B-183317, MAY 14, 1975

B-183317: May 14, 1975

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EMPLOYEE WHO WAS TRANSFERRED FROM SPOKANE. IS NOT ENTITLED TO REIMBURSEMENT FOR A LOAN SERVICE FEE WHICH IS CONSIDERED A FINANCE CHARGE UNDER PUBLIC LAW 90-321 AND REGULATION Z. APPRAISAL AND CREDIT REPORT FEES ARE REIMBURSABLE. TRAVEL AND TRANSPORTATION EXPENSES TO OLD DUTY STATION WHILE IN ANNUAL LEAVE STATUS FOR PURPOSE OF TRANSPORTING HOUSEHOLD EFFECTS ARE NOT REIMBURSABLE. NUZUM - REIMBURSEMENT FOR REAL ESTATE AND TRAVEL EXPENSES: THIS IS IN RESPONSE TO A REQUEST FOR AN ADVANCE DECISION BY AN AUTHORIZED CERTIFYING OFFICER OF THE BUREAU OF MINES. NUZUM WAS AUTHORIZED TO BEGIN TRAVEL ON OR ABOUT SEPTEMBER 2. OF THIS AMOUNT $857.81 IS THE SUBJECT OF A RECLAIM. THE VALIDITY OF WHICH WAS SUBMITTED TO OUR OFFICE FOR DETERMINATION.

B-183317, MAY 14, 1975

EMPLOYEE WHO WAS TRANSFERRED FROM SPOKANE, WASHINGTON, TO ALBANY, OREGON, IS NOT ENTITLED TO REIMBURSEMENT FOR A LOAN SERVICE FEE WHICH IS CONSIDERED A FINANCE CHARGE UNDER PUBLIC LAW 90-321 AND REGULATION Z. SEE FEDERAL TRAVEL REGULATIONS (FPMR 101-7) PARA. 2-6.2D (MAY 1973). APPRAISAL AND CREDIT REPORT FEES ARE REIMBURSABLE. TRAVEL AND TRANSPORTATION EXPENSES TO OLD DUTY STATION WHILE IN ANNUAL LEAVE STATUS FOR PURPOSE OF TRANSPORTING HOUSEHOLD EFFECTS ARE NOT REIMBURSABLE. SEE B -175031, APRIL 4, 1972.

LEE T. NUZUM - REIMBURSEMENT FOR REAL ESTATE AND TRAVEL EXPENSES:

THIS IS IN RESPONSE TO A REQUEST FOR AN ADVANCE DECISION BY AN AUTHORIZED CERTIFYING OFFICER OF THE BUREAU OF MINES, UNITED STATES DEPARTMENT OF THE INTERIOR, AS TO THE PROPRIETY OF CERTIFYING FOR PAYMENT THE RECLAIM VOUCHER OF MR. LEE T. NUZUM FOR CERTAIN EXPENSES INCURRED IN CONNECTION WITH THE TRANSFER OF HIS OFFICIAL DUTY STATION FROM SPOKANE, WASHINGTON, TO ALBANY, OREGON.

BY TRAVEL AUTHORIZATION DATED AUGUST 26, 1974, AND ISSUED BY THE RECEIVING ACTIVITY IN ALBANY, MR. NUZUM WAS AUTHORIZED TO BEGIN TRAVEL ON OR ABOUT SEPTEMBER 2, 1974, INCIDENT TO THE TRANSFER. PURSUANT TO THE TRAVEL AUTHORIZATION MR. NUZUM TRAVELED TO ALBANY ON SEPTEMBER 1, 1974, AND RETURNED TO SPOKANE ON SEPTEMBER 10, 1974, FOR THE PURPOSE OF ARRANGING FOR THE TRANSPORTATION OF HIS HOUSEHOLD GOODS. FROM SEPTEMBER 11 THROUGH 13, HE TOOK ANNUAL LEAVE AND ON SEPTEMBER 14, ACCOMPANIED BY HIS WIFE, HE DEPARTED SPOKANE, ARRIVING IN ALBANY ON SEPTEMBER 15.

IN PROCESSING MR. NUZUM'S TRAVEL VOUCHER, THE ADMINISTRATIVE OFFICE SUSPENDED THE PAYMENT OF CERTAIN EXPENSES INCURRED IN CONNECTION WITH THE TRANSFER IN THE AMOUNT OF $1,218.22. OF THIS AMOUNT $857.81 IS THE SUBJECT OF A RECLAIM, THE VALIDITY OF WHICH WAS SUBMITTED TO OUR OFFICE FOR DETERMINATION.

THE RECLAIM VOUCHER COVERS TWO BROAD CATEGORIES OF EXPENSES INCURRED REAL ESTATE EXPENSES IN CONNECTION WITH THE SALE AND PURCHASE OF A RESIDENCE AND TRAVEL AND SUBSISTENCE EXPENSES COVERING THE PERIOD SEPTEMBER 1 TO SEPTEMBER 15.

THE REAL ESTATE EXPENSES IN THE AMOUNT OF $475 ARE MADE UP OF $432 FOR SERVICES IN CONNECTION WITH OBTAINING A LOAN BY THE PURCHASERS OF THE OLD RESIDENCE AT SPOKANE WHICH MR. NUZUM AGREED TO PAY AND $43 CREDIT AND APPRAISAL FEE CONSISTING OF $37.50 FOR THE APPRAISAL AND $5.50 FOR THE CREDIT REPORT WHICH HE ALSO PAID. THE RECORD CONTAINS A LETTER FROM THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT AT SPOKANE WHICH INDICATES THAT IN THE SPOKANE AREA IT IS CUSTOMARY FOR THE SELLER TO PAY THE ABOVE- NAMED EXPENSES, EVEN THOUGH THEY ARE GENERALLY CONSIDERED TO BE PART OF THE PURCHASER'S ACQUISITION COST.

THE LOAN SERVICE FEE OF $432 IS A FINANCE CHARGE UNDER THE TRUTH IN LENDING ACT, TITLE I, PUBLIC LAW 90-321, 15 U.S.C. 1601 ET SEQ., AND REGULATION Z (PART 226 OF TITLE 12, CODE OF FEDERAL REGULATIONS), ISSUED PURSUANT THERETO BY THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM AND IS THEREFORE NOT A REIMBURSABLE EXPENSE REGARDLESS OF THE PREVAILING CUSTOM IN THE AREA - WHETHER IT IS PAYABLE BY THE SELLER OR THE PURCHASER UNDER FEDERAL TRAVEL REGULATIONS (FPMR 101-7) PARA. 2-6.2D (MAY 1973). THE CREDIT AND APPRAISAL FEE OF $43 IS A REIMBURSABLE EXPENSE UNDER THE SAME REGULATION. SEE FTR PARA. 2-6.2B AND D (MAY 1973).

CONCERNING THE TRAVEL EXPENSE, MR. NUZUM IS ENTITLED TO BE REIMBURSED FOR EXPENSES INCURRED IN CONNECTION WITH THE TRAVEL FROM SPOKANE TO ALBANY INCIDENT TO THE TRANSFER OF DUTY STATION AT 12 CENTS PER MILE FOR THE USE OF HIS PRIVATE VEHICLE, AS AUTHORIZED BY THE TRAVEL ORDERS, AND PER DIEM WHILE EN ROUTE FOR HIMSELF AND HIS WIFE.

HOWEVER, WE ARE NOT AWARE OF ANY AUTHORITY TO PAY PER DIEM AND MILEAGE TO AN EMPLOYEE FOR HIS RETURN TO THE OLD OFFICIAL STATION FOR 2 DAYS OF ANNUAL LEAVE IN ORDER TO TRANSPORT HIS HOUSEHOLD EFFECTS TO HIS NEW OFFICIAL STATION. SEE B-175031, APRIL 4, 1972. ACCORDINGLY, ACTION ON THE RECLAIM VOUCHER SHOULD BE TAKEN IN ACCORDANCE WITH THE FOREGOING.