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B-213164 1 (1984-02-22)

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                        THE COMPTROLLER GENERAL
ONCISION      .        . OP THE UNITEO       ETATE8
                       .WASHINGTON. 0. C. 20548
                OMLJITI'


FILE:     B-213164            DATE: February 22, 1984

MATTER OF:       Stephen J. Musser - Relocation Expenses -
                 Change of Residence at Permanent Duty
                 Station
DIQEST:

        1. Employee, who was transferred for
            training purposes and reimbursed
            for relocation expenses, subsequently
            claimed expenses associated with a
            change of residence at his permanent
            duty station. The claim may not be
            allowed since the employee's eligibil-
            ity for the relocation expenses
            authorized by 5 U.S.C. SS 5724 and
            5724a (1982) is conditioned on such
            expenses being incurred pursuant to
            a permanent change of station. The
            employee was reassigned to another
            position at the same duty station and,
            therefore, did not undergo a change
            of duty station. Although agency
            officials advised the employee that
            he could be reimbursed for expenses
            incurred in a local move, the
            Government may not be bound by the
            erroneous acts or advice of its
            employees.

        2. Employee, who was transferred in
            August 1981, was reimbursed for an
            $850 loan origination fee he incurred
            in November 1982, when purchasing
            a home at his new duty station.
            Paragraph 2-6.2d of the Federal Travel
            Regulations, FPMR 101-7 (May 1973),
            in effect at the time of the employ-
            ee's transfer, prohibited reimburse-
            ment for any fee constituting a
            finance charge under Regulation Z,
            12 C.F.R. § 226.4(a). Since a loan
            origination fee constitutes a finance
            charge, the employee was not entitled
            to be reimbursed for any part of the
            fee unless he submitted a breakdown





                     /; 3 55-3

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