[Request for Advance Decision Concerning Claim for Transportation Expenses and Offset of Indebtedness]

A Department of Labor official requested an advance decision as to whether the Government has the right to recover by salary deductions the entire advance of funds given to an employee for the shipment of his household goods incident to his transfer. An ancillary question was whether the statute of limitations applied since the transfer had taken place 11 years ago. At the time of the employee's transfer, he did not submit a voucher showing his payment of authorized transportation expenses which left the entire advance of funds recorded as his debt to the Government. The employee finally submitted a claim for his payment of the shipment to reduce the amount of the debt. GAO determined that, in this case, the employee had the defense of recoupment against collection of the advance and the time limitations did not apply. GAO noted that the employee submitted reliable documentation showing that he incurred allowable expenses. Accordingly, further salary deductions should not be made and he should be paid the amount which was collected from him for refund of the travel expense to the extent that the collections exceeded the travel advance. Furthermore, he should be permitted to deduct his allowable transportation expenses from the travel advance.