Compliance with the law
Operating efficiently and effectively
EPA Needs to Strengthen
Oversight of Its Travel
Program Authorization
and Voucher Approval
Processes
Report No. 21-P-0265
September 30, 2021
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Report Contributors:
Myka Bailey-Sparrow
Kevin Chaffin
Eileen Collins
Madeline Mullen
Khadija Walker
Alexandra Zapata-Torres
Abbreviations:
EPA
U.S. Environmental Protection Agency
FTR
Federal Travel Regulation
GSA
U.S. General Services Administration
OCFO
Office of the Chief Financial Officer
OIG
Office of Inspector General
RMDS
Resource Management Directive System
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Airplane in flight. (EPA image)
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Office of Inspector General
U.S. Environmental Protection Agency
At a Glance
21-P-0265
September 30, 2021
Why We Did This Audit
The U.S. Environmental
Protection Agency's Office of
Inspector General conducted this
audit to (1) evaluate the EPA's
internal controls over travel cards
and (2) determine the risk of
illegal, improper, or erroneous
use of travel cards.
The Government Charge Card
Abuse Prevention Act of 2012
requires the inspector general of
each executive agency with card
spending of more than
$10 million in travel to conduct
periodic audits or reviews of
travel card programs to analyze
the risk of illegal, improper, or
erroneous purchases and
payments.
This audit supports EPA mission-
related efforts:
• Compliance with the law.
• Operating efficiently and
effectively.
This audit addresses a top EPA
management challenge:
• Complying with key internal
control requirements (policies
and procedures).
Address inquiries to our public
affairs office at (202) 566-2391 or
OIG WEBCOMMENTS@epa.gov.
List of OIG reports.
EPA Needs to Strengthen Oversight of Its
Travel Program Authorization and Voucher
Approval Processes
The Agency did not
consistently comply with
travel program requirements,
which can lead to
mismanagement of the EPA's
annual travel expenses,
which totaled $52.7 million in
fiscal year 2019.
What We Found
EPA policy and procedures were not always
effective in ensuring sufficient oversight of
travel card use. We found that EPA staff did
not consistently comply with travel policy
requirements. Out of our sample of 31 travel
transactions, 29, or about 94 percent, had
deviations from policy in travel card use. EPA
staff approved authorizations without
sufficient justification of travel policy
deviations, processed late vouchers, and reimbursed vouchers for costs that
lacked required documentation. These issues occurred because of (1) travelers'
and approvers' unfamiliarity with travel policies, (2) monitoring weaknesses
within the EPA team responsible for overseeing travel approvals, and (3) vague
travel procedures in some instances. As a result, the Agency continues to be at
risk from travel payments that could result in the mismanagement or waste of
taxpayer funds.
Recommendations and Planned Corrective Actions
We recommend that the chief financial officer assess the feasibility of modifying
Concur, the EPA's travel system, to restrict individuals from bypassing
authorization justifications or required voucher receipts; reemphasize, through
training or other methods, the requirement for justifications and documentation;
require annual training for all approvers and travelers to certify that they are
knowledgeable about the Federal Travel Regulation and EPA policies; and
identify system-monitoring reports for oversight. We also recommend that the
chief financial officer issue policy addendums to (1) require approvers to
estimate and compare the total cost of temporary change of station versus
extended temporary duty travel and authorize the one that is most
advantageous for the Agency, cost and other factors considered, and (2) set a
predetermined number of days for the travel card cancellation and closeout
process.
The EPA agreed with our recommendation to require annual training for
approvers and travelers and initiated the corrective action on January 5, 2021,
by implementing an annual training requirement. We consider this
recommendation resolved. The remaining recommendations are unresolved.
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^£Dsrx
' O
UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
WASHINGTON, D.C. 20460
THE INSPECTOR GENERAL
September 30, 2021
MEMORANDUM
SUBJECT: EPA Needs to Strengthen Oversight of Its Travel Program Authorization and Voucher
Approval Processes
Report No. 21-P-0265
This is our report on the subject audit conducted by the Office of Inspector General of the
U.S. Environmental Protection Agency. The project number for this audit was QA&E-FY20-0097. This
report contains findings that describe the problems the OIG has identified and the corrective action the
OIG recommends. Final determinations on matters in this report will be made by EPA managers in
accordance with established audit resolution procedures.
The Office of the Chief Financial Officer has the primary responsibility for the issues discussed in this
report.
In accordance with EPA Manual 2750, your office provided a written response to the findings and the
OIG recommendations. Your office provided an acceptable corrective action for Recommendation 2. This
recommendation is resolved.
Action Required
Recommendations 1,3, and 4 are unresolved. The resolution process, as described in the EPA's Audit
Management Procedures, begins immediately with the issuance of this report. Furthermore, we request a
written response to the final report within 60 days of this memorandum. Your response will be posted on
the OIG's website, along with our memorandum commenting on your response. Your response should be
provided as an Adobe PDF file that complies with the accessibility requirements of Section 508 of the
Rehabilitation Act of 1973, as amended. The final response should not contain data that you do not want
to be released to the public; if your response contains such data, you should identify the data for redaction
or removal along with corresponding justification
FROM: Sean W. O'Donnell
TO:
Faisal Amin, Chief Financial Officer
We will post this report to our website at www.epa.gov/oig.
-------
EPA Needs to Strengthen Oversight
of Its Travel Program Authorization
and Voucher Approval Processes
21-P-0265
Table of C
Chapters
1 Introduction 1
Purpose 1
Background 1
Responsible Office 4
Scope and Methodology 4
Prior Audit Coverage 5
2 EPA Staff Approved or Paid Travel Costs Without Sufficient Justification or
Documentation 7
EPA Travel Policy Requires Timely Justification and Documentation Prior to Approval 7
EPA Staff Did Not Consistently Comply with Travel Authorization and Voucher Approval
Requirements 8
Insufficient or Unclear Policy and Procedures Hindered Travel Policy Compliance 11
Insufficient Internal Controls Increase Risk 13
Recommendations 13
Agency Response and OIG Assessment 14
Status of Recommendations 16
Appendixes
A Travel Audit Sample 17
B Travel Audit Sample Attributes Tested 18
C Agency Response to Draft Report 21
D Distribution 27
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Chapter 1
Introduction
Purpose
The U.S. Environmental Protection Agency's Office of Inspector General initiated this audit to
(1) evaluate the EPA's internal controls over travel cards and (2) determine the risk of illegal, improper,
or erroneous use of travel cards.
Top Management Challenge Addressed
This audit addresses the following top management challenge for the Agency, as identified in OIG Report
No. 20-N-0231. EPA's FYs 2020-2021 Top Management Challenges, issued July 21, 2020:
• Complying with key internal control requirements (policies and procedures).
Background
The SmartPay Program of the U.S. General Services Administration, or GSA, provides charge cards to
federal government employees for official government travel. The following regulations, guidance, and
policy directives provide criteria for governing the EPA's Travel Card Program:
• Government Charge Card Abuse Prevention Act of 2012. This Act states that the OIG is to
conduct periodic audits or reviews of travel card programs with more than $10 million in travel
card spending to analyze the risk of illegal, improper, or erroneous purchases and payments. In
addition, the OIG is required to report to the Office of Management and Budget on the
implementation of recommendations. The Federal Travel Regulation, or FTR, issued by the GSA,
is codified in 41 C.F.R. Chapters 300-304. The FTR implements statutory requirements and
executive branch policies for travel by federal civilian employees and others traveling at the
government's expense.
• Office of Management and Budget Circular A-123. Management's Responsibility for Enterprise
Risk Management and Internal Control, Appendix B, "A Risk Management Framework for
Government Charge Card Programs," dated August 27, 2019. This circular appendix
consolidates all governmentwide charge card program-management requirements and guidance
and establishes standard minimum requirements and best practices.
• Resource Management Directive System, or RMDS, 2550B, Official Travel, dated April 27, 2018.
This directive discusses EPA-specific policies for official government travel in line with the FTR.1
• EPA Travel Charge Card Management Plan, dated January 20, 2020. This plan "outlines the
policies and procedures within the United States Environmental Protection Agency that are
critical to the management of the charge card program, in order to ensure that a system of
internal controls is followed and to mitigate the potential for fraud, misuse, and delinquency."
1 RMDS 2550B was revised effective January 31, 2020. We used the 2018 directive because it was the version in
effect at the beginning of our audit work.
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As a general principle, any item that is not listed as an allowable expense, as established in the
applicable criteria, requires justification. For example, EPA policy and the FTR require justifications for
other-than-coach air travel, any other-than-compact vehicle rental rate, and any per diem entitlement
other than the one applicable to the travel location. Travel criteria requiring justification include the
Government Charge Card Abuse Prevention Act of 2012, the FTR, GSA and Office of Management and
Budget guidance, and EPA policy.
GSA Directs Many Elements of U.S. Government Travel
The GSA promulgated the FTR to interpret statutory and policy requirements and to communicate them
to agencies and employees. The GSA is also responsible for several travel contracts, to include the:
• GSA SmartPay Program contract with Citibank. The GSA SmartPay Program provides charge
cards to U.S. government agencies, as well as tribal governments, through master contracts with
multiple banks. More than 560 federal agencies, organizations, and Native American tribal
governments participate in the program, spending over $32 billion in fiscal year 2019 on more
than three million cards.
• GSA E-Gov Travel Service contract with Concur E-Gov Travel Service. The E-Gov Travel Service
enables the government to:
o Consolidate travel services,
o Leverage government travel spending,
o Reduce waste.
o Increase transparency for improved accountability.
• GSA City Pair Program. The GSA solicits annual contract competitions for scheduled airline
passenger transportation services, which, collectively, are known as the City Pair Program. The
City Pair Program exists "to provide discounted air passenger transportation services to federal
government travelers."
The GSA's SmartPay Program website provides training and extensive travel information and resources.
EPA's Travel Approval Process
Travel cards provide employees with the ability to finance work-related travel. In addition, the travel
card program gives the EPA the ability to manage travel expenses and to oversee travel activity for
mission-critical assignments.
All work-related travel requires approval from the proper designated officials, which include first-line
supervisors and funding-control officers. Authorizations for domestic travel under $5,000 require one
level of supervisory approval. An authorization for domestic travel over $5,000 requires an additional
approval from a senior resource official. In addition, all international travel requires approval by the
Office of International and Tribal Affairs. This office only approves international travel if an international
plan that documents the necessity of the travel is attached to the travel authorization request.
After travel is complete, vouchers require two approvals. The first approval comes from the first-line
supervisor. The second approval comes from the Cincinnati Finance Center's Travel Team, which is
responsible for paying proper travel claims and allowable voucher expenses. The EPA follows the same
process for domestic travel vouchers below the $5,000 threshold and high-cost travel vouchers over
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$5,000. In addition, regardless of the amount and funding source, a senior resource official must
approve vouchers for international travel expenses.
EPA's Travel Spending
During fiscal year 2019, the EPA spent $52.7 million on travel expenses (Table 1). The travel expenses
included:
• Temporary duty, to include foreign nontaxable extended duty.
• Invitational domestic.
• Invitational foreign.
• Permanent change of station.
• Local travel expenses outside of travel card purchases.
• Administration costs.
Table 1: EPA's fiscal year 2019 travel card statistics
I Quarter I
Actual dollars spent I
1
$15,135,498.35
2
7,244,783.47
3
15,505,860.35
4
14,815,949.42
Total
*$52,702,091.59
Source: OIG analysis of Compass Data Warehouse data. (EPA
OIG table)
* While this table reflects all travel expenses in fiscal year 2019,
the EPA reported only $36,765,969.87 in travel card expenses
to the GSA. The GSA-reported number was not required to
reflect dollars spent on all travel expenses outside of travel card
purchases.
EPA Recently Assessed Its Travel Card Program Risk
In 2018, the EPA conducted an assessment of its travel card program to comply with the Improper
Payments Elimination and Recovery Act. In that assessment, the EPA documented the following control
activities for its travel card program:
• Authorizers review vouchers prior to submission.
• Prior to payment, 100 percent of travel vouchers are audited.
• Transactions without associated travel authorizations are monitored on a monthly basis.
• Travelers are notified of delinquent account balances and payroll offsets over 90 days old.
• On a monthly basis, the EPA statistically samples paid vouchers to identify improper payments.
According to the EPA, control activities mitigate risk because payment for travel expenses must be
approved by a supervisor prior to travel and must be authorized a second time at the voucher stage. At
the voucher stage, expenses are matched to valid receipts, when required, and the payment office
examines the travel expenses a third time before payment.
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The EPA's FY 2019 Agency Financial Report stated that the EPA had $19,000 in improper travel
overpayments. However, it also stated that:
Travel is not susceptible to significant improper payments. For travel, improper
payments can include ineligible expenses and insufficient or missing supporting
documentation. When an overpayment is identified for travel, the Agency establishes
a receivable, and existing procedures are followed to ensure prompt recovery.
According to the EPA, all $19,000 in improper travel overpayments were eventually recovered.
Responsible Office
The Office of the Chief Financial Officer is responsible for the oversight and implementation of the EPA's
travel card program. Within the OCFO, the:
• Office of the Controller issues policies and procedures for official EPA travel and provides
guidance to program offices and regions.
• Cincinnati Finance Center's Travel Team manages the EPA's travel help desk and approves
payment of approved travel claims.
In addition, during our audit, we identified that travelers and approving officials work in program and
regional offices that are not under the OCFO's purview.
Scope and Methodology
We conducted this performance audit from December 2019 through July 2021 in accordance with
generally accepted government auditing standards. Those standards require that we plan and perform
the audit to obtain sufficient, appropriate evidence to provide a reasonable basis for our findings and
conclusions based on our audit objectives. We believe that the evidence obtained provides a reasonable
basis for our findings and conclusions based on our audit objectives.
We assessed the internal controls necessary to satisfy our audit objectives.2 In particular, we assessed
the internal control components and underlying principles—as outlined in the U.S. Government
Accountability Office's GAO-14-704G, Standards for Internal Control in the Federal Government, which is
also known as the Green Book—significant to our audit objectives. Any internal control deficiencies we
found are discussed in this report.
We reviewed regulations; Office of Management and Budget guidance; and EPA policy, procedures, and
plans that pertain to travel and travel cards to determine the specific control activity requirements
needed to ensure proper, efficient, and effective management of the travel card program. We
interviewed members of EPA management responsible for travel to obtain an understanding of the
2 An entity designs, implements, and operates internal controls to achieve its objectives related to operations,
reporting, and compliance. The Government Accountability Office sets internal control standards for federal
entities in the Green Book.
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EPA's travel card program, including internal controls and new program information since the OIG's
2019 risk assessment of the EPA's travel card program.
To determine the effectiveness of the EPA's control activities over the management of travel and travel
cards and to determine the risk of illegal, improper, or erroneous use of travel cards, the audit team
judgmentally chose three categories—high cost, air travel other than coach, and management travel—
and randomly selected a sample of transactions within those categories (Table 2).
The sample consisted of 31, or about 5 percent, of the universe of 586 travel transactions made from
July through December 2019 (Appendix A). The three categories we chose were selected based on the
highest number or dollar value of transactions within them. Our results cannot be projected over all
Agency travel card transactions; however, we believe our sample was sufficient to identify weaknesses
in the EPA's system because we focused on higher cost travel transactions that we would expect to
receive sufficient review and approval because of their dollar amounts.
Table 2: Travel audit sample
| Category
I Universe I
Sample |
High cost
132
14
Air travel other than coach
233
12
Management travel
221
5
Total
586
31
Source: OIG sample selection. (EPA OIG table)
Within the three categories we chose, we identified 21 attributes to test that related to approval and
reimbursement, as shown in Appendix B. The attributes focused on verifying whether allowances and
approvals were in compliance with EPA travel policy, regulations, and guidance.
Prior Audit Coverage
Since 2012, the EPA OIG has issued risk assessments and audits that focused on travel card
administration and travel management. Several reports identified findings and made recommendations
that the EPA has implemented. Below are the most relevant reports to this audit:
• EPA OIG Report No. 19-P-0155, Actions Needed to Strengthen Controls over the EPA
Administrator's and Associated Staff s Travel, dated May 16, 2019, which found that not all
applicable provisions of the FTR or EPA travel policy were followed. The OIG identified:
o Improper granting of first- or business-class exceptions,
o Unjustified use of noncontract air carriers,
o Improper approval of lodging costs above per diem,
o Missing detailed support for trips with stops in Tulsa, Oklahoma,
o Improper approval of international business-class travel,
o Inaccurate and incomplete international trip reports.
The EPA OIG made 14 recommendations. Recommendations 1, 2, 12, and 14, which related to
travelers' and approvers' unfamiliarity with travel policies, travel team monitoring weaknesses,
and vague travel policies, are unresolved as of September 16, 2021. Resolution efforts are
ongoing.
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• EPA OIG Report No. 15-P-0294. EPA Needs Better Management Controls for Approval of
Employee Travel, dated September 22, 2015, which recommended that the EPA evaluate the
effectiveness of its executive approval framework after one year, require the review of quarterly
reports for frequent travelers who travel to the same location, and submit irregularities to the
designated position within the OCFO. Corrective actions were completed.
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Chapter 2
EPA Staff Approved or Paid Travel Costs Without
Sufficient Justification or Documentation
EPA policy and procedures were not always effective in ensuring sufficient oversight of travel card use.
EPA policy requires approving officials or their designees to approve travel with appropriate justification
for travel policy deviations before employees conduct official travel or incur any costs associated with
travel. Further, EPA policy requires that travelers submit vouchers in a timely manner, that is, within
five business days of the conclusion of travel. In addition, EPA policy requires receipts for any expense
over $75 and for lodging, hotel, and common carrier transportation costs, regardless of the amount. We
found that EPA staff did not consistently comply with these requirements. We found deviations from
policy for 29, or about 94 percent, of the 31 instances in our sample. Specifically, EPA staff approved
travel authorizations without sufficient justification of travel policy deviations, processed late vouchers,
and reimbursed travelers for voucher costs that lacked required documentation. These issues occurred
because of:
• Travelers' and approvers' unfamiliarity with travel policies.
• Cincinnati Finance Center's Travel Team monitoring weaknesses.
• Vague travel procedures in some instances.
As a result, the Agency continues to be at risk of travel payments that could result in the
mismanagement or waste of taxpayer funds.
EPA Travel Policy Requires Timely Justification and Documentation
Prior to Approval
RMDS 2550B contains the primary policy and procedures that the EPA follows to comply with the FTR
and specifies that all EPA employees and travel authorizing officials shall know the FTR and EPA travel
policies and procedures. It also states that the FTR is the first source of reference.
Per RMDS 2550B, authorizing officials should approve travel authorizations before the traveler incurs
travel-related expenses. In addition, receipts are required, and employees must upload those receipts
into the EPA E-Gov Travel Service System for:
• Lodging or hotel, common carrier, and rental car expenses, regardless of the amount.
• Registration fees, regardless of the amount.
• Any other expense over $75.
If no receipt is supplied, the voucher must contain a justification for the missing receipt.
RMDS 2550B requires that travel vouchers be submitted—meaning the voucher must be stamped
"SIGNED" by the traveler—within five business days of the completion of travel and be routed
electronically using the EPA E-Gov Travel Service System. This time frame allows for additional reviews
and for submission to the Cincinnati Finance Center for prompt payment to the travel card company and
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for Agency eligibility to receive travel card rebates. In addition, employees on continuous travel status
must prepare travel vouchers every 30 days.
EPA Staff Did Not Consistently Comply with Travel Authorization and
Voucher Approval Requirements
Our analysis of the sample transactions revealed deviations in both the authorization and voucher
phases. Out of our sample of 31 travel transactions, we identified 29, or about 94 percent, with missing
justifications, late submissions, or lack of required documentation (Table 3). We found deviations in all
sample categories we selected.
Table 3: Travel audit sample deviations
| Category I
Sample
I With deviations |
High cost
14
14
Air travel other than coach
12
10
Management travel
5
5
Total
31
29
Source: OIG analysis of supporting documentation. (EPA OIG table)
We found that, in the authorization phase, the Concur travel system provided a warning to the traveler
for issues, such as justifications for the use of noncontract carriers or for larger rental car sizes, that
were nonetheless not sufficiently addressed before authorizations were approved. In the voucher
phase, expenses over $75 either lacked receipts or vouchers or were submitted late without notation of
the reason for the late submission. In both phases, neither the approvers nor the Travel Team caught
the deviations before costs were incurred and paid.
The deviations we identified are quantified by each sample transaction category in Tables 4, 5, and 6 in
the below subsections. Transactions in our sample may have more than one deviation from policy.
High-Cost Travel
Our sample analysis included 14 trips that each cost over $5,000. We found 95 deviations in this
category (Table 4). The majority of the deviations in this category occurred during the authorization
phase. Of the 95 deviations, 57, or 60 percent, had missing justifications for proposed travel expenses.
In many cases, the expenses produced an audit warning in the Concur travel system, but first-level
supervisor approvers and second-level approvers—in these cases senior resource officials or Office of
International and Tribal Affairs staff members because the expenses were in high-cost or international
travel categories—ignored the audit warnings and approved the authorizations. The remaining 38, or 40
percent, of the 95 deviations were in the voucher phase. The majority of the vouchers were approved
without sufficient receipts for costs incurred. The other vouchers were approved despite being
submitted late or having discrepancies between labor time reported and the travel itinerary.
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Table 4: High-cost travel deviations
I Description of deviation
| Deviations I
Authorization phase
Improper, unsupported, or incorrect travel allowances or information.
57
Voucher phase
Improper, unsupported, or incorrect travel reimbursements.
31
Late submission of travel vouchers.
5
Labor time reported inconsistently with travel plan.
2
Total
95
Source: OIG sample analysis results. (EPA OIG table)
The following examples illustrate some deviations from the high-cost travel sample:
• Extended temporary duty travel. A traveler was selected for a six-month detail costing $33,469
to provide technical assistance in support of the EPA's hurricane recovery efforts. We examined
two separate extended temporary travel 30-day periods. We found that, when approving the
authorization, there was no documented support in the EPA's Concur travel system showing any
consideration of the costs of conducting this travel as extended temporary travel versus
temporary change of station to reduce EPA travel expenses. In addition, in the voucher phase,
the travel approvers improperly reimbursed an apartment rental security deposit and such
unsupported travel expenses as monthly parking fees and privately owned vehicle mileage
compensation.
• Foreign travel. A staff member traveled to Mexico to meet with scientific and academic
community partners and nongovernment entities to provide and exchange technical expertise.
The travel authorization did not show supervisory approval for trip expenses before the traveler
sought reimbursement. Some of the costs identified in the travel receipts were associated with
another traveler. We then reviewed the second traveler's voucher. In the vouchers for these
two travelers, we found unsupported travel expenses, such as kayak and boat rental payments.
The expenses for boat and kayak rentals were not preapproved and were ultimately added
during the voucher phase without justifications. We also found unjustified or unsupported travel
expenses, such as inaccurate per diem rates for the travel location, automatic teller machine fee
reimbursements for personal bank cards, and kayak and boat rental payments. We also found a
handwritten receipt that lacked sufficient detail and was not captured on the travel card
statement. While foreign travel per diem rates can be modified by the traveler, the modification
is required to be justified. The EPA spent a total of $10,152 for both travel vouchers.
Air Travel Other Than Coach
Our sample included 12 trips comprising air travel that was other than coach class. We found
12 deviations in the transactions for these trips (Table 5). Seven, or about 58 percent, of these
transactions had deviations during the voucher phase with either late submissions or missing receipts
for transactions over $75. Three, or 25 percent, of the 12 transactions had missing justifications in their
authorizations.
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Table 5: Air travel other-than-coach-class deviations
Description of deviation | Deviations
Authorization phase
Travel authorizations without sufficient justifications for travel decisions that allowed
other-than-coach-class travel.
Voucher phase
Late submission of travel vouchers.
7
Missing receipts for travel expenses over $75 or common carrier rail.
2
Total
12
Source: OIG analysis of 12 air travel other-than-coach-class transactions. (EPA OIG table)
The following example illustrates a deviation in the air travel other-than-coach-class category: A traveler
did not provide a receipt in a voucher to support a $30 railway ticket expense in the common carrier
category, as required by policy. In addition, the voucher was not submitted within the five business days
after the trip concluded, as required by policy.
Management Travel
Our sample included five trips involving management. We found 12 deviations in the transactions for
these trips (Table 6). Five, or roughly 42 percent, of these 12 deviations involved missing justifications in
the authorizations. In addition, four, or about 33 percent, involved deviations during the voucher phase
with either late submissions or missing receipts for transactions over $75. This category also had other
issues with balance delinquencies that were flagged in the Citibank system and unauthorized leave in
conjunction with travel.
Table 6: Management travel deviations
Description of deviation | Deviations
Authorization phase
Missing or insufficient justifications for noncontract carrier; lodging over 150 percent of allowance;
or premium car rental or change in mode of transportation.
Voucher phase
Late submission of travel vouchers.
3
Missing receipts for travel expenses over $75 or common carrier.
1
Other
Travelers' accounts showed delinquency balances.
2
Leave in conjunction with official travel.
1
Total
12
Source: OIG analysis of five management travel transactions. (EPA OIG table)
For example, a traveler did not provide a voucher receipt for an Uber fare that was over $75, as required
by the FTR. As a result of our audit, the traveler admitted that the claim was a mistake, that the Uber
ride did not take place, and that the traveler forgot to delete it from the voucher expenses. The traveler
is reimbursing the Agency for the claimed Uber fare. During this same trip, the traveler was approved for
using a noncontract airline and opted for a premium fare without sufficient justification in either the
authorization or voucher. It is notable that this traveler is also a travel approver.
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Source: GSA image.
Insufficient or Unclear Policy and Procedures Hindered Travel Policy
Compliance
We identified three weaknesses that contributed to the deviations identified in the approval and
payment of travel card expenses:
• Travelers' and approvers' unfamiliarity with travel policies.
• Cincinnati Finance Center's Travel Team's monitoring control weaknesses.
• Vague travel procedures that were in place in some instances.
Travelers' and Approvers' Unfamiliarity with Travel Policies
Travelers and approvers lacked relevant knowledge of travel requirements. The main reason for this lack
of knowledge was that training was infrequent and provided limited opportunities for travelers and
approvers to become familiar with and to review policies. According to an OCFO branch chief, approvers
were not aware of all the nuances of the FTR, despite the requirement that all travel cardholders
complete training once every three years.
We found examples of this during our audit. Specifically:
• One traveler did not obtain senior resource official approval in advance, as required for travel
greater than $5,000, because the traveler was unaware of the requirement for this approval.
• Another traveler included a separate hotel tax allowance for travel at a foreign location, in
violation of the FTR, because the traveler was unaware of the requirements for foreign travel
hotel tax allowances.
Personnel's lack of familiarity with travel policy and procedures was exacerbated by three other factors.
First, some approvers did not perform travel authorization and voucher approvals regularly enough to
exercise their knowledge of the FTR and EPA policies. Second, the authorization process is often the
responsibility of approvers in the program or regional offices, but the primary role of these approvers is
the implementation of environmental programs, not the application of administrative policy. Third,
while the Concur travel system issues audit warnings for missing justifications, travelers can easily
bypass these warnings and proceed without any consequences.
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Cincinnati Finance Center's Travel Team Monitoring Weaknesses
The Cincinnati Finance Center's Travel Team responsible for managing the EPA travel program is
required to monitor program effectiveness and EPA compliance with travel regulations and policy.
However, theTravel Team only becomes involved in the voucher process after the completion of travel.
In the authorization process, there is no additional level of approval from the Travel Team. Members of
the Travel Team serve as the subject-matter experts on travel regulations, but the Concur travel system
was not designed to route authorizations to the Travel Team. An additional level of approval from a
subject-matter expert would allow for more scrutiny concerning sufficient and appropriate justifications,
particularly for unique or unusual travel circumstances, such as high-cost travel, foreign travel, and
extended temporary duty. An additional level of approval from the Travel Team would also reduce the
risk of noncompliance with regulations and policies.
In an interview, Travel Team management told us that the Travel Team's review process is limited to
verifying that required expense receipts are included in the Concur travel system and is primarily
focused on matching all receipts to travel voucher claims. However, we found that the matching of
vouchers, receipts, and claims was not always taking place, and policy deviations were not always
caught. For example, although EPA policy requires all receipts over $75 to be included with vouchers,
travelers did not always include receipts for taxi fares or rail common carrier expenses that met this
threshold, but vouchers were still paid by the Travel Team. The Travel Team did not catch some of these
missing receipts because it did not match all receipts to voucher claims.
According to the Travel Team, its decreased monitoring occurred largely because of staffing shortages in
the Travel Branch. Staffing declined from 14 full-time equivalents in 2012-2013 to nine full-time
equivalents in 2020. When the Travel Team found deviations or encountered flawed justifications during
the voucher receipt review, it did not disallow the costs claimed. The Travel Team did not believe it had
the authority to do so, especially when the receipt matched the expense. The Travel Team branch chief
explained that, if the Travel Team were to disallow noncontract fares because of a lack of justification,
the disallowance would not be supported by the Civilian Board of Contract Appeals because the travel
was already approved, and the travelers were under the assumption that they would be reimbursed.3
EPA travel card systems provide more opportunities to identify erroneous transactions with travel cards.
There are 50 management reports available in its three systems—Compass Data Warehouse,
CitiManager, and Concur—to oversee the program. The Travel Team routinely uses three reports to
monitor atypical transactions and delinquencies with travel requirements. However, we found that the
Travel Team underuses these reports.
We analyzed some of these underused reports and determined
two areas in which these reports would be of use:
• Adverse Personnel Actions. Out of two adverse personnel
actions we examined, one traveler's adverse action was
delayed because of the traveler's management position.
3 According to its website, "[t]he Civilian Board of Contract Appeals is an Article I court that was established under
the Contract Disputes Act of 1978 as an independent tribunal to hear and decide contract disputes between
Government contractors and the General Services Administration and other civilian Executive agencies of the
United States."
Adverse Personnel Action
An adverse personnel action is a
disciplinary action, resulting from not
complying with travel card policy, such
as removal, suspension, furlough, or
reduction in grade or pay.
U.S. Office of Personnel Management
Personnel Action Glossary
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• Card Cancellation for Former Employees. Five accounts were not closed in a timely manner. In
addition, we found one employee with two accounts.
Vague Travel Procedures
RMDS 2550B outlines procedures for addressing adverse actions, extended temporary duties, and card
account closures. However, these outlined procedures are not specific enough to effectively address
unusual situations or travel requirement complexities. For example:
• A supervisor approved two travel authorizations in Concur without documentation showing that
the EPA had assessed and determined that extended temporary duty travel was the most
advantageous alternative for the Agency. However, FTR § 302-3.502, which is about determining
whether extended temporary duty travel or temporary change of station is appropriate, states
that agencies "should estimate the total cost of each alternative and authorize the one that is
most advantageous for the agency, cost and other factors considered." RMDS 2550B has
procedures for extended temporary travel, but it lacks specific guidance to assist in determining
whether the cost of extended travel is most advantageous to the EPA.
• Cardholders who left the EPA did not comply with procedures for contacting the Travel Team
prior to their departures. Some of these cardholders had delinquent balances. RMDS 2550B has
procedures for closing accounts, but there are no consequences if personnel do not follow the
procedures. In addition, the Travel Team did not pursue reimbursements from the former
employees. It viewed delayed card cancellations as low risk because the former cardholders
would be liable for any charges.
Insufficient Internal Controls Increase Risk
Travel cards are designed to streamline and monitor payments of official government business. When
oversight is insufficient, the misuse of travel cards could ultimately put tens of millions of dollars of
taxpayer funds at an increased risk of mismanagement or waste each year.
Recommendations
We recommend that the chief financial officer:
1. Ensure that individuals do not bypass justifications for travel policy deviations and
documentation requirements by:
a. Assessing the feasibility of modifying Concur to restrict individuals from bypassing
authorization justifications or required voucher receipts.
b. Reemphasizing, through training or other methods, the requirement for justifications
and documentation.
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2. Require annual training for all approvers and travelers to certify that they are knowledgeable
about the Federal Travel Regulation and Resource Management Directive System 2550B travel
policy.
3. Increase the rate of capturing deviations found in this audit by identifying monitoring reports in
the travel system that can assist with targeted-deviation monitoring efforts, and use the system-
monitoring reports for oversight.
4. Issue addendums to the Resource Management Directive System 2550B travel policy or
equivalent to:
a. Require approvers to estimate and compare the total cost of temporary change of
station versus extended temporary duty travel and authorize the one that is most
advantageous for the Agency, cost and other factors considered.
b. Require the travel card cancellation and closeout process to occur within a
predetermined number of days.
Agency Response and OIG Assessment
The Agency provided a response to our draft report on June 17, 2021 (Appendix C). The OIG met with
the OCFO on August 17, 2021, to discuss our report findings and recommendations. Based on that
meeting and our analysis of the Agency response, we deleted draft report Recommendation 1 and
revised draft Recommendations 2, 3, 4, and 5 as explained below.
In response to draft Recommendation 1, the OCFO stated that, while it agrees there could be more
training related to senior resource official approvals, including an assessment of allowability of costs, the
travel team does not have the authority to determine whether an EPA employee's travel is prudent or
necessary. Providing more training could assist senior resource officials in enhancing oversight of high-
cost and international travel. Therefore, we deleted draft Recommendation 1 as this issue will be
addressed when EPA completes final Recommendation 2 (previously draft Recommendation 3).
In response to draft Recommendation 2 (now final Recommendation 1), the OCFO stated that the
Concur travel system is not able to review justifications for validity or match receipts to expenses
automatically. However, the OCFO did not provide evidence of a feasibility assessment. Therefore, we
maintain our position, but we revised the recommendation to stress the need to conduct a feasibility
assessment (Recommendation l.a) and added the need to reemphasize the requirement of
documentation through training or other methods (Recommendation l.b). The final Recommendation 1
is unresolved.
The OCFO agreed with draft Recommendation 3 (now final Recommendation 2) and in January 2021
implemented the corrective action to require annual training that must be completed by September 30
of each year. Therefore, the final Recommendation 2 is resolved. We will verify that the 2021 training
was completed after the deadline.
In response to draft Recommendation 4 (now final Recommendation 3), OCFO staff stated that the
travel reports used by the Travel Team are sufficient and that it is not worth the money for it to add
extra tasks or expend additional resources in this area. However, we maintain that using three out of
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50 available reports is not an optimal use of the available systems' reporting capabilities. Specifically,
the Travel Team underuses the EPA's three travel systems—Compass Data Warehouse, CitiManager,
and Concur—that would enhance oversight capabilities of the travel card program. For example, if the
Agency used additional management reports that are available in Concur, it could have identified the
exceptions we found related to high-cost and management travel, use of airfare ticket cost versus
lowest logical airfare, trips flagged with policy exceptions, and lodging expenses that exceed per diem
rate reports. CitiManager provides various reports that the EPA could use to monitor the card activity,
expenses, and transactions of individual travelers by querying employee names. The Compass Data
Warehouse provides reports related to atypical transactions, such as charges that are rarely used during
travel and unliquidated travel. The final Recommendation 3 is therefore unresolved.
In response to draft Recommendation 5 (now final Recommendation 4), the OCFO stated that elevation
of adverse actions is a supervisory or human resources issue that could be addressed through training.
Thus, we removed that part of the recommendation as this issue will be addressed when EPA completes
final Recommendation 2. In addition, in response to a technical comment, we revised Part A of this
recommendation to be consistent with FTR § 302-3.502, which requires agencies to consider cost and
other factors that are most advantageous to the government. The final Recommendation 4 is
unresolved.
The OCFO noted in its overall response to our draft report that the deficiencies identified in this report
represent small dollar amounts. While this is true in some cases, we remain concerned about the
increased risk of mismanagement of the travel card program if the frequency of errors that we identified
continues. Our sample consisted of 31, or about 5 percent, of 586 travel transactions made from
July through December 2019 (Appendix A). Out of our sample of 31 travel transactions, we identified 29,
or about 94 percent, with missing justifications, late submissions, or lack of required documentation.
Furthermore, the deviations we identified spanned several program offices, indicating a widespread
problem. The OCFO also stated that the issues cited in this report are a reflection of the OIG's
misunderstanding of regulation or policy. However, we cite the specific applicable guidance for all
authorization and voucher transaction deficiencies that we identified in the report.
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Status of Recommendations
RECOMMENDATIONS
Rec.
No.
Page
No.
Subject
Status1
Action Official
Planned
Completion
Date
1
13
Ensure that individuals do not bypass justifications for travel
policy deviations and documentation requirements by:
a. Assessing the feasibility of modifying Concur to restrict
individuals from bypassing authorization justifications or
required voucher receipts.
b. Reemphasizing, through training or other methods, the
requirement for justifications and documentation.
U
Chief Financial
Officer
2
14
Require annual training for all approvers and travelers to certify
that they are knowledgeable about the Federal Travel
Regulation and Resource Management Directive System 2550B
travel policy.
R
Chief Financial
Officer
9/30/21
3
14
Increase the rate of capturing deviations found in this audit by
identifying monitoring reports in the travel system that can assist
with targeted-deviation monitoring efforts, and use the system-
monitoring reports for oversight.
U
Chief Financial
Officer
4
14
Issue addendums to the Resource Management Directive
U
Chief Financial
System 2550B travel policy or equivalent to: Officer
a. Require approvers to estimate and compare the total
cost of temporary change of station versus extended
temporary duty travel and authorize the one that is most
advantageous for the Agency, cost and other factors
considered.
b. Require the travel card cancellation and closeout
process to occur within a predetermined number of
days.
1 C = Corrective action completed.
R = Recommendation resolved with corrective action pending.
U = Recommendation unresolved with resolution efforts in progress.
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Appendix A
Travel Audit Sample
#
Category
Travel authorization
number
Begin
End
Total
amount
Destination
1
High cost
TAA07COL
7/4/19
8/4/19
$8,619.46
Fort Buchanan, Puerto Rico
2
High cost
TAA07GXD
8/8/19
8/23/19
6,250.73
Pago Pago, American Samoa
3
High cost
TAA079N0
8/10/19
8/19/19
5,254.99
Ensenada, Mexico
4
High cost
TAA07BSK
9/1/19
10/1/19
5,300.50 Washington, D.C.
5
High cost
TAA07M17
9/2/19
9/15/19
5,822.13
Guam
6
High cost
TAA070YU
9/5/19
9/15/19
8,039.76
Koror, Palau
7
High cost
TAA07NZ4
10/7/19
10/18/19
8,319.78
Beijing, China
8
High cost
TAA07RKO
10/28/19
11/8/19
5,019.33
San Juan, Puerto Rico
9
High cost
TAA07TQN
11/3/19
11/16/19
5,109.19
San Francisco, CA
10
High cost
TAA07PKC
11/7/19
12/7/19
8,175.37
San Juan, Puerto Rico
11
High cost
TAA07PQT
11/10/19
11/16/19
5,126.32
Geneva, Switzerland
12
High cost
TAA07LSR
11/15/19
11/23/19
5,370.75
Guam
13
High cost
TAA07VXV
11/22/19
11/30/19
5,651.43
Geneva, Switzerland
14
High cost
TAA07ZJJ
12/8/19
12/13/19
5,045.72
Beijing, China
15
Management
TAA07F2Z
8/5/19
8/7/19
1329.81
Dallas, TX
16
Management
TAA07PE2
9/23/19
9/26/19
2309.16
San Francisco, CA
17
Management
TAA07HMC
8/7/19
8/8/19
743.10
Chicago, IL
18
Management
TAA7E17
8/4/19
8/9/19
1739.71
Dallas, TX
19
Management
TAA07NO3
9/19/19
10/1/19
3746.22
Oakland, CA
20
Air travel other
than coach
TAA07QJI
10/19/19
10/26/19
202.30 Washington, D.C.
21
Air travel other
than coach
TAA07GXN
8/14/19
8/16/19
637.60
San Francisco, CA
22
Air travel other
than coach
TAA07MMP
10/6/19
10/11/19
2,279.60
Chicago, IL
23
Air travel other
than coach
TAA07FYK
8/21/19
8/23/19
125.30
Dallas, TX
24
Air travel other
than coach
TAA07V1R
11/13/19
11/15/19
392.30
Oakland, CA
25
Air travel other
than coach
TAA07BRB
7/31/19
8/2/19
899.30
Dallas, TX
26
Air travel other
than coach
TAA07LXF
11/3/19
11/9/19
486.60
San Francisco, CA
27
Air travel other
than coach
TAA07OBE
11/15/19
11/21/19
8,185.06
Chicago, IL
28
Air travel other
than coach
TAA07NJ3
9/4/19
9/5/19
1,418.60
Dallas, TX
29
Air travel other
than coach
TAA07AC8
7/22/19
7/23/19
188.60
Oakland, CA
30
Air travel other
than coach
TAA07F0Q
7/28/19
8/3/19
256.60
Gila County, AZ
31
Air travel other
than coach
TAA07F1A
8/6/19
8/8/19
$405.60
Cincinnati, OH
Source: OIG summary of EPA travel authorizations. (EPA OIG table)
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Appendix B
Travel Audit Sample Attributes Tested
Answer for each category tested:
#
Attribute tested
High cost
Air travel
other than
coach
Management
1
Was there an itinerary (location) for travel provided in both the
authorization and voucher documentation?
Yes
Yes
Yes
2
Were the dates of travel consistent in both the authorization and the
voucher?
Yes
Yes
Yes
3
Did travelers leave dates coincide with travel dates?
Yes
No
Yes
4
Did the approval dates comply with the traveler's authorization request?
Yes
No
No
5
Was nontemporary duty activity status reported on the travel
authorization and voucher? If not, was there appropriate and sufficient
documentation included in the travel authorization for the analysis and
approved costs if the trip involved extended dutytravel?
Yes
No
No
6
Did the project trip codes documented comply with applicable
categories?
No
No
No
7
a. Was a clear description provided in regard to the purpose of the
travel, and did it support why the assignment could not be
accomplished through remote methods (such as a reason for travel)?
Yes
Yes
Yes
b. Was the mode of travel the most advantageous method for the
government?
Yes
No
Yes
c. Did the authorization include noncontract fare information?
Yes
Yes
Yes
d. Did the voucher include other-than-coach-class travel?
No
Yes
Yes
8
Was the per diem rate equivalent to the rate for the travel cardholder's
temporary duty location, or did it exceed the allowable limits set in the
meals and incidentals expenses criteria?
Yes
No
Yes
9
Was leave claimed in the traveler's timesheet for the travel period? If
yes, does the following apply:
a. Official travel was necessary?
b. Purpose of the travel was stated on the travel authorization as
government related?
c. Requested leave was coincidental?
d. Leave taken would not delay any official business.
e. Per diem allowance were not received while in leave status?
Yes
No
Yes
10
a. Did the lodging rate exceed the allowable limits set based on the
actual travel guidance lodging multiplier criteria?
Yes
No
Yes
b. If lodging was over per diem, was there justification provided to
support the cost escalation based on the following:
(a) Travel was required because of extraordinary or special
events?
(b) Lodging and meals were higher than allowable per diem rate for
location?
(c) Commuting costs were higher than allowable per diem rates
because of a presidential^ declared disaster or because the
Agency mission required specific justification and approval?
Yes
No
Yes
c. Were there any other lodging situations, such as:
(a) Government quarters?
(b) Lodging with friends or family (payment if host can substantiate
and Agency considers reasonable)?
(c) Nonconventional (boarding homes, college dormitories, and so
on) other types of facilities offered commercially?
(d) Recreational vehicle (lodging costs associated with options like
parking, utilities, and so on)?
No
No
No
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#
Attribute tested
Answer for each category tested:
High cost
Air travel
other than
coach
Management
11
If trip included multiple locations, did the lodging and per diem expenses
comply with allowable costs per each location?
Yes
No
Yes
12
a. Were there any automatic-teller-machine withdrawals associated with
for this trip?
Yes
No
No
b. Did the automatic teller machine-approved fees include any
transportation expenses that were less than $100?
Yes
No
No
13
a. Did the expenses based on receipts comply with applicable travel
requirements?
Yes
No
Yes
b. Were personal phone expenses for domestic travel less than $6 per
day and for international travel less than $12 per day?
No
No
No
c. Were supplies, to the extent possible, approved prior to travel?
No
No
No
d. Were registration fees paid by bank card?
No
No
No
e. Were baggage expenses reported above allowable rates?
Yes
No
No
f. Was the lodging tax paid limited to Agency authorized amount? Were
any prohibited separate claims for foreign lodging tax identified?
Yes
No
No
g. Was laundry, cleaning, or pressing of clothing required for this travel?
Were any prohibited separate claims for these types of expenses
identified?
No
No
No
h. Did travel documents include any energy surcharge and lodging resort
fees when such fees were not optional?
No
No
No
i. Was the travel advance for noncash transaction expenses?
Yes
No
Yes
j. Did car rental expenses include justification and receipts for
navigational systems and gasoline, if applicable?
Yes
No
Yes
k. Did voucher document include reimbursable expenses?
Yes
No
No
I. Did voucher include any duplicate expenses or variances of
expenses?
Yes
Yes
Yes
m. Did credit card activity for travel expenses incurred during the travel
period support travel authorization and voucher documentation?
No
No
Yes
14
a. Were there differences from what was reported in the travel
authorization from the information provided with voucher receipts?
Yes
Yes
Yes
b. Did the voucher include receipts for lodging, airfare, rental car, and all
expenses over$75?
Yes
Yes
Yes
c. Were receipts attached clear and matched expense category and
description on travel authorizations and travel vouchers?
Yes
Yes
Yes
15
For vouchers that involved International travel, was a complete and
approved international trip plan provided through the Fast-International
Approval of Travel System?
No
No
No
16
Was the payment method reported on voucher documented accurately?
No
No
No
17
Were comments on both the vouchers and authorizations forms
addressed?
Yes
Yes
Yes
18
a. Did the approvers meet the requirements to approve the document? If
lodging is over per diem, are you an eligible approver?
Yes
No
Yes
b. Did travel authorization include additional authorization for special
exception circumstances or issues requiring uncommon or nontypical
types of travel?
Yes
No
Yes
c. If documentation is missing, are the remarks or comments reasonable
and do they justify the requirement?
Yes
Yes
Yes
19
Was the voucher submitted in a timely manner—within five days of
travel?
Yes
Yes
Yes
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#
Attribute tested
Answer for each category tested:
High cost
Air travel
other than
coach
Management
20
Did the voucher trip totals (sum of all reimbursable and nonreimbursable
costs) reconcile against the total estimated cost on the corresponding
authorization or travel-related documents?
No
Yes
Yes
21
Did the voucher receipt for the airfare indicate other than coach class? If
other-than-coach class fare was issued, was authorization support
provided prior to travel?
No
Yes
No
Source: OIG summary of attributes tested. (EPA OIG table)
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Appendix C
Agency Response to Draft Report
z UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
% ^^1^^ ^ WASHINGTON, D C. 20460
r<-°
PRO"
-------
High Cost Travel
The OIG draft report cites an extended Temporary Duty voucher and lists it as an exception
because no cost comparison was prepared to identify the potential for reduced agency cost. In
this case, it would involve reviewing the allowable expenses under two types or categories of
travel, the "Temporary Duty" status approach and the "Temporary Change of Station" approach.
However, neither the Federal Travel Regulations nor EPA's Travel Policy Resources
Management Directive System 2550B require such a comparison. Further, TCS is a much more
disruptive process for the employee as it requires the employee to move. Citing this as an
exception to policy is not accurate.
On the same voucher, the report cites unsupported travel expenses such as Privately-Owned
Vehicle and parking. The authorization contained comments that POV mileage would need to be
claimed as part of the necessary duties to respond to Hurricane Maria. Though some
documentation was not included in the vouchers, the EPA's subsequent reviews found all costs
were justified.
Foreign Travel
The OIG cited that the Senior Resource Official's approval was not provided prior to the trip,
however, the SRO memorandum in the voucher is signed and dated July 25, 2019, for a trip that
departed on August 10, 2019. The OIG report also cited a receipt with another traveler's name
included. This receipt was added to show the traveler shared the expense for that room with
another traveler on those dates, as is allowed in FTR section 301-11.13. The cost on the
reviewed voucher reflected the split. In addition, for the per diem and lodging, all nights above
150 percent were flagged and authorization was provided in the SRO approval memorandum.
Both the kayak and boat rentals cited were in line with the travel mission as it was related to
water quality and sampling. The OCFO agrees the ATM fee expensed for this trip was personal
and should not have been paid. The traveler will be billed $15.92.
Temporary Duty Travel Claims
The OIG draft report indicated that most of the travel exceptions they reviewed were due to late
submission. The Cincinnati Finance Center Travel Team must pay valid travel claims regardless
of when they are submitted. The CFC Travel Team can only deny claims as outlined in FTR 301-
52.8:
§301-52.8- May my agency disallow payment of a claimed item?
Yes, if you do not:
Provide proper itemization of an expense;
Provide receipt or other documentation required to support your claim; and Claim an expense which is
not authorized.
In addition, the EPA has agencywide metrics that report monthly on late travel voucher
submissions that are distributed by office. Submission of travel vouchers within five business
days of return to the office is required by the FTR. The EPA's monthly reporting allows offices
to see frequent offender and supervisors to counsel employees on timely submission.
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Travel Team Monitoring Weakness
The OIG draft report indicated that the CFC Travel Team is not matching all receipts to expenses
duringtheir review. The CFC Travel Team audits 100 percent of all vouchers before payment,
however, any manual process is susceptible to human error and some items may be missed. To
mitigate this, the CFC Travel Team has additional internal control processes and performs
monthly, quarterly, semi-annual, and annual reviews of paid vouchers. During these reviews,
mistakes are identified and billed to the traveler if necessary. The OIG's review of their sampled
documents only produced three missing receipts. In two of the three cases, the missing
documentation had already been revealed in the one of the previous voucher reviews.
Documentation for these occurrences were provided or the expense was billed to the traveler and
collected.
The OIG draft report mentions staff interviews revealed that decreased monitoring was due to
staff shortages. The OIG's statement is a misinterpretation of what was communicated. The CFC
Travel Team has not decreased any monitoring of travel documents due to staffing. 100 percent
of all vouchers are reviewed prior to payment and the team still monitors travel card reports for
delinquency and atypical use. The CFC Travel Team frequently disallows claims in its review of
documents. In keeping with the FTR, valid claims must be paid and the penalty for non-
compliance is limited to costs above theallowance. Per the FTR, the entire amount is not
disallowed, only the difference. This is true with non- contract fares and lodging as outlined in
FTR 301-10.8 and 301.50-5:
§301-10.8- What is my liability if, for personal convenience, I travel by an indirect route or interrupt
travel by a direct route?
Your reimbursement will be limited to the cost of travel by a direct route or on an uninterrupted basis.
Yon will be responsible for any additional costs.
§301-50.5 - What is my liability if I do not use my agency's TMS or the E-Gov Travel Service, and an
exception has not been approved?
If you do not have an approved exception under §301-50.4 or §301-73.104 of this chapter, you are
responsible for any additional costs resulting from the failure to use the TMS or E-Gov Travel Service,
including service fees, cancellation penalties, or other additional costs (e.g., higher airfares, rental car
charges, or hotel rates). In addition, your agency may take appropriate disciplinary action.
The CFC Travel Team will limit expenses to the appropriate rate if applicable approvals are
missing, as full denial is not allowed under the FTR.
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RESPONSE TO RECOMMENDATIONS
Agreements
No.
Recommendation
High-Level Intended Corrective Action(s)
Estimated
Completion
Date
3
Require annual training for
allapprovers and travelers to
certify that they are
knowledgeable of the
Federal Travel Regulation
and EPA policies.
On January 5, 2021, the OCFO implemented
annual training through FedTalent for all travel
cardholders and travel authorizing officials. This
annual training must be completed by September
30 of each year. Currently, 27 percent of travel
cardholders and travel authorizing officials have
completed the training for 2021. Travel
cardholders who do not complete training on time
will have their cards suspended and approving
officials will be removed from routing for
approvals.
January 5,
2021
Disagreements
No.
Recommendation
High-Level Intended Corrective Action(s)
Estimated
Completion
Date
1
Require Travel Team
approvalfor all
authorizations above
$5,000 and for all
international travel.
The EPA has an existing requirement for SRO
approval of any travel above $5,000. The EPA's
travel system, Concur, has designated routing for
foreign travel to be approved by the appropriate
Travel Authorizing Official, which is determined
and authorized by Delegation 1-17B, International
Travel. The CFC Travel Team is not comprised of
individuals who have been delegated or
redelegated the authority to determine whether an
EPA employee's travel is prudent or necessary. In
addition, in FY 2020 and FY 2021, Internal
Control reviews performed in accordance with the
Office of Management and Budget's Circular A-
123 found there were no travel exceptions above
$5,000 where approvals were not included.
N/A
Implement a system control
that does not allow
individualsto bypass missing
authorization justifications
or required voucher receipts.
The EPA uses the governmentwide travel system,
Concur, which currently has all available system
checks in place for authorization justification and
noting when receipts are required. The system is
not able to review justifications for validity or
match receipts to expenses automatically. The CFC
Travel Team performs monthly, quarterly, and
annual audits on justification validity, which
includes matching receipts to expenses.
N/A
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The OCFO's review of the documentation cited by
the OIG revealed:
Justification for Higher Rental Car Not in theTravel
Authorization or Travel Voucher
1 Occurrence cited by report
This justification was sent by email tothe travel team
prior to payment.
Expenses Paid Without a Receipt Attached
2 Occurrences cited by report
One of the 2 occurrences were alreadybilled and
collected prior to the issuance of this report.
Non-Contract Flight Without Justification
Several Occurrences cited by report
In each case, reimbursement is limitedto the cost of the
contract fare as is consistent with FTR section 301-
10.109. The use of non-contract faresdid not increase
costs to the agency.
4
Identify monitoring reports
inthe travel system of use to
theTravel Team to develop
targeted deviation
monitoring efforts.
This is already in place. The EPA monitors use
that does not align with travel authorizations and
card delinquency on a monthly basis. The EPA
also runs the list of active cards against the active
vendor list in Concur on a bi-weekly basis to close
accounts of departed employees. The report cites
one card holder with two accounts, however that
cardholder applied with two different last names
and this was the sole example. It also cites five
cards that were closed more than a month after the
cardholder departed the agency, but again these
examples are few. These controls are consistent
with the 2017 IG designation of low risk. Further
since 2018, with more than $223 million in spend,
less than $5,000 has been written off due to
cardholder misuse or failure to pay.
N/A
5
ssue addendums to the
Resource Management
Directive System 2550B
travelpolicy or equivalent
to:
a. Require cost-benefit
assessments to compare
temporary change of station
versus extended temporary
duty travel.
Neither the FTR nor the EPA travel policy RMDS
2550B requires a cost-benefit assessment or a cost
comparison to be performed for a temporary
change of station versus extended temporary duty
travel. The CFC Travel Team did a full audit of all
vouchers for this detail and found all lodging costs
were accurately paid. Although some
documentation was not initially included in the
vouchers, the CFC Travel Team's subsequent
review found all costs were justified. In addition, a
temporary change of station would be
counterproductive as it is a much more disruptive
N/A
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process for an employee, requiring the employee
to move, which generates additional costs for the
employee and for the agency to process the change
of official duty station. Citing this as an exception
implies a cost-benefit assessment or cost
comparison is a requirement for a temporary
change of station, which is not accurate.
The EPA currently has an automated review in
place to compare active cards against active
Compass vendor codes on a bi-weekly basis to
ensure cards of separated employees are closed or
cancelled.
The OCFO addresses the misuse of EPA issued
travel cards in the agency's travel policy, RMDS
255OB - Official Travel, Section V. Prudent Travel
Management - Travel Card Abuse Misuseand
Appendix A. In this policy, employees are informed
of the potential repercussions of misusing their
government issued travel card. TheCFC reserves
the rights to suspend any traveler's card that
violates agency policy.
CONTACT INFORMATION
If you have any questions regarding this response, please contact the OCFO's Audit Follow-up
Coordinator, Andrew LeBlanc, at Leblanc.Andrew@epa.gov or (202) 564-1761.
cc: Carol Terris
Lek Kadeli
Jeanne Conklin
Meshell Jones-Peeler
Richard Gray
OCFO-OC-MANAGERS
Kevin Chaffin
Myka Bailey-Sparrow
Eileen Collins
Alexandra Zapata-Torres
Andrew LeBlanc
Jose Kercado DeLeon
b. Revise the travel card
cancellation and closeout
process to occur within a
predetermined number of
days.
c. Require clear guidance
onadverse personnel action.
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Appendix D
Distribution
The Administrator
Deputy Administrator
Chief of Staff, Office of the Administrator
Deputy Chief of Staff, Office of the Administrator
Chief Financial Officer
Agency Follow-Up Coordinator
General Counsel
Associate Administrator for Congressional and Intergovernmental Relations
Associate Administrator for Public Affairs
Deputy Chief Financial Officer
Associate Chief Financial Officer
Associate Chief Financial Officer for Policy
Controller
Deputy Controller
Director, Office of Continuous Improvement, Office of the Chief Financial Officer
Director, Policy, Training, and Accountability Division, Office of the Controller
Chief, Management, Integrity and Accountability Branch; Policy, Training, and Accountability Division,
Office of the Controller
Audit Follow-Up Coordinator, Office of the Administrator
Audit Follow-Up Coordinator, Office of the Chief Financial Officer
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