Allowance and Differentials Payable in Foreign Areas

Purpose:

This Order, Allowance and Differentials Payable in Foreign Areas, establishes  agency policy and procedures for requesting, processing, authorizing, paying, reconciling, and reporting of foreign allowance and differential payments to employees stationed in a foreign area.

Background:

The current version of this Order, HRM 9592.1A, dated March 28, 2022, describes the foreign allowances and differentials found under Chapter 59 of title 5, U.S. Code such as danger pay and foreign educational allowance, as regulated by the Department of State (DOS) under Presidential Executive Order 10903 (1961). This minor revision to this existing Order increases an employee’s flexibility on reporting foreign currency exchange rates, applicable to annual living quarters allowance (LQA) financial reconciliation (see pages 24 - 25). A small change is also made that excludes bank fees from the definition of “rent,” based upon guidance from the State Department, as well as a new definition of “utilities” (see page 14). Lastly, a change is made to authorize “pooled” LQA reimbursements when both members of a married couple are both civilians in the U.S. Government living together overseas (see page 12).

Applicability:

This directive applies to all GSA employees, with the following exceptions:

1. The Office of Inspector General (OIG) has independent personnel authority. See Section 6 of the Inspector General Act of 1978, (5 U.S.C. App.3), as amended (Inspector General is authorized “to select, appoint, and employ such officers and employees as may be necessary for carrying out the functions, powers, and duties of the Office of Inspector General”) and GSA Order ADM P 5450.39D GSA Delegations of Authority Manual (Delegations Manual), Chapter 2, Part 1 (“the Inspector General has independent authority to formulate policies and make determinations concerning human capital issues within the [OIG]” and GSA determinations/delegations do not limit that authority). Similarly, GSA specifically recognizes that the Inspector General has independent authority to formulate policies and make determinations concerning training, employee development, and career management.
2. This Order applies to the Civilian Board of Contract Appeals (CBCA) only to the extent that the CBCA determines it is consistent with the CBCA’s independent authority under the Contract Disputes Act and it does not conflict with other CBCA policies or the CBCA mission.

Cancellation:

HRM 9592.1A, Allowances and Differentials Payable in Foreign Areas, dated March 28, 2022, is canceled.

Responsibilities:

1. The GSA Administrator has delegated the authority to review and approve foreign allowances and differentials to the Regional Administrators (RAs) and Heads of Services and Offices (HSSOs). In rare circumstances, the Administrator may waive eligibility requirements based on the facts and unusual circumstances of an employee’s recruitment to an overseas assignment.
2. The RAs and HSSOs, or their designees (as designated in writing), are responsible for overseeing the foreign allowance program in their assigned area, coordinating the proper payment authorization documents, and overseeing the processing of annual reconciliations packages.
3. The Office of the Chief Financial Officer’s (OCFO) Payroll Services Branch (PSB) is responsible for making proper foreign allowance payments based on the form Foreign Allowances Application, Grant and Report (SF-1190) which authorizes allowances in accordance with applicable regulations and policies.
4. The FAS Overseas Program Manager is responsible to support the Overseas employee program by assisting with operationalizing policy, documenting standard operating procedures and advising the Approving Official on matters regarding overseas employment and foreign allowances and differentials.
5. The Office of Human Resources Management (OHRM) is responsible for maintaining and updating this policy (see ADM 5450.39D, change 1, Delegation of Authority Manual, Chapter 7 OHRM).
6. The employee’s supervisor is responsible for assisting their employees with the foreign allowance request and reconciliation processes.
7. The employee is responsible for providing all documentation requested to assist in the determination of foreign allowance eligibility, and the decision for the continuation or termination of the applicable allowances.

Revisions:

This Manual:

1. Adds new information regarding general provisions, living quarters allowance, post (cost of living) allowances, post (hardship) differential, danger pay, and education allowance; and
2. Revises the role of the budget office and adds new duties to the FAS Overseas Program Manager and the OHRM Compensation Manager.