B-161910, JUL. 26, 1967

B-161910: Jul 26, 1967

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SOLD HIS HOME IN SANTA FE TO AN INDIVIDUAL WHO AGREED TO PAY THE BALANCE OF THE PURCHASE PRICE IN MONTHLY INSTALLMENTS WHICH WERE TO BE TURNED OVER TO THE REAL ESTATE BROKER UNTIL HIS FEE HAS BEEN PAID IN FULL IS ONLY ENTITLED TO REIMBURSEMENT TO THE EXTENT OF THE AMOUNT ACTUALLY RECEIVED BY THE BROKER. THE QUESTION PRESENTED IS WHETHER THE BROKER'S FEE IN THE AMOUNT OF $748.80 MAY BE REIMBURSED TO MR. THAT REIMBURSEMENT UNDER THAT SECTION WILL BE MADE ONLY IF "THE EXPENSES FOR WHICH REIMBURSEMENT IS CLAIMED WERE PAID BY THE EMPLOYEE.'. THE VOUCHER WHICH IS RETURNED HEREWITH MAY BE CERTIFIED FOR PAYMENT ONLY TO THE EXTENT OF THE AMOUNT ACTUALLY RECEIVED BY THE REAL ESTATE BROKER FROM MR.

B-161910, JUL. 26, 1967

EMPLOYEES - TRANSFERS - PUBLIC LAW 89-516 - HOME SALE/PURCHASE EXPENSES DECISION TO CERTIFYING OFFICER OF THE DEPT. OF THE INTERIOR RE REIMBURSEMENT OF REAL ESTATE BROKER'S FEE. AN EMPLOYEE WHO INCIDENT TO A TRANSFER FROM SANTA FE, N.MEX. TO DENVER, COLORADO, SOLD HIS HOME IN SANTA FE TO AN INDIVIDUAL WHO AGREED TO PAY THE BALANCE OF THE PURCHASE PRICE IN MONTHLY INSTALLMENTS WHICH WERE TO BE TURNED OVER TO THE REAL ESTATE BROKER UNTIL HIS FEE HAS BEEN PAID IN FULL IS ONLY ENTITLED TO REIMBURSEMENT TO THE EXTENT OF THE AMOUNT ACTUALLY RECEIVED BY THE BROKER, SINCE UNDER BOB CIRCULAR A-56 REIMBURSEMENT MAY NOT BE MADE UNTIL THE ALLOWABLE ITEM HAS ACTUALLY BEEN PAID.

TO MR. DALE L. ROTHROCK, AUTHORIZED CERTIFYING OFFICER, CHIEF, DIVISION OF FISCAL SERVICES, OFFICE OF THE SECRETARY, UNITED STATES DEPARTMENT OF THE INTERIOR:

WE REFER TO YOUR LETTER OF JUNE 23, 1967, FORWARDING FOR OUR ADVANCE DECISION THE RECLAIM TRAVEL VOUCHER OF MR. RALPH O. CANADAY, JR., AN EMPLOYEE OF THE OFFICE OF THE SOLICITOR, UNITED STATES DEPARTMENT OF THE INTERIOR, FOR REIMBURSEMENT OF THE REAL ESTATE BROKER'S FEE HE INCURRED IN THE SALE OF HIS RESIDENCE AT HIS OLD OFFICIAL STATION IN CONNECTION WITH HIS TRANSFER FROM SANTA FE, NEW MEXICO, TO DENVER, COLORADO, ON OR ABOUT JULY 28, 1966.

THE DOCUMENTS FORWARDED WITH MR. CANADAY'S VOUCHER SHOW THAT THE PURCHASER OF HIS RESIDENCE OWED HIM A SUM IN EXCESS OF THE APPLICABLE BROKER'S FEE AS THE BALANCE OF THE PURCHASE PRICE OF THE RESIDENCE. THE PURCHASER HAS AGREED TO PAY $20 PER MONTH, INCLUDING INTEREST, UNTIL HE HAS PAID THE BALANCE OF THE PURCHASE PRICE AND MR. CANADAY HAS AUTHORIZED THE $20 MONTHLY PAYMENTS TO BE TURNED OVER TO THE REAL ESTATE BROKER UNTIL THE BROKER'S FEE OF $748.80 HAS BEEN PAID IN FULL. IN THE CIRCUMSTANCES ALTHOUGH MR. CANADAY HAS INCURRED AN OBLIGATION TO PAY THE BROKER'S FULL FEE HE HAS PAID THAT FEE ONLY TO THE EXTENT THAT MONEY PAID TO HIM BY THE PURCHASER HAS BEEN TURNED OVER TO THE BROKER.

THE QUESTION PRESENTED IS WHETHER THE BROKER'S FEE IN THE AMOUNT OF $748.80 MAY BE REIMBURSED TO MR. CANADAY UNDER THE PROVISION OF SECTION 4 OF BUREAU OF THE BUDGET CIRCULAR NO. A-56 EVEN THOUGH HE HAS NOT PAID THE FULL AMOUNT OF THAT FEE TO THE BROKER.

SECTION 4.1E OF CIRCULAR NO. A-56 PROVIDES, IN PART, THAT REIMBURSEMENT UNDER THAT SECTION WILL BE MADE ONLY IF "THE EXPENSES FOR WHICH REIMBURSEMENT IS CLAIMED WERE PAID BY THE EMPLOYEE.' IN VIEW OF THAT PROVISION AS WELL AS THE PROVISIONS OF SECTIONS 4.2A AND 4.3A OF CIRCULAR NO. A-56, NO REIMBURSEMENT MAY BE MADE TO AN EMPLOYEE UNTIL HE HAS PAID AN ITEM OF COST OTHERWISE ALLOWABLE UNDER THAT SECTION.

THEREFORE, THE VOUCHER WHICH IS RETURNED HEREWITH MAY BE CERTIFIED FOR PAYMENT ONLY TO THE EXTENT OF THE AMOUNT ACTUALLY RECEIVED BY THE REAL ESTATE BROKER FROM MR. CANADAY AT THIS TIME. OF COURSE, THIS SHOULD BE SUPPORTED BY RECEIPTS OR INVOICES AS SPECIFIED IN SECTION 4.3A OF CIRCULAR NO. A-56.