	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. To its credit, to address the large volume  of vouchers received and the unprocessed backlog, DFAS increased its  staffing by over 200 new personnel and reported an average processing  time of 8 days for its part of the process in September 2004. 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

The majority of soldiers in our 10 case study units reported problems  related to reimbursements for meal expenses that included late payments,  underpayments, and overpayments resulting in debts to some soldiers in  excess of $10,000. Furthermore, inappropriate policy and guidance on how to  identify and pay soldiers entitled to late payment interest and fees because  of late travel reimbursement meant that DOD continued to be  noncompliant with TTRA. Lack of Clear Guidance on Travel Entitlements, Including Late Payment Interest and Fees

We found that a key factor contributing to delays and denials of Army  Guard reimbursements for out-of-pocket meal expenses was a lack of  clearly defined guidance. As a result, many  soldiers did not receive their travel payments on time. Training time depended on the individual and type of  work. Defense Travel System Deficiencies

Although DOD recognized the need to improve the travel reimbursement  process in the 1990s and has been developing and implementing DTS, this  system 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. Actions to Improve Accuracy and Timeliness of Mobilized Army Guard Travel Reimbursements

DOD, the Army, the National Guard Bureau, and DFAS reported several  positive actions during the course of our work that, if implemented as  reported, should improve the accuracy and timeliness of travel  reimbursements to Army Guard soldiers. The process, human capital, and automated systems  problems we identified related to Army Guard travel reimbursement are  additional examples of the broader, long-standing financial management  and business transformation challenges faced by DOD. The problems we identified with  DOD’s longer term automated systems initiatives—DIMHRS and DTS— raise serious questions of whether and when mobilized soldiers’ travel  reimbursement problems will be resolved.
Why GAO Did This Study

This testimony outlines (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; (3) whether the Department of Defense's (DOD) current efforts to automate its travel reimbursement process will resolve the problems identified; and (4) other DOD actions to improve the accuracy and timeliness of Army Guard travel reimbursements.

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.