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B-164461, JUN. 24, 1968

B-164461 Jun 24, 1968
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GEMMELL: THIS IS IN REPLY TO YOUR LETTER OF MAY 28. HE WAS ORDERED TO DUTY IN SAIGON. LATER WHEN HE WAS ASSURED THAT HIS FAMILY WOULD BE MOVED TO A SAFE-HAVEN POST HE SOLD HIS HOUSE BUT THE SETTLEMENT DATE THEREOF OCCURRED MORE THAN 1 YEAR AFTER THE DATE HE FIRST REPORTED TO WASHINGTON. A CONTRACT FOR THE SALE OF THE HOUSE WAS SIGNED IN JANUARY 1968. WHICH WAS WITHIN 1 YEAR FROM THE DATE OF REPORTING TO WASHINGTON BUT THE SETTLEMENT DATE THEREFOR WAS FEBRUARY 19. THE EMPLOYEE STATES THAT SETTLEMENT WAS DELAYED BECAUSE OF THE TIME REQUIRED TO TRANSMIT SALE DOCUMENTS BETWEEN THE UNITED STATES AND VIETNAM. A-56 PROHIBITS THE PAYMENT OF REAL ESTATE ALLOWANCES WHEN THE SETTLEMENT DATE FOR THE SALE IS LATER THAN 1 YEAR AFTER THE EFFECTIVE DATE OF TRANSFER.

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B-164461, JUN. 24, 1968

TO MR. HARRY B. GEMMELL:

THIS IS IN REPLY TO YOUR LETTER OF MAY 28, 1968, REFERENCE FP 146.8 G, REQUESTING OUR DECISION AS TO WHETHER A VOUCHER FOR $2,484.17 IN FAVOR OF MR. JACK W. HAMMEGER, AN EMPLOYEE OF YOUR AGENCY, FOR EXPENSES HE INCURRED IN SELLING HIS HOUSE IN SEATTLE, WASHINGTON, INCIDENT TO HIS TRANSFER TO WASHINGTON, D. C., MAY BE CERTIFIED FOR PAYMENT.

SHORTLY AFTER MR. HAMMEGER REPORTED FOR DUTY IN WASHINGTON ON FEBRUARY 13, 1967, HE WAS ORDERED TO DUTY IN SAIGON, VIETNAM. AS A CONSEQUENCE HE DID NOT MOVE HIS FAMILY TO WASHINGTON. LATER WHEN HE WAS ASSURED THAT HIS FAMILY WOULD BE MOVED TO A SAFE-HAVEN POST HE SOLD HIS HOUSE BUT THE SETTLEMENT DATE THEREOF OCCURRED MORE THAN 1 YEAR AFTER THE DATE HE FIRST REPORTED TO WASHINGTON, D. C., TO EFFECT A CHANGE OF STATION.

APPARENTLY, A CONTRACT FOR THE SALE OF THE HOUSE WAS SIGNED IN JANUARY 1968, WHICH WAS WITHIN 1 YEAR FROM THE DATE OF REPORTING TO WASHINGTON BUT THE SETTLEMENT DATE THEREFOR WAS FEBRUARY 19, 1968. THE EMPLOYEE STATES THAT SETTLEMENT WAS DELAYED BECAUSE OF THE TIME REQUIRED TO TRANSMIT SALE DOCUMENTS BETWEEN THE UNITED STATES AND VIETNAM. YOU SUBMITTED THE VOUCHER FOR OUR DECISION SINCE SECTION 4.1D OF BUREAU OF THE BUDGET CIRCULAR NO. A-56 PROHIBITS THE PAYMENT OF REAL ESTATE ALLOWANCES WHEN THE SETTLEMENT DATE FOR THE SALE IS LATER THAN 1 YEAR AFTER THE EFFECTIVE DATE OF TRANSFER.

SECTION 4 OF THE CIRCULAR, ESTABLISHING THE CONDITIONS AND REQUIREMENTS UNDER WHICH ALLOWANCES AUTHORIZED BY THAT SECTION MAY BE PAID, PROVIDES IN PERTINENT PART AS FOLLOWS:

"D. THE SETTLEMENT DATES FOR THE SALE AND PURCHASE OR LEASE TERMINATION TRANSACTIONS FOR WHICH REIMBURSEMENT IS REQUESTED ARE NOT LATER THAN ONE YEAR AFTER THE DATE ON WICH THE EMPLOYEE REPORTED FOR DUTY AT THE NEW OFFICIAL STATION, EXCEPT THAT AN APPROPRIATE EXTENSION OF TIME MAY BE AUTHORIZED BY THE HEAD OF THE DEPARTMENT OR HIS DESIGNEE WHEN SETTLEMENT IS NECESSARILY DELAYED BECAUSE OF LITIGATION.'

WE HAVE CAREFULLY CONSIDERED THE EXTENUATING CIRCUMSTANCES INVOLVED IN THE SALE TRANSACTION. HOWEVER, THE REGULATION PRESCRIBES ONLY ONE EXCEPTION WHEREBY THE DESIGNATED 1-YEAR PERIOD CAN BE EXTENDED. SINCE THE SALE WAS NOT DELAYED BECAUSE OF LITIGATION AND WAS NOT CONSUMMATED WITHIN 1 YEAR, PAYMENT WOULD NOT BE PROPER. B-163700, MAY 6, 1968, COPY ENCLOSED.

THEREFORE, THE VOUCHER WHICH IS RETURNED HEREWITH MAY NOT BE CERTIFIED FOR PAYMENT.

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