Weaknesses in Error- Prone, Manual Travel Reimbursement Process Were Exacerbated by Increased Operational Tempo

The paper-intensive process used by DOD to reimburse Army Guard  soldiers for their travel expenses was not designed to handle the dramatic  increase in travel vouchers since the terrorist attacks of September 11,  2001, and the subsequent military activity. Guard soldiers told us about a number of problems they and their families  endured due to delayed or unpaid travel reimbursements, including debts  on their personal credit cards, trouble paying their monthly bills, and  inability to make child support payments. As  a result, the soldiers were housed off-post in commercial hotels or  apartments. Impact That Travel Reimbursement Problems Have Had on Army Guard Soldiers and Their Families

Our case studies of selected units and data mining of individual vouchers  identified numerous soldiers who experienced significant problems getting  accurate, timely, and consistent reimbursements for travel expenses. We found that guidance did not adequately  address some significant conditions that entitled a soldier to  reimbursement of authorized meal expenses. The following example shows  the effects of that problem. To its credit, during fiscal year 2004, DFAS CTO  enhanced its training program for voucher examiners. System Problems Hamper Travel Reimbursement Process

Coupled with the process flaws and human capital issues previously  addressed in this report, the lack of systems integration and automation  along with other systems deficiencies contributed significantly to the travel  reimbursement problems we identified. Defense Travel System Currently Does Not Address Key Issues for Mobilized Army Guard Soldiers

DOD’s current plan—deployment of the Defense Travel System (DTS)—to  automate its paper-intensive, manual travel reimbursement process will not  resolve key flaws we found in reimbursement of travel expenses to  mobilized Army Guard soldiers. However, DTS is currently not able to process  mobilized travel authorizations (e.g., mobilization orders, TCS orders, and  SNAs) and vouchers and, therefore, does not provide an end-to-end  solution for paying mobilized Army Guard soldiers for travel entitlements. We also reviewed the following Defense Finance and Accounting Service –  Indianapolis (DFAS-IN), Travel Technical Messages (TTM)— policy  implementation messages relating to late payment fees and interest:   TTM 00-08, May 2000, which implemented the provisions of TTRA and  provided that its terms applied to “settlement vouchers;”
TTM 01-01, November 2000, which provided that late payment interest  and fees be calculated and submitted by the traveler on the final  payment amount only;   TTM 03-04, April 2003, which removed the requirement that the late  payment interest calculation was to be calculated and submitted by the  traveler; and   TTM 04-10, May 2004, which directed that late payment interest and fees  be calculated on all travel vouchers, not just final vouchers, as well as  directed reviewers to sign a travel voucher on the same day it is  submitted so that DFAS-IN can apply TTRA requirements using the  reviewer’s signature date as a surrogate for the submission date. Instead, we used case study and data mining  to provide a more detailed perspective of the design of controls and the  nature of deficiencies in the key areas of processes, people (human  capital), and systems.
Why GAO Did This Study

GAO was asked to determine (1) the impact of the recent increased operational tempo on the process used to reimburse Army Guard soldiers for travel expenses and the effect that travel reimbursement problems have had on soldiers and their families; (2) the adequacy of the overall design of controls over the processes, human capital, and automated systems relied on for Army Guard travel reimbursements; and (3) whether the Department of Defense's (DOD) current efforts to automate its travel reimbursement process will resolve the problems identified. GAO selected and audited 10 case study units that were identified in a preliminary assessment as having a variety of travel reimbursement problems.

What GAO Found

Mobilized Army Guard soldiers have experienced significant problems getting accurate, timely, and consistent reimbursements for out-of-pocket travel expenses. These weaknesses were more glaring in light of the sustained increase in mobilized Guard soldiers following the terrorist attacks of September 11, 2001. To its credit, the Defense Finance and Accounting Service (DFAS) hired over 200 new personnel to address travel voucher processing backlogs and recently upgraded their training. However, Guard soldiers in our case study units reported a number of problems they and their families endured due to delayed or unpaid travel reimbursements, including debts on their personal credit cards, trouble paying their monthly bills, and inability to make child support payments. The soldier bears primary responsibility for travel voucher preparation, including obtaining paper copies of various types of authorizations. DFAS data indicate that it rejected and asked soldiers to resubmit about 18 percent of vouchers during fiscal year 2004--a churning process that added to delays and frustration. Also, existing guidance did not clearly address the sometimes complex travel situations of mobilized Army Guard soldiers, who were often housed off-post due to overcrowding on military installations. Further, DOD continued to be noncompliant with a law that requires payment of late payment interest and fees when soldiers' travel reimbursements are not timely. With respect to human capital, GAO found a lack of oversight and accountability and inadequate training. Automated systems problems, such as nonintegration of key systems involved in authorizing and paying travel expenses and failure to automate key processes, also contributed to the inefficient, error-prone process. DOD has been developing and implementing the Defense Travel System (DTS) to resolve travel-related deficiencies. However, DTS will not address some of the key systems flaws. For example, DTS is currently not able to process mobilized soldier travel authorizations and vouchers and identify and calculate late payment interest and fees.