“Transportation Audits”

What do Agencies need to know?

June 28, 2012

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Audits Overview• What’s Mandated (Pre-Payment)• Agency Pre-Payment Requirements• What’s Mandated (Post Payment)• Agency Post Payment Requirements• Post Payment Process

Agenda

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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 pre-payment 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

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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

Prepayment Audit Requirements

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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

Prepayment Audit Requirements

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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

Prepayment Audit Requirements

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What’s Mandated

Post Payment AuditMandated 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

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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

Post Payment Requirements

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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.

Post Payment Audits

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Passenger• Air• Bus• Train

Personal Property• Household Goods

General Commodities• Motor • Rail• Steamship

Pipelines

Our Audit Covers the Travel of People & Property

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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

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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

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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

 

Audit Process – Upon receipt of the bill

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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.

Bills are Audited on an Individual Basis

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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

Findings

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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 JackAudit Policy and ReviewBranch Chief(703) 605-3488donna.jack@gsa.gov

George Thomas, Jr.Branch ChiefDisputes ResolutionGeorge Thomas, Jr.703-603-8188 george.j.thomas @gsa.gov

VacantTSP Claims Status Inquiry(703)605-9435

Contacts – Transportation Audits Division

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Questions?

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