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The Army Corps of Engineers requested a decision regarding the Army's authority to reimburse employees transferring back to the United States for lease termination expenses. GAO held that: (1) reimbursement for lease termination expenses was not authorized for duty stations outside of the United States; (2) applicable law did not authorize reimbursement for expenses incurred in the settlement of unexpired leases; and (3) federal regulations prohibited reimbursement for lease termination expenses as miscellaneous expenses. Accordingly, the Corps was not authorized to reimburse the transferred employees.

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