Waste, Fraud, and Abuse in Agency Travel Card Programs (CRS Report for Congress)
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| Release Date |
Revised Jan. 25, 2011 |
| Report Number |
R40580 |
| Report Type |
Report |
| Authors |
Garrett Hatch, Analyst in American National Government |
| Source Agency |
Congressional Research Service |
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Summary:
Since the enactment of the Travel and Transportation Reform Act (TTRA) of 1998 (P.L. 105-264), which required federal employees to use travel charge cards to pay for the expenses of official government travel, the dollar volume of travel card transactions has increased significantly, growing from $4.39 billion in FY1999 to $8.93 billion in FY2009. While the purpose of mandating the use of travel cards was to reduce costs and improve managerial oversight of employee travel expenditures, audits of agency travel card programs conducted since the enactment of the TTRA have found varying degrees of waste, fraud, and abuse at a number of agencies. These findings indicated systemic weaknesses in agency travel card management policies and practicesâcollectively referred to as internal controlsâthat cost the government millions of dollars annually.
Among some of the more egregious examples of card misuse identified by auditors are a Federal Aviation Administration employee who charged $3,700 for laser eye surgery to his travel card, a Department of Defense employee who requested and received reimbursements for 13 airline tickets totaling almost $10,000 that he did not purchase, and a Department of State employee who took an unauthorized trip to Hawaii on a first-class ticket. Auditors also determined that certain agencies have not collected reimbursement for millions of dollars worth of unused airline tickets, have repeatedly failed to pay their travel card invoices in a timely manner, and have permitted or failed to prevent abuse of premium-class travel privileges.
In response to these findings, Congress has held hearings and introduced legislation that would enhance travel card management and oversight. In addition, the Office of Management and Budget (OMB) has issued government-wide guidance that requires agencies to implement internal controls that are designed to minimize the risk of travel card misuse. This report begins by discussing the structure of agency travel card programs, and then discusses weaknesses in agency controls that have contributed to waste, fraud, and abuse. It then examines relevant legislation introduced or enacted in the 111th Congress, including the Government Charge Card Abuse Prevention Act of 2009 (H.R. 2189 and S. 942), and concludes with a discussion of potential oversight issues for the 112th Congress. This report will be updated as events warrant.
