OFFICIAL
RESIDENCE EXPENSES (Last updated 7/22/2007)
410 DESCRIPTION
411 Definitions
a. "Principal
representative" means a senior official of the United States
Government serving in a foreign country who has been designated by the
Secretary of State as occupying a position of such importance that the
Government should defray the unusual expenses incident to the operation and
maintenance of their official residence.
b. "Official
residence" means the residence designated by the head of agency for
occupancy by a principal representative of an agency. The term "official
residence" includes the building and grounds:
(1)
purchased or leased by the Government and assigned to a principal
representative; or
(2) leased
or owned by a principal representative, or by a member of their family, and
occupied by the principal representative as their residence.
c. "Official
residence expenses" means those unusual expenses that a principal
representative is obliged to incur in the operation and maintenance of a
suitable official residence. These expenses must be in excess of the usual
expenses incident to the operation and maintenance of the residence he/she
would occupy if he/she were serving at the post in any other capacity.
d. "Household
staff" means a person employed to perform household duties at the
official residence.
e. "Staff’s
maintenance" means the board, lodging, clothing, local transportation,
medical and dental care, social security and other assessments, gratuities,
burial expenses, and so forth, which are required in accordance with local law
or custom to be provided by the principal representative in addition to wages.
Transportation costs and necessary training described in Section 451 also are
considered to be a part of staff’s maintenance.
412 Scope
The defraying of official residence expenses is
intended to make possible the operation and maintenance of official residences
in which principal representatives can properly represent the United States
abroad by extending official (as distinct from personal) hospitality to foreign
dignitaries and important visitors, by receiving official deputations and
callers, and by holding requisite and appropriate ceremonies smoothly and with
dignity. Also, payment of official residence expenses is intended to keep the
official residences staffed and in operation to the extent necessary, even
during intervals between the departure of an officer because of recall,
transfer, or some other reason and their return or the arrival of their
successor. Payment of official residence expenses should not be considered to
be a gratuity, allowance, or other emolument.
420 DESIGNATIONS
421 Designation of
Principal Representatives
The Secretary of State will designate the positions
whose incumbents shall be considered principal representatives for the purpose
of this chapter.
422 Designation of
Official Residences
The head of agency shall determine which residences
at a post shall be considered as official residences for occupancy by principal
representatives. When a principal representative is expected to be absent from
their post for a period in excess of 30 consecutive calendar days, the head of
agency may, in addition, designate as a temporary official residence the
residence of the employee acting for the principal representative.
430 OFFICIAL RESIDENCE EXPENSES DURING ABSENCE OF
PRINCIPAL REPRESENTATIVE
Unusual expenses defined in Section 411c which are
incurred in the following circumstances may be charged as official residence
expenses in accordance with provisions of Sections 440 and 450 when pertinent:
a. when an employee is
authorized by the head of agency to occupy the official residence during the
absence from the post of the principal representative; (If the head of agency
determines it to be necessary for such an employee to maintain and operate another
residence at the post while occupying the official residence, the
"usual" and "unusual" expenses (see Sections 411c and 440)
of maintaining and operating the official residence may be charged as official
residence expenses.);
b. during periods when no
principal representative is assigned to an official residence. Periods of time
when a principal representative is temporarily absent, including annual and
home leave, do not relieve them from the requirements of Section 440 for the
periods of the absence;
c. when the residence of
another employee who is acting for the principal representative is temporarily
designated as an official residence. (See Section 422.)
440 AMOUNT OF USUAL HOUSEHOLD EXPENSES
The amount of annual usual household expenses
(accounted for on an annual per calendar year basis) that must be borne
personally by a principal representative regardless of rank or grade is three
and one-half percent of salary. The amount of annual usual household expenses
that must be borne personally by an employee serving as Chief of Mission
(officer temporarily in charge of the operations of an agency at a post, or in
some other similar capacity) is three and one-half percent of their salary plus
any additional compensation that they may be authorized to receive while
serving in such capacity. All allowances, differentials, or other additional
compensation are excluded. (See definition of salary in Section 040(l).)
Usual household expenses less
than three and one-half percent
Should the total annual household and maintenance
expenses (including any expenses identified in Sections 451-453 not paid
through other funding sources such as described in Section 450, e.g., contracts
for gardening services) total less than three and one-half percent of salary,
the principal representative may pay only the cost of such expenses and may not
seek any reimbursement under ORE.
If the principal representative chooses not to
contribute the three and one-half percent of their salary when ORE costs are
less than the contribution, then they must make this option upon arrival at the
post. The option “not to contribute” the
three and one-half percent of salary and “not seek reimbursement” under ORE
must remain in effect through the current calendar year ending December 31 and
prorated for arrival and departure dates.
445 Limitation on
Household Staff
The head of agency is required to place a limitation
on the total number of household staff that may be employed at Government
expense in the official residence of a principal representative of that agency
consistent with the needs of such representative.
450 ALLOWABLE EXPENDITURES
Within allotted funds, and subject to the provisions
of Section 445, an official residence allotment may be charged, or
reimbursement made therefrom to principal representatives, for the official
residence expenses (Section 411c) described in Sections 451, 452, and 453 that
exceed on an annual basis the applicable amount of usual household expenses
specified in Section 440.
Where applicable, individual agency appropriations
should be used to provide alternative methods of funding for some or all of the
expenses identified in Sections 451, 452 and 453 (e.g., household furnishings
provided by the Overseas Building Operations program). Routine maintenance and
repair funds can be used for Government-owned or long-term lease properties and
S&E/DCP funds for short-term lease properties (6 FAM 773.3-2b or equivalent
agency regulations). Under these circumstances such expenditures will not be
considered in calculating the cost of ORE.
451 Household Staff
a. wages and maintenance of
household staff;
b. transportation of
household staff between the post and alternate seat of government;
c. transportation of
household staff between the residence post and another post of assignment if
the principal representative is designated as a principal representative at
both posts concurrently;
d. protocol and/or English
language training when such training is reasonable and necessary.
452 Household Operation
and Maintenance
a. The rent, installation,
repair, upkeep and removal of furnishings, equipment, and appliances;
b. the purchase of services
such as those required to renovate and redecorate the premises for use as an
official residence;
c. general house cleaning,
dry cleaning, laundry, trash removal, and window washing;
d. telephone, internet,
satellite, cable or other available communication services.
453 Expendable Household
Supplies and Small Items
a. Purchases should be
limited to no more than six months operating requirements for supplies which
are normally consumed in use or lose their identity such as cleaning supplies,
paper, light bulbs, linen, nails, and wire;
b. Supplies which are of
insufficient value (less than $250) to justify maintenance of property
accountability records, such as electrical equipment, kitchenware, plumbing
supplies, and tools. Posts are
encouraged to directly procure items for use by the official residence when
feasible in order to maximize purchasing power. All items acquired with U.S. Government funds become property of the U.S.
Government.
454 Prohibitions
Expenses such as the following may not be reimbursed
from or charged to the official residence expenses account:
a. Expenditures which are
properly borne by representation allowance funds (such as staff overtime and
extra waiters for official functions or other allowable items under Section
320);
b. Expenditures properly
borne by any other appropriations as specified by acts of Congress or by
internal agency regulations;
c. Expenditures prohibited by
law;
d. Wages and maintenance of
household staff who provide a personalized service or are commonly employed by
most employees at post who do not have official residence responsibilities
(such as a chauffeur, personal maid, personal secretary, nursemaid, or governess);
e. Transportation of staff
for purposes other than delineated in Section 451, unless transportation is
incorporated into the wage contract due to lack of available qualified
personnel at the post and approved by head of the agency.
455 Payment
Official residence expenses authorized under this
chapter must be accounted for on an annual calendar year basis and paid or
reimbursed based on the annual amount calculated. Each agency should establish policies and
procedures in order to ensure employee pays appropriate amount.
456 Advance of Funds for Official Residence
Expenses (eff. 7/22/07 TL:SR 679)
An agency may provide an advance of funds for
official residence expenses to principal representatives eligible to receive
reimbursements for such expenses.
457 Condition Requiring Repayment (eff.
7/22/07 TL:SR 679)
An advance of funds not substantiated by a receipt
or other proof of payment shall be repaid by the employee to the agency.