Agency Appropriations Went to Provide Free Space to CU

The Government Accountability Office (GAO) in a legal decision stated that it was permissible for the National Labor Relation Board (NLRB) to provide free space to NLRB Federal Credit Union.

The Inspector General for the NLRB asked "whether NLRB’s appropriation was available to continue to provide space and associated services to the NLRB Federal Credit Union (credit union) between 2009 and 2015, during which time NLRB was aware that the credit union did not maintain the membership standard referenced in the Federal Credit Union Act of 1934 for agencies to provide such space."

Section 1770 of the Federal Credit Union Act states that, upon application, a credit union may request that an officer or agency of the United States allot the credit union space within the agency’s building. The space and associated services can be allotted without charge if the credit union demonstrates that 95 percent of the members to be served at that location are federal employees, were federal employees at the time of admission into the credit union, or are members of either of the previous group’s family. Services mean, but is not limited to, the provision of “lighting, heating, cooling, electricity, office furniture, office machines and equipment, telephone service . . . and security systems.”

The report noted that the NLRB provided space and associated services free of charge to the NLRB Federal Credit Union since it was established in 1938 until 2015.

In 2015, NLRB moved to a new headquarters building and made a decision to no longer provide rent free space to the credit union due to the low percentage of federal employees within the credit union's membership.

GAO concluded NLRB’s appropriations could be used to provide the credit union with space and associated services from 2009 to 2015.

In a related note, a 2008 NLRB Inspector General report found that in calendar year 2007 the agency provided an estimated $88,778 in support to the credit union with the overwhelming majority of the support being free rent.

In addition, the NLRB provided the credit union older computers no longer used by agency employees, help desk support for agency-owned computers, internet service, network access for file storage and retrieval, and the distribution of members' statements to NLRB employees. The report noted that the NLRB did not incur any additional costs associated with this support, it did provide a cost savings to the credit union.

A final point, NLRB Federal Credit Union was acquired by Department of Labor Federal Credit Union on June 1, 2015. Department of Labor FCU's most current call report is showing that the credit union does not pay any occupancy expenses.

Read the GAO legal decision.

Read the 2008 IG Report.