Travel Cards: Internal Control Weaknesses at DOD Led to Improper Use of First and Business Class Travel

The Department of Defense issued revised Joint Travel Regulations (JTR), which promulgated travel regulations for DOD civilian personnel, and Joint Federal Travel Regulations (JFTR) for military personnel, to be effective March 1, 2004. The revised JTR and JFTR explicitly emphasize the exception basis for use of premium class travel. For example, the new regulations state that travelers must use economy class transportation accommodations for all official business travel unless proper documentation/justification is provided and substantiated to justify premium-class accommodations. Per the new regulations, authorizing officials must consider each request for business class airline service individually and carefully balance good stewardship of scarce resources with the immediacy of mission requirements. The new regulations also further define that, when an airline has only two classes of service, the travelers must travel in the back cabin of the two-cabin aircraft unless the traveler qualifies for first-class travel.

The Department of Defense issued revised Joint Travel Regulations (JTR), which promulgated travel regulations for DOD civilian personnel, and Joint Federal Travel Regulations (JFTR) for military personnel, to be effective March 1, 2004. The revised JTR and JFTR specify that commands must not permit CTOs to issue travelers premium-class tickets without prior proper authorization. Further, the premium class task force has developed standard contract language that will be provided to DOD components to be used in modifying contracts.

DOD issued revised Joint Travel Regulations (JTR), which promulgated travel regulations for DOD civilian personnel, and Joint Federal Travel Regulations (JFTR) for military personnel effective March 1, 2004, implementing the GAO recommendation. The revised JTR and JFTR direct that blanket travel authorization is restricted to economy-class travel authorization, and that if, premium class transportation becomes necessary for a specific trip, an amendment to the order must be issued.

On March 19, 2004, as part of his overall directives to heads of military departments related to premium class travel, the Deputy Secretary of Defense required all DOD components to track the use of premium class travel and maintain applicable documentation for 6 years and 3 months. The Deputy Secretary also specified the minimum amount of information that needed to be captured, including the total number of premium class trips, total cost to the government of these trips, and the name of the traveler and approving official, among others. The Deputy Secretary also asked all DOD components to be prepared to institute internal management controls to address DOD's misuse of premium class travel.

Although DOD determined that this was not feasible due to the lack of a airline industry standard coding method, On October 1, 2007, DOD implemented a web-based application which requires those who authorize other travelers to use premium class travel accommodations to report those approvals within 5 business days of the approval action.

In March 2004, the Deputy Secretary of Defense issued a memo on premium class travel guidance and reporting requirements. The memo requires DOD components to track the use of premium class travel, submit semi-annual report on premium class travel, and to maintain documentation related to premium class travel for 6 years and 3 months. The guidelines for reporting included specific fields and data to be provided. Further, DOD's updates to the JTR and JFTR specifically prohibiting commercial travel offices from issuing premium class tickets without proper approval. DOD issued guidance directing Defense components to modify contracts with commercial travel offices so that performance standards direct them not to issue airline tickets for premium class travel unless the traveler's orders identify that premium class travel is authorized.

DOD issued 2004 guidance directing Defense components to modify contracts with commercial travel offices so that performance standards direct them not to issue airline tickets for premium class travel unless the traveler's orders identify that premium class travel is authorized. DOD's updates to the Joint Travel Regulations (JTR) and the Joint Federal Travel Regulations (JFTR) to reflect this guidance and, in 2006 posted to their travel page, an alert specifying instances where travelers are not entitled to premium class, e.g., permanent change of travel. The alert also directs the traveler to specific section in the regulations related to premium class travel.

DOD issued guidance in 2004 directing Defense components to modify contracts with commercial travel offices so that performance standards direct them not to issue airline tickets for premium class travel unless the traveler's orders identify that premium class travel is authorized. DOD also updated the Joint Travel Regulations (JTR) and the Joint Federal Travel Regulations (JFTR) to reflect this guidance. Further, in July 2006, DOD posted an alert on its travel page that specifies the circumstances under which travelers are not entitled to premium class, e.g., permanent change of travel. The alert also directs the traveler to specific section in the regulations providing guidance on when premium class travel may be authorized.

In a memorandum dated 3/19/04 to all DoD components, the Deputy Secretary of Defense reiterated the guidance for use of premium class travel and highlighted the major changes to the JFTR and JTR effective 3/01/04. However, DOD's guidance has not yet provided guidance to DOD travelers on how to avoid unnecessary premium class air transportation costs.

DOD Components have developing training programs for their personnel highlighting policies for use of premium class travel and the new approval levels. However, DOD has not yet provided GAO documentation of its training materials demonstrating that the training identifies DOD's premium class travel requirements. DOD provided GAO documentataion on 10/09/2009 including training guidance and other materials that identifies DOD's premium class travel requirements.

DOD has reported developing a model decision support tool for CTOs highlighting DOD's policies for use of premium class travel and the new approval levels. However, DOD has not yet provided documentation of this tool, including evidence that the decision support tool is sufficient to effectively address the intent of this recommendation. On 10/09/2009, DOD provided GAO documentation of this tool and it is sufficient to effectively address this recommendation.

DOD revised its travel regulations, to be effective March 1, 2004, specifying that only a person senior to, or independent of the traveler, may authorize/approve premium-class accommodations for the traveler. This change in policy effectively responds to GAO recommendations.

DOD revised its travel regulations, to be effective March 1, 2004, specifying that only a person senior to, or independent of the traveler, may authorize/approve premium-class accommodations for the traveler. The new policies further specify that a staff member may not authorize/approve premium class accommodations for the traveler. Further, the new travel regulations specifically state that individuals who have authority to approve premium class travel must obtain approval for their own business-class travel from the next higher approval authority.

The Deputy Secretary of Defense issued a memo in March 19, 2004, reiterating the need to implement procedures related to DOD premium class travel requirements. The memo requires that approval for premium class travel be documented by placing a statement on the travel authorization/order that provides, at a minimum, standardized information related to the name and rank of the approving official, the reason for approving premium class travel with specific reference to the JTR/JFTR, and the coach and premium class fares, among others. This action substantially addresses our recommendation.

In response to this recommendation, DOD revised the Joint Federal Travel Regulations (for uniformed service members) and the Joint Travel Regulations (for DOD civilian employees). The new policy, effective August 2004, specifies that a competent medical authority must certify that a disability or other special need exist that requires premium class travel. The new policy also specifies that the certification should be for a specific time period.

DOD revised travel regulations in October 2004 and December 2007 to specify that premium-class accommodations for medical reasons are to be authorized only based on a certification from a competent medical authority.

DOD revised DODD 4500.9 on November 17, 2003. The revised DODD 4500.9 eliminated the blanket authorization for high ranking officials' travel by requiring that travel other than coach-class must comply with the JFTR or JTR, i.e., DOD travel regulations for military and civilian employees as appropriate.

In September 2007 DOD published an update to the Defense Transportation Regulation. This update clarified that new policies are consistent with the JTR and JFTR and made specific reference to the premium class travel policies related to allowable uses of and authorization of first and business class travel in those regulations.