“Transportation Audits”
What do Agencies need to know?
June 28, 2012
1
Agenda
 Audits Overview
•
•
•
•
•
What’s Mandated (Pre-Payment)
Agency Pre-Payment Requirements
What’s Mandated (Post Payment)
Agency Post Payment Requirements
Post Payment Process
2
What’s Mandated
Pre-payment Audit
Mandated by Congress, in Public Law 105-264 under the Travel and
Transportation Reform Act of 1998, effective 2002
All Federal Agencies, including DoD
Audit of transportation charges prior to payment
Agency responsible for conducting audit
Agency can create an internal pre-payment audit program; contract
directly with a pre-payment audit service provider; use the a prepayment audit contractor under GSA’s schedule; or use an electronic
third party payment system
Billing errors caught immediately. Agency retains funds that would have
been paid in error
3
Prepayment Audit Requirements
 31 U.S.C. 3726 requires all agencies to establish a
prepayment audit program and obtain approval from GSA:
•
Submit plans to: audit.policy@gsa.gov; subject: “Agency PPA”
 An acceptable audit program must:
•
•
•
•
•
•
Verify all transportation bills against filed rates and charges before
payment
Comply with the Prompt Payment Act
Require your agency’s paying office to offset debts, if directed by
GSA’s Audit Division, from amounts owed to TSP within 3 years
Be approved by the GSA Audit Division
Complete accurate audits of transportation bills and notify TSP of
any adjustments within 7 calendar days of receipt
Forward documentation monthly to GSA Audit Division, which will
store paid transportation bills for 10 years
4
Prepayment Audit Requirements
 All agencies must send all quotations, tenders, or
contracts with a TSP to GSA:
•
General Services Administration, Transportation Audit Division
(QMCA), Crystal Plaza 4, Room 300, 2200 Crystal Drive, Arlington,
VA 22202, SDDCrates@gsa.gov
•
If you utilize TMSS or DPS, GFM (DOD), it is not necessary to
send copies of rates to GSA
5
Prepayment Audit Requirements
 All entities conducting prepayment audit must submit a
monthly report to GSA:
•
General Services Administration, Transportation Audit Division
(QMCA), Crystal Plaza 4, Room 300, 2200 Crystal Drive, Arlington,
VA 22202, audit.policy@gsa.gov, subject: PPA Monthly Report
•
At a minimum, the report must include:
– Federal Agency (to include Agency Location Code)
– Type or mode of transportation bills
– Count (number of bills reviewed)
– Billed amount
– Dollar savings to the Federal agency
– Fees
6
What’s Mandated
Post Payment Audit
Mandated by Congress, in The Transportation Act of 1940 as
amended 31 USC 3726
All Federal Agencies, including DoD
Audit of transportation charges after payment
GSA responsible for conducting audit
GSA audits all paid transportation billings, electronic and paper,
using contract auditors. The program is supported by collections
Billing errors caught after payment. GSA recovers funds that were
erroneously paid
7
Post Payment Requirements
 All agencies are required to submit hard copy and
electronic “paid” transportation billing documents to:
•
General Services Administration, Transportation Audit Division
(QMCA),Crystal Plaza 4, Room 300, 2200 Crystal Drive, Arlington,
VA 22202, QMCATariffs@gsa.gov, subject: Post Pay Docs
•
If you utilize TMSS/TMS (Civilian Agencies) or DPS, GFM (DOD) or
an approved Third Party Payment System it may not be necessary
to provide copies of paid invoices
8
Post Payment Audits
 GSA performs audits on freight and passenger
transportation vouchers paid by the government in order to
recover excess charges from the Transportation Service
Providers.
 Our commercial audit firms, under contract to GSA,
continue to identify millions of dollars in excess
transportation charges.
9
Our Audit Covers the Travel of People & Property
 Passenger
• Air
• Bus
• Train
 Personal Property
 General Commodities
•
•
•
Motor
Rail
Steamship
 Pipelines
• Household Goods
10
Top Issues
Issues
Top HHG Overcharges
Auxiliary Services
3,480
Weight Adjustments
3,179
Duplicate Payments
1,763
COF (Terminal Security
Handling Charges)
563
SIT Charges
485
Fuel Surcharge
290
11
Top Issues
Issues
Top Freight Overcharges
Tender/Rate Alternation
23,066
Fuel Surcharge (Syncada)
2,314
Service Failure
1,982
Fuel Surcharge (Paper)
1,974
Services Not Authorized
1,848
12
Audit Process – Upon receipt of the bill
 Examination process, critical elements are verified,
which includes, but are not limited to:
• TSP SCAC is identified
• Mode of transportation
• Pick up and Delivery dates
• Commodities and weight are determined
• Various statutes, rules, and regulations are followed
13
Bills are Audited on an Individual Basis
 Some bills are received without the information needed
to effectively perform an audit.
 In those cases, if there is a means of obtaining further
documentation to substantiate the billings, those documents
may be requested.
 Audit procedures include, (but are not limited) to
checking for other errors such as extension errors, correct
mileage applications, duplicate billings.
14
Findings
 If it is determined that an overcharge exists, a notice of
overcharge (NOC) is issued to the Transportation Service
Provider (TSP) stating that a debt is owed to the Federal
Government for which it did provide service.
 TSPs have a right to dispute the NOC
15
Contacts – Transportation Audits Division
Mary Bates
Director
(703) 605-9402
mary.bates@gsa.gov
Joyce Clark
Deputy Director
(703) 605-9420
joyce.clark@gsa.gov
Annie Scott
Accounts & Collections
Branch Chief
(703) 605-9425
annie.scott@gsa.gov
Donna Jack
Audit Policy and Review
Branch Chief
(703) 605-3488
donna.jack@gsa.gov
George Thomas, Jr.
Branch Chief
Disputes Resolution
George Thomas, Jr.
703-603-8188
george.j.thomas @gsa.gov
Vacant
TSP Claims Status Inquiry
(703)605-9435
16
Questions?
17