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B-219526, May 25, 1988

B-219526 May 25, 1988
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Because 154 days elapsed between the time he submitted his voucher and the time payment was made. His claim is denied since he is not entitled to interest under the Prompt Payment Act and there are no statutes authorizing the payment of interest on delayed relocation expense payments. Euback - Relocation Income Tax Allowance Delayed Payment Interest: This decision is in response to a request from an Authorized Certifying Officer. We conclude he is not so entitled. Eubank was transferred to a new duty station in mid 1986. 284.13 was made to him on August 4. Because approximately 154 days elapsed between the time his voucher was submitted and the time payment was made. Based on his view that the delinquency period was all the period beyond 30 days at an interest rate of 9.25 percent a year.

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B-219526, May 25, 1988

CIVILIAN PERSONNEL - Relocation - Expenses - Interest - Eligibility - Delayed payments DIGEST: A transferred employee received payment of a Relocation Income Tax Allowance (RITA). Because 154 days elapsed between the time he submitted his voucher and the time payment was made, he claimed interest on the amount due for all the period beyond the first 30 days. His claim is denied since he is not entitled to interest under the Prompt Payment Act and there are no statutes authorizing the payment of interest on delayed relocation expense payments.

David W. Euback - Relocation Income Tax Allowance Delayed Payment Interest:

This decision is in response to a request from an Authorized Certifying Officer, Bureau of Reclamation, United States Department of the Interior. It concerns the entitlement of one of its employees to be paid interest for the delay in the agency payment of his Relocation Income Tax Allowance (RITA). We conclude he is not so entitled, for the following reasons.

Mr. David W. Eubank was transferred to a new duty station in mid 1986, and on March 3, 1987, he submitted a claim for payment of a RITA in connection with the moving expenses incurred in calendar year 1986. Following agency audit and approval, payment in the amount of $10,284.13 was made to him on August 4, 1987. Because approximately 154 days elapsed between the time his voucher was submitted and the time payment was made, he submitted a supplemental voucher for an interest penalty of $323.18, based on his view that the delinquency period was all the period beyond 30 days at an interest rate of 9.25 percent a year.

Mr. Eubank argues that since employees who are delinquent in payment of amounts owed to the government may be liable for interest, delinquencies by government agencies should carry with them the same interest penalties. In this connection, he suggests that the provisions of the Prompt Payment Act, which requires payment of interest to vendors under certain circumstances, should apply to him. It is his theory that when an employee incurs significant expenses for the benefit of his agency which the agency is obligated to pay, the employee is, in essence, a vendor to the agency and entitle to interest penalties for reimbursements which are delinquent beyond 30 days.

The provisions of the Prompt Payment Act, Public Law 97-177 May 21, 1982, 96 Stat. 85, as amended, 31 U.S.C. Secs. 3901-3906 (Supp. III 1985), require in section 3902 that the head of an agency which acquires property or services from a business concern make payment by the agreed to payment date or pay an interest penalty. Section 3901(a)(2) defines a business concern as a person carrying on a trade or business or a nonprofit entity operating as a contractor. Since Mr. Eubank as a federal employee is not a "business concern" under those provisions the Prompt Payment Act may not be used as authority to pay him an interest penalty. Harold R. Fine, B-224628, Jan. 12, 1988.

In the absence of any other statute authorizing interest delayed relocation expense payments, we conclude that Mr. Eubank's request may not be allowed.

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