B-191676, NOVEMBER 2, 1978

B-191676, NOVEMBER 2, 1978

DIGEST: EMPLOYEE WHO FORFEITED $112.50 OF A RENTAL DEPOSIT FOR THE LEASE OF A RESIDENCE AT HIS NEW DUTY STATION AFTER RECEIVING NOTICE OF CANCELLATION OF TRANSFER, MAY BE REIMBURSED FORFEITED AMOUNT AS A MISCELLANEOUS EXPENSE. THIS ACTION IS IN RESPONSE TO AN APPEAL BY LUCKI S. LATIMER OF OUR CLAIMS DIVISION SETTLEMENT DATED JUNE 14, 1977, DISALLOWING HIS CLAIM FOR REIMBURSEMENT OF A RENTAL DEPOSIT FOR THE LEASE OF A RESIDENCE AT HIS NEW DUTY STATION.

LUCKI S. LATIMER - FORFEITURE OF LEASE DEPOSIT:

THE RECORD SHOWS THAT MR. LATIMER WAS ISSUED TRAVEL ORDER GA-246-75, DATED MAY 9, 1975, AUTHORIZING A TRANSFER OF DUTY STATION FROM DALLAS, TEXAS, TO ALBUQUERQUE, NEW MEXICO, EFFECTIVE JUNE 4, 1975. THE TRAVEL ORDER AUTHORIZED A HOUSE-HUNTING TRIP. WHILE ON THE HOUSE-HUNTING TRIP MR. LATIMER SIGNED A RENTAL DEPOSIT FOR $225 PLUS A SECURITY DEPOSIT OF $75. ON MAY 22, 1975, MR. LATIMER WAS NOTIFIED THAT HIS TRANSFER HAD BEEN CANCELLED AND WAS REQUESTED TO CLOSE ALL ACCOUNTS AND SUBMIT A VOUCHER FOR ALL EXPENSES. ON MAY 28, 1975, THE LANDLORD OF THE NEWLY RENTED HOUSE REFUNDED ALL BUT $112.50 OF THE COMBINED DEPOSITS MADE, CLAIMING THE WITHHELD AMOUNT AS "EARNED RENT." IT IS THE UNREFUNDED AMOUNT OF $112.50 FOR WHICH MR. LATIMER CLAIMS REIMBURSEMENT.

MR. LATIMER CONTENDS THAT HIS FORFEITURE WAS A MISCELLANEOUS EXPENSE, AND AS SUCH, REIMBURSEMENT SHOULD BE ALLOWED. UNDER THE MISCELLANEOUS EXPENSE THEORY AND THE APPLICABLE REGULATIONS, MAINLY PARA. 2-3.2 AND PARA. 2-3.3 OF THE FEDERAL TRAVEL REGULATIONS (FPMR 101 7, MAY 1973), WE WOULD NOT OBJECT TO THE $112.50 DEPOSIT FORFEITED BEING INCLUDED AS A MISCELLANEOUS ALLOWANCE INCIDENT TO MR. LATIMER'S CANCELLED TRANSFER TO ALBUQUERQUE. SEE B-190764, APRIL 14, 1978. HE IS, THEREFORE, ENTITLED TO REIMBURSEMENT OF THE DEPOSIT FORFEITED AS MISCELLANEOUS EXPENSES.

A SETTLEMENT IN ACCORDANCE WITH THIS DECISION WILL ISSUE BY OUR CLAIMS DIVISION IN DUE COURSE.