Summary
Previous GAO work on widespread improper premium class travel at the Department of Defense (DOD) and the Department of State (State) have led to concerns as to whether similar improper travel exists in the rest of the federal government. Consequently, GAO was asked to (1) determine the magnitude of premium class travel governmentwide and the extent such travel was improper, (2) identify internal control weaknesses that contributed to improper and abusive premium class travel, and (3) report on specific cases of improper and abusive premium class travel. GAO analyzed bank data and performed statistical sampling to quantify the extent premium class travel was improper. GAO also performed data mining, reviewed travel regulations, and interviewed agency officials.
Breakdowns in internal controls and a weak control environment resulted in at least $146 million in improper first and business class travel governmentwide. The federal government spent over $230 million on about 53,000 premium class tickets from July 1, 2005, through June 30, 2006. Premium class tickets are costly--for example, a Department of Agriculture (USDA) executive flew business class from Washington, D.C., to Zurich, Switzerland, at a cost of $7,500 compared to $900 for a coach class ticket. Based on statistical sampling, GAO estimated that 67 percent of premium class travel was not properly authorized, justified, or both. While business class travel accounted for 96 percent of all premium class travel, many agencies informed us that they did not track, and thus did not know the extent of, business class travel. OMB and GSA also did not require reporting of business class travel. GAO found large differences in premium class guidance governmentwide, with some agencies issuing less restrictive guidance that were tailored for executive travel. For example, the FTR allows premium class travel for flights over 14 hours if properly authorized. However, executives at the Foreign Agricultural Service frequently used "mission critical" to justify flights to Western Europe that typically lasted less than 10 hours. Other agencies, such as State and the Millennium Challenge Corporation (MCC), automatically approved premium class travel for all flights over 14 hours. GAO's analysis of flights involving destinations in the United States and Africa, the Middle East, and parts of Europe lasting 14 hours or more showed that 72 and 83 percent, respectively, of State's and MCC's flights involving these locations were in premium class. In contrast, 3 percent of all DOD's and the Department of Homeland Security's flights to the same locations were in premium class. There are examples representing specific cases of improper and abusive use of premium class, including employees of entities not subject to the Federal Travel Regulations that have issued policies that resulted in the purchase of costly premium class travel.
Recommendations
Our recommendations from this work are listed below with a Contact for more information. Status will change
from "In process" to "Implemented" or "Not implemented" based on our follow up work.
Director:
Team:
Phone:
Gregory D. Kutz
Government Accountability Office: Financial Management and Assurance
(202) 512-9505
Recommendations for Executive Action
Recommendation: In order to improve internal control over the authorization and justification of premium class travel and to strengthen monitoring and oversight of premium class travel as part of an overall effort to reduce improper and abusive premium class travel and related government travel costs, the Director of the Office of Management and Budget should instruct agencies that premium class travel requests for their senior-level executives must be approved by someone at least at the same level as the traveler or an office designated to approve premium class travel for all senior-level executives.
Agency Affected: Executive Office of the President: Office of Management and Budget
Status: In process
Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Recommendation: In order to improve internal control over the authorization and justification of premium class travel and to strengthen monitoring and oversight of premium class travel as part of an overall effort to reduce improper and abusive premium class travel and related government travel costs, the Director of the Office of Management and Budget should establish policies and procedures to initially require all federal agencies to collect data on the use of all premium class travel, including business class, and submit the information to GSA annually until a risk-based framework is developed.
Agency Affected: Executive Office of the President: Office of Management and Budget
Status: In process
Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Recommendation: In order to improve internal control over the authorization and justification of premium class travel and to strengthen monitoring and oversight of premium class travel as part of an overall effort to reduce improper and abusive premium class travel and related government travel costs, the Director of the Office of Management and Budget should use the premium class data collected by GSA to consider developing a risk-based framework containing requirements for reporting business class travel to GSA and to perform audits of premium class travel programs, including a review of executive travel.
Agency Affected: Executive Office of the President: Office of Management and Budget
Status: In process
Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Recommendation: The Administrator of General Services Administration should take actions necessary to help agencies comply with the Federal Travel Regulations (FTR) governing the use and reporting of premium class travel by requiring that agencies develop and issue internal guidance that explains when mission criteria and the intent of that mission call for premium class accommodations.
Agency Affected: General Services Administration
Status: In process
Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Recommendation: The Administrator of General Services Administration should take actions necessary to help agencies comply with the FTR governing the use and reporting of premium class travel by requiring agencies to define what constitutes a rest period upon arrival.
Agency Affected: General Services Administration
Status: In process
Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Recommendation: The Administrator of General Services Administration should take actions necessary to help agencies comply with the FTR governing the use and reporting of premium class travel by requiring that the physician's certification related to medical requirements for premium class travel be updated annually unless the physical impairment is a lifelong impairment.
Agency Affected: General Services Administration
Status: In process
Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Recommendation: The Administrator of General Services Administration should take actions necessary to help agencies comply with the FTR governing the use and reporting of premium class travel by establishing an office for travel management within GSA to review agency policies and procedures, identify areas where agency policies and procedures do not adhere to federal regulations, and issue recommendations to agencies to bring their policies and procedures into compliance.
Agency Affected: General Services Administration
Status: In process
Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Recommendation: The Administrator of General Services Administration should take actions necessary to help agencies comply with the FTR governing the use and reporting of premium class travel, based on the premium class data collected from agencies, determine if the government should clarify guidance concerning authorizing premium class travel only when less costly means of transportation are not practical and limit the use of premium class travel for permanent change of station moves to those necessary as a result of physical handicap, medical reasons, or security reasons, or if the trip is taken at no additional cost to the government.
Agency Affected: General Services Administration
Status: In process
Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
