BNUMBER:  B-272254
DATE:  March 5, 1997
TITLE:  Export-Import Bank

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Matter of:Export-Import Bank

File:     B-272254

Date:March 5, 1997

DIGEST

Under 12 U.S.C.  sec.  635(a)(1) (1994), the Export-Import Bank may not 
charge its customers for travel expenses incurred by the Bank in 
connection with a customer's transactions, and deposit the receipts to 
the credit of the Bank's appropriation.  Section 635(a)(1) permits the 
Bank to accept voluntary reimbursements for the travel expenses of its 
employees from non-federal sources; it does not authorize the Bank to 
charge fees to cover employees' travel expenses.

DECISION

This is in response to a request for our opinion from the United 
States Export-Import Bank (Eximbank) concerning its authority to 
require its customers to pay for travel expenses incurred by Eximbank 
officers and employees in connection with customer transactions and to 
deposit the proceeds of such charges to its appropriation for 
administrative expenses.  The Eximbank believes that Congress has 
provided it with such authority in 12 U.S.C.  sec.  635(a)(1) (1994).  As 
explained more fully below, we disagree.  Eximbank's authority to 
accept reimbursement of travel expenses under 12 U.S.C.  sec.  635(a)(1) 
does not authorize it to charge  customers for its employees' travel 
costs associated with a customer's transactions.

Background

The Eximbank is a federal corporation created to facilitate export 
financing of United States goods and services by matching the terms of 
other governments' export financing and absorbing credit risks that 
the private sector will not accept.  12 U.S.C.  sec.  635.  Export 
financing includes loans, loan guarantees, export credit insurance and 
working capital (pre-export) financing such as for pre-export 
production or development of foreign markets.  The Eximbank's goals 
include providing export financing at rates, terms, and other 
conditions which are fully competitive with government-supported 
financing available to foreign exporters in competitor countries and 
aiding small exporting businesses.  The Eximbank receives 
appropriations to cover the administrative expenses, including travel 
and transportation expenses, of carrying out its mission.  

The Eximbank is authorized to accept reimbursement for travel and 
subsistence expenses incurred by a director, officer or employee of 
the Eximbank in accordance with subchapter I of chapter 57 of title 5, 
United States Code, and to credit amounts received to the 
appropriation which initially paid for such travel.  12 U.S.C.  sec.  
635(a)(1).  Eximbank states that it has exercised this authority only 
when a non- federal source such as a borrower or co-lender invited an 
Eximbank employee to attend a meeting or similar event and offered to 
pay the travel expenses for the employee.  In order to "improve its 
efficiency and conserve government funds," the Eximbank proposes to 
change this policy so that it may charge its customers for travel 
expenses incurred by Eximbank officers and employees in connection 
with customer transactions, and deposit the proceeds of such charges 
to its appropriation for administrative expenses.  

As a general proposition, where Congress appropriates funds to an 
agency to cover its operations, in the absence of some other 
authority, Congress expects the agency to provide services to carry 
out its mission using the funds appropriated for that purpose and no 
other.  2 Principles of Federal Appropriations Law, 6-103 (2d ed. 
GAO/OGC 1992).  The rationale for this principle is that to permit 
otherwise would allow an agency to augment its appropriations, that 
is, to spend more than Congress had appropriated for that program, 
thereby loosening congressional control.  Id.  In a number of 
different circumstances, Congress has authorized agencies to charge 
fees for services or privileges provided, 31 U.S.C.  sec.  9701 (1994); 5 
U.S.C.   sec.  552(a)(4)(A) (1994), or, as here, to accept reimbursements 
from outside sources for expenses incurred, 12 U.S.C.  sec.  635(a)(1) 
(1994).  In either event, the fact that Congress has authorized an 
agency to charge a fee or to accept reimbursement does not mean that 
the agency may credit the amounts received to its appropriations.  For 
the very reason stated above, absent statutory authority to the 
contrary, an agency must deposit fees collected in the Treasury as 
miscellaneous receipts.  2 Principles of Federal Appropriations Law,    
6-126 to 6-129 (2d ed. GAO/OGC 1992).  For the same reason, an agency 
may not credit to its appropriations voluntary payments such as 
authorized reimbursements, gifts or donations it receives from outside 
sources, absent statutory authority.  46 Comp. Gen. 689 (1967).

Analysis

The issue here is the scope of Eximbank's authority to charge its 
customers for travel expenses incurred by its officers and employees 
in connection with a customer's transaction.  The Eximbank relies on 
the authorities provided by 12 U.S.C.  sec.  635(a)(1).  The relevant 
language states:

     "Subject to regulations which the Bank shall issue pursuant to 
     section 553 of title 5, United States Code, the Bank may impose 
     and collect reasonable fees to cover the costs of conferences and 
     seminars sponsored by, and publications provided by, the Bank, 
     and may accept reimbursement for travel and subsistence expenses 
     incurred by a director, officer, or employee of the Bank, in 
     accordance with subchapter I of chapter 57 of title 5, United 
     States Code.  Amounts received under the preceding sentence shall 
     be credited to the fund which initially paid for such activities 
     and shall be offset against the expenses of the Bank for such 
     activities."  

12 U.S.C.  sec.  635(a)(1) (underscoring added).

The underscored language, which was added by Public Law No. 101-240  sec.  
101(c)(1), 103 Stat. 2492, 2494 (1989), refers to donative or 
voluntary reimbursements.  The legislative history of the provision 
affirms this conclusion.  The accompanying House Report states that 
"This section authorizes Eximbank's directors, officers, or employees 
to accept payment or reimbursements for services, travel and 
subsistence expenses incurred in non-Eximbank sponsored activities if 
they are directly related to the mission of the agency.  The 
reimbursements would be subject to existing practices that restrict 
gift acceptances by government employees * * * *."  H.R. Rep. No. 
101-271, at 23 (1989), reprinted in 1989 U.S.C.C.A.N.  3557, 3561.

Congress thus intended that the Eximbank abide by Executive branch 
practices with regard to the acceptance of gifts.  The amendment to 
section 635(a)(1) was enacted shortly after enactment of a provision 
permitting employees in an agency in the Executive branch to accept 
reimbursement of travel expenses from non-federal entities for 
attending "any meeting or similar function relating to the official 
duties of the employee."  See 31 U.S.C.  sec.  1353 (1994).  The Eximbank's 
regulations governing gift acceptance are, in concept, consistent with 
the regulations issued by the General Services Administration 
implementing 31 U.S.C.  sec.  1353, and further support the view that these 
reimbursements are voluntary in nature, not mandatory.  For example, 
the Eximbank's regulations, consistent with GSA regulations, prohibit 
employees from soliciting payment for travel expenses from a 
non-federal source.  Compare 12 C.F.R.  sec.  412.3(b) to 41 C.F.R.  sec.  
304-1.2(b). 

There is a clear difference between the authority to accept voluntary 
donations and the authority to charge fees to cover the costs of 
services provided.   2 Principles of Federal Appropriations Law, p. 
6-128 (2d ed. GAO/OGC 1992).  This difference is clearly reflected in 
the statute at issue.  The first half of the first sentence of section 
635(a)(1) specifically authorizes the Eximbank to impose and collect 
"reasonable fees to cover the costs of conferences, seminars and 
publications" it provides.  The Eximbank also has statutory authority 
to impose fees for certain other services it provides.  See 12 U.S.C.  sec.  
635(b)(1)(B) (credit application fee) and  sec.  635(c)(1) (Eximbank shall 
charge fees and premiums commensurate with the risks covered in 
connection with contractual liability that it incurs for loan 
guarantees and insurance).  However, the second half of the first 
sentence of section 635(a)(1) does not authorize the Eximbank to 
impose and collect fees.  By its own terms, it does no more than 
authorize the acceptance of reimbursement for the cost of travel and 
the crediting of such amounts (like the fees collected) to Eximbank's 
appropriations.  Given the language and structure of the first 
sentence of section 635(a)(1), had Congress intended to authorize the 
Eximbank to impose a fee for travel expenses in exchange for some 
Eximbank service or consideration, we think it would have done so 
explicitly.

The Eximbank's proposal goes beyond the acceptance of  voluntary 
reimbursements of travel expenses contemplated by section 635(a)(1).  
Neither the language nor the legislative history of section 635(a)(1) 
would support an Eximbank requirement that  those to whom it provides 
services must pay for related travel by its employees.  We do not 
believe that the Eximbank may implement this proposal without 
statutory authority.

/s/Robert P. Murphy
for Comptroller General
of the United States