Memorandum for the Chairman June 28, 1983 Page 5 apply to any situation other than the sale and purchase of a home connected with a relocation. [The matter remains] unresolved and adequate justification The Corporation's policy regarding "mortgage interest differentials" stated: "provide payment for interest rate differences between old and new rate times old mortgage dollar balance for a 3-year period. Payment to be made on an annual basis." There is no explicit requirement that the employee sell his old residence as well as purchase a new residence. Such a requirement might be implied from the text if the purpose of the provision were solely to reimburse the employee for the loss of a favorable mortgage as a consequence of the job-related change of principal residence. The sale of the original principal residence, however, would not estabalish that there was in fact economic loss. If the old mortgage were assignable, and mortgage rates had risen in the area of the original principal residence, the value of the mortgage would not be lost, but instead be reflected in the sales price received by the employee with the transfer of the mortgage as part of the sale. On the other hand, the differential may also-be viewed as provided to enable ' the new employee to purchase a new residence on financing terms comparable to those he had obtained when he financed his old principal residence. The purpose would be to assist in providing a standard of housing comparable to that enjoyed in his prior place of residence. If this be the purpose, whether he sold his old home or retained it as an investment would not govern eligibility for the differential. Consultation with Hay Associates on this question has not developed any evidence of a uniform policy in industry requiring sale of an earlier residence as a condition to payment of the diffential for what is in fact the new principal residence. It is our view that the differential may properly be paid under the above stated policy, and the more recent statement of policy effective October 10, 1982, even where the original principal residence has not been sold. (5.c.) Expenses incurred of more than $3,000 prior to the employee's Memorandum for the Chairman Page 6 The Corporation should assemble the pertinent facts and A review of the audit file suggests that the expenses incurred in April and May 1981 were first claimed as relocation costs, and as such costs, disallowed. This decision appears to have been reversed.in March of 1982 on the basis that the director/employee was conducting business on behalf of the Corporation. The passage of time has made it impossible for the director/employee to reconstruct completely all the business conducted during the period. The officer/director has attempted to reconstruct his activities based on incomplete records. This reconstruction is memorialized in a memorandum to the files dated June 22, 1983, a copy of which is attached. While the reconstruction does not cover all days for which reimbursement is sought, it does reflect substantial contacts with Corporation employees and candidates for employment, and members of the executive and legislative branches throughout the periods for which reimbursement was made. The officer/director has located his receipt for the April 23-28, 1981, round trip between Atlanta and Washington, but not for May 15-16, 1981. He does, however, reaffirm that the trip was taken, and paid for as reported in his claim. We believe that no further action need be taken. SUBJECT: DATE: VICTOR A. SCHROEDER Elaboration of Services Performed for Corporation April 23 through May 16, 1981; Supplemental Documentation of Air Fares June 22, 1983 I. SERVICES PERFORMED During the periods April 23, 1981, to April 28, 1981, and May 5, 1981, to May 16, 1981, I traveled to and from, and was present in Washington, D.C., for the primary purpose of conducting business on behalf of the Corporation. This business consisted primarily of interviews with present and prospective officers and employees of the Corporation and potential outside auditors, conferences with Department of Energy officials regarding DOE projects and policies, and meetings with Senators, Senate and Congressional staff regarding the Corporation's affairs. I cannot, at this late date, fully reconstruct with precision all of these activities. I have reviewed my appointment notes for the period and have identified entries which reflect a portion of these activities. As these notes were most often made in advance of conversations and meetings, I cannot confirm that they all took place as scheduled. Nor do they reflect all activity performed on behalf of the Corporation during the periods covered. It is my best recollection, however, that most of my time during this period was devoted to Corporation business. My appointment notes reflect: April 23, 1981 Telephone conversation with Ed Noble, then in Oklahoma. April 25, 1981 A meeting with Robert Harris, a USSFC Vice President, to examine office space at 122 C Street, a potential site for the Corporation's offices. April 27, 1981 A meeting with Jack McAtee, the Acting Chairman of the A meeting with Wayne Berman, then Assistant Director of the Center for Strategic Studies, to discuss possible Corporation employee hires. A meeting at the Rayburn House Office Building. A meeting with Walter Pettis, an advisor to Energy Secretary May 5, 1981 A meeting with Wayne Roberts of the White House Personnel Office regarding prospective employees. A meeting with Ed Noble. A meeting with Senator Metzenbaum. A meeting with Wayne Roberts. A meeting with Admiral Mathews and Paul Leach regarding energy matters. A meeting with Owen Malone. A meeting with Joe Seltzer, then Acting Inspector General. A meeting with Jack McAtee. May 7, 1981 A meeting with Monty Pasco, Director of Energy, State of Colorado, and Jim Monynihan, of the Governor's Office, Colorado. A meeting with John Sawhill. A meeting with David Stockman. May 8, 1981 A meeting with Walter Pettis. A meeting with Francis Allhof, a DOE officer who worked on the Great Plains, Colony and Union projects. A meeting with Herb Ressing, then a Director of the Synthetic Fuels Council. May 11, 1981 Two meetings with Francis Allhof. May 12, 1981 A meeting with Wayne Berman. A meeting with Steve Bienstock, then an aide to Congressman Brown for energy matters, and on the USSFC transition team. A meeting with Greg Evans of the USSFC transition team. A meeting with Dan Denning of Gulf Oil. A meeting with Scott Angier of Senator Towers' office regarding possible employment. May 13, 1981 A meeting at the Dirksen Senate Office Building with Mike Hathaway of Senator McClure's staff and Charles Trabandt of the staff of the Senate Energy Committee. A meeting with Wayne Roberts. May 14, 1981 A meeting with Greg Evans. |