About 91  percent of the members of the Selected Reserve, or 735,876 reservists,  are part-time, performing military service in addition to their civilian  employment and careers. Reservists typically train for about 1 weekend  a month and 2 weeks a year. DOD’s Joint Travel Regulations  govern the extent to which reservists are eligible to be reimbursed for  travel expenses to participate in required training or in other duties. Reservists May Incur Out-of-Pocket Travel Expenses under Certain Conditions

Reservists may incur expenses under certain conditions in connection  with their service that are not reimbursable under DOD’s travel  regulations. Officials responsible for travel regulations and reserve policy  issues told us that this can occur because: (1) the cost to attend Inactive  Duty Training is a reservist’s responsibility, except in limited  circumstances; and (2) DOD designates longer duration training or  assignments as a Permanent Change of Station—a change in a  reservist’s home of record—and not as temporary travel. To mitigate expenses incurred by reservists traveling long distances, the  National Defense Authorization Act for Fiscal Year 2008 established a  reimbursement program for Inactive Duty Training whereby each  component may, at the discretion of the service Secretary and under  certain circumstances, provide reimbursement of up to $300 in expenses  for each roundtrip to the training location. A Permanent Change of Station is triggered  when Active Duty for Training assignments last 140 days or longer and  Active Duty for Other than Training assignments last 181 days or longer. If reservists decide not to relocate themselves and their families to the  location of the long-duration training or assignment, reservists may face  unreimbursed costs for maintaining two homes. DOD Has Not Fully Assessed the Potential Effect of Unreimbursed Out-of- Pocket Travel Expenses on the Retention of Reservists

Within the last decade, DOD and the services have conducted a few  limited assessments of the potential effect of unreimbursed out-of-pocket  travel expenses incurred by reservists to perform required training and  other reserve activities on retention of reservists. DOD reports have  noted that such unreimbursed travel expenses, among other factors, may  be a challenge for reservists and may therefore affect retention. In addition, in minutes of its  meetings, the Air Reserve Forces Policy Committee has called for  changes to the Permanent Change of Station requirement for long- duration training, noting in 2015 that it, “frequently creates financial  hardship for RC  Airmen who typically maintain a  residence near their assigned unit or civilian employer.”
Three DOD studies have explored potential links between reservists’  unreimbursed travel expenses and retention:
A 2012 survey commissioned by the Army Reserve of a small sample  of reservist officers potentially eligible for battalion command positions  reported that unreimbursed travel costs were among several factors  that could influence their decision to apply for these positions. As of July 2017, DOD and the reserve components were considering  changes to reserve travel policy to mitigate the effect of out-of-pocket  expenses on reservists. Federal internal control standards state that management requires quality  information to make informed decisions and evaluate an entity’s  performance in achieving key objectives and addressing risk. In deciding to continue or change current travel  policies relating to travel reimbursement without the benefit of quality  information, DOD risks not managing the potential influence of these  policies on reservists’ retention or agency expenditures. Recommendation for Executive Action

We recommend that the Under Secretary of Defense for Personnel and  Readiness collect quality information and conduct an analysis of the  potential effects of unreimbursed travel expenses incurred by reservists to  perform military service on DOD’s ability to retain reservists in the force,  and respond to these risks by considering the costs and benefits of any  possible actions to address the identified issues. Appendix I: Reserve Components’ Reported Travel Costs for Fiscal Year 2015

To determine DOD’s travel costs for the reserve components, we  obtained and reviewed fiscal year 2015 execution cost data, the most  recent complete data available, that each reserve component reported on  travel costs for training and other activities.
Why GAO Did This Study

About 91 percent of DOD's 811,000 reservists are part-time, performing military service in addition to civilian employment and careers. These reservists may have to travel to perform required military training or other duties.
The National Defense Authorization Act for Fiscal Year 2017 contains a provision for GAO to review the cost of travel for members of the reserve components. This report (1) describes the conditions under which reservists may incur unreimbursed out-of-pocket travel expenses in connection with their service, and (2) addresses the extent to which DOD has assessed the effect of reservists' unreimbursed out-of-pocket travel expenses on retention.
GAO reviewed DOD's Joint Travel Regulations and interviewed officials to determine conditions under which reservists might incur unreimbursed travel expenses. It also compared DOD's efforts to analyze the effect of such expenses with federal internal control standards, which state that management requires quality information to make informed decisions and evaluate an entity's performance in achieving key objectives.

What GAO Found

Reservists may incur unreimbursed out-of-pocket expenses under certain conditions in connection with their service. Although the Department of Defense's (DOD) six reserve components reported paying or reimbursing $925 million in travel costs for reservists in fiscal year 2015, the most recent year for which data were available, reservists may still incur various expenses that are not reimbursable under DOD's travel regulations.
Officials responsible for travel regulations told us that unreimbursed travel expenses for reservists generally arise because it is DOD's policy to: (1) not provide reimbursement, except in limited circumstances, for the cost of travel to attend Inactive Duty Training (i.e., the “1 weekend a month” training commitment for reservists) and (2) consider longer duration training or assignments as a Permanent Change of Station—a change in reservists' home of record—and not as temporary travel. The National Defense Authorization Act for 2008 established a reimbursement program for Inactive Duty Training travel costs, but reservists must meet certain eligibility criteria, such as serving in a critical occupation, and not all service Secretaries have chosen to participate. Under the program, reimbursement is limited to $300 for each roundtrip to the training location. Further, DOD's policy to consider longer duration training or assignments as a Permanent Change of Station may also result in unreimbursed expenses. Specifically, according to DOD officials, reservists may have to maintain two households if, because of their part-time status, they decide not to move themselves and their families to the location of Active Duty Training for 140 days or longer, or of other active duty assignments for 181 days or longer.
DOD and the services have conducted a few limited assessments of the potential effect of reservists' unreimbursed travel expenses on the retention of reservists. However, several DOD reports and studies and officials whom GAO interviewed have expressed concern that such unreimbursed expenses may, among other factors, be a challenge for reservists and may therefore negatively affect retention. For example, a 2012 survey commissioned by the Army Reserve of a small sample of reservist officers potentially eligible for battalion command positions reported that unreimbursed travel costs were among several factors that could influence their decision to apply for these positions. DOD and the reserve components are considering changes to reserve travel policy to mitigate the effect of unreimbursed expenses on reservists, by, for example, increasing the $300 limit for Inactive Duty Training reimbursement. However, without the benefit of quality information, DOD risks not managing the potential influence of these policies on reservists' retention or agency expenditures.

What GAO Recommends

GAO is recommending that DOD collect quality information and conduct an analysis of the potential effects of reservists' unreimbursed travel expenses on retention, and respond to these risks by considering the costs and benefits of any possible actions to address the identified issues. DOD concurred with this recommendation.