Tita D. Corpuz and John R. Fears

B-256576 Jan 17, 1996 Jump To VIEW DECISION RELATED PAGES GAO CONTACTS Highlights Agency's determination that various charges incident to occupancy of temporary quarters are allowable is not arbitrary. Are overruled to the extent they are inconsistent with this decision. Fears are employees of the VA who were transferred to the VA Medical Center in Phoenix. Each was authorized subsistence expenses while occupying temporary quarters and each received extensions not to exceed 120 days. Corpuz's case were the costs of a telephone installation fee ($46.50). Fears's case were a lease-breaking fee ($111.20). Its concern is that all reasonable charges incident to rental lodging be allowable. So that if rental lodging is less expensive than a hotel or motel. It will be in the interest of both the employee and the government for the employee to use the lower cost lodging. View Decision Matter of: Tita D. Corpuz and John R. Fears File: B-256576 Date: January 17, 1996 Agency's determination that various charges incident to occupancy of temporary quarters are allowable is not arbitrary, capricious, or contrary to law. Hence two transferred employees who occupied temporary quarters in rented apartments may be reimbursed subsistence expenses incurred in renting temporary quarters, including rent, apartment application or administrative fees, the cost of transporting rental furniture into the temporary quarters, a final cleaning fee, a security alarm fee, and a police alarm permit. However, a telephone installation fee may not be reimbursed as a subsistence expense. A transferred employee who entered into a 6-month apartment lease for temporary quarters occupancy had to pay a lease-breaking fee when he vacated the apartment after approximately 4 months. His lease-breaking fee may be reimbursed if the agency finds that it meets the standards applicable to other lodging expenses incurred by employees authorized to occupy temporary quarters. Patsy S. Ricard, 67 Comp.Gen. 285, 290 (1988); David E. Nowak, 65 Comp.Gen. 805 (1986); Alex Kale, 55 Comp.Gen. 779, 782-83 (1976); and Walter V. Smith, B-186435, Feb. 23, 1979, are overruled to the extent they are inconsistent with this decision. DECISION The Department of Veterans Affairs (VA) requests a decision concerning the entitlement of two employees to be reimbursed for certain lodging expenses each incurred while in temporary quarters. [1] As discussed below, some of the expenses claimed by each may be reimbursed. Mrs. Tita D. Corpuz and Mr. John R. Fears are employees of the VA who were transferred to the VA Medical Center in Phoenix, Arizona, in March and May 1993, respectively. Each was authorized subsistence expenses while occupying temporary quarters and each received extensions not to exceed 120 days. Also, each occupied a rented apartment with dependents as temporary quarters at the new station. The VA Medical Center disallowed certain lodging expenses claimed by each employee. The items disallowed in Mrs. Corpuz's case were the costs of a telephone installation fee ($46.50), a security alarm fee ($37.95), a police alarm permit ($10.00), and an apartment application fee ($25.00). The expense items disallowed in Mr. Fears's case were a lease-breaking fee ($111.20), an apartment administrative fee ($115.00), a final cleaning charge ($30.00), and a delivery charge for rented furniture ($35.00). VA Medical Center has submitted appeals on behalf of these two employees, and contends that the items should be reimbursed. Its concern is that all reasonable charges incident to rental lodging be allowable, so that if rental lodging is less expensive than a hotel or motel, it will be in the interest of both the employee and the government for the employee to use the lower cost lodging. OPINION The regulations governing payment of temporary quarters subsistence expenses (TQSE) are contained in chapter 302, Part 5 of the Federal Travel Regulation (FTR). [2] Section 302-5.4(a) of these regulations provides for reimbursement of actual subsistence expenses incurred that are incident to the occupancy of temporary quarters and are reasonable in amount. Among the expenses allowed are lodging expenses and "fees . . . incident to . . . lodging." In addition, FTR Sec. 302-2.1 provides that, except as specifically provided in Chapter 302, per diem transportation costs, and other travel expenses of a transferred employee shall be allowed in accordance with 5 U.S.C. Secs. 5701-5709 and Chapter 301 of the FTR (which deals with the allowable travel expenses of employees on temporary duty). Generally, the costs of services that are allowable when an employee occupies temporary quarters are those ordinarily included in the price of a hotel or motel room, that being the usual form of temporary lodging. [3] These would include costs incident to rental and may include fees for cleaning and telephone services, trash removal, and a cable television rental fee.