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B-201598 1 (1981-06-15)

handle is hein.gao/gaobadjlp0001 and id is 1 raw text is: THE COMPTROLLER GENERAL DECISION .OF THE UNITED STATEB % ~ WASHINGTON, D.C. 205483 FILE: B-201598 DATE: June 1r, 1981 MATTER OF: John M. Taylor--Leases settlement costs DIGEST: Employee who enters into 1-year lease when on notice that he will be trans- ferred in 4 to 6 months may not be reim- bursed lease termination expenses payable under penalty clause of lease. Authority to reimburse lease termination expenses is intended to compensate costs employee did not intend to incur at time he exe- cuted lease and which he would not have incurred but for his transfer, not costs employee could have avoided or costs incurred knowingly after being advised that transfer would occur. The Chief Finance and Budget Officer of the Federal Highway Administration, U.S. Department of Transportation, has asked us to determine whether Mr. John M. Taylor may be reimbursed lease settlement costs at his old duty station which arose incident to a permanent change of duty station. Although Mr. Taylor initially provided no documentation showing that the lease settlement costs had actually been incurred, the documen- tation has now been provided so that the only issue Yemaining is whether Mr. Taylor may be reimbursed expenses associated with breaking a 1-year lease which was entered into at a time when he had knowledge that he would be reassigned in 4 to 6 months. The Finance and Budget Officer suggests that, in order to avoid unnecessary expenses, Mr. Taylor should have entered into a short-term occupancy agreement with no penalty for departure. We find that the penalty expenses associated with early departure in this case may not be reimbursed. Mr. Taylor began his first permanent duty assignment under Federal Highway Administration's Highway Engineer Training Program in the spring of 1980 in St. Paul, Minnesota. From the outset he was advised that the first phase of the training under the career development program would last only about 4 months and that he would thereafter be transferred to a different location to begin the second phase of training and development. Even though Mr. Taylor knew he would be reassigned from St. Paul well before 1981, he entered into a lease of a townhouse for a year beginning in April 1980 and running through March 1981. The lease contained provisions L e~ A( fo eln7§ /1'_T Se -no,,77 6~/71 ~

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