Propriety of Reimbursement for Relocation Expenses

An employee of the Federal Election Commission (FEC) was reimbursed for relocation expenses in connection with his change of employment from a Federal Reserve Bank to FEC. The employee was advised prior to his change of employment that his service with the Federal Reserve Bank made him eligible for relocation expenses not otherwise payable to new employees of Federal agencies. Subsequently, FEC was informed that service with a Federal Reserve Bank is not creditable service under laws applicable to Government employees because such banks are not Government-owned corporations. FEC submitted the matter to GAO to determine whether the payment was, in fact, erroneous, and whether, under the circumstances, repayment could be waived. It was determined that, because a Federal Reserve Bank is not an "agency" of the Government, as defined in the applicable statutes, the employee's situation was analogous to that of a new employee who, unless qualified under provisions for manpower shortages, must bear the expenses of reporting to his first duty station. The Government cannot be bound beyond the actual authority conferred upon its agents by statute or by regulations, even though the agent may have been unaware of the limitations on his authority. Since the instant case did not conform to the circumstances under which such debts may be waived or compromised, the overpayment was subject to recovery.