B-165121, SEPT. 18, 1968

B-165121: Sep 18, 1968

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THE CLAIM IS MADE IN CONNECTION WITH YOUR TRANSFER FROM HUNTER AIR FORCE BASE. WHICH WAS EFFECTIVE AUGUST 29. THE PERTINENT FACTS ARE THAT ON MARCH 11. YOUR CLAIM FOR REIMBURSEMENT OF $537.80 REPRESENTING EXPENSES INCURRED IN CONNECTION WITH THE ACQUISITION OF SUCH RESIDENCE WAS DISALLOWED BY OUR OFFICE UNDER THE PROVISIONS OF SECTION 4.1D OF BUREAU OF THE BUDGET CIRCULAR NO. A-56 WHICH AUTHORIZES REIMBURSEMENT OF OTHERWISE ALLOWABLE EXPENSES PROVIDED: "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.'.

B-165121, SEPT. 18, 1968

TO MR. WILLIAM F. PHILLIPS:

WE REFER TO YOUR LETTER OF AUGUST 14, 1968, REQUESTING REVIEW OF OFFICE SETTLEMENT OF JULY 16, 1968, DISALLOWING YOUR CLAIM FOR REIMBURSEMENT OF CERTAIN EXPENSES YOU INCURRED IN THE ACQUISITION OF A RESIDENCE AT YOUR NEW DUTY STATION.

THE CLAIM IS MADE IN CONNECTION WITH YOUR TRANSFER FROM HUNTER AIR FORCE BASE, GEORGIA, TO CHARLESTON AIR FORCE BASE, SOUTH CAROLINA, WHICH WAS EFFECTIVE AUGUST 29, 1966. THE PERTINENT FACTS ARE THAT ON MARCH 11, 1967, YOU PURCHASED A LOT IN THE VICINITY OF YOU NEW OFFICIAL TATION; ON JUNE 27, 1967, YOU ENTERED INTO A CONTRACT FOR THE CONSTRUCTION OF A RESIDENCE ON THAT LOT; ON JULY 11, 1967, YOU SECURED A CONSTRUCTION/MORTGAGE LOAN ON THE PROPOSED RESIDENCE; AND FINAL LOAN SETTLEMENT ON THE COMPLETED RESIDENCE TOOK PLACE NOVEMBER 17, 1967.

YOUR CLAIM FOR REIMBURSEMENT OF $537.80 REPRESENTING EXPENSES INCURRED IN CONNECTION WITH THE ACQUISITION OF SUCH RESIDENCE WAS DISALLOWED BY OUR OFFICE UNDER THE PROVISIONS OF SECTION 4.1D OF BUREAU OF THE BUDGET CIRCULAR NO. A-56 WHICH AUTHORIZES REIMBURSEMENT OF OTHERWISE ALLOWABLE EXPENSES PROVIDED:

"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.'

THE SETTLEMENT DATE OF ANY RESIDENCE SALE OR PURCHASE TRANSACTION MUST BE DETERMINED FROM THE FACTS OF THE CASE INVOLVED. B-160799,MAY 20, 1968, COPY ENCLOSED. WE HAVE HELD IN CASES INVOLVING THE PURCHASE OF A LOT AND CONSTRUCTION OF A RESIDENCE THEREON THAT THE SETTLEMENT DATE OF SUCH TRANSACTION IS THE DATE THE COMPLETED RESIDENCE IS ACCEPTED BY THE PURCHASER AND THAT REIMBURSEMENT OF OTHERWISE ALLOWABLE EXPENSES IS AUTHORIZED IF SUCH DATE IS WITHIN THE ONE YEAR TIME LIMIT AND IF THE EMPLOYEE MOVES INTO THE NEW RESIDENCE. B-164044, JUNE 7, 1968; B-164452, JULY 2, 1968, COPIES ENCLOSED. WE ARE UNABLE TO DISTINGUISH THE FACTS OF YOUR CASE FROM THOSE WHICH WERE INVOLVED IN THOSE DECISIONS. THEREFORE, EVEN THOUGH YOU PURCHASED UNIMPROVED REAL PROPERTY, CONTRACTED FOR THE BUILDING OF A RESIDENCE AND SECURED A CONSTRUCTION/MORTGAGE LOAN PRIOR TO THE EXPIRATION OF ONE YEAR FROM THE EFFECTIVE DATE OF YOUR TRANSFER, REIMBURSEMENT OF YOUR EXPENSES IS NOT AUTHORIZED BECAUSE YOU DID NOT ACCEPT THE COMPLETED RESIDENCE UNTIL AFTER THE EXPIRATION OF THAT ONE YEAR LIMITATION.