In her temporary transfer to Washington DC Teresa arranged to sublease an apartment for most of her stay rather where the amount paid was appropriate for the area rather than incurring the cost of a hotel. Her agency denied payment citing FTR 301-11.12(‘c) that prohibits payment to friends or relatives other than the additional costs of accommodation. The Board first looked into Theresa’s relationship to the subleasor to determine whether the expenses were legitimate or simply a devise to receive payment from the government. The Board said there was no reason to assume Theresa had arranged to stay with a friend. IT found other clues to indicate the sublet was a business transaction – sublease period was for the summer when student-occupied apartments are commonly subleased and cancelled checks including a security deposit were provided. The Board concluded there was no proof that the sublease was not a bona fide business transaction and ruled Theresa should be reimbursed (Theresa Kanter, GSBCA 16770-TRAV).

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