[Claim for Temporary Quarters Subsistence Expense]

An authorized certifying officer for the Department of Health and Human Services (HHS) submitted a reclaim voucher of an employee for an additional amount of subsistence expenses. The record showed that the claimant and his family were authorized temporary lodging and subsistence expenses for a 30-day period following the employee's transfer. However, the agency disallowed a large portion of the claim for meal expenses as excessive. The agency made its determination to allow only a fraction of the claimed expenses on the basis that the claimant and his family exceeded the Department of Agriculture (USDA) statistics for grocery expenses for a family of five. In protesting this reduction to the agency, the claimant stated that his family did not incur grocery expenses, but found it necessary to eat in restaurants. In response to the protest, the agency allowed an additional sum for meals which, added to the amount initially allowed, equaled about half of what the employee claimed for meals. GAO found that: (1) although the amount claimed may have been unreasonable, the agency did not adequately explain its reduction of the amount; (2) the USDA statistics for grocery expenses were not an appropriate reference in this case; (3) since the family ate in restaurants, the agency should make a determination of the reasonable cost of restaurant meals in the locality; and (4) the determination of expenses should be based on a valid statistical reference and the experience of other employees under similar circumstances. Accordingly, HHS should reevaluate its determination of reasonableness for the claimed expenses and make any appropriate adjustment.