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                             January 16, 1997
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                             GSBCA 13767-RELO


                     In the Matter of GARY R. MACLEAY


     Gary R. MacLeay, London, England, Claimant.

     G.A. Terrill, Chief, Travel Division, Defense Finance and
Accounting Service, Columbus, OH, appearing for the Department of
Defense.

HYATT, Board Judge.

     The claimant, Mr. Gary R. MacLeay, an overseas civilian
employee of the Department of Defense, seeks to recover a loss he
incurred in connection with his permanent change of station (PCS)
from Edzell, Scotland to London, England.  The claim was submitted
to the Board on behalf of Mr. MacLeay on July 18, 1996, by the
Defense Finance and Accounting Service (DFAS).  The loss claimed by
Mr. MacLeay was a result of the fluctuation of currency values. 
DFAS has disallowed payment pending the Board's determination
whether this claim should be paid.

     While stationed in Scotland, Mr. MacLeay placed a 1,000 pound
deposit on an apartment.  At the time the deposit was made, 1,000
pounds equated to $2,008.  Mr. MacLeay's PCS orders from Edzell,
Scotland to London, England were issued in December 1995.  When Mr.
MacLeay vacated his apartment in January 1996, his deposit was
refunded.  At that time, however, 1,000 pounds equated to only
$1,517.50.  Mr. MacLeay seeks to recover the loss of funds he
incurred due to the conversion from pounds to dollars.  

     Mr. MacLeay argues that his claim should be paid pursuant to
paragraph C9000 of the Joint Travel Regulations (JTR).  In his
view, the provision for payment of utility fees or deposits that
are not set off by eventual refunds under the provision for the
miscellaneous expense allowance provides authority for
reimbursement of this loss.  DFAS takes the position that this
provision relates solely to the inability to recoup the underlying
deposit and does not authorize compensation of a loss incurred by
reason of a conversion of the refund from pounds to dollars.   

     The types of costs intended to be reimbursed under the
allowance for miscellaneous expenses of relocation from one duty
station to another are addressed by both the Federal Travel
Regulation (FTR) and the JTR, which applies to civilian employees
of the Department of Defense and supplements and implements the
provisions of the FTR.  41 CFR 302-3.1 (1995); JTR C9000.  Both
provisions state that the miscellaneous expense allowance is
intended to cover certain types of contingent costs.  Among the
items enumerated under FTR section 302-3.1(b) is a provision for
payment of utility fees or deposits not offset by eventual refunds. 
Accord JTR C9000.  Section 302-3.1(c) lists items that are
specifically not covered by the miscellaneous expenses allowance. 
These include losses in selling and buying real and personal
property and cost items related to such transactions.  Accord JTR
C9001.

     A loss sustained by reason of fluctuations in currency values
is not specifically covered by either provision or under the
relocation provisions of the FTR or the JTR.  A review of the
regulation persuades us that the analysis offered by DFAS is more
properly applicable to these circumstances.  The provision in
section 301-3.1(b)(3) applies to the forfeiture of a deposit due to
early termination of a lease, not to the situation where the
deposit is refunded in full but is devalued by reason of
fluctuating currency values.  This situation is more akin to a
decline in the value of real or personal property, which is not
reimbursable under the statute or regulation.  Accordingly, Mr.
MacLeay is not entitled to recoup this loss.




                                        __________________________
                                        CATHERINE B. HYATT
                                        Board Judge