A-64560, A-72951, APRIL 16, 1936, 15 COMP. GEN. 914

A-64560,A-72951: Apr 16, 1936

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ARE FOR COMPUTATION AT RATES OF EXCHANGE OF THE EMPLOYEE'S REGULAR STATION OR OF THE COUNTRIES VISITED WHICHEVER ARE MORE FAVORABLE TO THE GOVERNMENT. IF THE PERIOD EXTENDS OVER 1 MONTH SUCH LOSSES ARE FOR COMPUTATION ON THE BASIS OF THE LAST DAY OF EACH MONTH WITHIN THE TRAVEL PERIOD. EXCEPT THAT WHERE NO SUBSTANTIAL PART OF THE LEAVE OF ABSENCE OF AN EMPLOYEE IS SPENT IN A PARTICULAR COUNTRY. EXCHANGE LOSSES ON SALARIES AND ALLOWANCES PAYABLE REGULARLY AT AN EMPLOYEE'S FOREIGN STATION ARE FOR COMPUTATION AS OF THE LAST DATE OF THE ACCRUAL PERIOD IRRESPECTIVE OF WHEN PAYMENT IS MADE. WHERE FRACTIONAL PARTS OF ACCRUAL PERIODS ARE INVOLVED LOSSES ARE FOR COMPUTATION AS OF THE LAST DAY OF THE FRACTIONAL PERIOD.

A-64560, A-72951, APRIL 16, 1936, 15 COMP. GEN. 914

COMPUTATION OF EXCHANGE LOSSES EXCHANGE LOSSES OF AN EMPLOYEE STATIONED IN A FOREIGN COUNTRY, WHILE ON LEAVE OF ABSENCE, ARE FOR COMPUTATION AT RATES OF EXCHANGE OF THE EMPLOYEE'S REGULAR STATION OR OF THE COUNTRIES VISITED WHICHEVER ARE MORE FAVORABLE TO THE GOVERNMENT, AND ON THE BASIS OF THE RATE ON THE LAST DAY OF TRAVEL WITHIN THE PARTICULAR COUNTRY, BUT IF THE PERIOD EXTENDS OVER 1 MONTH SUCH LOSSES ARE FOR COMPUTATION ON THE BASIS OF THE LAST DAY OF EACH MONTH WITHIN THE TRAVEL PERIOD, EXCEPT THAT WHERE NO SUBSTANTIAL PART OF THE LEAVE OF ABSENCE OF AN EMPLOYEE IS SPENT IN A PARTICULAR COUNTRY, AS ON A TOUR, EXCHANGE LOSS MAY BE AT THE REGULAR STATION RATE IRRESPECTIVE OF REGISTRY OF THE VESSEL USED ON THE TOUR. EXCHANGE LOSSES ON SALARIES AND ALLOWANCES PAYABLE REGULARLY AT AN EMPLOYEE'S FOREIGN STATION ARE FOR COMPUTATION AS OF THE LAST DATE OF THE ACCRUAL PERIOD IRRESPECTIVE OF WHEN PAYMENT IS MADE, BUT WHERE FRACTIONAL PARTS OF ACCRUAL PERIODS ARE INVOLVED LOSSES ARE FOR COMPUTATION AS OF THE LAST DAY OF THE FRACTIONAL PERIOD. EXCHANGE LOSSES ARE NOT PAYABLE ON SALARY FOR A PERIOD OF LEAVE OF ABSENCE FROM A FOREIGN STATION SPENT IN THE UNITED STATES.

COMPTROLLER GENERAL MCCARL TO THE SECRETARY OF STATE, APRIL 16, 1936:

YOUR LETTERS OF MARCH 24 AND 26, 1936, REQUEST DECISION BY THIS OFFICE UPON THE QUESTIONS PRESENTED IN DISPATCHES DATED MARCH 2 AND MARCH 5, 1936, FROM THE DISTRICT ACCOUNTING AND DISBURSING OFFICER AT PARIS, FRANCE.

THE DESPATCH OF MARCH 2 IS AS FOLLOWS:

I HAVE THE HONOR TO REQUEST THE GOOD OFFICES OF THE DEPARTMENT IN SECURING FROM THE COMPTROLLER GENERAL A RULING AS TO THE RATE TO BE USED IN CALCULATING THE CURRENCY APPRECIATION LOSS IN THE CASE OF EMPLOYEES WITH DEFINITE STATIONS ABROAD WHO ELECT TO SPEND THEIR LEAVE ON ONE OF THE VARIOUS CRUISES OFFERED IN THE MEDITERRANEAN, ALONG THE NORWEGIAN COAST OR IN OTHER ADJACENT WATERS.

THE QUESTION HAS ARISEN SEVERAL TIMES IN THE PAST BUT IN THESE CASES THE POSSIBLE RATES HAVE BY CHANCE ALL BEEN MORE FAVORABLE TO THE TRAVELLER THAN THAT OF HIS POST, AND HE HAS ACCORDINGLY BEEN HELD TO THAT OF HIS COUNTRY OF ASSIGNMENT.

TWO CASES WILL BE PRESENTED TO THIS OFFICE, HOWEVER, DURING THE COMING SUMMER IN WHICH THIS WILL NOT BE THE CASE. ONE CRUISE WILL START FROM HOLLAND VISIT VARIOUS NORWEGIAN AND SCANDANAVIAN PORTS RETURNING TO HOLLAND. THE SHIP MAY BE DUTCH OR IT MAY BE ENGLISH. THE TRAVELLERS WILL HAVE STATIONS EITHER IN HOLLAND OR FRANCE. WILL THE RATE OF THE COUNTRY IN WHICH THE VESSEL IS REGISTERED DETERMINE THE RATE FOR THE ENTIRE TRIP, OR WILL THE RATE OF THE COUNTRY OF DEPARTURE, OR MUST THE VOYAGE BE PRORATED PORT BY PORT EVEN THOUGH ONLY A FEW HOURS ARE SPENT THERE? THIS CASE WHAT RATE SHALL BE USED FOR THE TIME SPENT AT SEA?

IT IS THE SUGGESTION OF THIS OFFICE THAT THE RATE OF PORT OF FINAL DESTINATION BE USED AS THE MOST IN HARMONY WITH PREVIOUS RULINGS OF THE COMPTROLLER GENERAL, AND AS FAIR AS ANY TO ALL CONCERNED. A DEFINITE DECISION BY THE COMPTROLLER GENERAL IS, HOWEVER, DESIRED. AND THE DESPATCH OF MARCH 5 READS:

I HAVE THE HONOR TO REQUEST THE GOOD OFFICES OF THE DEPARTMENT IN OBTAINING FROM THE COMPTROLLER GENERAL A DEFINITE RULING AS TO THE MEANING OF DATE "ACCRUED" IN COMPUTATION OF CURRENCY APPRECIATION LOSSES ON SALARY AND ALLOWANCES.

IN THE DECISION OF THE COMPTROLLER GENERAL, NO. A-64560 DATED SEPTEMBER 14, 1935, IT IS STATED IN (1) THAT "EXCHANGE LOSSES ON SALARIES OR ALLOWANCES ACCRUING AFTER APRIL 1, 1934, ARE FOR COMPUTATION AS OF THE DATE THE SALARIES OR ALLOWANCES ACCRUED TO THE EMPLOYEE.'

IN THE CASE OF ORDINARY PAYMENTS AND UNDER THE REGULATIONS ESTABLISHED BY THE DEPARTMENT OF STATE IT IS UNDERSTOOD THAT THIS DATE COINCIDES WITH THAT OF THE CHECK, NAMELY THE FIRST OF THE ENSUING MONTH.

IT SEEMS TO BE A QUESTION, HOWEVER, AS TO WHETHER THE ACTUAL DATE OF ACCRUAL IS NOT THE LAST DAY OF THE MONTH AND WHETHER THIS DATE SHOULD NOT BE USED RATHER THAN THE FIRST OF THE ENSUING MONTH.

IN SOME CASES, HOWEVER, PERSONS GO ON LEAVE TO THE UNITED STATES AND DO NOT DRAW SALARY WHILE AWAY, OR IN OTHER CASES FOR SOME REASON PAYMENT IS NOT MADE UNTIL A SUBSEQUENT DATE, IN SOME INSTANCES AS MUCH AS A YEAR LATER.

IN THESE CASES IS THE RATE TO BE USED THAT OF THE DATE THE PAYMENT ORIGINALLY WOULD NORMALLY HAVE BEEN MADE, OR MAY THE DATE OF THE CHECK DRAWN IN PAYMENT OF THE AMOUNT BE USED?

IN THE FORMER CASE MUST THE RATE PREVAILING AT THE END OF EACH MONTHLY OR OTHER REGULAR INTERVAL BE USED, AND THE CURRENCY APPRECIATION LOSS PAYMENT THUS PRORATED?

IN THE CASES OF BROKEN MONTHS OR OTHER PERIODS, IS THE RATE AT THE END OF THE BROKEN PERIOD TO BE USED, OR THE RATE IN FORCE AT THE END OF THE REGULAR PERIOD OF WHICH THE FRACTION IS A PART?

AS TO THE FIRST MATTER PRESENTED, ATTENTION IS INVITED TO THE DECISION OF THIS OFFICE PUBLISHED IN 14 COMP. GEN. 577, WHEREIN IT WAS HELD AS FOLLOWS, QUOTING FROM THE SECOND PARAGRAPH OF THE SYLLABUS:

THE LOSS DUE TO APPRECIATION OF FOREIGN CURRENCY WHILE AN EMPLOYEE IS ON LEAVE OF ABSENCE WITH PAY IS TO BE COMPUTED AT THE RATE FOR THE COUNTRY IN WHICH REGULARLY STATIONED OR THE RATE FOR THE COUNTRY IN WHICH THE LEAVE IS SPENT, WHICHEVER PRODUCES THE SMALLER LOSS, TO BE CHARGED AGAINST THE APPROPRIATIONS.

WHERE, THEREFORE, THE EXCHANGE RATES IN THE COUNTRIES VISITED BY AN EMPLOYEE ON LEAVE ARE MORE FAVORABLE TO THE GOVERNMENT THAN AT HIS REGULAR STATION, THE RATES APPLICABLE TO THE COUNTRIES VISITED ARE FOR APPLICATION AND THE EXCHANGE LOSSES ARE TO BE COMPUTED AT THE RATE IN FORCE FOR THE PARTICULAR COUNTRY ON THE LAST DAY OF TRAVEL WITHIN THAT COUNTRY; OR IF THE PERIOD EXTENDS OVER 1 MONTH, ON THE LAST DAY OF EACH MONTH WITHIN THE TRAVEL PERIOD. WHERE, HOWEVER, NO SUBSTANTIAL PART OF THE LEAVE PERIOD IS SPENT IN A PARTICULAR COUNTRY--- THE TIME SPENT BEING ON A TOUR--- THE RATES OF THE RESPECTIVE COUNTRIES VISITED MAY BE DISREGARDED AND THE EXCHANGE LOSSES BASED UPON THE RATE APPLICABLE TO THE EMPLOYEE'S OFFICIAL STATION IRRESPECTIVE OF WHETHER THE TRANSPORTATION BE BY RAIL OR BY VESSEL (15 COMP. GEN. 212). THE REGISTRY OF A VESSEL UPON WHICH A PARTICULAR TOUR IS ACCOMPLISHED IS NOT DETERMINATIVE OF THE QUESTION OF EXCHANGE RATES.

AS TO THE MATTER STATED IN THE DESPATCH OF MARCH 5, YOU ARE ADVISED THAT EXCHANGE LOSSES ON SALARIES AND ALLOWANCES, WHICH ARE PAYABLE REGULARLY AT THE EMPLOYEE'S FOREIGN STATION, ARE FOR COMPUTING AS OF THE LAST DATE OF THE PERIOD OVER WHICH SUCH SALARIES AND ALLOWANCES ORDINARILY ACCRUE IRRESPECTIVE OF WHEN PAYMENT THEREFOR IS ACTUALLY ACCOMPLISHED. (SEE 14 COMP. GEN. 204; ID. 206.)

WHERE THERE ARE INVOLVED FRACTIONAL PARTS OF SUCH ACCRUAL PERIODS, EXCHANGE LOSS IS FOR COMPUTING AS OF THE LAST DAY OF THE ACCRUAL PERIOD IF THE FRACTIONAL PART INVOLVES THE LATTER PORTION OF THE ACCRUAL PERIOD; OTHERWISE, AS OF THE LAST DAY OF THE FRACTIONAL PORTION WHEN THE SALARY AND ALLOWANCE TERMINATE AT ANY TIME WITHIN SUCH ACCRUAL PERIOD (14 COMP. GEN. 206; 15 ID. 212). IN 14 COMP. GEN. 281, IT WAS HELD THAT NO EXCHANGE LOSS IS PAYABLE UPON SALARY COVERING THE PERIOD OF LEAVE OF ABSENCE SPENT IN THE UNITED STATES.