[Claim for Reimbursement of Relocation Expenses]

A decision was requested concerning the claim of a former Federal employee for travel and transportation expenses incident to a transfer. After the employee received a permanent promotion at a temporary duty station, the employee signed an agreement to remain in Government service for 12 months following the effective date of his transfer back to the main office. He was subsequently transferred and resigned within 7 months after the effective date of that transfer, violating the express terms of the service agreement. The employee questioned whether he should be required to reimburse the Government for his relocation expenses asserting that, when he was moved to the regional office, the agency obligated itself to pay for both his return trip and trip to the field office. He stated that he signed the second service agreement because he thought it was academic and, since the agency was already obligated to return him to the main office, no additional consideration was necessary. Accordingly, he maintained that he should not be required to reimburse the Government for those expenses. GAO stated that, if an employee violates a service agreement executed in connection with a transfer, an agency must take steps to recover any funds expended in relocating the employee. In the absence of evidence that the agency's decision was arbitrary or capricious, GAO will not substitute its judgment for that of agency officials in such matters. The employee presented no evidence to dispute the agency's finding that he left Government service of his own free will. Accordingly, the Government should initiate proceedings to recover from the employee any funds expended in connection with his relocation to the main office.