|CHAPTER��4�-�EMPLOYEE�TRAVEL
    PART�H:��INDEBTEDNESS�AND�COLLECTION
        C4357��VIOLATIONS�OF�AGREEMENT
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| | C4357� VIOLATIONS OF AGREEMENT | 
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| | A.� Transfers To, From, and Within Continental United States. | 
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| | 1.� General. | 
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| | The transportation agreement to remain in the Government service for 12 months following the effective date of transfer isn't voided by a subsequent transfer whether such subsequent transfer is at the employee's request or in the interest of the Government, nor is such agreement voided by another transportation agreement made in connection with a second transfer.� The liability of the employee for any moneys expended by the United States for his travel, transportation, and relocation allowances is a separate liability for each transportation agreement.� The liability, in each instance, is effective for the full 12-month period in connection with the transfer for which the transportation agreement was made.� The following examples indicate the extent of liability in situations involving a transfer prior to the completion of a required period of service under a current agreement. | 
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| | EXAMPLE 1 | 
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| | An employee is serving under a 12-months agreement at permanent duty station.� After serving 6 months thereat, he is authorized a permanent change of station to duty station B, and in this connection, is required to sign a new transportation agreement prescribing a period of service of 12 months.� After serving 4 months at duty station B, the employee resigns.� Under the foregoing conditions, the employee is indebted to the Government for the cost of any travel, transportation, and related allowances incurred by the Government in connection with the transfer to permanent duty station A, and from duty station A to permanent duty station B because the aggregate period of service at duty stations A and B is less than 12 months, unless it is determined that early release from both transportation agreements was for acceptable reasons permitting a waiver of the indebtedness. | 
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| | EXAMPLE 2 | 
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| | If, under EXAMPLE 1, the employee served 7 months at permanent duty station B and then resigned, the aggregate period of service at permanent duty stations A and B would be 13 months.� The prescribed period of 12 months service requirement under the transportation agreement signed incident to permanent duty station A would� be satisfied and no indebtedness would be involved in connection with travel to permanent duty station A.� The employee is indebted, however, to the Government for the cost of any travel, transportation, and related allowances in current by the Government in connection with the transfer from permanent duty station A to duty station B, unless it is determined that early release from the transportation agreement signed incident to the transfer to permanent duty station B was for� acceptable reasons permitting a waiver of indebtedness. | 
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| | 2.� To Continental United States. | 
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| | An employee transferred to a duty station within the continental United States from duty station outside the continental United States who has failed to meet the period of service requirements in a transportation agreement under which he is serving at the time of such transfer will be subject to the provisions in subpar. C.� An employee who fails to meet the period of service requirement in a transportation agreement signed at the time of transfer to a new duty station in the continental United States will be indebted to the Government for the cost of travel, transportation, and related allowances incurred by the Government in connection with such transfer unless failure to comply with the requirement is for reasons beyond his control which are acceptable to the military department or agency concerned.� However, if the employee has unused earned entitlement for return travel and transportation to place of residence for separation from his overseas duty station at the time of such transfer to the new duty station in the continental United States and fails to meet the period of service requirement in the signed transportation agreement, the constructive cost of such unused earned travel and transportation will be determined and credited toward the transfer expense amount incurred by the Government.� The difference between the transfer expense amount and the unused earned entitlement credit amount represents the indebtedness amount. | 
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| | 3.� Within or From Continental United States. | 
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| | An employee transferred from a duty station to another, both within the continental United States, who fails to meet the period of service requirement in a signed transportation agreement will be indebted to the Government for the cost of travel, transportation, and related allowances incurred by the Government in connection with such transfer unless failure to comply with the requirement is for reasons beyond his control which are acceptable to the military department or agency concerned.� The same consideration will apply if an employee is serving under a signed agreement at the time he is transferred from a duty station in the continental United States to a new duty station outside the continental United States. | 
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| | B.� Appointees to First Duty Station. | 
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| | An appointee to a first duty station, who fails to meet the period of service requirement in a signed agreement, will be indebted to the Government for the cost of travel and transportation provided at Government expense unless failure to comply with the requirement is for reasons beyond his control which are acceptable to the agency concerned. | 
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| | C.� Overseas Employees.� | 
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| | 1.� Failure to Meet Service Requirement. | 
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| | An employee assigned or appointed to an overseas permanent duty station under an agreement providing for transportation at Government expense, who fails to meet the period of service requirement in a signed agreement, will be indebted to the Government for the expense of travel, transportation, and related allowances provided, or won't be authorized transportation at Government expense, unless failure to comply with the requirement is for reasons beyond his control which are acceptable to the agency concerned. | 
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| | 2.� Violation During First Year of Service Under Initial Agreement. | 
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| | An overseas employee who leaves Government service for reasons unacceptable to the agency to which he was last assigned before he has completed 12 months of Government service following the date he reported to the first duty station incident to which the initial agreement was signed will be required to refund all expenses of any of the following entitlements provided for him incident to travel to the first duty station: | 
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| | a.� transportation, per diem, and incidental expenses paid to him;
b.� transportation and per diem provided for his dependents;
c.� transportation, packing, crating, drayage, unpacking, uncrating, and�� temporary and nontemporary storage of HHG;
d.� shipment of privately owned motor vehicle;
e.� transportation of a mobile home. | 
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| | An employee who departs from an overseas permanent duty station in an authorized leave with or without pay status before the end of the first year of service during an initial agreement and resigns while away for reasons unacceptable to the agency will be allowed credit for the period of authorized leave toward completion of the minimum service requirement (MS Comp. Gen. B-184948, 18 November 1975).� The provisions of this subparagraph and subpar. 3 apply to all overseas employees.� Additional penalty conditions are prescribed in subpar. 5 for teachers in the Department of Defense Overseas Dependents School System. | 
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| | 3.� Violation After 1 Year of Service Under Initial Agreement. | 
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| | An employee who completes a minimum year of overseas assignment and who for reasons unacceptable to the Department of Defense component concerned fails to complete a prescribed period of agreed initial employment in excess of a year isn't indebted to the Government for the expense of transportation furnished from point of transfer or place of residence to an overseas permanent duty station.� Collection will be made, however, for any charge for nontemporary storage incurred after the end of the 1-year period.� Additionally, the employee concerned will bear all costs for storage, packing, handling, drayage and transportation, and unpacking of the goods after the violation date and will be so advised immediately.� Return transportation of a privately owned vehicle, if involved, also will be at the employee's expense.� As Government funds can't be used for the purchase of commercial transportation for ineligible employees, any further transportation will be at the expense of the employee concerned.� If the employee has insufficient funds for return transportation, repatriation transportation may be authorized as provided in par.C6300. | 
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| | 4.� Employees Serving Under Renewal Agreement. | 
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| | a.� General. | 
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| | An employee who fails to complete the period of service specified in a renewal agreement for an additional tour of duty for reasons not beyond his control and not acceptable to the Department of Defense component concerned becomes obligated for the expenses incurred by the Government, as indicated in subpars. (2) and (3). | 
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| | b.� When Employee Fails to Complete 1 Year of Service. | 
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| | When an employee fails to complete 1 year of service under a renewal agreement, he becomes obligated for any of the following costs incurred by the Government, as applicable: | 
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| | 1.� transportation and per diem for the employee and transportation for his dependents from his duty station to his place of actual residence and from his place of actual residence to the last duty station where he failed to complete a year of service; | 
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| | 2.� transportation for any of his dependents who traveled from the former to the last duty station without going to his actual place of residence; | 
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| | 3.� transportation of his HHG from the former duty station to the last duty station, including any costs for packing, crating, drayage, unpacking, and temporary storage; | 
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| | 4.� transportation of the employee's privately owned motor vehicle or nontemporary storage of the HHG unless earned entitlement exists for the nontemporary storage of the HHG or return transportation of the motor vehicle; | 
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| | 5.� miscellaneous expense allowance paid in connection with a transfer from a former to the last duty station. | 
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| | The employee also will bear the expense of transportation for himself, his dependents, and his HHG from his last duty station to his place of actual residence.� He will be obligated for any costs incurred by the Government for these purposes.� In these circumstances, however, the employee is entitled to an allowance because of the fact that, prior to his current agreement which he didn't complete, he completed an agreed-upon period of service for which he didn't receive all allowances to which he was entitled.� Under these circumstances, the employee is entitled to allowances for the return of himself, his family, and his HHG, including costs of packing, crating, drayage, unpacking, and temporary storage, from the duty station at which the former period of service was completed to his actual place of residence.� Since he didn't avail himself of this entitlement, the costs that would have been incurred for that purpose may be applied as a setoff against the indebtedness described herein, provided the employee was actually separated from Government service.� If the amount of this setoff is less than the indebtedness, the difference is a debt due the United States.� If the setoff is larger than the indebtedness, the difference will be applied to the employee's costs of moving him, his family, and his HHG from the duty station where he failed to complete a year of service to his place of actual residence.� If the amount available to be applied to these costs equals or exceeds the costs, the Government will procure and pay for such transportation in full.� If the amount available is less than the cost, the Government may procure and pay for the transportation and obtain reimbursement from the employee for the difference between the total costs and the amount to be applied against the costs or may allow the employee to pay the total costs and reimburse him for the applicable amount upon submission of a claim for reimbursement.� Additional penalty conditions are prescribed for teachers in the Department of Defense Overseas Dependents School System. | 
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| | c.� When Employee Completes 1 Year or More But Doesn't Complete Specified Period of Service. | 
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| | If the employee completes 1 year or more of service under a renewal agreement but doesn't complete the entire period of service specified in the agreement, he isn't indebted to the Government for amounts spent by the Government for transportation and per diem for the employee and for transportation of his dependents from the duty station at which he completed the previous tour of duty to his place of actual residence and from his place of actual residence to the duty station at which he failed to complete his agreed-upon tour of duty.� If the post of duty where the employee failed to complete his agreement isn't the same as the place where he did complete his previous assignment, he isn't indebted for the costs of transporting any of his dependents who traveled from the former to the latter post of duty without going to the actual place of residence, nor for the cost of transporting his HHG between these two duty stations, including any related costs of packing, crating, drayage, unpacking and temporary storage, nor for miscellaneous expenses.� However, under these circumstances, the employee will bear the costs of transportation for himself, his dependents, and his HHG from the duty station at which he didn't complete the agreed upon tour of duty under the renewal agreement to his place of actual residence.� This indebtedness will be offset, however, by an amount equal to the costs of transporting, from the duty station at which the former period of service was completed to the place of actual residence, the employee's HHG and any of his dependents who didn't accompany him when he returned to his place of actual residence for leave provided he was actually separated from Government service.� These offsetting costs and any remaining indebtedness will be computed in the same manner as provided in subpar. b. | 
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| | 5.� Teachers in the Department of Defense Overseas Dependent School System. | 
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| | In addition to the usual penalties for violation of agreements, a teacher who fails to report for service at the beginning of the next school year will be indebted to the military department concerned for an amount equal to any living quarters allowances which he may have received during the recess period between school years, or the reasonable value of any quarters or storage which he may have received during the recess period, or both. | 
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| | D.� Responsibility of Civilian Personnel or Industrial Relations Officer. | 
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| | The civilian personnel or industrial relations officer is responsible for determining the employee's travel and transportation entitlement under the provisions of subpars. A3, C2, 3, and 4.� Determination will be made prior to processing the employee's separation.� The cost of the travel and transportation previously furnished and/or to be furnished will be computed by the transportation officer servicing the activity where the violation occurred.� If a collection is to be effected, the civilian personnel or industrial relations officer ascertains the amount of travel and transportation expense and takes the action indicated in par.C4358.� A statement of liability or credit as a result of violation of renewal agreement is prepared in accordance with the provisions of subpar. I, for use by the employee and the Government in making final settlement of the indebtedness or obligation. | 
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| | E.� Computations. | 
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| | 1.� General. | 
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| | Computation of the amount of an employee's indebtedness and credits, including any adjustments to be made in recognition of an employee's previous tour(s) of duty, are made on the basis of actual cost, representing the amount spent by the Government, and/or constructive cost, representing the costs computed in terms of rates applicable at the time the employee fails to fulfill the terms of the new agreement.� | 
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| | 2.� MSC and AMC Costs. | 
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| | The space requirement rate is used in computing costs of Military Sealift Command transportation and the common user tariff rate is used in computing the cost of Air Mobility Command transportation.� If these rates aren't available at the overseas activity, they may be obtained from the nearest MSC or AMC traffic officer, as appropriate.� Requests for MSC and AMC tariff rates should contain the rates and travel and transportation, terminal points, names of persons concerned, baggage weight, and any other information deemed necessary. | 
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| | 3.� Commercial Carrier Transportation Costs. | 
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| | Computation of the cost of commercial carrier transportation within CONUS is made on the basis of the cost to the Government, without tax, for the accommodations that are furnished in accordance with Chapter 2, Part E.� Appropriate credit is allowed the employee for transportation requests or wholly or partially unused tickets that are turned in. | 
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| | 4.� Compensation for Travel Time. | 
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| | Compensation for travel time isn't considered an item of "travel expense" and is considered in computing the indebtedness. | 
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| | 5.� Per Diem Allowance. | 
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| | Per diem allowance for travel performed is an item of "travel expense" and is considered in computing the indebtedness. | 
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| | 6.� Extent of Employee Indebtedness. | 
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| | The employee's indebtedness is based on travel and transportation to and/or from the first duty station to which assigned following a period of renewal agreement travel.� Travel and transportation costs involved in subsequent reassignments within the overseas command directed by the employing activity shall be an obligation of the employee. | 
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| | F.� Return Transportation, Government's Obligation. | 
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| | When it is determined that there is sufficient transportation entitlement for the full distance from the official overseas duty station to the proper destination, transportation at Government expense is authorized and the Government's obligation is fulfilled. | 
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| | G.� Employee's Obligation. | 
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| | When it is determined there is sufficient transportation entitlement for the full distance from the official overseas duty station to the proper destination point, the employee is responsible for the cost of all or that portion of the transportation to the place of actual residence which isn't covered by transportation credit.� Government transportation is authorized, if available, from the overseas area to the port of debarkation or beyond in accordance with these regulations.� In such cases, cash collections are made, if possible, before the travel begins.� In the event that the employee is without sufficient funds to defray the expenses of return transportation, including packing, crating, drayage, temporary storage at point of origin, and unpacking, such transportation may be provided under par.C6300and the employee is held liable for the amount due the Government.� Necessary steps for collection are taken in accordance with the provisions of par.C4358.� If the employee prefers, the employee may provide the transportation and be reimbursed for the Government's share upon submission of an appropriate voucher.� Receipts covering expenses to be reimbursed are furnished by the employee and reimbursement of the Government's share is based on the mode of transportation which would have been utilized for the return over a usually traveled route to the place of actual residence. | 
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| | H.� Claims for Reimbursement. | 
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| | Claim for reimbursement is submitted: | 
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