOVE ARRANGEMENT IN EFFECT SINCE JULY 1, 1941.

SECTION 5 OF THE ACT OF JULY 16, 1914, 38 STAT. 508, PROVIDES, IN PERTINENT PART, AS FOLLOWS:

* * * THERE SHALL NOT BE EXPENDED OUT OF ANY APPROPRIATION MADE BY CONGRESS ANY SUM FOR THE PURCHASE, MAINTENANCE, REPAIR, OR OPERATION OF MOTOR-PROPELLED OR HORSE-DRAWN PASSENGER-CARRYING VEHICLES FOR ANY BRANCH OF THE PUBLIC SERVICE OF THE UNITED STATES UNLESS THE SAME IS SPECIFICALLY AUTHORIZED BY LAW * * *. ( ITALICS SUPPLIED.)

IN CONSTRUING THAT STATUTE IN DECISION OF SEPTEMBER 24, 1926, 6 COMP. GEN. 212, 213, IT WAS STATED:

SECTION 5 OF THE ACT OF JULY 16, 1914, 38 STAT. 508, CONTAINS THE GENERAL PROHIBITION AGAINST THE USE OF APPROPRIATED FUNDS FOR PURCHASE, MAINTENANCE, REPAIR, OR OPERATION OF MOTOR-PROPELLED OR HORSE-DRAWN PASSENGER-CARRYING VEHICLES UNLESS THE SAME IS SPECIFICALLY AUTHORIZED BY LAW. DECISIONS OF THIS OFFICE HAVE DISTINGUISHED BETWEEN THE USE OF A PRIVATELY OWNED, CONVEYANCE FOR OFFICIAL BUSINESS AT THE OFFICIAL HEADQUARTERS OR DUTY STATION OF AN OFFICER OR EMPLOYEE AND THE USE OF A PRIVATELY OWNED CONVEYANCE FOR OFFICIAL TRAVEL AWAY FROM THE OFFICIAL HEADQUARTERS OR DUTY STATION OF AN OFFICER OR EMPLOYEE. THE FORMER IS WITHIN THE PROHIBITION OF THE 1914 STATUTE AS BEING TANTAMOUNT TO THE MAINTENANCE OR OPERATION OF A PASSENGER-CARRYING VEHICLE, BUT THE LATTER IS NOT WITHIN THE PROHIBITION, FOR THE REASON THAT THE TRAVEL IS CONSIDERED AS IN LIEU OF TRAVEL BY COMMON CARRIER OR OTHER PUBLIC CONVEYANCE AUTHORIZED BY LAW, REIMBURSEMENT FOR AUTHORIZED ITEMS OF OPERATING EXPENSES BEING LIMITED TO NOT IN EXCESS OF WHAT IT WOULD HAVE COST THE GOVERNMENT HAD THE TRAVEL BEEN PERFORMED BY COMMON CARRIER OR OTHER PUBLIC CONVEYANCE. 4 COMP. GEN. 836; 5 ID. 183.

SEE, ALSO, 22 COMP. GEN. 296, AND THE DECISIONS THEREIN CITED.

REFERRING TO THE UNDERLINED PORTION OF THE 1914 STATUTE, SUPRA, IF (AS YOU STATE) THE EXPENDITURES INCURRED INCIDENT TO THE SUPERVISION OF THE FEDERAL CREDIT UNIONS, INCLUDING MILEAGE FOR TRANSPORTATION BY PRIVATELY- OWNED AUTOMOBILES WIHIN THE CORPORATE LIMITS OF OFFICIAL STATIONS OF THE EMPLOYEES ENGAGED IN SUCH ACTIVITIES, ARE NOW PAID OUT OF THE REGULAR FUNDS OF THE CORPORATIONS--- IT BEING UNDERSTOOD FROM YOUR LETTER THAT THE APPROPRIATED FUNDS TRANSFERRED FROM THE FARM CREDIT ADMINISTRATION TO THE FEDERAL DEPOSIT INSURANCE CORPORATION BY SECTION 3 OF EXECUTIVE ORDER NO. 9148 DATED APRIL 27, 1942, HAVE BEEN EXHAUSTED AND THAT NO OTHER FUNDS FOR THAT PURPOSE HAVE BEEN APPROPRIATED--- PAYMENT OF THE MILEAGE FROM THE REGULAR FUNDS OF THE CORPORATION WOULD NOT CONTRAVENE SECTION 5 OF THE ACT OF JULY 16, 1914, SUPRA, FOR THE REASON THAT EXPENDITURES OUT OF THE REGULAR FUND OF THE CORPORATION ARE NOT REGARDED AS "EXPENDED OUT OF ANY APPROPRIATION MADE BY CONGRESS" WITHIN THE MEANING OF THE 1914 STATUTE. SEE DECISION OF DECEMBER 11, 1941, B-20892, TO THE PRESIDENT, UNITED STATES CIVIL SERVICE COMMISSION, HOLDING THAT THE SALARIES OF EMPLOYEES OF THE FEDERAL DEPOSIT INSURANCE CORPORATION PAID OUT OF CORPORATION FUNDS DERIVED FROM ASSESSMENTS, ETC., ARE NOT PAID FROM "MONEY APPROPRIATED" WITHIN THE MEANING OF THE DUAL COMPENSATION ACT OF MAY 10, 1916, 39 STAT. 120, AS AMENDED BY THE ACT OF AUGUST 29, 1916, 39 STAT. 582. SEE, ALSO, DECISION OF JANUARY 18, 1939, A-98289, A-60495, AND DECISION OF JUNE 13, 1942, A-97085.

FURTHERMORE, THERE WOULD APPEAR TO BE ROOM FOR DOUBT WHETHER THE PROVISION QUOTED IN YOUR LETTER FROM THE " DEPARTMENT OF AGRICULTURE APPROPRIATION ACT, 1942," 55 STAT. 444, AUTHORIZING REIMBURSEMENT ON A MILEAGE BASIS FOR OFFICIAL TRAVEL AT HEADQUARTERS TO THE EMPLOYEES HERE INVOLVED IS NOT PERMANENT LEGISLATION. SEE 12 U.S.C. 1756A, ACT JULY 22, 1942, 56 STAT. 700. COMPARE DECISION OF JULY 26, 1943, B-35694, 23 COMP. GEN. 50.

YOU ARE ADVISED, THEREFORE, THAT IF SUCH EXPENDITURES ARE AUTHORIZED BY THE BOARD OF DIRECTORS OF THE FEDERAL DEPOSIT INSURANCE CORPORATION UNDER THE BROAD AUTHORITY VESTED IN IT BY SUBSECTION K PART 1, OF THE SECTION 12B OF THE FEDERAL RESERVE ACT, 48 STAT. 168, 172, QUOTED IN YOUR LETTER, THIS OFFICE WILL NOT BE REQUIRED TO OBJECT TO OTHERWISE PROPER PAYMENTS OF MILEAGE AT A RATE NOT TO EXCEED THREE CENTS PER MILE TO OFFICERS AND EMPLOYEES OF THE FEDERAL DEPOSIT INSURANCE CORPORATION FOR THE USE OF PRIVATELY-OWNED AUTOMOBILES WITHIN THE CORPORATE LIMITS OF THEIR OFFICIAL STATIONS WHILE ENGAGED IN EXAMINING OR SUPERVISING THE ACTIVITIES OF FEDERAL CREDIT UNIONS. COMPARE 18 COMP. GEN. 479.