The Foreign Service Journal, April 2004

8 AFSA NEWS • APRIL 2004 Personnel BY JAMES YORKE, LABOR MANAGEMENT SPECIALIST A Look at Training and Lodging Q: I’mcoming toWashington for a year’s language training. Can I live in my own house while I’m on long-term training between assignments, and claimper diem at the same time? A: Yes, under certain circum- stances. First, you can buy a house to occupy while you are on temporary duty between posts,andyoucanclaimperdiemallowance in connection with your occupancy of the house,basedonthestandardmealsandmis- cellaneousexpensesallowance(M&IE),plus lodging costs determined as a proration of monthly interest, property tax and utility costs actually incurred. This is basedon the 1977“Larrabee”decisionoftheComptroller General. Second, you canmove into a property that was rented out while you were away, and claim the same per diem costs. Most FS employees with homes in the Washington area canqualify as long as the house has been rentedout for a significant period and the employee is on temporary duty orders that specifically state that he or she is en route to another overseas assign- ment. However, none of the case history addresses the questionof someone return- ing for training to a house that he or she owned as a family home for a protracted period, but that has only been rented out for a short periodbefore the returnonTDY. This may still require a test case. Q: I’m going to Fort Lauderdale for a three-week TDY and own a holiday home in the area. May I claimper diemas reim- bursement for mortgage expenses if I live in this house for the period of my TDY? A: No. The rationale here is that youbought this house for other purposes entirely, and anymortgage costs you incur are consequent on your owner- ship of the property, not your temporary duty. Youmay, however, claimM&IEand some other expenses, such as the cost of extra utilities that would not have been incurred had you not been occupying the house. Q: I understand that per diem rates decrease over time during long-term training at FSI. How does that work? A: While in long-term training at FSI, you may claim up to 100 percent of daily per diem for the first 60 days. This amount is reduced to 50 per- cent fromday 61 today 120, and to25per- cent thereafter. The reduction applies to both the lodging andM&IEportions of per diem. In 2003 lodging per diem for the D.C. area was $150 and M&IE was $50. Q: Can I cover my rent during training by arranging a “front-loaded” lease? A: No. Afront-loaded lease, in this context, is a leasewithahighrent for the first fewmonths that is later reduced on a sliding scale to match the declining authorized lodgingper diemamount. The Resource Management Bureau’s policy, when faced with a lease of this kind, is to addup the total rent over the periodof the lease, anddivide that by thenumber of days of the lease. So beware: If you agree to a rent of $4,500 permonth for the first sixty days (or $150/day), $2,250 for the next 60 days ($75/day) and$1,125 for the remain- der of a six-month lease, RMwill add it all together ($15,750) anddivide by six togive a monthly rent of $2,625. So you’ll only get $2,625 for the first twomonths, and the maximumamounts of $2,250 and $1,125 monthly for each of the next two-month periods. ▫ Q & A All-Hands Meeting at USAID On Feb. 3, USAID Administrator Natsios gathered employees for the first all-hands meeting of 2004. The administrator deliv- ered remarks in which he emphasized the four main priorities for the coming year: 1) The reconstruction of Afghanistan, Iraq, and Sudan; 2) HIV/AIDS and the Millennium Challenge Account; 3) President Bush’s 19 Development Initiatives; and 4) the Business Model Review. Of particular interest to AFSA were the presentations on management and human resources, which were handled by Assistant Administrator for Management John Marshall and Director of Human Resources Rose Marie Depp. AFSA and others posed questions concerning the Student Loan Repayment Program, spousal language and area training, reimbursement of expenses for new hires and business class travel. The overriding refrain was budgetary constraint, but there are efforts afoot to see if funds can be found for SLRP with the caveat that such a program would not provide blanket coverage for all. The agency must prove that the program is used to address recruitment and retention problems in order to provide this benefit. Regarding spousal language training at FSI, HR said “FAST” summer courses for spouses were a possi- bility, but only by request to USAID/HR. HR said that the cost of spousal area studies, however, was prohibitive. USAID is cur- rently developing a plan that would provide some reimburse- ment of new-hire expenses. No answer on business-class travel was forthcoming. Tax Time The AFSA Tax Guide gives you a detailed state-by-state breakdown of tax laws as they pertain to Foreign Service employees and retirees. If you missed the 2003 Tax Guide in the February AFSA News , you can find it on the AFSAWeb site at www.afsa.org/taxguide.cfm. Th e latest regarding the capital gains tax exclusion on the sale of a principal residence can be found in the congressional activity section of the AFSA Web site at: www.afsa.org/congress.cfm. Briefs • Continued on page 9 AFSA NEWS BRIEFS Continued from page 6