B-148844, OCT. 24, 1968

B-148844, OCT. 24, 1968

TO MR. WILLIAM S. GAUD:

THERE IS BEFORE OUR OFFICE THE CLAIM OF MR. JOHN KLEIN, AN EMPLOYEE OF THE AGENCY FOR INTERNATIONAL DEVELOPMENT, FOR A LOSS ALLEGED TO HAVE BEEN SUSTAINED BECAUSE OF A CURRENCY DEVALUATION OCCURRING BETWEEN THE DATE OF TRAVEL ADVANCES AND THE DATE FINAL SETTLEMENT OF SUCH ADVANCES WAS MADE.

THE MATTER WAS THE SUBJECT OF A LETTER FROM YOUR OFFICE DATED SEPTEMBER 5, 1968, REFERENCE C/FRD/VEB:4-MA.THE INFORMATION OF RECORD SHOWS THAT WHILE MR. KLEIN WAS ASSIGNED TO THE USAID MISSION IN RIO DE JANIERO, BRAZIL, HE REQUESTED AND RECEIVED TRAVEL ADVANCES. TRAVEL AUTHORIZATIONS FOR EMPLOYEES IN BRAZIL WHO ARE REQUIRED TO TRAVEL FREQUENTLY ARE ISSUED FOR 3-MONTH PERIODS. TRAVEL ADVANCES GIVEN AGAINST THE TRAVEL AUTHORIZATIONS ARE LIMITED TO THE SAME PERIOD. YOUR AGENCY REPORTS THAT ALL VOUCHERS ARE COMPUTED IN DOLLARS, ADVANCES RECORDED IN DOLLARS AND THE AMOUNT GIVEN TO THE EMPLOYEE IN LOCAL CURRENCY AT THE THEN EXISTING EXCHANGE RATE. ON MARCH 13, 1967, THE RATE OF EXCHANGE WENT FROM 2,200 CRUZEIROS FOR ONE AMERICAN DOLLAR TO 2,700 CRUZEIROS. AS A RESULT THEREOF, MR. KLEIN ALLEGES HE HAS SUFFERED A LOSS BECAUSE OF BEING REQUIRED TO REPAY THE TRAVEL ADVANCES IN U.S. DOLLARS OR THE EQUIVALENT THEREOF IN CRUZEIROS ON AND AFTER MARCH 13, 1967.

CONCERNING TRAVEL ADVANCES VOLUME IV, FOREIGN AFFAIRS MANUAL, SECTION 334.3 PROVIDES THAT HOST COUNTRY TRAVEL ADVANCES ARE TO BE IN LOCAL CURRENCY ONLY. ALSO, SECTION 323.3A PROVIDES IN PART THAT: "WHEN REFUNDS OR REIMBURSEMENTS ARE DUE AS REPAYMENTS TO AN APPROPRIATION OR FUND * * * THE OBLIGATION TO THE U.S. IS CONSIDERED SATISFIED PROVIDED COLLECTION IS MADE IN THE SAME KIND AND NUMBER OF UNITS OF CURRENCY * * * AS WAS ORIGINALLY PAID AND FOR WHICH REPAYMENT IS DUE * * *.'

UNDER THE ABOVE-CITED REGULATION WHEN THE UNITED STATES MAKES AN OVERPAYMENT IN FOREIGN CURRENCY IN CONNECTION WITH AN OBLIGATION STATED IN THAT CURRENCY, THE UNITED STATES IS ENTITLED TO RECOVER THE NUMBER AND KIND OF UNITS OF FOREIGN CURRENCY OVERPAID AT THE RATE OF EXCHANGE CURRENT WHEN COLLECTION IS MADE. CF. B-106270, FEBRUARY 19, 1952, AS AMPLIFIED BY B-106270, JUNE 27, 1952, AND 32 COMP. GEN. 370. IN OTHER WORDS SINCE MR. KLEIN RECEIVED THE ADVANCE IN FOREIGN CURRENCY, HE IS ONLY REQUIRED TO MAKE REPAYMENT IN THE SAME CURRENCY REGARDLESS OF THE FACT THAT THE FOREIGN CURRENCY HAS DEPRECIATED IN RELATION TO THE DOLLAR.

THEREFORE, MR. KLEIN'S TRAVEL ADVANCES AND REPAYMENTS SHOULD BE RECOMPUTED IN ACCORDANCE WITH THE FOREGOING AND THE NECESSARY ADJUSTMENTS MADE.