B-167770, SEP 11, 1969

B-167770: Sep 11, 1969

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HELD THAT THERE IS NO AUTHORITY UNDER 5 U.S.C. 5724(I) FOR WAIVER OF RECOVERY OF ANY PART OF THE AMOUNT DUE FOR SERVICE AGREEMENT VIOLATION. REAGAN WAS TRANSFERRED TO WASHINGTON EFFECTIVE NOVEMBER 1. HE IS IN DEBT TO THE UNITED STATES FOR THE COSTS OF HIS TRANSFER. OUR DECISION IS REQUESTED AS TO WHETHER THE AMOUNT OF MR. EVEN THOUGH HE MAY HAVE BEEN ENTITLED TO REIMBURSEMENT FOR COSTS OF MOVING HIS FAMILY AND SHIPMENT OF HOUSEHOLD GOODS FROM WASHINGTON. IT IS RESPECTFULLY REQUESTED THAT MR. BASED UPON THE FACT THAT HE HAS SERVED APPROXIMATELY 18 MONTHS IN THE FEDERAL SERVICE AND THAT HE HAD COMPLETED OVER NINE MONTHS OF ONE YEAR REQUIRED SERVICE." 5 U.S.C. 5724(I) PROVIDES IN PART THAT IN CASE AN AGREEMENT IS VIOLATED "THE MONEY SPENT BY THE UNITED STATES FOR THE EXPENSES AND ALLOWANCES IS RECOVERABLE FROM THE EMPLOYEE AS A DEBT DUE THE UNITED STATES.".

B-167770, SEP 11, 1969

CIVIL PAY - TRANSFER - SERVICE AGREEMENT - VIOLATION DECISION TO DIRECTOR, EXECUTIVE OFFICE OF THE PRESIDENT, OFFICE OF ECONOMIC OPPORTUNITY CONCERNING WHETHER THE DEBT OF A FORMER EMPLOYEE WHICH AROSE FROM HIS FAILURE TO FULFILL A 12-MONTH SERVICE AGREEMENT FOLLOWING TRANSFER AT GOVERNMENT EXPENSE FROM CHARLOTTE, N.C. TO WASHINGTON, D.C. MAY BE PRORATED. HELD THAT THERE IS NO AUTHORITY UNDER 5 U.S.C. 5724(I) FOR WAIVER OF RECOVERY OF ANY PART OF THE AMOUNT DUE FOR SERVICE AGREEMENT VIOLATION. HOWEVER WITH RESPECT TO COMPROMISE OF THE DEBT ACTION MUST BE IN ACCORDANCE WITH PUBLIC LAW 89-508, 31 U.S.C. 951-953 AND 5 CFR 101-105.

TO MR. RUMSFELD:

WE REFER TO THE LETTER OF DR. W. ASTOR KIRK, REGIONAL DIRECTOR, MID ATLANTIC REGION, OFFICE OF ECONOMIC OPPORTUNITY, DATED AUGUST 19, 1969, CONCERNING THE DEBT TO THE UNITED STATES OF MR. GEORGE A. REAGAN, A FORMER EMPLOYEE OF THE OFFICE OF ECONOMIC OPPORTUNITY, WHICH AROSE FROM HIS FAILURE TO FULFILL A 12-MONTH SERVICE AGREEMENT FOLLOWING HIS TRANSFER AT GOVERNMENT EXPENSE FROM CHARLOTTE, NORTH CAROLINA, TO WASHINGTON, D. C.

MR. REAGAN WAS TRANSFERRED TO WASHINGTON EFFECTIVE NOVEMBER 1, 1968, HAVING SIGNED THE 12-MONTH SERVICE AGREEMENT REQUIRED BY 5 U.S.C. 5724(I) ON OCTOBER 17, 1968. ON AUGUST 5, 1969, MR. REAGAN RESIGNED HIS POSITION WITH THE OFFICE OF ECONOMIC OPPORTUNITY TO ACCEPT PRIVATE EMPLOYMENT. UNDER THE CITED PROVISION OF LAW AND THE AGREEMENT SIGNED OCTOBER 17, HE IS IN DEBT TO THE UNITED STATES FOR THE COSTS OF HIS TRANSFER.

OUR DECISION IS REQUESTED AS TO WHETHER THE AMOUNT OF MR. REAGAN'S DEBT MAY BE PRORATED IN VIEW OF THE FACT THAT HE HAD COMPLETED MORE THAN 9 MONTHS OF HIS 12-MONTH AGREEMENT BEFORE HE RESIGNED. IN THAT CONNECTION DR. KIRK SAYS:

"SINCE MR. REAGAN MOVED FROM WASHINGTON, D. C. TO HIS DUTY STATION IN CHARLOTTE, NORTH CAROLINA AT NO EXPENSE TO THE GOVERNMENT, EVEN THOUGH HE MAY HAVE BEEN ENTITLED TO REIMBURSEMENT FOR COSTS OF MOVING HIS FAMILY AND SHIPMENT OF HOUSEHOLD GOODS FROM WASHINGTON, D. C. TO CHARLOTTE, NORTH CAROLINA, AND SINCE HE SERVED OVER NINE MONTHS OF THE ONE YEAR REQUIRED BY THE SERVICE AGREEMENT, IT IS RESPECTFULLY REQUESTED THAT MR. REAGAN BE AUTHORIZED TO REPAY ONE-FOURTH OF THE COST OF MOVEMENT OF HIS DEPENDENTS AND SHIPMENT OF HOUSEHOLD GOODS FROM CHARLOTTE, NORTH CAROLINA TO WASHINGTON, D.C., BASED UPON THE FACT THAT HE HAS SERVED APPROXIMATELY 18 MONTHS IN THE FEDERAL SERVICE AND THAT HE HAD COMPLETED OVER NINE MONTHS OF ONE YEAR REQUIRED SERVICE."

5 U.S.C. 5724(I) PROVIDES IN PART THAT IN CASE AN AGREEMENT IS VIOLATED "THE MONEY SPENT BY THE UNITED STATES FOR THE EXPENSES AND ALLOWANCES IS RECOVERABLE FROM THE EMPLOYEE AS A DEBT DUE THE UNITED STATES." THERE IS NO AUTHORITY UNDER THAT SECTION FOR THE HEAD OF AN AGENCY TO WAIVE RECOVERY OF ANY PART OF THE AMOUNT OTHERWISE DUE SUCH AS IS CONTAINED IN 5 U.S.C. 4108(C) WITH REGARD TO DEBTS ARISING FROM THE VIOLATION BY EMPLOYEES OF SERVICE AGREEMENTS REQUIRED UNDER THE TRAINING PROVISIONS. WE FIND NO BASIS IN LAW WHICH WOULD PERMIT DISCRETION ON THE PART OF THE EMPLOYING AGENCY WITH REGARD TO THE AMOUNT OF AN EMPLOYEE'S DEBT FOR VIOLATION OF A SERVICE AGREEMENT REQUIRED BY 5 U.S.C. 5724(I). OF COURSE, IF IT IS NOW FOUND THAT MR. REAGAN IS ENTITLED TO CERTAIN REIMBURSEMENTS INCIDENT TO HIS TRANSFER TO CHARLOTTE FROM WASHINGTON THE AMOUNT DUE FOR THAT TRANSFER COULD BE APPLIED TO PAYMENT OF HIS DEBT FOR THE TRANSFER FROM CHARLOTTE TO WASHINGTON.

FOR THE REASONS STATED MR. REAGAN MUST BE PLACED IN DEBT TO THE UNITED STATES FOR THE FULL AMOUNT OF THE EXPENSES AND ALLOWANCES PAID HIM IN CONNECTION WITH HIS TRANSFER FROM CHARLOTTE TO WASHINGTON.

WITH REGARD TO THE COMPROMISE OF THE DEBT SO ESTABLISHED, THE FEDERAL CLAIMS COLLECTION ACT OF 1966, APPROVED JULY 19, 1966, PUBLIC LAW 89 508, 80 STAT. 308, 31 U.S.C. 951-953, AND THE REGULATIONS ISSUED THEREUNDER, 5 CFR 101-105, PROVIDE AUTHORITY UNDER CERTAIN CIRCUMSTANCES FOR THE TERMINATION OF COLLECTION ACTION OR COMPROMISE OF DEBTS DUE THE UNITED STATES. ANY ACTION TAKEN TO TERMINATE COLLECTION ACTION OR TO COMPROMISE MR. REAGAN'S DEBT MUST BE IN ACCORDANCE WITH THOSE PROVISIONS OF LAW AND REGULATION.