The first government travel cards were introduced in the 1980s, but federal employees were not required to use them until passage of the Travel and Transportation Reform Act (TTRA) of 1998 ( P.L. 105-264 ). Since enactment of the TTRA, the dollar volume of travel card transactions has increased 103%, growing from $4.39 billion in FY1999 to $8.93 billion in FY2009. Audits conducted in the decade subsequent to the TTRA's enactment have found evidence of waste, fraud, and abuse in travel card programs at a number of agencies. 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 travel card legislation introduced or enacted in the 111 th Congress, and concludes with a discussion of potential oversight issues for the 112 th Congress. Audits have also found that agencies have failed to ensure that they claim reimbursement for unused airline tickets, or that their travel card invoices are paid in a timely manner. These findings indicate systemic weaknesses in agency travel card management policies and practices that cost the government millions of dollars annually. Among the many examples of travel card misuse cited by auditors are a Federal Aviation Administration employee who charged $3,700 for laser eye surgery to his travel card, a DOD 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. The Government Charge Card Abuse Prevention Act of 2009 was introduced by Representative Joe Horn ( H.R. How widespread is the abuse of premium travel?
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 practices—collectively referred to as internal controls—that 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.