Claim for Reimbursement of Real Estate Sales

An employee of the Department of Agriculture requested reconsideration of the denial of his claim for reimbursement of real estate sales expenses incurred incident to his transfer. In July 1977, the employee left his residence in San Leandro, California, to accept appointment at Tule Lake, California. For reasons related to his daughter's schooling, the employee's wife and child continued to reside at the San Leandro residence after he began his employment. In September 1977, the employee was offered and accepted a position with the Forest Service at Hungry Horse, Montana. By travel authorization, the employee was authorized reimbursement of real estate expenses. Subsequently, the employee sold his residence in San Leandro and relocated his family to Hungry Horse. The employee then filed a voucher for travel expenses which included a claim for reimbursement for real estate expenses approved for payment by his local budget and finance officer. However, payment was denied by the National Finance Office, Department of Agriculture, and the employee appealed his claim to GAO. GAO held that the employee was not entitled to reimbursement for the real estate expenses of selling his San Leandro residence because the residence which was sold was not at the employee's old station. Moreover, real estate expenses may be reimbursed only in connection with the sale of a residence from which the employee commutes to and from work on a daily basis at the old station at the time he was first definitely informed of his transfer. In this case, the employee did not regularly commute between Tule Lake and his San Leandro residence. Accordingly, the denial of the employee's claim for real estate sale expenses was sustained.