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B-168186, NOV. 24, 1969

B-168186 Nov 24, 1969
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IT IS REPORTED THAT THE EMPLOYEE WAS UNABLE TO FIND A SUITABLE RESIDENCE AFTER HIS ARRIVAL AT HIS POST OF DUTY AT ST. THE LONG DELAY IN OBTAINING A CONSTRUCTION CONTRACT WAS DUE PRIMARILY TO THE LIMITED SUPPLY OF CONSTRUCTION CONTRACTORS IN THE ISLANDS. THE COMPTROLLER WAS NOTIFIED THAT HE WOULD BE TRANSFERRED TO WASHINGTON WITH THE EFFECTIVE DATE LATER SET FOR OCTOBER 20. HE HAS DECIDED IT WOULD BE IMPRUDENT TO TERMINATE HIS CONSTRUCTION CONTRACT AS COMPLETION IS SCHEDULED FOR DECEMBER 15. WHICH INVOLVED A CASE WHERE THE PURCHASE OF A RESIDENCE WAS NOT CONSUMMATED BECAUSE OF THE RETRANSFER OF THE EMPLOYEE THERE INVOLVED IN THE INTEREST OF THE GOVERNMENT AND REIMBURSEMENT WAS ALLOWED TO THE EXTENT THAT ITEMS OF EXPENSE INCURRED IN CONNECTION WITH THE REAL ESTATE TRANSACTION ARE OTHERWISE AUTHORIZED BY THE LAW AND REGULATIONS HAD THE PURCHASE BEEN CONSUMMATED.

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B-168186, NOV. 24, 1969

TO MR. SECRETARY:

BY LETTER OF OCTOBER 21, 1969, MR. GEORGE E. ROBINSON, THE DEPUTY ASSISTANT SECRETARY FOR ADMINISTRATION, REQUESTS A DECISION ON THE ALLOWABILITY OF REAL ESTATE EXPENSES WHEN THE COMPTROLLER FOR THE VIRGIN ISLANDS, INCIDENT TO HIS RETRANSFER TO WASHINGTON, D.C., SELLS PROPERTY WHICH HE OBTAINED IN THE VIRGIN ISLANDS AFTER HIS TRANSFER THERE ON OCTOBER 16, 1968.

IT IS REPORTED THAT THE EMPLOYEE WAS UNABLE TO FIND A SUITABLE RESIDENCE AFTER HIS ARRIVAL AT HIS POST OF DUTY AT ST. THOMAS, VIRGIN ISLANDS. DECEMBER 21, 1968, HE PURCHASED A LOT AND ON JUNE 3, 1969, SIGNED A CONTRACT FOR CONSTRUCTION OF A RESIDENCE WITH COMPLETION SCHEDULED FOR DECEMBER 15, 1969. THE LONG DELAY IN OBTAINING A CONSTRUCTION CONTRACT WAS DUE PRIMARILY TO THE LIMITED SUPPLY OF CONSTRUCTION CONTRACTORS IN THE ISLANDS. A TIME EXTENSION HAS BEEN AUTHORIZED WITHIN THE PROVISIONS OF SECTION 4.1E OF BUREAU OF THE BUDGET CIRCULAR NO. A-56 AS REVISED JUNE 26, 1969.

ON SEPTEMBER 11, 1969, THE COMPTROLLER WAS NOTIFIED THAT HE WOULD BE TRANSFERRED TO WASHINGTON WITH THE EFFECTIVE DATE LATER SET FOR OCTOBER 20, 1969. HE HAS DECIDED IT WOULD BE IMPRUDENT TO TERMINATE HIS CONSTRUCTION CONTRACT AS COMPLETION IS SCHEDULED FOR DECEMBER 15, 1969.

MR. ROBINSON ASKS WHETHER WE WOULD BE REQUIRED TO OBJECT TO A REIMBURSEMENT OF THE SELLING EXPENSES WHEN THE COMPTROLLER SELLS THE PROPERTY. HE REFERS TO OUR DECISION IN B-162274, SEPTEMBER 11, 1967, WHICH INVOLVED A CASE WHERE THE PURCHASE OF A RESIDENCE WAS NOT CONSUMMATED BECAUSE OF THE RETRANSFER OF THE EMPLOYEE THERE INVOLVED IN THE INTEREST OF THE GOVERNMENT AND REIMBURSEMENT WAS ALLOWED TO THE EXTENT THAT ITEMS OF EXPENSE INCURRED IN CONNECTION WITH THE REAL ESTATE TRANSACTION ARE OTHERWISE AUTHORIZED BY THE LAW AND REGULATIONS HAD THE PURCHASE BEEN CONSUMMATED.

THE LITERAL LANGUAGE OF SECTION 4.1D OF CIRCULAR NO. A-56 REQUIRING THAT THE DWELLING AT THE OLD OFFICIAL STATION BE THE EMPLOYEE'S ACTUAL RESIDENCE AT THE TIME HE WAS FIRST DEFINITELY INFORMED THAT HE WAS TO BE TRANSFERRED TO A NEW OFFICIAL STATION WOULD APPEAR TO PRECLUDE ANY REIMBURSEMENT OF SELLING EXPENSES OF A HOUSE NOT USED AS RESIDENCE. HOWEVER, OUR VIEW IS THAT THE REGULATION WAS NOT INTENDED FOR APPLICATION IN A SITUATION SUCH AS HERE. THAT IS, WHERE THE ACTION OF THE AGENCY IN TRANSFERRING THE EMPLOYEE BACK TO THE UNITED STATES IN ITS OWN INTEREST HAS PRECLUDED THE EMPLOYEE FROM ESTABLISHING HIS RESIDENCE IN THE HOME WHEN COMPLETED. ACCORDINGLY, WE WOULD NOT OBJECT TO REIMBURSEMENT OF THE SELLING EXPENSES TO THE EXTENT THEY ARE OTHERWISE PROPER UNDER CIRCULAR NO. A-56.

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