Actual Subsistence Expenses for Noncommercial Lodgings

A certifying officer for the Department of Housing and Urban Development requested a ruling with respect to the per diem entitlement of an employee who had performed temporary duty travel in Seattle, Washington, and Washington, D.C. The employee claimed reimbursement for the amounts paid to friends for lodgings and meals in these cities, which are considered high-rate geographical areas. She paid $34 and $25 to friends for lodging per day in their homes, and $16 for meals, and she maintained that the amounts were reasonable when compared to the cost of commercial lodgings. During part of her assignment in Washington, D.C., she pointed out that she had paid $47.50 per night for commercial lodgings, and that she had paid from $24.24 to $28.62 per night for commercial lodgings in Seattle. In past decisions, GAO has held that expenses paid to friends or relatives for lodgings or meals must not only be reasonable, but must be supported by information to indicate that the amounts claimed represent additional expenses incurred by the host. Based on the information submitted in support of the employee's reclaim voucher, GAO concurred with the certifying officer's finding that the amounts claimed in this case were unreasonable. The $34 amount claimed by the employee appeared to be designed to ensure her recovery of actual subsistence expenses at the maximum rate of $50 prescribed for Washington, D.C. Similarly, the $25 and $16 amounts paid for lodgings and meals in Seattle appeared to have been determined on a basis designed to ensure her recovery of approximately the amount allowable if she had obtained commercial lodgings. The amounts could not be characterized as "considerably less than motel or restaurant charges." Therefore, GAO held that the subsistence expenses claimed by the employee may not be paid.