Temporary Quarters Subsistence Expense Reconsideration

The Department of Labor asked for a more precise explanation of an earlier decision regarding the computation of temporary quarters subsistence expenses for an employee. In an earlier decision, GAO agreed with the employee's contention that the correct per diem rate was $75. However, the amount of an employee's entitlement to temporary quarters subsistence expenses is subject to computational provisions of Federal Travel Regulations which state that the amount which may be reimbursed shall be the lesser of either: (1) the actual amount of allowable expenses incurred for each 10-day period; or (2) the amount computed for each 10-day period as a percentage of the maximum statutory per diem rate for the locality. Even though the employee's temporary quarters were located in a high-rate geographical area, the payment of $75 per day would contravene this regulation. Thus, the employee's entitlement to temporary quarters subsistence expenses should be the lesser of either the amount he actually incurred or the amount computed as a percentage of the $50 maximum statutory per diem rate in accordance with the Federal regulations. Accordingly, the prior decision is modified.