B-164871, AUG. 19, 1968

B-164871: Aug 19, 1968

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DIBELLA'S TRANSFER WAS AUTHORIZED ON SEPTEMBER 1. TRAVEL WAS TO BEGIN ON OR ABOUT NOVEMBER 15. HE WAS ON SPECIAL ASSIGNMENT IN BROOKLYN. THE SETTLEMENT DATE FOR THE SALE OF HIS RESIDENCE IN BALTIMORE WAS MAY 1. WHICH ARE AS FOLLOWS: "THE SETTLEMENT DATES FOR THE SALE AND PURCHASE OR LEASE TERMINATION TRANSACTIONS FOR WHICH REIMBURSEMENT IS REQUESTED ARE NOT LATER THAN ONE YEAR AFTER THE DATE ON WHICH THE EMPLOYEE REPORTED FOR DUTY AT THE NEW OFFICIAL STATION. EXCEPT THAT AN APPROPRIATE EXTENSION OF TIME MAY BE AUTHORIZED BY THE HEAD OF THE DEPARTMENT OR HIS DESIGNEE WHEN SETTLEMENT IS NECESSARILY DELAYED BECAUSE OF LITIGATION.'. THOSE PROVISIONS ARE CONSISTENT WITH THE RULE STATED IN DECISIONS OF OUR OFFICE THAT THE EFFECTIVE DATE OF AN EMPLOYEE'S TRANSFER IS THE DATE HE REPORTS FOR DUTY AT HIS NEW OFFICIAL STATION. 46 COMP.

B-164871, AUG. 19, 1968

TO MISS ANNE M. CRUGNALE:

WE REFER TO YOUR LETTER OF JULY 15, 1968, YOUR REFERENCE A:F:F:V, BY WHICH YOU FORWARDED FOR OUR ADVANCE DECISION THE VOUCHER OF MR. RUSSELL T. DIBELLA FOR REIMBURSEMENT OF CERTAIN COSTS HE INCURRED IN SELLING HIS RESIDENCE AT HIS OLD OFFICIAL STATION INCIDENT TO HIS TRANSFER FROM BALTIMORE, MARYLAND, TO PHILADELPHIA, PENNSYLVANIA.

MR. DIBELLA'S TRANSFER WAS AUTHORIZED ON SEPTEMBER 1, 1966, AND TRAVEL WAS TO BEGIN ON OR ABOUT NOVEMBER 15, 1966. THE EMPLOYEE ACTUALLY MOVED HIS FAMILY AND HOUSEHOLD EFFECTS FROM BALTIMORE TO CHERRY HILL, NEW JERSEY, AT WHICH PLACE HE LIVES WHILE STATIONED IN PHILADELPHIA, IN DECEMBER OF THAT YEAR. HOWEVER, HE WAS ON SPECIAL ASSIGNMENT IN BROOKLYN, NEW YORK, FROM MAY 1966 TO MAY 1967 AND DID NOT REPORT TO HIS DUTY STATION IN PHILADELPHIA UNTIL MAY 15, 1967. THE SETTLEMENT DATE FOR THE SALE OF HIS RESIDENCE IN BALTIMORE WAS MAY 1, 1968.

YOU QUESTION PAYMENT OF THIS CLAIM UNDER THE PROVISIONS OF SECTION 4.1D OF BUREAU OF THE BUDGET CIRCULAR NO. A-56, WHICH ARE AS FOLLOWS:

"THE SETTLEMENT DATES FOR THE SALE AND PURCHASE OR LEASE TERMINATION TRANSACTIONS FOR WHICH REIMBURSEMENT IS REQUESTED ARE NOT LATER THAN ONE YEAR AFTER THE DATE ON WHICH THE EMPLOYEE REPORTED FOR DUTY AT THE NEW OFFICIAL STATION, EXCEPT THAT AN APPROPRIATE EXTENSION OF TIME MAY BE AUTHORIZED BY THE HEAD OF THE DEPARTMENT OR HIS DESIGNEE WHEN SETTLEMENT IS NECESSARILY DELAYED BECAUSE OF LITIGATION.'

THOSE PROVISIONS ARE CONSISTENT WITH THE RULE STATED IN DECISIONS OF OUR OFFICE THAT THE EFFECTIVE DATE OF AN EMPLOYEE'S TRANSFER IS THE DATE HE REPORTS FOR DUTY AT HIS NEW OFFICIAL STATION. 46 COMP. GEN. 595. ON THE BASIS OF THE FACTS PRESENTED MAY 15, 1967, IS THE DATE FROM WHICH THE 12- MONTH LIMITATION IMPOSED BY SECTION 4.1D MUST BE CALCULATED. CF. B- 161266, MAY 1, 1967, COPY ENCLOSED.

THEREFORE, MR. DIBELLA IS ENTITLED TO REIMBURSEMENT OF OTHERWISE ALLOWABLE EXPENSE HE INCURRED INCIDENT TO THE SALE OF HIS RESIDENCE AT HIS OLD OFFICIAL STATION.

REGARDING THE SPECIFIC ITEMS OF REIMBURSEMENT CLAIMED THE AMOUNT $107.50, DESCRIBED AS "WYMAN PK 1 PERCENT ORIGINATION FEE," WHICH WAS PAID BY MR. DIBELLA AS SELLER OF THE RESIDENCE APPEARS TO BE A CHARGE FOR MORTGAGE DISCOUNT (POINTS). IN THE ABSENCE OF A SHOWING THAT IT WAS IN FACT A LOAN ORIGINATION FEE WHICH IN ACCORDANCE WITH THE CUSTOM OF THE AREA WAS PAID BY THE SELLER FOR THE BENEFIT OF THE BUYER IT IS FOR DISALLOWANCE UNDER SECTION 4.2D OF CIRCULAR NO. A-56. THE SAME SECTION OF CIRCULAR NO. A-56 PROVIDES THAT AMOUNTS CLAIMED FOR COSTS OF PREPAYMENT OF A MORTGAGE MAY BE ALLOWED ONLY IF THE TERMS OF THE ORIGINAL CONTRACT OR MORTGAGE INSTRUMENT PROVIDE FOR SUCH COSTS. THE FILE FURNISHED US DOES NOT CONTAIN A COPY OF THE CONTRACT OR MORTGAGE OR OTHER EVIDENCE TO SHOW THAT THAT REQUIREMENT HAS BEEN MET. THEREFORE, ON THE BASIS OF THE RECORD FURNISHED THE $190.68 CLAIMED FOR REIMBURSEMENT OF A MORTGAGE PREPAYMENT FEE SHOULD BE DISALLOWED. FURTHER, THE $15 CLAIMED IN CONNECTION WITH THAT TRANSACTION APPEARS TO BE A LIFE INSURANCE RELEASE FEE. AS SUCH IT IS A COST INCIDENT TO INSURANCE WHICH MAY NOT BE REIMBURSED UNDER SECTION 4.2D.

THE VOUCHER WHICH IS RETURNED HEREWITH TOGETHER WITH SUPPORTING PAPERS MAY PROPERLY BE CERTIFIED FOR PAYMENT ONLY IN ACCORDANCE WITH THE ABOVE.