A-72752, OCTOBER 31, 1936, 16 COMP. GEN. 455

A-72752, OCTOBER 31, 1936, 16 COMP. GEN. 455

EXCHANGE - LOSS BY - OFFICERS AND EMPLOYEES IN FOREIGN COUNTRIES OFFICERS AND EMPLOYEES OF THE DEPARTMENT OF AGRICULTURE REGULARLY STATIONED, AND MAINTAINING QUARTERS, IN A FOREIGN COUNTRY, WHO PERFORM TRAVEL ON OFFICIAL BUSINESS THROUGH OTHER FOREIGN COUNTRIES, NOT OF SUCH NATURE AS TO NEGATIVE FURTHER PAYMENT OF QUARTERS ALLOWANCE FOR THE QUARTERS MAINTAINED AT THEIR OFFICIAL STATION, MAY BE CREDITED WITH EXCHANGE LOSSES UPON THEIR SALARY AND QUARTERS ALLOWANCE AT THE RATE APPLICABLE TO THEIR OFFICIAL STATION.

ACTING COMPTROLLER GENERAL ELLIOTT TO THE SECRETARY OF AGRICULTURE, OCTOBER 31, 1936:

THERE HAS BEEN RECEIVED YOUR LETTER OF OCTOBER 15, 1936, AS FOLLOWS:

IN A LETTER DATED JUNE 23, 1936, TO THE SECRETARY OF STATE, YOUR NO. A- 75237, THE FOLLOWING RULING WAS MADE: "IN THE CASES OF THE TWO OFFICERS CITED IN THE SUBMISSION, THE EXCHANGE LOSSES UPON THEIR SALARIES SHOULD HAVE BEEN COMPUTED AT THE RATE APPLICABLE AT THE PLACE AT WHICH THEY WERE PRESENT ON THE LAST DAY OF THE RESPECTIVE MONTHS INVOLVED, AND THE EXCHANGE LOSSES UPON PER DIEM IN LIEU OF SUBSISTENCE SHOULD HAVE BEEN COMPUTED AT THE RATE APPLICABLE TO LONDON IN ACCORDANCE WITH THE DECISION A-72752, DATED APRIL 6, 1936.'

WHILE THIS DECISION WAS MADE TO COVER THE SPECIFIC CASE PRESENTED, THE QUESTION NATURALLY ARISES AS TO WHETHER OR NOT IT ALSO APPLIES TO REPRESENTATIVES OF THIS DEPARTMENT LOCATED ABROAD. IN THE CASE OF THE FOREIGN REPRESENTATIVES OF THE DEPARTMENTS OF STATE AND COMMERCE, EACH IS USUALLY ASSIGNED TO A SPECIFIC COUNTRY; WHEREAS THE FOREIGN REPRESENTATIVES OF THIS DEPARTMENT, ALTHOUGH THEY MAINTAIN RESIDENCE IN ONE COUNTRY, MUST PERFORM CONSIDERABLE TRAVEL IN ADJACENT COUNTRIES. THESE MEN MUST, OF COURSE, MAINTAIN THEIR HOMES AT THEIR PLACE OF RESIDENCE AT ALL TIMES, AND IT HAS BEEN OUR ASSUMPTION THAT THE REGULAR SALARY AND QUARTERS ALLOWANCE WERE TO BE USED FOR THIS PURPOSE. IF SO, REIMBURSEMENT FOR LOSS IN EXCHANGE SHOULD BE MADE ON THE BASIS OF THE RATE OF EXCHANGE IN THE COUNTRY OF RESIDENCE AND NOT IN THE COUNTRY IN WHICH THE INDIVIDUAL HAPPENS TO BE TRAVELING ON THE DAY HIS SALARY BECAME DUE. THIS ASSUMPTION WOULD SEEM TO BE SUBSTANTIATED BY THE GRANTING OF TRAVELING ALLOWANCES. PRESUMABLY THE TRAVEL ALLOWANCE IS SUFFICIENT TO TAKE CARE OF THE NECESSARY EXPENSES INCURRED BY THE INDIVIDUAL IN THE PERFORMANCE OF HIS OFFICIAL DUTIES. IF THIS IS TRUE, IT IS OBVIOUS THAT NONE OF HIS SALARY WILL BE NEEDED FOR EXPENDITURE IN A FOREIGN COUNTRY, AND THE LOSS ON EXCHANGE FOR HIS SALARY, THEREFORE, SHOULD NOT BE COMPUTED AT ANY OTHER RATE THAN THAT OF THE COUNTRY OF HIS RESIDENCE.

UNLESS A UNIFORM PRACTICE OF CALCULATING LOSSES IN EXCHANGE FOR SALARY ON THE BASIS OF THE RATE OF EXCHANGE OF THE COUNTRY OF RESIDENCE IS ADOPTED, IT WILL CREATE A VERY SERIOUS SITUATION FOR OUR FOREIGN REPRESENTATIVES. IF, FOR EXAMPLE, OUR REPRESENTATIVE IN PARIS IS IN A TRAVEL STATUS IN SPAIN ON THE LAST DAY OF THE MONTH, HE COULD RECOVER ONLY ABOUT 17 PERCENT OF THE LOSS IN EXCHANGE COMPARED TO ABOUT 68 PERCENT SHOULD HE BE IN FRANCE ON THAT DATE. THE REVERSE IS TRUE OF OUR REPRESENTATIVE IN LONDON, WHO WOULD PROFIT MATERIALLY SHOULD HE ON THE LAST DAY OF THE MONTH BE IN ONE OF THE CONTINENTAL COUNTRIES WHERE THE CURRENCY HAS NOT BEEN SO GREATLY DEPRECIATED AS IN ENGLAND.

CROP OBSERVATION TRIPS MUST BE PLANNED IN ACCORDANCE WITH SEASONAL DEVELOPMENTS IF THE MOST EFFECTIVE WORK IS TO BE ACCOMPLISHED. OUR REPRESENTATIVES, THEREFORE, FREQUENTLY FIND THEMSELVES IN COUNTRIES OTHER THAN THE ONE IN WHICH THEY RESIDE AT TIMES WHEN SALARIES BECOME DUE. WHEN THIS OCCURS THEY ARE SUBJECT TO PERSONAL LOSSES BECAUSE OF THE DIFFERENCE IN EXCHANGE LOSSES IN THE DIFFERENT COUNTRIES. IF IT IS HELD THAT THE COMPTROLLER GENERAL'S DECISION NO. 75237 APPLIES TO OUR REPRESENTATIVES, THERE WILL BE AN INCENTIVE FOR THEM TO PLAN THEIR TRIPS TO PREVENT SUCH LOSSES. THIS MIGHT WELL DECREASE THE EFFECTIVENESS OF THE WORK AND RESULT IN INCREASED COSTS TO THE GOVERNMENT WHICH MIGHT NOT OTHERWISE BE INCURRED AND OVER WHICH THE GOVERNMENT CAN EXERCISE ONLY THE MOST GENERAL CONTROL.

IN VIEW OF THE SPECIAL CIRCUMSTANCES SURROUNDING THE ACTIVITIES OF THE REPRESENTATIVES OF THE FOREIGN AGRICULTURAL SERVICE AND THE NATURE OF THEIR ASSIGNMENTS, WE FEEL THAT THE COMPTROLLER GENERAL'S DECISION NO. 75237 SHOULD NOT BE HELD TO APPLY TO THEM BUT THAT THEY SHOULD BE PERMITTED TO CONTINUE TO CLAIM LOSSES ON SALARIES ON THE BASIS OF THE CURRENCY IN THE COUNTRY IN WHICH THEY HAVE THEIR OFFICIAL HEADQUARTERS AND WHERE THEIR EXPENSES OF MAINTAINING AND KEEPING A HOME ARE INCURRED.

THE DECISION OF JUNE 23, 1936, TO THE SECRETARY OF STATE, 15 COMP. GEN. 1123, CONSIDERED THE CASE OF TWO OFFICERS WHOSE HEADQUARTERS WERE AT BERNE, SWITZERLAND, ONE OF WHOM LEFT BERNE IN NOVEMBER FOR LONDON ON OFFICIAL DUTY, WHERE HE REMAINED UNTIL MARCH 26, 1936, WHEN HE PROCEEDED TO THE UNITED STATES WITHOUT RETURNING TO BERNE. THE OTHER OFFICER ARRIVED IN LONDON FROM BERNE FEBRUARY 2, 1936, AND LEFT LONDON FEBRUARY 23, 1936, RETURNING TO BERNE. UPON SUCH STATEMENT OF FACTS IT WAS HELD THAT THE EXCHANGE LOSS UPON THEIR RESPECTIVE SALARIES FOR FEBRUARY SHOULD BE COMPUTED AT THE RATE APPLICABLE TO THE PLACE AT WHICH THEY WERE PRESENT ON THE LAST DAY OF THE RESPECTIVE MONTHS INVOLVED; THAT IS, THE FIRST OFFICER'S SALARY LOSS SHOULD BE COMPUTED AT THE LONDON RATE FOR THE LAST DAY OF FEBRUARY, WHILE THE SECOND OFFICER'S LOSS SHOULD BE COMPUTED AT THE BERNE RATE.

IN DECISION OF FEBRUARY 13, 1936, A-70002, TO THE SECRETARY OF STATE, IT WAS HELD:

WHEN AN EMPLOYEE IS ABSENT FROM HIS OFFICIAL STATION ON LEAVE FOR SUCH SHORT PERIODS AS TO NEGATIVE ANY ASSUMPTION THAT HE HAS FAILED TO MAINTAIN HIS LIVING QUARTERS AT HIS OFFICIAL STATION, THE BASIC RATE PRESCRIBED FOR HIS OFFICIAL STATION IS FOR APPLICATION FOR THE PURPOSE OF EXCHANGE RELIEF WITH RESPECT TO THE ALLOWANCE FOR RENT OF QUARTERS. HOWEVER, THIS WOULD NOT APPLY IF THE ABSENCE IS FOR SUCH EXTENDED PERIODS AS TO NECESSITATE THE VACATING OF THE RENTED QUARTERS AT HIS OFFICIAL STATION. IN SUCH CASE, NO ALLOWANCE FOR RENT WOULD BE PAYABLE AND NO QUESTION OF EXCHANGE ARISE.

WHEN AN OFFICER OR EMPLOYEE REGULARLY STATIONED IN A FOREIGN COUNTRY PERFORMS TRAVEL ON OFFICIAL BUSINESS THROUGH OTHER FOREIGN COUNTRIES, SPENDING MORE TIME IN THE RESPECTIVE COUNTRIES THAN IS REQUIRED FOR TRANSIT ACROSS SUCH COUNTRIES, THE CURRENCY APPRECIATION LOSS UPON HIS AUTHORIZED PER DIEM IN LIEU OF SUBSISTENCE IS FOR COMPUTATION AT THE RATE APPLICABLE TO THE RESPECTIVE COUNTRIES ON THE LAST DAY OF TRAVEL THROUGH SUCH COUNTRIES. 14 COMP. GEN. 857; A-72752, APRIL 6, 1936.

HOWEVER, AS THE EXPENSES OF MAINTAINING AN EMPLOYEE'S RESIDENCE AT HIS OFFICIAL HEADQUARTERS, WHICH EXPENSES ARE PRESUMABLY PAYABLE FROM HIS SALARY AND RENTAL ALLOWANCES, ARE NOT SUBSTANTIALLY CHANGED BY HIS TEMPORARY ABSENCE THEREFROM ON OFFICIAL BUSINESS, IT WOULD BE PROPER FOR EXCHANGE LOSSES UPON HIS SALARY AND RENTAL ALLOWANCES TO BE COMPUTED AT THE RATE APPLICABLE AT THE PLACE WHERE HIS OFFICIAL STATION IS LOCATED, SUCH A CASE BEING DISTINGUISHABLE FROM THE CASE OF THE FIRST OFFICER CONSIDERED IN 15 COMP. GEN. 1123, WHOSE ABSENCE FROM HIS BERNE HEADQUARTERS WAS NOT OF A TEMPORARY NATURE. SEE ALSO A 70002, FEBRUARY 13, 1936, SUPRA. ..END :