Relocation, Real Estate Expenses, and Time Limitation

An employee of the Department of the Army was transferred from Fort Lee, Virginia to Fort Ritchie, Maryland, reporting for duty on May 4, 1976. The Army granted the employee a 1-year extension of the 1-year time limit to purchase a residence at his new duty station, but erred in stating that all transactions must be completed by May 5, 1978. Actually, all transactions should have been completed before that date, but the employee's residence purchase settlement occurred on May 5, 1978. Both the Army and the GAO Claims Division denied the employee's claim for reimbursement of real estate expenses because settlement took place the day after the maximum entitlement period expired, and the employee asked GAO to review the disallowance. Federal Travel Regulations governing relocation allowances permit 1 year for an employee to purchase a new residence with a possible additional 1-year extension. The settlement date on residence transactions must be no later than 2 years after the date the employee reports to his new duty station. In the employee's case, the settlement date was clearly 1 day too late to qualify him for reimbursement. It was unfortunate that the claimant was misinformed, but the Government is not responsible for the erroneous acts of its officers, and the disallowance of the claim was sustained.