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A-59705, JANUARY 28, 1935, 14 COMP. GEN. 577

A-59705 Jan 28, 1935
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EXCHANGE - CURRENCY APPRECIATION LOSSES - LEAVE OF ABSENCE THE LOSS DUE TO APPRECIATION OF FOREIGN CURRENCY DURING A PERIOD AN OFFICER OR EMPLOYEE IS ASSIGNED TO DUTY IN A FOREIGN COUNTRY OR WHEN TRAVELING THROUGH A FOREIGN COUNTRY ON OFFICIAL BUSINESS IS FOR COMPUTATION AT THE BASIC RATE PRESCRIBED FOR THE PARTICULAR COUNTRY IN WHICH THE OFFICER OR EMPLOYEE IS ACTUALLY LOCATED FOR OFFICIAL PURPOSES. THE LOSS DUE TO APPRECIATION OF FOREIGN CURRENCY WHILE AN EMPLOYEE IS ON LEAVE OF ABSENCE WITH PAY IS TO BE COMPUTED AT THE RATE FOR THE COUNTRY IN WHICH REGULARLY STATIONED OR THE RATE FOR THE COUNTRY IN WHICH THE LEAVE IS SPENT. AS FOLLOWS: REFERENCE IS MADE TO THE ACT OF MARCH 26. THE FOLLOWING QUESTION HAS ARISEN: IN CASES WHERE AN OFFICER OR EMPLOYEE IS ABSENT.

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A-59705, JANUARY 28, 1935, 14 COMP. GEN. 577

EXCHANGE - CURRENCY APPRECIATION LOSSES - LEAVE OF ABSENCE THE LOSS DUE TO APPRECIATION OF FOREIGN CURRENCY DURING A PERIOD AN OFFICER OR EMPLOYEE IS ASSIGNED TO DUTY IN A FOREIGN COUNTRY OR WHEN TRAVELING THROUGH A FOREIGN COUNTRY ON OFFICIAL BUSINESS IS FOR COMPUTATION AT THE BASIC RATE PRESCRIBED FOR THE PARTICULAR COUNTRY IN WHICH THE OFFICER OR EMPLOYEE IS ACTUALLY LOCATED FOR OFFICIAL PURPOSES. THE LOSS DUE TO APPRECIATION OF FOREIGN CURRENCY WHILE AN EMPLOYEE IS ON LEAVE OF ABSENCE WITH PAY IS TO BE COMPUTED AT THE RATE FOR THE COUNTRY IN WHICH REGULARLY STATIONED OR THE RATE FOR THE COUNTRY IN WHICH THE LEAVE IS SPENT, WHICHEVER PRODUCES THE SMALLER LOSS, TO BE CHARGED AGAINST THE APPROPRIATIONS.

COMPTROLLER GENERAL MCCARL TO THE SECRETARY OF STATE, JANUARY 28, 1935:

THERE HAS BEEN RECEIVED YOUR LETTER OF JANUARY 12, 1935, AS FOLLOWS:

REFERENCE IS MADE TO THE ACT OF MARCH 26, 1934, PROVIDING FOR THE PAYMENT OF LOSSES SUSTAINED BY OFFICERS AND EMPLOYEES OF THE UNITED STATES IN FOREIGN COUNTRIES DUE TO THE APPRECIATION OF FOREIGN CURRENCIES IN THEIR RELATION TO THE AMERICAN DOLLAR, AND TO EXECUTIVE ORDER NO. 6657-A, OF MARCH 27, 1934, AS AMENDED BY EXECUTIVE ORDER NO. 6928, OF DECEMBER 24, 1934, PROMULGATING REGULATIONS GOVERNING THE ADMINISTRATION OF THAT ACT.

IN CONNECTION WITH THE ADMINISTRATION OF THE ACT AND OF THE EXECUTIVE ORDERS UNDER REFERENCE, THE FOLLOWING QUESTION HAS ARISEN: IN CASES WHERE AN OFFICER OR EMPLOYEE IS ABSENT, ON LEAVE OR FOR ANY OTHER REASON, FROM THE COUNTRY IN WHICH IS SITUATED HIS POST OF ASSIGNMENT, AND DURING SUCH ABSENCE SOJOURNS IN ANOTHER FOREIGN COUNTRY, IS THE ESTABLISHED BASIC RATE OF EXCHANGE FOR THE COUNTRY OF ASSIGNMENT TO BE USED IN DETERMINING THE EXCHANGE LOSSES SUSTAINED, OR IS THE ESTABLISHED BASIC RATE FOR THE COUNTRY IN WHICH THE ACTUAL CONVERSION OF SALARIES AND ALLOWANCES IS EFFECTED TO BE USED FOR THAT PURPOSE? THE DEPARTMENT HAS HELD TO THE OPINION THAT THE LATTER VIEW IS THE CORRECT ONE, BUT IT WOULD APPRECIATE RECEIVING YOUR RULING ON THIS POINT AT THE EARLIEST POSSIBLE MOMENT.

EXECUTIVE ORDER NO. 6928, OF DECEMBER 24, 1934, DEFINES THE PERIODS DURING WHICH OFFICERS AND EMPLOYEES ARE CONSIDERED TO BE IN SERVICE IN FOREIGN COUNTRIES AS FOLLOWS:

1. THE WORDS IN THE ACT "WHILE IN SERVICE IN FOREIGN COUNTRIES," FOR THE PURPOSE OF THESE REGULATIONS, SHALL BE UNDERSTOOD TO MEAN (A) WHILE EMPLOYED IN OR ON ASSIGNMENT OR DETAIL TO A POST OF DUTY IN A FOREIGN COUNTRY, (B) WHILE EN ROUTE THROUGH A FOREIGN COUNTRY OR TO OR FROM SUCH POST, (C) WHILE, DURING SUCH ASSIGNMENT OR DETAIL ABROAD, ON LEAVE OF ABSENCE WITH PAY IN A FOREIGN COUNTRY, OR, IN CONNECTION WITH ALLOWANCES FOR RENT OF LIVING QUARTERS MAINTAINED ABROAD DURING LEAVE OF ABSENCE OR WHILE UNDER ORDERS IN THE UNITED STATES, (D) WHILE TRAVELING IN FOREIGN COUNTRIES UNDER OFFICIAL ORDERS, OR (E) WHILE ATTACHED TO AND SERVING ON BOARD UNITED STATES VESSELS STATIONED IN FOREIGN WATERS FOR NOT LESS THAN 60 CONSECUTIVE DAYS.

WHILE AN OFFICER OR EMPLOYEE IS ASSIGNED TO DUTY IN A PARTICULAR FOREIGN COUNTRY, OR WHEN TRAVEL THROUGH A FOREIGN COUNTRY IS NECESSARY ON OFFICIAL BUSINESS, THE LOSS DUE TO APPRECIATION OF FOREIGN CURRENCY IS FOR COMPUTATION AT THE BASIC RATE PRESCRIBED FOR THE PARTICULAR COUNTRY IN WHICH THE OFFICER OR EMPLOYEE IS ACTUALLY LOCATED FOR OFFICIAL PURPOSES. A LEAVE OF ABSENCE WITH PAY IS NOT OFFICIAL BUSINESS AND AN EMPLOYEE MAY NOT, BY TRAVELING OUTSIDE OF THE COUNTRY TO WHICH HE IS ASSIGNED WHILE ON A LEAVE OF ABSENCE, ENLARGE THE AMOUNT WHICH IS CHARGEABLE AGAINST THE APPROPRIATED FUNDS BY REASON OF THE APPRECIATION OF FOREIGN CURRENCY AND THE LOSS WHILE ON SUCH LEAVE IS TO BE COMPUTED UPON THE RATE FOR THE COUNTRY IN WHICH REGULARLY STATIONED OR THE RATE FOR THE COUNTRY IN WHICH THE LEAVE IS SPENT WHICHEVER PRODUCES THE SMALLER LOSS TO BE CHARGED AGAINST THE APPROPRIATIONS.

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