Export-Import Bank

B-272254 Mar 05, 1997 Jump To VIEW DECISION DOWNLOADS RELATED PAGES GAO CONTACTS Highlights The Export-Import Bank (Eximbank) requested GAO's opinion concerning its authority to require its customers to pay travel expenses incurred by Eximbank officers and employees in connection with customer transactions. GAO held that: (1) under 12 U.S.C. 635(a)(1), the Eximbank may not charge its customers for travel expenses incurred by the Eximbank in connection with customer transactions, and deposit the receipts to the credit of Eximbank's appropriation; (2) Eximbank may accept voluntary reimbursements for the travel expenses of its employees from non-federal sources, but Eximbank is not authorized to charge fees to cover employees' travel expenses; (3) the legislative history of section 635(a)(1) would not support an Eximbank requirement that customers must pay for related travel by Eximbank employees; and (4) GAO does not believe that the Eximbank may implement this proposal without statutory authority. View Decision Matter of: Export-Import Bank File: B-272254 Date: March 5, 1997 DIGEST 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).