B-163545, MAR. 20, 1968

B-163545: Mar 20, 1968

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BEFORE THE INTERESTED PARTY WOULD PURCHASE THE PROPERTY IT WAS NECESSARY THAT ARRANGEMENTS BE MADE TO SECURE WATER FROM ANOTHER SOURCE. THE TYPES OF EXPENSES REIMBURSABLE ARE SET FORTH IN SUCH REGULATIONS. THERE IS ALSO FOR CONSIDERATION WHETHER THE INSTALLATION OF THE WATER SYSTEM IS REIMBURSABLE UNDER SECTION 3 OF BUREAU OF THE BUDGET CIRCULAR NO. THE ALLOWANCES UNDER SECTION 3 ARE RELATED TO EXPENSES THAT ARE COMMON TO LIVING QUARTERS FURNISHINGS AND HOUSEHOLD APPLIANCES AND OTHER GENERAL TYPES OF COSTS INHERENT IN RELOCATION OF A PLACE OF RESIDENCE. SECTION 3.1C (12) PERTAINING TO TYPES OF COSTS WHICH ARE NOT REINBURSABLE UNDER MISCELLANEOUS EXPENSES PROVIDES AS FOLLOWS: "COSTS INCURRED IN CONNECTION WITH STRUCTURAL ALTERATIONS.

B-163545, MAR. 20, 1968

TO MR. FRANK L. GRUBE:

THIS REFERS TO YOUR LETTER OF FEBRUARY 12, 1968, WITH ENCLOSURES, REQUESTING A DECISION FROM OUR OFFICE WHETHER YOU MAY CERTIFY FOR PAYMENT A RECLAIM VOUCHER FOR $167.54 IN FAVOR OF MR. ROBERT E. ALLEN, AN EMPLOYEE OF THE NATIONAL LABOR RELATIONS BOARD, INCIDENT TO HIS TRANSFER FROM PEORIA, ILLINOIS, TO KANSAS CITY, MISSOURI.

MR. ALLEN SAYS THAT PRIOR TO HIS TRANSFER THE WATER FOR HIS RESIDENCE AT HIS OLD DUTY STATION CAME FROM HIS NEIGHBOR'S WELL UNDER A CONTRACT WHICH TERMINATED UPON THE SALE OF HIS RESIDENCE. BEFORE THE INTERESTED PARTY WOULD PURCHASE THE PROPERTY IT WAS NECESSARY THAT ARRANGEMENTS BE MADE TO SECURE WATER FROM ANOTHER SOURCE. THE EXPENSE INCURRED OF $167.54 CONSISTED OF WATER RIGHTS TO THE RESIDENCE ($85), PLUMBING NECESSARY TO CHANGE FROM ONE WELL TO ANOTHER ($38.54), AND BACK HOE OPERATION NECESSARY TO GET TO WATER LINE ($44).

SECTION 4 OF BUREAU OF THE BUDGET CIRCULAR NO. A-56, REVISED OCTOBER 12, 1966, PROVIDES FOR REIMBURSEMENT FOR CERTAIN EXPENSES INCURRED IN CONNECTION WITH REAL ESTATE TRANSACTIONS. THE TYPES OF EXPENSES REIMBURSABLE ARE SET FORTH IN SUCH REGULATIONS. HOWEVER, WE FAIL TO FIND ANY PROVISION THEREIN WHICH WOULD COVER AN EXPENSE SUCH AS HERE INVOLVED.

THERE IS ALSO FOR CONSIDERATION WHETHER THE INSTALLATION OF THE WATER SYSTEM IS REIMBURSABLE UNDER SECTION 3 OF BUREAU OF THE BUDGET CIRCULAR NO. A-56. THE ALLOWANCES UNDER SECTION 3 ARE RELATED TO EXPENSES THAT ARE COMMON TO LIVING QUARTERS FURNISHINGS AND HOUSEHOLD APPLIANCES AND OTHER GENERAL TYPES OF COSTS INHERENT IN RELOCATION OF A PLACE OF RESIDENCE. SECTION 3.1C (12) PERTAINING TO TYPES OF COSTS WHICH ARE NOT REINBURSABLE UNDER MISCELLANEOUS EXPENSES PROVIDES AS FOLLOWS:

"COSTS INCURRED IN CONNECTION WITH STRUCTURAL ALTERATIONS; REMODELING OR MODERNIZING OF LIVING QUARTERS, GARAGES OR OTHER BUILDINGS, TO ACCOMMODATE PRIVATELY OWNED AUTOMOBILES, APPLIANCES OR EQUIPMENT; OR THE COST OF REPLACING OR REPAIRING WORN OUT OR DEFECTIVE APPLIANCES OR EQUIPMENT SHIPPED TO THE NEW LOCATION.'

THE PROVIDING OF A WATER SYSTEM AT THE EMPLOYEE'S RESIDENCE AT HIS OLD DUTY STATION IN ORDER TO CONSUMMATE THE SALE THEREOF IS TO BE CONSIDERED AS A CAPITAL IMPROVEMENT AND IS TANTAMOUNT TO ,REMODELING OR MODERNIZING OF LIVING QUARTERS.' THEREFORE, THE EXPENSES INCURRED IN PROVIDING SUCH WATER SYSTEM WOULD COME WITHIN THE PROHIBITION CONTAINED IN SECTION 3.1C (12) ABOVE.