B-168857, FEB. 4, 1970
Highlights
EXPENSES CLAIMED BY TRANSFERRED EMPLOYEE THAT WERE PRELIMINARY TO THE NEGOTIATION FOR PURCHASE OF ANOTHER RESIDENCE WHICH WAS NOT ACTUALLY CONSUMMATED MAY NOT BE REGARDED AS REIMBURSABLE. ARE CLAIMED AS PURCHASE COSTS. THEY WERE DISALLOWED BY THE ADMINISTRATIVE OFFICE ON THE BASIS THAT THEY WERE INCURRED IN CONNECTION WITH AN UNCONSUMMATED PURCHASE OF A RESIDENCE OTHER THAN THE ONE ACTUALLY PURCHASED. YOU ALSO SAY THAT IN THE CHEYENNE LOCALITY THE APPRAISAL FEE IS NORMALLY A COST TO THE SELLER. THE EXPENSES CLAIMED HERE WERE NOT INCURRED INCIDENT TO THE CONSUMMATED PURCHASE OF THE PREMISES TO BE USED AS A RESIDENCE BUT WERE PRELIMINARY EXPENSES INCURRED INCIDENT TO THE NEGOTIATION FOR THE PURCHASE OF ANOTHER RESIDENCE WHICH WAS NOT CONSUMMATED.
B-168857, FEB. 4, 1970
CIVIL PAY--TRANSFERS--REAL ESTATE EXPENSES DECISION TO CERTIFYING OFFICER OF THE FEDERAL HIGHWAY ADMINISTRATION HOLDING THAT VOUCHER FOR REIMBURSEMENT OF REAL ESTATE EXPENSES INCURRED INCIDENT TO PURCHASE OF RESIDENCE AT NEW STATION MAY NOT BE CERTIFIED. EXPENSES CLAIMED BY TRANSFERRED EMPLOYEE THAT WERE PRELIMINARY TO THE NEGOTIATION FOR PURCHASE OF ANOTHER RESIDENCE WHICH WAS NOT ACTUALLY CONSUMMATED MAY NOT BE REGARDED AS REIMBURSABLE.
TO MR. HENRY C. EDDY:
THIS REFERS TO YOUR LETTER OF JANUARY 20, 1970, REFERENCE 09-00.11, WITH ENCLOSURES, REQUESTING A DECISION FROM OUR OFFICE AS TO THE PROPRIETY OF CERTIFYING FOR PAYMENT A VOUCHER IN FAVOR OF MR. JAMES S. BRUNTON FOR REIMBURSEMENT OF CERTAIN REAL ESTATE COSTS INCURRED IN CONNECTION WITH THE PURCHASE OF A RESIDENCE AT HIS NEW DUTY STATION INCIDENT TO HIS TRANSFER FROM CASPER, WYOMING, TO CHEYENNE, WYOMING.
THE ITEMS ON THE VOUCHER, AN APPRAISAL FEE AND CREDIT REPORT FEE, ARE CLAIMED AS PURCHASE COSTS. THEY WERE DISALLOWED BY THE ADMINISTRATIVE OFFICE ON THE BASIS THAT THEY WERE INCURRED IN CONNECTION WITH AN UNCONSUMMATED PURCHASE OF A RESIDENCE OTHER THAN THE ONE ACTUALLY PURCHASED. YOU ALSO SAY THAT IN THE CHEYENNE LOCALITY THE APPRAISAL FEE IS NORMALLY A COST TO THE SELLER.
SECTION 4.1 OF BUREAU OF THE BUDGET CIRCULAR NO. A-56, REVISED JUNE 26, 1969, PROVIDES REIMBURSEMENT TO AN EMPLOYEE FOR EXPENSES REQUIRED TO BE PAID BY HIM IN CONNECTION WITH THE PURCHASE OF ONE DWELLING AT HIS NEW OFFICIAL STATION. THE EXPENSES CLAIMED HERE WERE NOT INCURRED INCIDENT TO THE CONSUMMATED PURCHASE OF THE PREMISES TO BE USED AS A RESIDENCE BUT WERE PRELIMINARY EXPENSES INCURRED INCIDENT TO THE NEGOTIATION FOR THE PURCHASE OF ANOTHER RESIDENCE WHICH WAS NOT CONSUMMATED.
THEREFORE, IN THE ABSENCE OF A SPECIFIC PROVISION IN THE REGULATIONS OF THE BUREAU OF THE BUDGET TO THE CONTRARY, THE ONLY EXPENSES THAT WE WOULD BE WARRANTED IN RECOGNIZING AS REIMBURSABLE INCIDENT TO THE PURCHASE OF A RESIDENCE AT A NEW STATION ARE THE EXPENSES INCURRED FOR THE PARTICULAR RESIDENCE ACTUALLY PURCHASED.
THE VOUCHER WHICH IS RETURNED HEREWITH MAY NOT BE CERTIFIED FOR PAYMENT.