1. “Transportation Audits” What do Agencies need to know? June 28, 2012 1

2.  Audits Overview What’s Mandated (Pre-Payment) Agency Pre-Payment Requirements What’s Mandated (Post Payment) Agency Post Payment Requirements Post Payment Process Agenda 2

3. 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 3

4.  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”audit.policy@gsa.gov  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 4

5.  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.govSDDCrates@gsa.gov If you utilize TMSS or DPS, GFM (DOD), it is not necessary to send copies of rates to GSA Prepayment Audit Requirements 5

6.  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 Reportaudit.policy@gsa.gov 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 6

7. What’s Mandated Post Payment Audit Mandated 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 7

8.  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 DocsQMCATariffs@gsa.gov 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 8

9.  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 9

10.  Passenger Air Bus Train  Personal Property Household Goods  General Commodities Motor Rail Steamship  Pipelines Our Audit Covers the Travel of People & Property 10

11. Top Issues IssuesTop HHG Overcharges Auxiliary Services3,480 Weight Adjustments3,179 Duplicate Payments1,763 COF (Terminal Security Handling Charges) 563 SIT Charges485 Fuel Surcharge290 11

12. Top Issues IssuesTop Freight Overcharges Tender/Rate Alternation23,066 Fuel Surcharge (Syncada)2,314 Service Failure1,982 Fuel Surcharge (Paper)1,974 Services Not Authorized1,848 12

13.  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 13

14.  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 14

15.  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 15

16. 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 Jack Audit Policy and Review Branch Chief (703) 605-3488 donna.jack@gsa.gov George Thomas, Jr. Branch Chief Disputes Resolution George Thomas, Jr. 703-603-8188 george.j.thomas @gsa.gov Vacant TSP Claims Status Inquiry (703)605-9435 Contacts – Transportation Audits Division 16

17. Questions? 17