B-173152, AUG 2, 1971

B-173152: Aug 2, 1971

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THERE IS NO BASIS UNDER SECTION 4.2 OMB CIR. "ATTORNEY FOR THE BANK" WAS NOT FURTHER DESCRIBED. HODGES: REFERENCE IS MADE TO YOUR LETTER OF MAY 28. THE REIMBURSEMENT OF WHICH WAS ADMINISTRATIVELY DISALLOWED. THE CHARGES ARE DESCRIBED AS THE BANK'S TITLE INSURANCE POLICY. MISCELLANEOUS AND THE FOLLOWING STATEMENT WAS INCLUDED ON THE VOUCHER: "THIS IS NOT CONSIDERED BY THE BANK A SERVICE OR FINANCE CHARGE. $972 OF WHICH WAS DESCRIBED AS "4% CLOSING COSTS. " ARE FOR TITLE PREPARATION. WAS NOT FURTHER DESCRIBED AND. THERE IS NO BASIS UNDER THE GOVERNING REGULATION. IF SUCH CHARGE IS FOR A MORTGAGE TITLE POLICY. THE VOUCHER IS RETURNED HEREWITH FOR HANDLING IN ACCORDANCE WITH THE FOREGOING.

B-173152, AUG 2, 1971

CIVILIAN EMPLOYEE - PURCHASE OF RESIDENCE - RECLAIM VOUCHER DECISION THAT A RECLAIM VOUCHER IN THE AMOUNT OF $451.15 IN FAVOR OF ROBERT NEDELMAN FOR REIMBURSEMENT OF REAL ESTATE EXPENSES INCURRED INCIDENT TO A CHANGE OF STATIONS, MAY NOT BE CERTIFIED FOR PAYMENT. THERE IS NO BASIS UNDER SECTION 4.2 OMB CIR. NO. A-56 FOR PAYMENT OF BOOKKEEPING, OVERHEAD, CLERICAL AND MISCELLANEOUS EXPENSES OF A LOANING INSTITUTION INCIDENT TO THE PURCHASE OF A RESIDENCE. FURTHER, THE PAYMENT OF $146.50 ON THE ORIGINAL VOUCHER SHOULD BE RECOVERED BECAUSE THE ITEM, "ATTORNEY FOR THE BANK" WAS NOT FURTHER DESCRIBED. SEE 48 COMP. GEN. 469 (1969).

TO MRS. DOLORES T. HODGES:

REFERENCE IS MADE TO YOUR LETTER OF MAY 28, 1971, WITH ENCLOSURES, REQUESTING OUR DECISION AS TO THE PROPRIETY OF CERTIFYING FOR PAYMENT A RECLAIM VOUCHER IN THE AMOUNT OF $451.15 IN FAVOR OF MR. ROBERT NEDELMAN, FOR REIMBURSEMENT OF CERTAIN REAL ESTATE EXPENSES INCURRED IN CONNECTION WITH THE PURCHASE OF A RESIDENCE AT HIS NEW DUTY STATION INCIDENT TO HIS TRANSFER FROM THE NEW YORK AREA OFFICE TO CORAL GABLES, FLORIDA.

THE $451.15 REPRESENTS VARIOUS CHARGES, THE REIMBURSEMENT OF WHICH WAS ADMINISTRATIVELY DISALLOWED. THE CHARGES ARE DESCRIBED AS THE BANK'S TITLE INSURANCE POLICY, BOOKKEEPING, OVERHEAD, CLERICAL, AND MISCELLANEOUS AND THE FOLLOWING STATEMENT WAS INCLUDED ON THE VOUCHER: "THIS IS NOT CONSIDERED BY THE BANK A SERVICE OR FINANCE CHARGE, BUT A NORMAL EXPENSE ON ALL MORTGAGES ISSUED BY THEM."

THE ENCLOSURES WITH THE VOUCHER SHOW THAT OF THE $1,038.50 ORIGINALLY CLAIMED BY MR. NEDELMAN, $972 OF WHICH WAS DESCRIBED AS "4% CLOSING COSTS," $587.65 HAS BEEN ALLOWED. THE ITEMS ADMINISTRATIVELY ALLOWED, APPARENTLY BASED UPON ADDITIONAL INFORMATION CONCERNING THE "4% CLOSING COSTS," ARE FOR TITLE PREPARATION, ABSTRACT COSTS, RECORDING, SURVEY, MORTGAGE TAX, AND "ATTORNEY FOR THE BANK." THIS LAST ITEM, IN THE AMOUNT OF $146.50, WAS NOT FURTHER DESCRIBED AND, THEREFORE, THE ADMINISTRATIVE ACTION APPEARS ERRONEOUS BASED ON THE PRESENT RECORD. SEE 48 COMP. GEN. 469 (1969). ACCORDINGLY, RECOVERY OF THAT AMOUNT SHOULD BE EFFECTED.

IN REGARD TO BALANCE NOW CLAIMED, $450.85 (BALANCE ERRONEOUSLY STATED ON VOUCHER AS $451.15), THERE IS NO BASIS UNDER THE GOVERNING REGULATION, SECTION 4.2 OF OFFICE OF MANAGEMENT AND BUDGET CIRCULAR NO. A-56, REVISED JUNE 26, 1969, FOR PAYMENT OF "BOOKKEEPING, OVERHEAD, CLERICAL AND MISCELLANEOUS" EXPENSES OF A LOANING INSTITUTION INCIDENT TO THE PURCHASE OF A RESIDENCE. CF. B-170661, SEPTEMBER 16, 1970, COPY ENCLOSED.

AS TO THE $20 CHARGE FOR THE BANK'S TITLE INSURANCE POLICY, IF SUCH CHARGE IS FOR A MORTGAGE TITLE POLICY, REIMBURSEMENT WOULD BE PROPER UNDER SECTION 4.2D OF CIRCULAR NO. A-56. FURTHER INFORMATION SHOULD BE OBTAINED BY YOU IN THIS REGARD BEFORE CERTIFICATION.

THE VOUCHER IS RETURNED HEREWITH FOR HANDLING IN ACCORDANCE WITH THE FOREGOING.