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B-84367, JUNE 2, 1949, 28 COMP. GEN. 679

B-84367 Jun 02, 1949
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THE PROCUREMENT OF STORAGE INSURANCE BY AN EMPLOYEE INCIDENT TO HIS PERMANENT CHANGE OF STATION MAY NOT BE REGARDED AS A NECESSARY INCIDENTAL EXPENSE TO THE TEMPORARY STORAGE OF THE EMPLOYEE'S HOUSEHOLD EFFECTS IN THE ABSENCE OF A SHOWING THAT SUCH INSURANCE WAS REQUIRED BY THE STORAGE COMPANY BEFORE THE EFFECTS WOULD BE ACCEPTED. OR IS REQUIRED BY LAW. 1949: REFERENCE IS MADE TO YOUR LETTER OF MARCH 9. REQUESTING A DECISION AS TO WHETHER THE ITEM OF STORAGE INSURANCE IS PROPER FOR REIMBURSEMENT. THE RECORD SHOWS THAT THE EMPLOYEE WAS TRANSFERRED FROM WRAY. THAT SHIPMENT OF HIS HOUSEHOLD EFFECTS AT GOVERNMENT EXPENSE WAS AUTHORIZED. THAT THE STORAGE CHARGE AND EXPENSES INCIDENTAL THERETO WERE INCURRED AT GRAND JUNCTION COLORADO.

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B-84367, JUNE 2, 1949, 28 COMP. GEN. 679

INSURANCE - HOUSEHOLD EFFECTS IN TEMPORARY STORAGE UNDER THE PROVISIONS OF SECTION 12 (B) OF EXECUTIVE ORDER NO. 9805, AS ADDED BY EXECUTIVE ORDER NO. 9933, PROVIDING FOR THE REIMBURSEMENT OF THE ACTUAL COST OF TEMPORARY STORAGE OF HOUSEHOLD EFFECTS NOT TO EXCEED THE COMMUTED RATE SPECIFIED THEREIN, THE PROCUREMENT OF STORAGE INSURANCE BY AN EMPLOYEE INCIDENT TO HIS PERMANENT CHANGE OF STATION MAY NOT BE REGARDED AS A NECESSARY INCIDENTAL EXPENSE TO THE TEMPORARY STORAGE OF THE EMPLOYEE'S HOUSEHOLD EFFECTS IN THE ABSENCE OF A SHOWING THAT SUCH INSURANCE WAS REQUIRED BY THE STORAGE COMPANY BEFORE THE EFFECTS WOULD BE ACCEPTED, OR IS REQUIRED BY LAW.

COMPTROLLER GENERAL WARREN TO JOHN E. PARSELL, DEPARTMENT OF AGRICULTURE, JUNE 2, 1949:

REFERENCE IS MADE TO YOUR LETTER OF MARCH 9, 1949, FILE NO. FC-JEP, TRANSMITTING A VOUCHER STATED IN FAVOR OF ERNEST C. PHILLIPS FOR $70.23 AS REIMBURSEMENT FOR STORAGE CHARGE AND EXPENSES INCIDENTAL THERETO, INCLUDING STORAGE INSURANCE, INCURRED DURING THE PERIOD SEPTEMBER 3 TO NOVEMBER 3, 1947, IN CONNECTION WITH THE SHIPMENT OF HIS HOUSEHOLD EFFECTS, INCIDENT TO A PERMANENT TRANSFER OF STATIONS, AND REQUESTING A DECISION AS TO WHETHER THE ITEM OF STORAGE INSURANCE IS PROPER FOR REIMBURSEMENT.

THE RECORD SHOWS THAT THE EMPLOYEE WAS TRANSFERRED FROM WRAY, COLORADO, TO GREELEY, COLORADO, IN AUGUST 1947, AS AN EMPLOYEE OF THE FARMERS HOME ADMINISTRATION; THAT SHIPMENT OF HIS HOUSEHOLD EFFECTS AT GOVERNMENT EXPENSE WAS AUTHORIZED; THAT THE EMPLOYEE HAS BEEN REIMBURSED FOR THE EXPENSES OF TRANSPORTATION OF HIS HOUSEHOLD EFFECTS; AND THAT THE STORAGE CHARGE AND EXPENSES INCIDENTAL THERETO WERE INCURRED AT GRAND JUNCTION COLORADO, A PREVIOUS PLACE OF RESIDENCE.

UNDER SECTION 12 (B) OF EXECUTIVE ORDER 9805, AS ADDED BY EXECUTIVE ORDER 9933, ONLY STORAGE CHARGES AND NECESSARY EXPENSES INCIDENTAL THERETO ARE FOR CONSIDERATION IN DETERMINING THE TOTAL SUM "ACTUALLY PAID BY THE EMPLOYEE FOR THE STORAGE" OF HIS EFFECTS. ORDINARILY, THE OBTAINING OF STORAGE INSURANCE RESULTS FROM VOLUNTARY ACTION BY THE EMPLOYEE FOR HIS OWN PROTECTION AND, ACCORDINGLY, SUCH CHARGE MAY NOT BE CONSIDERED A NECESSARY INCIDENTAL EXPENSE TO THE STORAGE OF AN EMPLOYEE'S EFFECTS. FOLLOWS THAT, IN THE ABSENCE OF A SHOWING THAT THE INSURANCE IN QUESTION WAS REQUIRED BY THE STORAGE COMPANY BEFORE THE GOODS WOULD BE ACCEPTED FOR STORAGE, OR IS REQUIRED BY LAW, ALLOWANCE OF THAT ITEM MAY NOT BE AUTHORIZED.

ACTION ON THE VOUCHER--- WHICH VOUCHER IS RETURNED HEREWITH--- SHOULD BE TAKEN IN ACCORDANCE WITH THE ABOVE.

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