B-170938, FEB 10, 1971, 50 COMP GEN 545

B-170938, FEB 10, 1971, 50 COMP GEN 545

FEDERAL CREDIT UNIONS - PROPERTY LOST OR DAMAGED - DISPOSITION OF MONEYS RECEIVED IN SETTLEMENT MONEYS RECEIVED FROM CARRIERS BY THE NATIONAL CREDIT UNION ADMINISTRATION (NCUA) IN SETTLEMENT FOR GOODS LOST OR DAMAGED IN TRANSIT THAT WERE SHIPPED IN CONNECTION WITH THE OPERATIONS OF THE ADMINISTRATION SHOULD BE DEPOSITED FOR CREDIT TO THE ACCOUNT OF THE ADMINISTRATION AND NOT THE GENERAL FUND OF THE TREASURY SINCE THE MISCELLANEOUS RECEIPTS RULE (31 U.S.C. 484) IS NOT FOR APPLICATION, AS THE OPERATING FUNDS OF THE NCUA ARE NOT PROVIDED BY ANNUAL APPROPRIATIONS BUT BY FEES AND ASSESSMENTS UPON CREDIT UNIONS PURSUANT TO 12 U.S.C. 1755, WHICH PROVIDES FOR THE DEPOSIT OF COLLECTIONS FROM THE CREDIT UNIONS WITH THE TREASURER OF THE UNITED STATES FOR CREDIT TO THE ACCOUNT OF THE ADMINISTRATION.

TO THE ADMINISTRATOR, NATIONAL CREDIT UNION ADMINISTRATION, FEBRUARY 10, 1971:

REFERENCE IS MADE TO A LETTER OF SEPTEMBER 30, 1970, FROM MR. CARROLL SMITH, ASSISTANT ADMINISTRATOR FOR ADMINISTRATION, REQUESTING AN EXCEPTION FOR THE NATIONAL CREDIT UNION ADMINISTRATION FROM THE GENERAL RULE REQUIRING THE DEPOSIT OF FUNDS RECEIVED IN SETTLEMENT FOR GOODS LOST OR DAMAGED IN TRANSIT INTO THE TREASURY AS MISCELLANEOUS RECEIPTS.

THE INCIDENT PRECIPITATING THE REQUEST WAS A LOSS OF OFFICE EQUIPMENT CAUSED BY THE WRECK OF A MOVING VAN DURING A SHIPMENT FROM CHARLOTTESVILLE, VIRGINIA, TO HARRISBURG, PENNSYLVANIA. WE HAVE BEEN ADVISED INFORMALLY THAT YOUR AGENCY IS NO LONGER CONCERNED ABOUT THAT PARTICULAR NOMINAL LOSS SINCE THE FUNDS HAVE ALREADY BEEN DEPOSITED INTO THE GENERAL FUND OF THE TREASURY, BUT IS CONCERNED WITH THE APPLICATION OF THE GENERAL RULE ON FUTURE OCCASIONS.

THE MISCELLANEOUS RECEIPTS RULE IS CODIFIED IN 31 U.S.C. 484 (SECTION 3617, REVISED STATUTES) AND READS AS FOLLOWS:

THE GROSS AMOUNT OF ALL MONEYS RECEIVED FROM WHATEVER SOURCE FOR THE USE OF THE UNITED STATES, EXCEPT AS OTHERWISE PROVIDED IN SECTION 487 OF THIS TITLE, SHALL BE PAID BY THE OFFICER OR AGENT RECEIVING THE SAME INTO THE TREASURY, AT AS EARLY A DAY AS PRACTICABLE, WITHOUT ANY ABATEMENT OR DEDUCTION ON ACCOUNT OF SALARY, FEES, COSTS, CHARGES, EXPENSES, OR CLAIM OF ANY DESCRIPTION WHATEVER. ***

YOUR ASSISTANT ADMINISTRATOR'S LETTER STATES THAT ALL OPERATING FUNDS OF THE NATIONAL CREDIT UNION ADMINISTRATION ARE PROVIDED FROM CHARTER, EXAMINATION, AND SUPERVISION FEES CHARGED TO FEDERAL CREDIT UNIONS, AND THAT YOUR AGENCY HAS NOT RECEIVED PUBLIC FUNDS THROUGH APPROPRIATIONS SINCE JULY 1, 1953. HE ADDS THAT THE APPLICATION OF 31 U.S.C. 484 AND OUR PRIOR DECISIONS THEREUNDER WOULD HAVE THE EFFECT OF CHARGING YOUR MEMBER CREDIT UNIONS WITH THE COST OF REPLACING ITEMS WHICH THEY HAD PAID FOR IN THE FIRST PLACE. THEREFORE, HE CONTENDS THAT THE INTENT OF CONGRESS IN ESTABLISHING THE FINANCIAL ARRANGEMENT FOR THE NATIONAL CREDIT UNION ADMINISTRATION WAS TO EXEMPT IT FROM THE GENERAL RULE AND HE REFERS US TO THE PRINCIPLE OF OUR DECISION B-4906, DATED OCTOBER 11, 1951, MAKING AN EXCEPTION FOR THE OLD-AGE AND SURVIVORS INSURANCE TRUST FUND.

THE STATUTORY AUTHORITY FOR THE COLLECTION OF FEES FROM FEDERAL CREDIT UNIONS FOR THE PAYMENT OF THE EXPENSES OF THE ADMINISTRATION IS SECTION 5 OF THE FEDERAL CREDIT UNION ACT, 12 U.S.C. 1755, AS AMENDED, WHICH READS IN PART AS FOLLOWS:

ALL SUCH FEES SHALL BE DEPOSITED WITH THE TREASURER OF THE UNITED STATES FOR THE ACCOUNT OF THE ADMINISTRATION AND MAY BE EXPENDED BY THE ADMINISTRATOR FOR SUCH ADMINISTRATIVE, SUPERVISORY 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 SUCH EXPENSES AS FAR AS PRACTICABLE.

THE LATEST AMENDMENT TO THE FEDERAL CREDIT UNION ACT WAS PUBLIC LAW 91- 206, APPROVED MARCH 10, 1970, WHICH CREATED THE NATIONAL CREDIT UNION ADMINISTRATION AS AN INDEPENDENT AGENCY TO REPLACE THE BUREAU OF FEDERAL CREDIT UNIONS WHICH HAD BEEN LOCATED IN THE SOCIAL SECURITY ADMINISTRATION OF THE DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE. BOTH THE SENATE AND HOUSE REPORTS ON THE NEW LAW CONFIRM THAT THE FULL EXPENSES OF OPERATION HAVE BEEN AND WILL CONTINUE TO BE PAID BY FEES COLLECTED FROM THE CREDIT UNIONS. HOUSE REPORT NO. 91-331 STATES AT PAGE 2:

ONE OF THE MOST IMPORTANT ASPECTS OF THIS LEGISLATION IS THAT THE ESTABLISHMENT OF THE ADMINISTRATION WILL NOT COST THE TAXPAYERS A SINGLE PENNY NOR RESULT IN ANY APPROPRIATIONS BY CONGRESS, SINCE ALL THE OPERATING COSTS OF THE AGENCY WILL BE BORNE BY FEES AND ASSESSMENTS PAID BY THE MORE THAN 12,000 FEDERAL CREDIT UNIONS IN THE UNITED STATES. FOR MORE THAN 15 YEARS, THE SUPERVISION AND REGULATION OF CREDIT UNIONS HAS BEEN CARRIED OUT WITHOUT ANY EXPENSE TO THE TAXPAYERS. IN SHORT, ALL COSTS OF OPERATING THE NATIONAL CREDIT UNION ADMINISTRATION WILL BE BORNE DIRECTLY BY CREDIT UNION FEES AND ASSESSMENTS.

WE DECIDED IN 35 COMP. GEN. 615, 618 (1956) THAT THE FEES COLLECTED FROM FEDERAL CREDIT UNIONS IN PAYMENT FOR SERVICES RENDERED BY THE BUREAU OF FEDERAL CREDIT UNIONS REPRESENT APPROPRIATED FUNDS AND ARE SUBJECT TO THE VARIOUS RESTRICTIONS AND LIMITATIONS ON THE USES OF APPROPRIATED MONEYS. WHILE THAT DECISION WOULD PRECLUDE THE PAYMENT OF INSURANCE PREMIUMS, IT DID NOT INVOLVE THE QUESTION OF THE APPLICATION OF 31 U.S.C. 484 TO MONEYS RECEIVED FROM CARRIERS FOR GOODS LOST OR DAMAGED IN TRANSIT, AND OUR HOLDING THERE DOES NOT NECESSARILY MEANS THAT THE MISCELLANEOUS RECEIPTS RULE IS APPLICABLE TO SUCH RECEIPTS.

IN THE DECISION CITED TO US AS THE BASIS FOR YOUR REQUEST, B-4906, OCTOBER 11, 1951, THE QUESTION RAISED WAS THE PROPER DISPOSITION OF MISCELLANEOUS COLLECTIONS RECEIVED BY THE BUREAU OF OLD-AGE AND SURVIVORS INSURANCE WHICH WAS FINANCED, NOT BY APPROPRIATIONS, BUT WITH FUNDS TRANSFERRED FROM THE FEDERAL OLD-AGE AND SURVIVORS INSURANCE TRUST FUND. WE HELD THAT THE BUREAU'S RECOVERIES FOR LOST OR DAMAGED GOVERNMENT PROPERTY WERE CLEARLY IDENTIFIED WITH TRUST EXPENDITURES, SINCE ALL ADMINISTRATIVE EXPENSES WERE PAID FROM TRUST FUNDS, AND THAT THOSE RECEIPTS SHOULD BE CREDITED TO THE TRUST FUND WHICH BORE THE COSTS OF ACQUISTION.

IN THE PRESENT CASE, THE OPERATING FUNDS OF THE NATIONAL CREDIT UNION ADMINISTRATION ARE LIKEWISE NOT PROVIDED BY ANNUAL APPROPRIATIONS BUT INSTEAD BY ASSESSMENTS UPON CREDIT UNIONS PURSUANT TO THE QUOTED PROVISIONS OF 12 U.S.C. 1755. WE AGREE WITH YOU THAT THE PRINCIPLE ESTABLISHED IN 1951 FOR THE BUREAU OF OLD-AGE AND SURVIVORS INSURANCE IS APPLICABLE HERE. SEE ALSO 22 COMP. GEN. 1133 (1943).

ACCORDINGLY, ANY AMOUNTS RECOVERED BY THE NATIONAL CREDIT UNION ADMINISTRATION FOR PROPERTY LOST OR DAMAGED IN CONNECTION WITH THE OPERATIONS OF THE ADMINISTRATION SHOULD BE DEPOSITED FOR CREDIT TO THE ACCOUNT OF THE ADMINISTRATION AND NOT INTO THE GENERAL FUND OF THE TREASURY.