DOD TRAVEL IMPROPER PAYMENTS: Fiscal Year 2006 Reporting Was Incomplete and Planned Improvement Efforts Face Challenges

Abstract : In its fiscal year 2006 PAR, DOD reported an estimate of approximately $8 million in travel program improper payments, which DOD reported as reflecting about 1 percent of reported travel payments for the year. While this estimate would indicate the program was not at risk of significant improper payments under OMB guidance, we found that DOD s travel improper payment disclosure for fiscal year 2006 was incomplete because it understated the full extent of travel improper payments. The DOD travel payment data used to assess the program s risk of significant improper payments only included payments processed by the Defense Travel System (DTS) approximately 10 percent of the $8.5 billion of DOD travel program obligations reported for fiscal year 2006. Nonetheless, DOD s 2006 PAR describes a travel postpayment review process that may mislead the reader to believe that the reported travel improper payment estimate represents more than DTS-processed travel. Further, the travel improper payment estimate excluded the largest user of DTS, the Army, which would likely have increased DOD s estimate by over $4 million. Finally, the statistical sampling methodology and process used by DOD to estimate DTS improper payments for IPIA reporting as reported for fiscal year 2006 had several weaknesses and did not result in statistically valid estimates of travel improper payments.