FAM No. 2003-21 (Prepayment Audit of Government Bills of Lading)
September 24, 2003
FINANCIAL ADMINISTRATION MEMORANDUM NO. 2003-021 (II.G.1)
To: Director, Office of Acquisition and Property Management
Bureau Assistant Directors, Administration
Chief Executive Officer, National Business Center
Bureau Finance Officers
Finance Officer, Financial Management Services
From: William E. Webber /s/
Focus Leader, Asset and Debt Management
Office of Financial Management
Subject: Prepayment Audit of Government Bills of Lading
The purpose of this FAM is to remind all bureaus that they are required to have
freight bills audited prior to payment. The Travel and Transportation Reform Act
of 1998, Section 3, required agencies to have all freight billings (aka:
Government Bills of Lading) audited prior to payment. Most bureaus have been
using the services of National Transportation Service (NTS) for preaudit of
freight bills and some bureaus are using the services of Graebel Move Management
for permanent change of station moves which includes a provision for prepayment
audits.
From the data we have be able to collect, it appears that not all bureaus are
having all freight bills audited prior to payment. With the enactment of the
Erroneous Payments Information Act of 2002, it is time to revisit the processing
of freight billings to ensure that all of them are receiving prepayment audits
and that the contractor(s) performing this service provide the bureaus with
periodic reports showing at a minimum the number of and value of the freight
bills reviewed, the savings generated, and the cost of the prepayment audit
service. Moreover, from the data we have collected from NTS, the savings
achieved demonstrates that the prepayment audit service is very cost-beneficial.
With heightened interest in this area, we will likely be requesting performance
information in this area during FY 2004. Should you have questions or require
additional information on this subject, please contact me on (202) 208-5684 or
E-mail:
william_webber@ios.doi.gov
Prior Financial Administration Memorandums on this subject:
FAM 98-031 (II.G.1) dated 11/16/98
