Weaknesses in Controls Identified, Some of Which Should Be Addressed by the Department’s New Travel System, but Others May Remain

We tested the outcomes of compliance with key travel policies and  implementation of related internal controls in nine areas and found  indications that controls functioned effectively in four areas but that  weaknesses existed in five other areas. Two of these weaknesses should  be addressed by the design of the new travel system. Required Receipts Provided to Justify Reimbursement. Prior Approval of Lodging Costs Higher Than Standard Per Diem. To  test the extent to which this control was functioning during the period  of our review, we analyzed a generalizable sample of 105 travel  vouchers for trips from October 2011 through June 2013 and  estimated that 94 percent of travel authorization documents and 76  percent of travel voucher documents were approved by an official  with the authority to do so. Areas in Which Outcomes Indicated That the Division Did Not Always Comply with Policy or Controls Did Not Always Function as Intended

We identified weaknesses in two controls and one area of policy that,  absent the attention of management or compensating controls, may  remain even under the new travel system. Thus,  strengthening controls to promote prior authorization of travel in  accordance with Division policies even when travel needs occur at the  last minute—such as requiring an e-mail to be sent to one’s supervisor in  advance of the travel rather than obtaining verbal approval—could help  the Division better ensure that travel is necessary and that travel funds  are available to cover the trip. Prior Approval of Noncontract Airfares

We reviewed travel documents for eight selected travel vouchers to test  whether there was documentation of prior approval for use of noncontract  airfares (a control), as required by travel rules, and found that none of the  Division travel vouchers we analyzed included such approvals. From our review of a generalizable sample of 105  travel vouchers for Division travel occurring during this time frame, we  estimate that approximately 42 percent of all vouchers were not submitted  within 5 working days, thus not complying with DOJ policy. Most Travel Card Purchases Indicated Controls Functioned Effectively, but Implementation of Delinquent Account Controls Was Not Documented

Most purchases made on Division travel cards aligned with evidence of  official travel and appeared appropriate for travel, indicating that the  Division complied with key policies we tested and that controls related to  travel card use were effective, but we found one area of weakness that  may remain (see table 3). To  test the Division’s compliance with its policy regarding appropriate use of  travel cards, we reviewed all purchases that appeared on Division  employee travel charge card records from October 2011 through June  2013 and matched approximately 97 percent of travel card purchases to  evidence of official travel, and almost all purchases appeared appropriate  for government travel.We could not match 3 percent of purchase  transactions corresponding to 1,488 transactions to evidence of official  travel. This  purchase did not align with evidence of official travel. The Division has increased oversight of travel charge cards since the  start of our audit to better ensure appropriate use of the travel cards. The new controls  the Division introduced, if effectively implemented, could address the  limitations we observed. Also, late travel voucher submissions make managing travel  funds difficult. However,  without documentation of communications with delinquent account  holders, the Division does not have an institutional record to determine  whether staff are implementing this key control, and therefore, if  delinquencies continue, the Division will not be able to readily identify  whether the underlying cause is lack of implementation of this control or  whether there is a need to strengthen controls or implement different  processes. To help ensure that noncontract airfare use is properly authorized and  justified in accordance with travel rules, the Division should evaluate  whether the configuration of its new travel system has implemented  controls to address previous shortcomings in obtaining and  documenting required approvals, and that travelers booking airfares  outside of the system are documenting this decision. If implemented  effectively, this new process should address our recommendation. Appendix I: Objectives, Scope, and Methodology

This report examines the extent to which the Department of Justice (DOJ)  Civil Rights Division (Division) implemented internal controls and  complied with travel policy in key areas: (1) authorization and  reimbursement of travel and (2) use of travel charge cards. The data we  analyzed included all trips associated with investigations resulting in a  court case (which we refer to as “cases” in this report) and completed  investigations not resulting in a court case (which we refer to as “closed  investigations”). We excluded travel information related to ongoing investigations  that could result in ongoing litigation. DOJ implemented a new travel system in August  2013, and at the time of our request there were not a sufficient number of  trips to evaluate the implementation of controls in the new system.
Why GAO Did This Study

The sensitive nature of taxpayer-funded travel necessitates that federal agencies have strong internal controls in place to help ensure that travel complies with rules and regulations.
GAO was asked to review the Division's travel controls. This report examines the extent to which the Division effectively implemented internal controls and complied with travel policy in key areas, including appropriate (1) authorization and reimbursement of travel and (2) use of travel charge cards.
GAO analyzed Division travel data for all trips associated with investigations resulting in a court case and completed investigations not resulting in a court case (“closed investigations”), and travel charge card use from October 2011 through June 2013, the most recent data available at the time of GAO's data request. GAO did not analyze travel data associated with ongoing investigations. GAO also analyzed a generalizable sample of travel documents for 105 of the 3,157 trips within the period of its review. GAO also reviewed relevant federal and agency-specific travel rules and interviewed officials.

What GAO Found

GAO tested the implementation of internal controls and compliance with key policies in nine areas of the Department of Justice's (DOJ) Civil Rights Division (Division) travel authorization and reimbursement process for the period from October 2011 through June 2013 and found indications that controls functioned effectively in four of those areas. Weaknesses existed in the remaining five areas. Two of these weaknesses should be addressed by the design of a new travel system the Division began using in August 2013. Although the new travel system was in use during GAO's review, the Division had used the new system for too few trips for GAO to analyze its data. The four areas of travel in which the Division complied with policy and controls were generally functioning effectively included appropriate levels of per diem reimbursement, presence of required receipts, prior approval of higher-than-per-diem lodging, and appropriate length of trip for certain oversight activities (related to ensuring compliance with fair-housing laws). GAO identified weaknesses in three areas including the following:
GAO found that 16 percent of travel authorizations did not include documentation of approval prior to travel, contrary to DOJ policy, which could hinder the effective management of travel funds. Although unanticipated travel may require flexibility for travelers, strengthening controls to promote prior written authorization could help the Division better ensure that travel is necessary and funds are available.
GAO estimated that 14 percent of Division airfares were on noncontract carriers, and none of the eight highest cost vouchers in GAO’s sample had documentation of prior approvals as required by DOJ policy. The new DOJ travel system has controls designed to document approval of noncontract airfares but not if travelers book flights outside the system. The department has not yet evaluated whether this is occurring, yet doing so would confirm whether the new configuration of controls are functioning as intended.
GAO estimated that 42 percent of Division travel vouchers were not submitted within required time frames per DOJ policy, which could result in difficulties in managing travel funds.
Most Division travel charge card use appeared appropriate indicating effectively functioning controls and compliance with certain travel policies—for instance, more than 97 percent of purchases on Division travel cards aligned with evidence of official travel and appeared appropriate. GAO found three weaknesses related to travel card controls. First, cash advance transactions did not always comply with travel policies, as 19 percent of transactions did not align with evidence of official travel. Second, travel cards were not closed timely in 29 percent of cases reviewed. The Division has implemented new procedures since the start of GAO's audit, implementing new controls whose design should address these two issues. Third, the Division did not maintain documentation of communication with delinquent cardholders, a key component in addressing delinquent accounts. Without this documentation, the Division will not be able to determine whether staff are implementing this control, and thus, if delinquencies persist, it will be hindered in determining if the underlying cause is lack of implementation of this control or the need to strengthen controls or implement different processes.

What GAO Recommends

GAO recommends, among other things, that the Division strengthen controls related to prior authorization of travel and timely submission of vouchers, evaluate whether new controls for noncontract airfares are functioning properly, and improve how it documents oversight of delinquent travel card accounts. The agency concurred with GAO's recommendations.