About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline

B-223848 1 (1987-07-02)

handle is hein.gao/gaobadmtg0001 and id is 1 raw text is: 

The Comptroller General
of the United States
Washington, D.C. 20548
Decision


           Proper Appropriation to Charge for Third Party

Matterof:  Relocation Service Costs

File:      B-223848

Date:      July 2, 1987



DIGEST

Amounts the Veterans Administration (VA) pays to a third
party relocation firm under a contract with the firm for
purchasing transferred employees' old residences should be
paid from appropriations available when the purchase order
under the contract is awarded. The VA typically incurs
these discretionary expenses a year or two after a transfer
is authorized, and thus they reflect new contractual
commitments not based on preexisting obligations.

DEC IS ION

The Veterans Administration (VA) asks about the proper
appropriation to charge for payments to third party reloca-
tion firms for purchasing the old residences of transferred
employees who have been unsuccessful in finding a buyer
themselves. For the reasons given below, we conclude that
these payments should be made from appropriations available
when these expenses are incurred.

BACKGROUND

The VA states that when one of its employees is transferred,
the estimated expenses for authorized relocation services
are recorded as obligations against the appropriation
current when the employee is issued travel orders. These
expenses include real estate costs covering sale of the old
residence and purchase of a new one. The statutory limit
for the former is 10 percent of the sale price or $15,000,
whichever is less; and, for the latter, the lesser of
5 percent of the purchase price or $7,500. 5 U.S.C.
S 5724a(a)(4)(B). The amount initially obligated reflects
the maximum which the VA estimates the transfer may cost.

In addition, pursuant to 5 U.S.C. S 5724c, agencies have
discretionary authority to contract with private firms for
arranging the purchase of an employee's old residence. We
understand that some agencies do have regular programs where
employees are given the option, at the time of transfer, of

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Contact us for annual subscription options:

Already a HeinOnline Subscriber?

profiles profiles most