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B-232394 1 (1989-10-06)

handle is hein.gao/gaobadnpt0001 and id is 1 raw text is: _L) LCr-1


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


                       Edward R. Esparza - Relocation Miscellaneous

            Matterof-  Expenses - Cost of Purchasing Leased Automobile

            File:      B-232394

            Date:      October 6, 1989


            DIGEST

            An employee on permanent change-of-station transfer from
            Colorado to Puerto Rico incurred early termination fees
              incident to his termination of a lease and purchase of the
              automobile pursuant to an automobile lease agreement where
              the lease prohibited taking the car out of the continental
              United States. The claim for reimbursement is denied since
              Federal Travel Regulations (FTR) paragraph 2-6.2h, which
              authorizes reimbursement of the cost of settling an
              unexpired lease, applies only to leases on residences, n6t
              automobiles. Also, FTR paragraph 2-3.1(c)(1) specifically
              excludes from miscellaneous expense coverage losses and
              costs incurred in selling or buying personal property.


              DECISION

              This is in response to a request for a decision from
              Mr. David R. Petak, Chief, Accounting Branch, Food and Drug
              Administration, Department of Health and Human Services.
              Mr. Petak asks whether he may reimburse an employee,
              Mr. Edward R. Esparza, for automobile lease termination
              charges pursuant to transfer of permanent duty station. For
              the reasons set forth below, we conclude that Mr. Esparza
              may not be reimbursed for this purpose.

              BACKGROUND

              Mr. Esparza, an employee of the Food and Drug Administra-
              tion, was transferred from Denver, Colorado, to San Juan,
              Puerto Rico, by travel authorization issued on August 14,
              1987. In September 1986, Mr. Esparza had entered into an
              automobile lease agreement for a term of 48 months. The
              agreement included an option to purchase the automobile at
              the end of the term, or upon early termination of the lease
              provided an additional early termination fee was paid. The
              terms of the lease agreement also prohibited taking the car






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