Summary: GAO recommended that legislation be enacted to permit Federal agencies to reimburse their employees for residence sale and purchase expenses upon transfer from an overseas post to a new duty station in the United States. At the present time, such expenses are not reimbursable. This is a provision which is unduly harsh and impacts heavily on Federal employees who are recruited to perform overseas tours of duty and who, upon completion of these tours, are reassigned to duty stations other than the ones from which they were transferred overseas. Reimbursement of these expenses is provided only for the sale of property when the old and new duty stations are located within the United States. To circumvent this requirement Federal agencies have been reassigning the employee to perform a short tour of duty at the old duty station in the United States after the overseas tour before the transfer to the final duty station. GAO objected to this practice and will not reimburse real estate expense claims in such cases. Other Federal agencies have shown approval of the proposed remedial legislation. GAO believes that amendment of the present law is compelling and deserving, based on equitable considerations.
