B-169227, MAR. 31, 1970

B-169227, MAR. 31, 1970

OFFICERS AND EMPLOYEES--TRANSFERS--RELOCATION EXPENSES--ATTORNEY FEES REGARDING LUMP-SUM $400 ATTORNEY'S FEE INCIDENT TO TRANSFERRED EMPLOYEE'S SALE OF RESIDENCE AT OLD DUTY STATION, WHILE CONTRACTS, DEED, TAX FORM AND CLOSING STATEMENT PREPARATIONS, AND SURVEY AND TITLE REPORT EXAMINATIONS WOULD SEEM REIMBURSABLE, IT WILL BE NECESSARY TO OBTAIN ITEMIZATION OF FEE ALLOCATIONS SINCE PORTIONS RELATING TO REIMBURSABLE ITEMS MUST BE STATED SEPARATELY, BEFORE PAYMENT CAN BE MADE, WHERE LUMP-SUM AMOUNT INCLUDES SERVICE CHARGES ALLOWED BY SUBSEC. 4.2C, BOB CIR. NO. A-56, REVISED JUNE 26, 1969, AND OTHERS NOT ALLOWED. SEE COMP. GEN. DECS. CITED.

TO MRS. EDITH ALBRITTAIN:

THIS WILL REFER TO YOUR LETTER OF MARCH 2, 1970, REFERENCE AD571X17, REQUESTING AN ADVANCE DECISION AS TO CERTIFICATION OF A VOUCHER PRESENTED BY MR. JOSEPH W. FOTI IN THE AMOUNT OF $400 FOR AN ATTORNEY'S FEE CHARGED IN CONNECTION WITH THE SALE OF THE EMPLOYEE'S HOUSE LOCATED AT HIS OLD DUTY STATION. THE CLAIM FOR REIMBURSEMENT IS MADE UNDER AUTHORITY OF PROVISIONS OF 5 U.S.C. 5724A (A) (4) AND SUBSECTION 4.2C OF BUREAU OF THE BUDGET CIRCULAR NO. A-56 AS REVISED JUNE 26, 1969.

MR. FOTI'S CLAIM IS SUPPORTED BY THE BILL RECEIVED FROM HIS ATTORNEY IN A LUMP-SUM AMOUNT OF $400 FOR THE FOLLOWING LISTED SERVICES:

1. PREPARATION OF CONTRACTS

2. CONFERENCES WITH BROKER AND ATTORNEY FOR PURCHASERS WITH REGARD

TO TERMS OF CONTRACT

3. ATTENDING TO EXECUTION OF CONTRACTS AT OFFICE

4. CONFERENCES AND TELEPHONE CONVERSATION WITH REFERENCE TO

MORTGAGE COMMITMENT

5. EXAMINATION OF TITLE REPORT

6. EXAMINATION OF SURVEY

7. PREPARATION OF DEED

8. PREPARATION OF CITY OF NEW YORK TAX FORM FOR PAYMENT OF CITY

REAL ESTATE TAX

9. NUMEROUS TELEPHONE CONVERSATIONS WITH REFERENCE TO SETTING A

CLOSING

10. PREPARATION OF CLOSING STATEMENT

11. ATTENDANCE AT CLOSING

SUBSECTION 4.2C OF BUREAU OF THE BUDGET CIRCULAR NO. A-56 PROVIDES FOR REIMBURSEMENT OF SPECIFIED TYPES OF LEGAL SERVICES PERFORMED INCIDENT TO THE PURCHASE AND SALE OF HOUSES NECESSITATED BY TRANSFERS IN THE INTEREST OF THE GOVERNMENT. THESE INCLUDE, INSOFAR AS APPLICABLE IN THIS CASE, "COSTS OF * * * SEARCHING TITLE, PREPARING ABSTRACT, AND LEGAL FEES FOR A TITLE OPINION * * * COSTS OF PREPARING CONVEYANCES, OTHER INSTRUMENTS, AND CONTRACTS * * * COSTS OF MAKING SURVEYS * * *"

AS INDICATED BY YOUR REFERENCE TO OUR DECISIONS B-163203 (INADVERTENTLY CITED IN YOUR LETTER AS B-163202) OF MARCH 1, 1968, AND MARCH 24, 1969, IT HAS BEEN HELD CONSISTENTLY BY THIS OFFICE THAT THE PURPOSE OF SUBSECTION 4.2C IS NOT THAT OF AUTHORIZING REIMBURSEMENT OF FEES OF ATTORNEYS RETAINED TO COUNSEL AND REPRESENT EMPLOYEES IN CONNECTION WITH REAL ESTATE TRANSACTIONS. RATHER, THE REGULATION AUTHORIZES REIMBURSEMENT FOR THE EXPENSE OF THE SPECIFIC LEGAL SERVICES DESCRIBED WITHOUT REGARD TO WHETHER THEY ARE PERFORMED BY ATTORNEYS, BROKERS, TITLE COMPANIES, OR OTHERS. 162858, DECEMBER 5, 1967, COPY ENCLOSED. ACCORDINGLY, REIMBURSEMENT ON A FLAT FEE BASIS, AS YOU SUGGEST, WOULD, IN OUR OPINION, BE INCONSISTENT WITH THE STATUTORY REGULATIONS.

IN CASES IN WHICH AN ATTORNEY'S FEE STATED IN A LUMP-SUM AMOUNT INCLUDES CHARGES BOTH FOR SERVICES FOR WHICH PAYMENT IS ALLOWED BY SUBSECTION 4.2C AND FOR OTHERS NOT ALLOWED, IT IS NECESSARY TO STATE SEPARATELY THE PORTIONS OF THE FEE ALLOCABLE TO REIMBURSABLE ITEMS BEFORE PAYMENT MAY BE MADE FOR ANY PART OF IT. B-163420, MARCH 25, 1968; B-163690, MARCH 29, 1968; B-163949, MAY 28, 1968; B-165594, DECEMBER 10, 1968; B-167985, OCTOBER 15, 1969, COPIES ENCLOSED.

THEREFORE, IN THIS CASE, IT WILL BE NECESSARY FOR MR. FOTI TO OBTAIN FROM HIS ATTORNEY AN ITEMIZATION OF THOSE PORTIONS OF HIS FEE ALLOCABLE TO THE ITEMS WHICH SEEM TO BE REIMBURSABLE UNDER PROVISIONS OF SUBSECTION 4.2C OF BUREAU OF THE BUDGET CIRCULAR NO. A-56. THESE WOULD APPEAR TO BE: PREPARATION OF CONTRACTS, EXAMINATION OF TITLE REPORT, EXAMINATION OF SURVEY, PREPARATION OF DEED, PREPARATION OF TAX FORM, AND PREPARATION OF A CLOSING STATEMENT. UPON SUBMISSION OF SUCH ITEMIZATION, THE EMPLOYEE'S CLAIM FOR REIMBURSEMENT MAY BE FURTHER CONSIDERED. HOWEVER, AS PRESENTED IT MAY NOT BE CERTIFIED FOR PAYMENT.