FINANCIAL ADMINISTRATION MEMORANDUM NO
October 12, 2006
FINANCIAL ADMINISTRATION
MEMORANDUM NO. 2006-016 (II.G.1)
To: Director,
Office of Acquisition and Property Management
Bureau
Assistant Directors, Administration
Chief
Executive Officer, National Business Center
Bureau
Finance Officers
From: Mona S.
Williams /s/
Focus
Leader, Asset and Debt Management
Office of
Financial Management
Subject: Prepayment Audit
of Government Bills of Lading (GBL)
The purpose of this
Financial Administration Memorandum (FAM) is to establish policy and procedures
for gathering and reporting savings from GBL prepayment audits. The Travel and
Transportation Reform Act of 1998, Section 3, requires agencies to have all GBLs
audited prior to payment. Bureaus have outsourced this service to either a move
management company or a vendor specializing in prepayment audits.
Prepayment audit vendors
should provide the bureaus with periodic reports showing at a minimum the number
of and value of GBLs reviewed, the savings generated, and the cost of the
prepayment audit service. Bureaus should monitor reported vendor prepayment
audit activity and validate that the amounts reported as savings are correct.
Prepayment audit activity
is reported annually in the Department’s Performance and Accountability Report
(PAR). Accordingly, prepayment audit activity reports are required from each
bureau, the National Business Center, and the Office of the Secretary no later
than five business days following the close of the prior fiscal year. These
reports should contain the following information for each prepayment audit
vendor separately, and should cover the entire fiscal year:
· Number
of GBLs processed by the vendor
· Dollar
value of these GBLs processed
· Number
of GBLs with savings
· Dollar
value of savings
GBL prepayment audit
savings reports should be forwarded to the Office of Financial Management,
Attn: Asset and Debt Management. Please direct any questions on this subject
to Dorothy Sugiyama at (202) 208-5789.
Prior Financial
Administration Memoranda on this subject:
FAM 1998-031 (II.G.1) dated 11/16/98 (active)
FAM 2003-021 (II.G.1) dated 9/24/03 (active)
